The Central Bank of Nigeria (CBN) has issued a directive for all banks and financial institutions to transfer funds from dormant accounts to the apex bank. This applies to accounts that have been inactive for 10 years or more.
In a circular released by CBN’s Acting Director of Financial Policy and Regulations, Mr. John Onoja, it was specified that the guideline targets financial institutions under CBN’s jurisdiction. The aim is to manage dormant accounts and unclaimed balances, ensuring they are held in trust and potentially reunited with their rightful owners.
The directive outlines that eligible dormant accounts include those with balances that have been inactive for over a decade. These accounts can include current, savings, and term deposits in both local and foreign currencies, as well as domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts, and wallets.
Additional categories of dormant assets include government-owned accounts, unclaimed salaries, wages, commissions, bonuses, proceeds from uncleared financial instruments, funds from correspondent banks lacking beneficiary details, and unclaimed judgment debts. However, certain accounts are exempt from this directive, such as those involved in ongoing litigation, under regulatory or law enforcement investigation, and encumbered accounts including those used as collateral.
The CBN’s objectives with this directive are to standardize the management of dormant accounts, hold funds in trust for their owners, and establish procedures for reclaiming these funds. This move is seen as a step towards improving financial asset management and ensuring that unclaimed funds are properly accounted for.
