The Central Bank of Nigeria (CBN) has instructed banks and other financial institutions to transfer funds from dormant accounts to the CBN. This directive targets accounts that have been inactive for 10 years or more.
In a circular issued by the CBN’s Acting Director of Financial Policy and Regulations, John Onoja, the bank outlined its objectives for this move. The guidelines aim to identify dormant accounts and unclaimed balances to reunite them with their owners, hold these funds in trust, standardize the management of such accounts, and establish a procedure for reclaiming the funds.
“The provisions of this guideline shall apply to all financial institutions under the purview of the Central Bank of Nigeria,” the circular stated.
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Eligible accounts include dormant account balances that have been inactive for at least ten years. These accounts encompass current, savings, and term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, and prepaid card accounts and wallets. Other eligible funds include unclaimed salaries, wages, commissions, bonuses, and proceeds from stale financial instruments.
The circular also mentioned that certain accounts are exempt from this directive. These include accounts involved in litigation, those under investigation by regulatory authorities, and encumbered accounts such as those used as collateral.