The CBN has proposed that banks transfer funds from accounts that have been dormant for up to 10 years. So, the funds will be transferred to a trust fund account. This statement was recently released in an exposure draft of guidelines. It was on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions In Nigeria.
A circular accompanied the exposure draft and stated that the guidelines were in response to requests from banks and other stakeholders. Specifically, they wanted clarification from CBN about procedures for the management of dormant and inactive accounts by banks in the country. The circular was signed by the Director of the Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi. Besides, he also called for inputs, which should be sent within three weeks.
Equally important, banks and other financial institutions are expected to transfer all unclaimed funds. It will be transferred into an Unclaimed Balances Trust Fund pool account. The trust fund, which will be domiciled at the CBN. Furthermore, the balances would be invested in government securities like Treasury Bills. It would be returned to the beneficiaries not later than ten days after notice.
Also, the central bank said any bank or financial institution that violates any provision of the new guidelines would attract a penalty of not less than N2,000,000. Again, failure to comply with CBN’s directive in respect of any infraction would attract a further daily penalty of N200,000. It will continue until the directive is complied with, or as determined by CBN.
However, the CBN also said that it would publish an annual list of the owners of the unclaimed balances that had been transferred to the pool account. There will also be procedures for reclaiming warehoused funds.