CBN mulls creation of new office to manage dormant account, unclaimed balances
Omeiza Bilal
The Central Bank of Nigeria CBN has said that it will create a dedicated office to manage all dormant accounts and unclaimed balances in the banks.
The apex bank disclosed this in its Frequently Asked Questions (FAQs) on Dormant Account and Unclaimed Balances issued over the weekend.
The FAQ’s document on dormant account and unclaimed balances said “The CBN shall establish a dedicated office for this purpose and the office will be supervised by a Management Committee.
The CBN’s FAQs also stated that In line with the provisions of the Guidelines, the apex bank shall receive and manage eligible funds in trust for the account holders and funds beneficiaries, adding that the CBN will release interests from invested funds after account reactivation.
It however said that the CBN will refund the principal and any interest on the invested funds to the beneficiaries within ten (10) working days of receiving a reclaim request from the Financial Institution.
According to the CBN “The interest payable shall be at a rate to be determined by the CBN from time to time.
“For Non-interest banks, the profit and loss on the unclaimed balances shall be determined by the CBN from time to time.
“The CBN will refund the principal and any interest on the invested funds to the beneficiaries within ten (10) working days of receiving a reclaim request from the FI.”
Stating the timeline for transferring unclaimed balances, the apex bank said Financial Institution shall transfer unclaimed balances to the CBN immediately such accounts have been dormant for ten (10) years.
“The CBN will manage the unclaimed balances by warehousing the funds in the Unclaimed Balances Trust Fund (UBTF) Pool Account and thereafter investing the funds in Nigerian treasury bills and other approved securities.”
The guideline said account that can be exempted from dormant account and unclaimed balance include accounts that are subject to litigation, a judgment debt for which the judgment creditor has not claimed the amount of judgment award and the case is still active in Court, accounts under investigation by a regulatory authority or law enforcement agency and encumbered accounts including, but not limited to, collaterals and liens.
