CBN Seeks Transfer Of Funds In 10 Year-Old Dormant Accounts Into T-Bills

The Central Bank of Nigeria, CBN has proposed that banks transfer funds in accounts that have been dormant for up to 10 years into a Trust Fund which will ultimately be invested in Treasury Bills.

The proposal was contained in the guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in banks and other financial institutions in Nigeria that emerged as a draft.

According to a circular accompanying the draft, the guideline was developed in response to requests from banks and other stakeholders for the CBN to clarify processes for the management of dormant and inactive accounts.

The circular which was signed by the Director of Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi, also called for inputs which should be sent within three weeks.

The draft states that banks and Other financial institutions (OFIs) are expected to transfer all unclaimed balances in accounts that have been dormant for up to 10 years into an Unclaimed Balances Trust Fund (UBTF) pool account which will be domiciled at the CBN.

They are also expected to transfer unclaimed balances quarterly, not later than 15 days of the first Month of Subsequent quarter; and retain all records of communication on the management of dormant accounts for a minimum of 10 years

Banks and OFIs, by the guideline are to ”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”, and refund the unclaimed funds to the beneficiaries not later than 10 working days from the date of receipt of the request.

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