The Central Bank of Nigeria (CBN) is contemplating taking custody of all dormant accounts from the banks.
To this effect the apex bank has issued a new regulatory framework that will allow it take over billions of naira lying unused in dormant accounts. The CBN plans warehousing it and investing the proceeds in treasury bills and other government securities.
Accounts that will be affected are dormant accounts that have remained with the financial institutions for 10 years and above.
Also eligible are 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’s account had not been debited, a judgment debt for which the judgment creditor has not claimed the amount of judgment award; and any other deposits or financial assets that may be designated by CBN” will also be part of the pool.
The guideline dated August 6, but just released by the CBN, stipulates how it intends to effectively manage these funds in dormant accounts in the banks; what the funds could be used for , their compliance expectations, monitoring and evaluation, dispute resolution and sanctions for violation .
In a circular signed by the Director of the Financial Policy and Regulation Department, Chibuzo Efobi, It stated that the apex bank would establish the Unclaimed Balances Trust Fund (UBTF) with a substantive management committee for the proper administration of the money.
Dormant accounts/unclaimed balances and other financial assets in savings, current, term and domiciliary accounts are affected. Financial assets whether in form of salaries, wages, bonuses or commissions held in cards and wallets will also be remitted to UBTF Account Pool for CBN custody.