The Central Bank of Nigeria, CBN, has released an exposure draft of guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria. The guidelines propose that monies in accounts that have been dormant for up to 10 years be invested in Treasury Bills. The draft aims to provide clarity on the procedures for the management of dormant and inactive accounts by banks in the country, in response to requests from banks and other stakeholders.
The circular accompanying the exposure draft, which was signed by the Director of the Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi, has also called for inputs that should be sent within three weeks. The draft states that banks and Other financial institutions (OFIs) are expected to transfer all unclaimed balances in accounts that have been dormant for up to 10 years into an Unclaimed Balances Trust Fund (UBTF) pool account, which will be domiciled at the CB
The banks and OFIs are expected to transfer unclaimed balances quarterly, not later than 15 days of the first month of the subsequent quarter, and retain all records of communication on the management of dormant accounts for a minimum of 10 years. The proposal to invest dormant monies in Treasury Bills is aimed at ensuring that such funds are put to good use, rather than lying idle in dormant accounts.N.
