The Central Bank of Nigeria, CBN, has directed commercial banks in the country to furnish it with dormant account balances in their custody within two weeks. This, the CBN said, will enable it mop up such balances as provided by the law.
The 2020 BOFIA Act empowers the apex bank to recover account balances in money banks and other Financial Institutions, OFI unclaimed by customers for at least 10 years.
Last year, the House of Representatives committee investigating unclaimed balances in banks said about N500 billion of such funds have been left dormant by owners who are either dead or unaware of them.
The CBN has now given the banks 10 days to return the balances to their owners, failing which it will have to take them over as provided by the Act.
This was made known in a circular by Chibuzo Efobi, on Thursday, tagged: ‘the Management of Dormant Accounts, Unclaimed Balances and other financial assets in Banks and Other Financial Institutions in Nigeria.’
Any bank that fails to comply with the directive, the apex bank said will be fined N2 million and a further 200, 000 daily for the infraction.
The CBN said “This Guidelines is, therefore, issued as an exposure draft pursuant to the powers conferred on the CBN Governor by the CBN Act 2007 and BOFIA 2020 and supersedes the 2015 Guidelines on the Management of Dormant Accounts and Other Unclaimed Balances by Banks and Other Financial Institutions in Nigeria.”
According to the Godwin Emefiele-led apex bank, the new guidelines supercedes the one it issued in 2015, saying a dedicated account will be opened where such funds will be warehouse for the purpose of investment in government bonds and securities.
The guidelines said “The Central Bank of Nigeria shall open and maintain an account earmarked for the purpose of warehousing unclaimed balances in eligible accounts. The account shall be called “Unclaimed Balances Trust Fund Pool Account.
‘The eligible accounts CBN said are dormant accounts balances that have remained with the FIs for a period of 10 years and beyond.
“The eligible accounts and financial assets are: Current, Savings and Term deposits in local currency; Domiciliary accounts; Deposits towards the purchase of shares and Mutual Investments; Prepaid card accounts and wallets; Proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs; Unclaimed salaries and wages, commissions, and bonuses.
“Proceeds of stale local and/or foreign currency drafts not presented for payment by beneficiaries; Funds received from a correspondent bank without sufficient details as to the rightful beneficiary and/or a recall of funds made to the remitting bank to which the Nigerian bank’s account had not been debited and A judgment debt for which the judgment creditor has not claimed the amount of judgment award.”
Meanwhile, the magazine learned that the major reason for ‘grabbing’ unclaimed depositors funds in commercial banks may not be unconnected with the federal government’s efforts to rally funds to support the 2023 Budget deficit.
The Minister of Finance, Zainab Ahmed had said earlier in the year that the budget will be funded through borrowings, including sales of government bond and securities.
On Tuesday, the Debt Management Office, DMO announced the sale of federal government bonds worth over N300bn.
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