By Stanley Onyeka, Lagos
The Central Bank of Nigeria (CBN), has issued 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.
Such funds are to be transferred into an account controlled by the apex bank.
The circular was titled: “Guidelines on Management of Dormant Account and Unclaimed Fund,” and signed CBN’s Acting Director, Financial Policy and Regulations, John Onoja.
It explained that “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.”
Funds to be affected are those domiciled in:
- 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; and,
- 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 standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
However, the guidelines exempted some funds in certain classes of dormant accounts/financial assets, including:
- 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 court;
- Accounts under investigation by a regulatory authority or law enforcement agency; and,
- Encumbered accounts, including, but not limited to, collateral and liens.
The circular said the move “standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines 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,” it added.
