The Central Bank of Nigeria (CBN) has announced that next-of-kin, beneficiaries or legal guardians can now claim funds from dormant accounts by applying to banks and other financial institutions.
A report said the new directive provides a clear path for reclaiming unclaimed balances to ensure the right owners can access funds in dormant accounts for extended periods.
CBN lists ways to claim funds in dormant accounts
Applicants must submit legal documents, proving ownership, and authorising them to make claims.
Corporate bodies must provide information about bank directors and authorised signatories to access funds in dormant accounts.
Banks must verify the claim and forward it to the CBN to process and refund the principal amount with any accrued interest within 10 working days.
Under the new guidelines, the apex bank supervises dormant accounts and unclaimed funds, managing them via a dedicated office and management committee.
The funds will be lodged in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in T-Bills and other approved securities until a valid claim is made.
Regarding a loss of licenses by financial institutions, the Nigeria Deposit Insurance Corporation (NDIC) will handle dormant accounts.
The new guideline extends to dormant domiciliary accounts, however, active ones remain unaffected.
How to know a dormant account
The apex bank considers accounts dormant if there have been no customer-initiative transactions for six to 12 months. It is officially classified as dormant after one year and remains so until reactivated by the account owner.
Funds remaining unclaimed for 10 years or more fall under the new policy.
Qualified accounts include current, savings, and term deposits, domiciliary accounts, prepaid card accounts, deposits for shares, and government-run accounts.
CBN directs banks to notify customers According to the guidelines, accounts under contention by litigation, investigation, and other legal restrictions are exempt.
CBN mandates banks to notify account holders when an account becomes inactive and provide quarterly updates thereafter.
This comes after the apex bank asked banks to transfer all unclaimed funds to a central account managed by the CBN as part of its revised guidelines for managing assets owned by banks and other financial institutions.
Step for next-of-kin, others to claim funds in dormant accounts
According to the Central Bank of Nigeria (CBN), unclaimed amounts in inactive accounts may now be claimed by beneficiaries, legal agents, or next of kin.
This was clearly stated in a story that the CBN published recently, which said that by submitting applications to financial institutions, next-of-kin can now claim unclaimed funds.
Legal documentation of ownership and, for corporate entities, information about directors and authorized signatures must be included with these applications.
