CBN directs banks transfer funds in dormant account to it

Central Bank of Nigeria  (CBN) has directed all banks and other financial institutions to transfer funds in all dormant accounts to.the apex bank. A circular by CBN Ag. Director of  Financial Policy and Regulations, Mr. John Onoja, indicated that accounts that have remained dormant for 10.years and above would be affected. It said, “The provisions of this Guidelines shall apply to all financial institutions under the purview of the Central Bank of Nigeria.” The apex bank.said that the objectives of this Guidelines, amongst others were to 

 Identify dormant accounts/unclaimed balances and financial assets with a view to reuniting them with their beneficial owners; hold the funds in trust for the beneficial owners; standardise the management of dormant accounts/unclaimed balances and financial assets; and establish a standard procedure for reclaim of warehoused funds. It added, “eligible accounts are dormant accounts balances that have remained with the FIs for a period of ten (10) years and above.

“Eligible dormant accounts/unclaimed balances and other financial assets shall  include: Current, Savings and term deposits in local currency; Domiciliary accounts; Deposits towards the purchase of shares and mutual investments; and Prepaid card accounts and wallets. “Government Owned Accounts; Proceeds of uncleared and un-presented financial instruments belonging to  customers or non-customers of FIs; Unclaimed salaries and wages, commissions, and bonuses; Proceeds of stale local and/or foreign currency drafts not presented for payment by beneficiaries; Funds received from a correspondent bank without sufficient details as to the rightful beneficiary and/or a recall of funds made to the remitting bank to which the Nigerian bank account had not been debited.

“A judgment debt for which the judgment creditor has not claimed the amount of judgment award; and any other deposits or financial assets that may be designated by CBN.” The following classes of dormant accounts/financial assets are exempted: Accounts that are subject of litigation; A judgment debt for which the judgment creditor has not claimed the amount  of judgment award and the case is still active in Court; Accounts under investigation by a regulatory authority or law enforcement  agency; and Encumbered accounts including, but not limited to, collaterals and liens.