Central Bank of Nigeria Unveils New Guidelines for Dormant Accounts and Unclaimed Balances

In a recent move aimed at protecting funds in dormant accounts and promoting transparency, the Central Bank of Nigeria (CBN) has issued new guidelines for the management of dormant accounts and unclaimed balances in financial institutions. According to the guidelines, only accounts that have been inactive for over 10 years will be eligible to be classified as dormant and will be used for investment purposes.

The CBN has also announced the creation of a dedicated office to manage dormant accounts and unclaimed balances, which will be supervised by a management committee. The office will be responsible for refunding the principal and any accrued interest to beneficiaries within 10 working days of receiving a reclaim request from the financial institution.

The guidelines specify that eligible accounts for dormant status include current, savings, term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts and wallets, and government-owned accounts. However, some accounts are exempt from being considered dormant, including those subject to litigation, judgment debts under active court cases, accounts under regulatory investigation, and encumbered accounts like collaterals and liens.

According to CBN Governor Yemi Cardoso, the policy aims to address the issue of dormant accounts in Nigeria, which are more susceptible to fraudsters. By implementing this policy, the CBN seeks to ensure the safe keeping of funds in dormant accounts and promote transparency in the management of financial assets.

The new guidelines have been published on the CBN’s website and are effective immediately. Financial institutions are required to notify customers immediately and every quarter when their accounts become inactive or dormant. Account owners who wish to reactivate their dormant accounts must complete a reactivation form at their respective financial institutions, providing evidence of ownership and valid identification.

With this new policy, the CBN aims to promote a more efficient and transparent financial system in Nigeria, while also protecting the rights of account holders.