CBN Drops UNEXPECTED NEWS; Beware Of New Order Issued To Banks Concerning Dormant Accounts- Exclusive Details Below
The Central Bank of Nigeria (CBN) has issued revised guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in banks and financial institutions across Nigeria.
These updated guidelines, which follow the conclusion of the review of the previous management guidelines issued in October 2015, are aimed at standardizing the handling of dormant accounts and unclaimed financial assets. The new rules come in response to
Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, signaling a step toward improving financial accountability and transparency.
The revision process involved extensive engagement with relevant stakeholders, ensuring that their input was considered in shaping the new framework. Through these consultations, the CBN sought to address concerns and improve the management of dormant accounts, which can pose operational and regulatory challenges for financial institutions. The updated guidelines clarify the procedures for handling dormant accounts, unclaimed balances, and other financial assets, providing a standardized approach for all banks and financial institutions operating within Nigeria.
Under the new guidelines, the CBN has outlined the process for transferring relevant balances, funds, and assets to the central authority. This ensures that unclaimed funds, which may remain dormant for extended periods, are managed appropriately and transparently. The updated guidelines also include revised templates for the quarterly returns that banks and financial institutions are required to submit to the Banking. Supervision Department or the Other Financial Institutions
Supervision Department, depending on the nature of the financial institution.
These changes reflect the CBN’ s commitment to ensuring that dormant accounts and unclaimed assets are effectively managed to protect the interests of account holders and to streamline the regulatory oversight of financial institutions. By enforcing these standards, the CBN aims to enhance the financial system’s stability and promote a more efficient process for reclaiming unclaimed balances.
The newly issued guidelines supersede the previous 2015 guidelines and are effective immediately. Banks and other financial institutions must now adhere to the updated procedures, with additional details regarding the transfer of funds and assets to the CBN to be communicated in due course. This development underscores the CBN’s ongoing efforts to refine financial regulations in line with evolving industry needs and to foster a more accountable banking sector in Nigeria.
