According to a proposal made by the Central Bank of Nigeria, banks should move money from accounts that have been inactive for up to ten years into a trust fund account.
This is stated in the newly disclosed exposure draft of the Nigerian banks’ and other financial institutions’ management of dormant accounts, unclaimed balances, and other financial assets.
According to a circular that was attached to the exposure draft, the CBN developed the guidelines in response to requests for clarification from banks and other stakeholders regarding the handling of dormant and inactive accounts by national banks.
The circular, which was signed by Chibuzor Efobi, the director of the apex bank’s financial policy and regulation department, also requested inputs that were to be delivered in three weeks.
According to the proposal, all unclaimed funds must be transferred by banks and other financial institutions into a pool account for the Unclaimed Balances Trust Fund, which would be based at the CBN.
The balances would be invested in government assets like Treasury Bills and refunded to the beneficiaries with no later than ten days’ notice, according to the apex bank.
The Central Bank of Nigeria (CBN) declared, “The Central Bank of Nigeria must open and maintain an account designated for the purpose of storing unclaimed funds in qualifying accounts. Unclaimed Balances Trust Fund Pool Account shall be the name of the account.
The proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs, as well as unclaimed salaries and wages, commissions, and bonuses, are among the eligible accounts and financial assets. These include current, savings, and term deposits in local currency; domiciliary accounts; deposits toward the purchase of shares and mutual investments; prepaid card accounts and wallets.