The Central Bank of Nigeria (CBN) has announced that next-of-kin, legal representatives, or beneficial owners can now claim unclaimed balances in dormant accounts.
According to the CBN’s report, next-of-kin can claim these funds by applying to the relevant financial institutions.
The application must include legal proof of ownership. For corporate entities, it must also include details of directors and authorized signatories.
Unclaimed funds will be placed in the Unclaimed Balances Trust Fund (UBTF) Pool Account by the CBN and invested in treasury bills and other securities.
The principal amount and any earned interest will be refunded to beneficiaries within 10 working days of a reclaim request.
To reclaim the funds, account owners must visit their financial institution, complete a reclaim form, and provide evidence of ownership, a sworn affidavit, and a valid ID.
Financial institutions will verify the claim and send it to the CBN within 10 days. The CBN will then refund the money within another 10 days.
If a financial institution’s license is withdrawn, the Nigeria Deposit Insurance Corporation (NDIC) will manage dormant accounts.
The policy also applies to dormant domiciliary accounts, but not to active ones.
An account is considered inactive if there are no customer-initiated transactions for six to 12 months. It becomes dormant if it remains inactive for one year or more.
Unclaimed balances are those that have been dormant for at least 10 years.
Eligible accounts include current, savings, term deposits, domiciliary accounts, deposits for shares, prepaid card accounts, and government-owned accounts.
Accounts under litigation, investigation, or encumbered are exempt.
The CBN has directed banks to notify account owners when their account becomes inactive or dormant, and then on a quarterly basis.
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