The Central Bank of Nigeria Governor, Olayemi Cardoso, has explained that the directive for banks to transfer all dormant accounts and unclaimed balances to a specialized account was issued to prevent fraud.
Cardoso made this announcement on Tuesday while addressing journalists at the conclusion of the two-day 296th Monetary Policy Committee Meeting in Abuja.
The Central Bank recently issued new guidelines regarding dormant accounts, stating that it would create and manage an “Unclaimed Balances Trust Fund (UBTF) Pool Account” to store unclaimed balances. Providing further clarification on the policy, Cardoso pointed out that dormant and unclaimed balances are particularly vulnerable to fraud.
He explained, “When accounts are left dormant in banks, they become more susceptible to fraudsters who may attempt to steal your identity and access your funds. This is a common issue faced by many banks.”
Cardoso emphasized that the policy is designed to ensure that these funds are safely transferred to the Central Bank at no cost to the beneficiaries.
“The policy and directive are intended to ensure that all these funds are moved to the Central Bank for safekeeping at zero cost to the beneficiaries. The Central Bank will manage these funds, and when the rightful owner comes forward, the money will be returned along with any accrued interest.”
Additionally, the CBN’s revised policy exempts dormant and unclaimed accounts that are less than 10 years old and under limitation.
