NIGERIA:CBN asks banks to transfer unclaimed balances, funds in dormant accounts.

By Chinasaokwu Helen Okoro

The Central Bank of Nigeria has directed all banks and other financial institutions to transfer all dormant accounts, unclaimed balances and other financial assets to its dedicated account.The apex bank made this known in a circular released on Friday and signed by its acting Director of the Financial Policy and Banking Regulation Department, John Onojah.According to the CBN, all dormant accounts and unclaimed balances with banks for at least 10 years will be warehoused in a dedicated account known as the Unclaimed Balances Trust Fund Pool Account.The apex bank added that the funds from dormant accounts, unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.The CBN, however, said the new guidelines which is a review of the guidelines issued in October 2015, exempted dormant accounts, and unclaimed balances under litigation and investigation.The guideline reads, “CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:“Open and maintain the ‘UBTF Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee.“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than 10 working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension.”

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