The Central Bank of Nigeria (CBN) has introduced stricter regulations for managing dormant accounts and unclaimed financial assets in banks and other financial institutions.
These new guidelines, effective immediately, replace previous policies issued in 2015. The announcement was made in a circular signed by John Onojah, Acting Director of the Financial Policy and Regulations Department, CBN, on Friday night.
The guidelines, developed in line with Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed consultations with relevant stakeholders whose feedback was incorporated into the review process.
The new regulations extend the dormancy period of accounts from six years of inactivity to 10 years without customer activity. After 10 years, eligible account balances and unclaimed financial assets can be transferred to a special account managed by the CBN.
The guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets, and outline procedures for their administration by banks and financial institutions in Nigeria. Details on the transfer process and the revised templates for quarterly returns to the Banking Supervision Department or Other Financial Institutions Supervision Department will be provided later.
The guidelines also define the roles and responsibilities of stakeholders. The CBN is mandated to open and maintain accounts for warehousing unclaimed balances under a trust fund and to establish a management committee to oversee the Unclaimed Balances Trust Fund (UBTF Pool Account). The CBN will manage the funds according to BOFIA 2020 and will publish procedures for reclaiming warehoused funds and financial assets.
Eligible dormant accounts and unclaimed financial assets include current, savings, and term deposits in local currency, domiciliary accounts, deposits for purchasing shares and mutual investments, prepaid card accounts, and wallets. Additionally, government-owned accounts, proceeds from uncleared and unpresented financial instruments, unclaimed salaries and wages, commissions, and bonuses are included.
