CBN finally takes over dormant accounts, to invest funds in treasury bills

The Central Bank of Nigeria (CBN) has issued a fresh directive to banks and financial institutions operating in Nigeria about dormant accounts.
In the new directives, the apex bank will take over the funds in such dormant accounts and invest them in treasury bills and other securities.
This was contained in a circular FPR|DIR|PUB|CIR|002|011 released on Friday by John S. Onojah, Acting Director, Financial Policy and Regulation Department and titled: “Guidelines On Management Of Dormant Accounts, Unclaimed Balances And Other Financial Assets In Banks And Other Financial Institutions In Nigeria”.
The apex bank unveiled the draft stage of the guidelines in April.
However, in the latest circular the apex bank noted that it would open and maintain an account earmarked for the purpose of warehousing unclaimed balances in eligible accounts.
“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows: Open and maintain an Unclaimed Balances Trust Fund (UBTF) Pool Account’, 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’.
“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than ten (10) working days from the date of receipt of the request. Where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension,” it stated.
By: Babajide Okeowo
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