CBN gives banks, OFIs guidelines to manage dormant, unclaimed assets
CBN Headquarters
CBN gives banks, OFIs guidelines to manage dormant, unclaimed assets
Nike Popoola
The Central Bank of Nigeria (CBN), on Friday, issued guidelines on management of dormant accounts, unclaimed balances and other financial assets in banks and Other Financial Institutions (OFIs) in Nigeria.
It disclosed this in a circular to all banks and Other Financial Institutions numbered FPR/DIR/PUB/CIR/002/011, titled, ‘Guidelines on management of dormant accounts, unclaimed balances and Other Financial Assets in banks and Other Financial Institutions in Nigeria’, on Friday, which was obtained by Dailyeconomy.
According to the circular, the objectives of this Guidelines, among others are 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; Standardize the management of dormant accounts/unclaimed balances and financial assets; and establish a standard procedure for reclaim of warehoused funds.”
The banking regulator stated that the guideline is sequel to the conclusion of the review of the guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria issued in October 2015.
The revised guidelines, which operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, followed engagement and consultations with relevant stakeholders, whose comments and recommendations were considered in the review process, it stated.
It, among others, standardises the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
The modalities for the transfer of the relevant balances/funds/ assets to the CBN, together with the revised templates for the rendition of quarterly returns to Banking Supervision Department or Other Financial Institutions Supervision Department (as the case may be) will be communicated subsequently, CBN stated.
