The Central Bank of Nigeria (CBN) has introduced new guidelines allowing next-of-kin, legal representatives, or beneficial owners to claim unclaimed balances in dormant accounts. This directive aims to streamline the process of reclaiming funds that have remained unclaimed for extended periods.
In a report released over the weekend, the CBN outlined the procedure for claiming these funds. Claimants must submit applications to the respective financial institutions, providing legal proof of title. For corporate entities, additional details of directors and authorized signatories are required.
The CBN will manage these dormant accounts and unclaimed funds, holding them in trust for the account holders. A dedicated office, supervised by a management committee, will oversee the process. The unclaimed funds will be placed in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in treasury bills and other securities. Upon a valid claim, the principal amount and any accrued interest will be refunded to beneficiaries within 10 working days.
To reclaim funds, account owners or their representatives must visit financial institutions to complete a reclaim form, provide evidence of ownership, a sworn affidavit, and valid identification. Financial institutions are required to verify the claims and forward them to the CBN within 10 days, which will then refund the money within another 10 days of receiving the request.
If a financial institution’s license is withdrawn, the Nigeria Deposit Insurance Corporation (NDIC) will manage the dormant accounts. This policy also applies to dormant domiciliary accounts, though active domiciliary accounts are not affected.
According to the CBN, an inactive account is one without customer-initiated transactions for six to 12 months, while a dormant account remains inactive for one year or more. Unclaimed balances are defined as those dormant for at least 10 years. Eligible accounts include current, savings, term deposits, domiciliary accounts, deposits for shares, prepaid card accounts, and government-owned accounts. Exempt accounts are those under litigation, investigation, or encumbrance.
Banks are directed to notify account owners when an account becomes inactive or dormant and continue these notifications quarterly. This directive follows the CBN’s recent order for financial institutions to transfer all unclaimed funds to an account managed by the apex bank.
The revised guidelines replace those issued in October 2015, operationalizing Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The update aims to standardize the management of dormant accounts, unclaimed balances, and financial assets, ensuring a transparent and efficient process for reclaiming funds.
