July 21, (THEWILL) – The Central Bank of Nigeria has directed deposit money banks (DMBs) and other financial institutions in the country to transfer funds in dormant accounts and unclaimed balances into an account controlled by the apex bank.
A circular issued by its Acting Director of Financial Policy and Regulations, John S. Onoja, said the directive was stated in the “Guidelines on Management of Dormant Account and Unclaimed Fund” published on Friday.
According to the apex bank, the objectives of the guidelines, among others, were to identify dormant accounts/unclaimed balances, and financial assets with a view to reuniting them with their beneficial owners; hold the funds in trust for the beneficial owners; standardise the management of dormant accounts/unclaimed balances, and financial assets; and establish a standard procedure for reclaiming warehoused funds.
It explained that “eligible accounts are dormant account balances that have remained with the FIs for a period of ten (10) years and beyond.
“Eligible dormant accounts/unclaimed balances and other financial assets shall include: current, savings, and term deposits in local currency; Domiciliary accounts; deposits towards the purchase of shares and mutual investments; and prepaid card accounts and wallets.
“Government Owned Accounts; Proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs; Unclaimed salaries and wages, commissions, and bonuses; Proceeds of stale local and/or foreign currency drafts not presented for payment by beneficiaries; Funds received from a correspondent bank without sufficient details as to the rightful beneficiary and/or a recall of funds made to the remitting bank to which the Nigerian bank account had not been debited.
“A judgement debt for which the judgement creditor has not claimed the amount of judgment award; and any other deposits or financial assets that may be designated by CBN.”
It, however, emphasised that the “following classes of dormant accounts/financial assets are exempted: Accounts that are subject of litigation; A judgement debt for which the judgement creditor has not claimed the amount of judgment award and the case is still active in rt; Accounts under investigation by a regulatory authority or law enforcement agency; and encumbered accounts, including, but not limited to, collateral and liens.”
The circular reads: “The CBN hereby issues the revised guidelines on the management of dormant accounts, unclaimed balances and other financial assets in banks and other financial institutions in Nigeria to banks and other financial institutions for implementation.
“This is sequel to the conclusion of the review of the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria issued in October 2015.
“The revised Guidelines, which operationalises Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process. It, amongst others, standardised the management of dormant accounts, unclaimed balances and financial assets, and outlined the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
“The modalities for the transfer of the relevant balances/funds/assets to the CBN, together with the revised templates for the rendition of quarterly returns to Banking Supervision Department or Other Financial Institutions Supervision Department (as the case may be) will be communicated subsequently.
“This Guidelines supersedes the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria, issued in October 2015 and takes effect immediately.”
