CBN to setup office for dormant account funds management

• Published On: 28 July 2024 at 14:12

The CBN has announced that a separate office will be established to oversee dormant accounts and unclaimed amounts.

This was stated in the CBN's recently released paper, "FAQs - Guidelines on Dormant Accounts and Unclaimed Balances - July 25, 2024."

It reads: "The CBN shall establish a dedicated office for this purpose." The office will be overseen by a Management Committee.

The top bank adds that it will hold these funds in trust and reimburse beneficiaries for the principle amount as well as any accumulated interest within ten working days of receiving a request for reclamation from the financial institution.

The FAQ paper stated, "The interest payable shall be at a rate determined by the CBN from time to time." For non-interest banks, the CBN will evaluate the profit and loss on unclaimed amounts on a regular basis.

"The CBN will refund the principal and any interest on the invested funds to the beneficiaries within ten (10) working days of receiving a reclaim request from the FI."

The CBN further stated that financial institutions are required to notify consumers immediately and on a quarterly basis when their accounts become inactive or dormant.

To reactivate a dormant account, the account owner must complete a reactivation form at their financial institution and provide confirmation of ownership and identity.

It was previously stated that the CBN may make investments with funds from dormant accounts, unclaimed balances in Nigerian Treasury Bills (NTBs), and other government securities.

This follows the CBN's recently announced "Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria."