The Central Bank of Nigeria (CBN) has introduced new guidelines clarifying the management of dormant accounts and unclaimed balances, aiming to safeguard funds and ensure transparency in their handling.
Thank you for reading this post, don't forget to subscribe!According to the guidelines, accounts that have been inactive for over 10 years will be classified as dormant and may be used for investment purposes, specifically in Nigerian Treasury Bills and other government securities.
In a document titled “FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024,” posted on its website, the CBN outlined its strategy to operationalize Section 72 of the Banks and Other Financial Institutions Act, 2020.
This move seeks to standardize the management of dormant accounts and unclaimed balances across financial institutions in Nigeria.
The CBN emphasized that eligible accounts for dormant status include various types such as current, savings, term deposits, domiciliary accounts, and government-owned accounts, among others specified in the guidelines.
Financial institutions are mandated to notify customers immediately and quarterly when their accounts become inactive or dormant.
Furthermore, the apex bank announced the establishment of a dedicated office to oversee the management of dormant accounts and unclaimed balances.
This office will operate under the supervision of a management committee and ensure prompt refunds of principal and accrued interest to beneficiaries within 10 working days upon receiving a reclamation request from the financial institution.
The guidelines also outline exceptions to dormant account classification, including accounts involved in litigation, under regulatory investigation, or serving as collateral. Reactivating a dormant account requires account owners to complete a reactivation form at their respective financial institutions, providing proof of ownership and valid identification.
CBN Governor Yemi Cardoso underscored the importance of this policy in safeguarding dormant account funds from potential fraudulent activities, ensuring their secure management and eventual return to rightful owners.
The new guidelines are part of broader efforts to enhance financial sector stability and customer protection in Nigeria.
