The Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso has stated that dormant accounts in Nigeria are more susceptible to fraudsters in Nigeria and the reason for the Central Bank of Nigeria (CBN) latest policy is for safe keeping of the funds in dormant accounts.
Mr. Yemi Cardoso stated this during the 296th meeting of the apex bank’s Monetary Policy Committee (MPC) where benchmark interest rate was raised by 50 basis points to 26.75%.
According to the CBN Governor, the apex bank will keep the funds and would give it back to owners whenever they come for it and the profits that accrue from it also.
He stated, “With respect to dormant account, what I found personally if you leave account dormant in banks, sometimes more than when you don’t leave them dormant in banks. In fact, most times, they are more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money. So, that is a problem I think most money banks face”
“The policy and the directive is meant to ensure that all those monies come to the Central Bank for safe keeping and it is at zero cost to the beneficiaries. All that will happen is that the central bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income is accrued to you.”
Backstory
Last week, the CBN issued new guidelines to banks on dormant accounts where it stated it will create and manage an account called the “Unclaimed Balances Trust Fund (UBTF) Pool Account” to hold unclaimed balances.
This account allows for the investment of funds from dormant accounts and unclaimed balances into Nigerian Treasury Bills (NTBs) and other government securities.
The guidelines stipulate that the principal and any accrued interest from these investments must be refunded to the beneficiaries within ten working days of receiving a request.
Eligible Dormant Accounts
The new guidelines classify eligible accounts as those that have been dormant for ten years or more. This includes various types of accounts such as current, savings, term deposits, domiciliary accounts, and prepaid card accounts. Other financial assets eligible under these guidelines include proceeds from unclaimed financial instruments, unclaimed salaries, wages, and bonuses, among others.
Exemptions
The guidelines also specify certain exemptions. Accounts subject to litigation, under investigation by regulatory authorities or law enforcement agencies, or encumbered accounts, such as those with liens or used as collateral, are excluded from these provisions.
