A new regulatory framework established by the Central Bank of Nigeria (CBN) will allow it to take over billions of naira from dormant bank accounts, store them, and use the revenues to buy treasury bills and other government securities.
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In recently released guidelines on the management of dormant accounts, unclaimed balances and other financial assets in banks and other financial institutions in Nigeria, the CBN explained the management procedures for monies trapped in dormant accounts, what the funds might be utilised for, awaiting customer refunds, compliance expectations, monitoring and evaluation, dispute resolution, and penalties for infractions.
The CBN disclosed that the money from the dormant accounts might be invested in Nigerian treasury bills and other securities with the permission of the Unclaimed Balances Management Committee.
The bank explained that to access the funds, a beneficial owner must fill out an asset reclaim form at any bank. Financial institutions then have up to 10 working days to process and verify the claims before sending the request to the CBN.
Within another 10 working days, the apex bank must return the funds to the financial institution that submitted the initial payment request so they can be remitted to the claimant, who has an unrestricted right to pursue the claim. The bank also gives 15 working days to resolve disagreements that might arise quickly.
After implementing the CBN’s latest directive, banks will forfeit custody of the billions of naira currently held in various dormant accounts.
The CBN disclosed that the money from the dormant accounts might be invested in Nigerian treasury bills and other securities with the permission of the Unclaimed Balances Management Committee.
The bank explained that to access the funds, a beneficial owner must fill out an asset reclaim form at any bank. Financial institutions then have up to 10 working days to process and verify the claims before sending the request to the CBN.
Within another 10 working days, the apex bank must return the funds to the financial institution that submitted the initial payment request so they can be remitted to the claimant, who has an unrestricted right to pursue the claim. The bank also gives 15 working days to resolve disagreements that might arise quickly.
After implementing the CBN’s latest directive, banks will forfeit custody of the billions of naira currently held in various dormant accounts.
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