The Central Bank of Nigeria (CBN) has introduced new regulations to facilitate the recovery of funds from dormant accounts. These accounts, which have been inactive for at least ten years, now fall under the guidelines set by the CBN to enhance transparency and prevent potential misuse of unclaimed balances.
Under the new directive, financial institutions (FIs) are required to transfer funds from dormant accounts to the Unclaimed Balances Trust Fund (UBTF) Pool Account after ten years of inactivity. This measure, detailed in the “Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria” guideline, aims to streamline the process of reclaiming unclaimed funds.
Recovery Process for Dormant Accounts
1. **Initiating the Claim:** Account owners or their beneficiaries must visit any branch of their respective financial institutions to complete an ‘Asset Reclaim Form.’ This step initiates the recovery process.
2. **Providing Evidence:** Claimants need to present proof of account ownership, a valid means of identification, proof of current residence, and an affidavit confirming the accuracy of the provided information.
3. **Verification by Financial Institutions:** The financial institutions are tasked with verifying the claims within ten working days. Once verified, the claims are forwarded to the CBN’s director of the banking services department.
4. **Processing by CBN:** The CBN will then process the refund and transfer the unclaimed balance to the claimant’s account within ten working days of receiving the request from the financial institution.
The CBN has emphasized that partial claims are not allowed, and the process must be completed in full. Furthermore, the right to reclaim unclaimed balances is indefinite, ensuring account owners and beneficiaries can recover their funds without time constraints.
Impact on Financial Institutions and Customers
The CBN’s decision is part of a broader effort to manage dormant accounts and unclaimed balances more effectively, aiming to curb potential abuses and enhance financial transparency. According to reports, there are approximately ₦21 trillion in dormant accounts across various financial institutions in Nigeria.
In related news, the CBN has announced plans to extend its monetary tightening policies to control inflation. CBN Governor Olayemi Cardoso stated that this move aims to mitigate risks and address structural imbalances that have contributed to heightened inflation.
The introduction of these guidelines is expected to improve the management of dormant accounts, ensuring that funds are safely and efficiently returned to their rightful owners.
For further details on the new guidelines and the recovery process, customers are encouraged to visit their respective financial institutions or consult the CBN’s official communications.
