Next-of-kin, legal agents, or beneficial owners may now make claims for unclaimed funds in inactive accounts, according to the Central Bank of Nigeria (CBN).
This was explained in a report published by the CBN over the weekend. It said that next-of-kin might now apply to financial institutions to claim unclaimed assets.
These applications need to contain legal documentation of ownership as well as information on directors and authorized signatories for business entities.
The CBN is in charge of overseeing inactive accounts and unclaimed money. It is able to accept and handle these monies on behalf of account holders. This procedure will be managed by a management committee under the direction of a dedicated office.
The CBN will invest unclaimed money in treasury bills and other securities and lodge it in the Unclaimed Balances Trust Fund (UBTF) Pool Account. After a reclaim request, beneficiaries will get a refund of the principal plus any interest within ten business days.
Owners of accounts must visit financial institutions to fill out a reclaim form and present proper identification, proof of ownership, and a written affidavit. Within ten days, financial institutions will validate the claim and forward it to the CBN. After ten days of receiving the request, the CBN will return the funds.
Dormant accounts will be handled by the Nigeria Deposit Insurance Corporation (NDIC) in the event that a financial institution’s license is revoked. This restriction also applies to balances in inactive domiciliary accounts; active domiciliary accounts are not affected.
For six to twelve months, there are no customer-initiated transactions on an inactive account. A dormant account is one that is not used for a year or longer. Balances that have lain dormant for a minimum of ten years are considered unclaimed.
Current and savings accounts, term deposits, share deposits, domiciliary accounts, prepaid card accounts, government-owned accounts, and more are all eligible. Accounts that are being sued, investigated, or burdened are exempt accounts.
The CBN ordered banks to send notice to account holders both on a quarterly and an inactive/dormant basis.
The CBN only recently ordered banking institutions to move all unclaimed money to an account under the control of the top bank.
This was stated in the revised guidelines that were published for the administration of inactive accounts, unclaimed money, and other assets held by banks and other financial organizations.
This update is the result of extensive analysis and stakeholder collaboration. The old rules, which were released in October 2015, have been replaced with new ones that operationalize Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets. They also outline the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria, according to a statement signed by John Onojah, Acting Director, Financial Policy and Regulation Department.
