The Central Bank of Nigeria (CBN) has directed all commercial banks and financial institutions to transfer funds from inactive or dormant accounts to its coffers.
This directive, announced in a circular by CBN Acting Director of Financial Policy and Regulations, Mr. John Onoja, targets accounts that have remained inactive for 10 years or more.
According to the circular, the new guidelines aim to identify dormant accounts, unclaimed balances, and financial assets, with the intention of reuniting them with their rightful owners.
The guidelines also intend to standardize the management of dormant accounts and establish a procedure for reclaiming warehoused funds.
“Eligible accounts are those that have remained dormant for a period of ten years and beyond,” the circular stated. The types of accounts affected include current, savings, and term deposits in local currency, domiciliary accounts, deposits for purchasing shares and mutual investments, and prepaid card accounts and wallets.
Other eligible funds include government-owned accounts, proceeds from uncleared and unpresented financial instruments, unclaimed salaries, wages, commissions, and bonuses, proceeds from stale local or foreign currency drafts, funds received from correspondent banks without sufficient beneficiary details, and judgment debts unclaimed by creditors.
However, certain accounts are exempt from this directive. These exemptions include accounts subject to litigation, judgment debts where the case is still active in court, accounts under regulatory or law enforcement investigation, and encumbered accounts such as those used for collateral.
Join our Channel...