Bank customers
CBN gives new directive on dormant accounts, unclaimed bank balances
The Central Bank of Nigeria (CBN) has released updated guidelines for managing dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions across Nigeria.
Under the new directives released on Friday, financial institutions must transfer accounts that have been inactive for over a decade to the CBN’s custody.
The CBN’s guidelines aim to standardize the handling of dormant accounts, unclaimed balances, and financial assets. They detail the procedures banks and financial institutions must follow to manage these funds and assets.
The bank will later provide details on how to transfer the relevant balances, funds, and assets to the CBN. It will also supply updated templates for submitting quarterly returns to the Banking Supervision Department or the Other Financial Institutions Supervision Department, as appropriate.
READ ALSO:
Effective immediately, these guidelines replace a previous circular from October 2015.
The CBN noted that financial institutions often hold deposit accounts and other liabilities that see no customer activity for extended periods, rendering them dormant. Maintaining such accounts can lead to significant unclaimed balances, which may not benefit the depositors.
Furthermore, the CBN warned that dormant and unclaimed balances are increasingly vulnerable to fraud and misuse.
The revised regulation aims to prevent the misuse of dormant and inactive accounts, establish operational standards, and enhance the CBN’s oversight of these accounts. It also seeks to identify dormant accounts and unclaimed balances, reunite them with their rightful owners, hold the funds in trust, and provide a standardized procedure for reclaiming these funds.
Eligible accounts include those that have been dormant for 10 years or more.
Shi’ites threaten to sue FG, army for detaining 60 minors, others The Shi’ites Islamic group…
Gunmen attack Benue bus, kill driver, one other, seize 13 travellers Gunmen suspected to be…
Tinubu, Atiku, and Argentina: United by pain, divided by rhetoric, By Farooq Kperogi President Bola…
Independence Bridge repairs: Sanwo-Olu urges Lagos residents to work remotely Babajide Sanwo-Olu, the governor of Lagos, said…
Chinese man found with fake diplomatic number plate in Lagos The Lagos State Police Command has taken a…
Akpabio to sue Natasha for alleged assassination attempt Senate President Godswill Akpabio has said he will…