Central Bank of Nigeria (CBN) Issues New Directives on Unclaimed and Dormant Accounts

Credit: https://www.mavisblog.com.ng/2024/07/transfer-funds-in-dormant-account-to-us.html


The Central Bank of Nigeria (CBN) has issued new directives regarding funds in unclaimed and dormant accounts.





Definition and Guidelines


According to the new guidelines, a dormant account is defined as a bank account that has remained inactive for a period of one year. These guidelines replace those issued in October 2015. Per the circular released by CBN's Acting Director of Finance Policy and Regulations, Mr. John Onoja, all funds in accounts that have remained dormant for a period of 10 years are to be transferred to the apex bank.



Key Provisions from the Circular


1. Applicability:
- "The provisions of this guideline shall apply to all financial institutions under the purview of the Central Bank of Nigeria."



2. Eligible Accounts:
- Dormant account balances that have remained with financial institutions for a period of ten (10) years and beyond are eligible.

- Eligible dormant accounts/unclaimed balances and other financial assets include:

- Current, savings, and term deposits in local currency

- Domiciliary accounts

- Deposits towards the purchase of shares and mutual investments

- Prepaid card accounts and wallets

- Government-owned accounts

- Proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of financial institutions

- 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 account had not been debited

- A judgment debt for which the judgment creditor has not claimed the amount of the judgment award

- Any other deposits or financial assets that may be designated by CBN



Accounts Exempted


The following accounts are exempt from the published circular:

- Accounts that are subject to litigation

- A judgment debt for which the judgment creditor has not claimed the amount of the judgment award and the case is still active in court

- Accounts under investigation by a regulatory authority or law enforcement agency

- Encumbered accounts, including, but not limited to, collateral and liens



For more details, refer to the official circular issued by the Central Bank of Nigeria.

Following the Emefiele path... Lol! There are companies that leave money in dormant accounts for a 15 years target, etc. this policy will cripple the economy.

Instead, just scrap domicilary accounts, let all money sent to Nigeria be in Naira, and all oil and gas companies must pay all of their top workers in Naira. Also, make it possible for any Naira account to receive dollars or other currencies directly as well as send Naira to other currencies directly without going through domicilary accounts. In the case of fraud, all accounts are now digital and can be traced. All those importing and exporting goods within Nigeria must use Naira in the exchange process. This is what Ghana did to Cedis, copied from China. Ban politicians to pay contractors in dollars or buy loyalists during elections with dollars. Let every monetary transaction in Nigeria be in Naira and Naira alone. We're Africa's most populated, this act alone can boost the value of Naira as stress on its use would increase its value world wide.

COMRADES, politicians are not happy with this new directive