••New Directive Offers Clear Path for Beneficiaries to Access Unclaimed Balances.
By Anastasia John E .
ABUJA – The Central Bank of Nigeria (CBN) has announced a new directive simplifying the process for next-of-kin, beneficiaries, or legal agents to claim funds from inactive bank accounts. This new framework provides a clear pathway for reclaiming unclaimed balances, ensuring rightful owners can access funds left dormant for extended periods.
Applicants can now submit claims to their respective financial institutions, providing legal documentation proving ownership. Corporate entities must also provide information about directors and authorized signatories. Banks will then verify the claim and forward it to the CBN. The CBN will process the request and refund the principal amount along with any accrued interest within ten business days.
The CBN now oversees dormant accounts and unclaimed funds, managing them through a dedicated office and a management committee. These funds will be lodged in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in treasury bills and other approved securities until a valid reclaim request is made.
In the event a financial institution loses its license, the Nigeria Deposit Insurance Corporation (NDIC) will handle dormant accounts. The new rules also cover dormant domiciliary accounts, but active domiciliary accounts remain unaffected.
A bank account is considered inactive after six to twelve months of no customer-initiated transactions and is officially classified as dormant after one year. It remains dormant until reactivated by the account holder. Funds unclaimed for ten years or more fall under this new policy.
Eligible accounts include current, savings, term deposits, domiciliary accounts, prepaid card accounts, deposits for shares, and government-owned accounts. However, accounts under litigation, investigation, or other legal restrictions are exempt. Banks are required to notify account owners when an account becomes inactive and provide quarterly reminders thereafter.
This directive follows a recent CBN mandate requiring banks to transfer all unclaimed funds to a central account managed by the apex bank. This move is part of the CBN’s revised guidelines for managing assets owned by banks and other financial institutions, including unclaimed funds and inactive accounts.
