The Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions to transfer funds from dormant accounts to the apex bank. This directive affects accounts that have been inactive for ten years or more.
According to a circular released by CBN’s Acting Director of Financial Policy and Regulations, Mr. John Onoja, the guideline applies to all financial institutions under the CBN’s oversight.
The objectives of these guidelines include identifying dormant accounts and unclaimed balances, reuniting these with their beneficial owners, holding the funds in trust, standardizing the management of dormant accounts, and establishing procedures for reclaiming warehoused funds.
"Eligible accounts are dormant account balances that have remained with the financial institutions for a period of ten years and beyond," the circular stated. These accounts 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.
Other eligible dormant accounts and financial assets include government-owned accounts, proceeds of uncleared and unpresented financial instruments, unclaimed salaries, wages, commissions, and bonuses, proceeds of stale local and/or foreign currency drafts, funds received from correspondent banks without sufficient details as to the rightful beneficiary, and judgment debts unclaimed by judgment creditors.
However, certain dormant accounts and financial assets are exempted from this directive. These include accounts under litigation, judgment debts still active in court, accounts under investigation by regulatory authorities or law enforcement agencies, and encumbered accounts such as collateral and liens.
The CBN aims to ensure these funds are properly managed and eventually returned to their rightful owners.
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