CBN eventually took over the dormant accounts, to invest the funds in government securities.

The Central Bank of Nigeria (CBN) has issued new directives to banks and financial institutions operating in Nigeria on dormant accounts.

Under the new directive, the central bank will take over funds in these dormant accounts and invest them in treasury bills and other securities.

This is contained in a circular FPR|DIR|PUB|CIR|002|011 issued on Friday by John S. Onojah, Acting Director, Department of Financial Policy and Regulation and titled: “Guidelines for the Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria”.

The central bank launched the draft stage of the guidelines in April.

However, in the latest circular, the central bank stated that it will open and maintain special accounts to hold unclaimed balances in eligible accounts.

“The CBN shall treat unclaimed balances (dormant financial accounts and assets) as follows: Open and maintain an Unclaimed Balance Trust Fund (UBTF) Account, maintain records of beneficiaries of unclaimed balances held in the UBTF Trust Fund Account; invest the funds in Nigerian Treasury bills (NTBs) and other securities as approved by the ‘Unclaimed Balance Management Committee’.

“Return the principal and interest (if any) on the invested funds to the beneficiary no later than ten (10) working days from the date of receipt of the application. If an extension of the term is required, then notification of the extension must be submitted to the LK submitting the application stating the reasons for the extension,” the statement reads.

By: Babajide Okeowo

CBN finally takes over dormant accounts, to invest funds in treasury bills first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.