JUST IN: CBN Directs Banks To Transfer Over N200bn Dormant Account Balances, Unclaimed Dividends In FG TBs, Bond

The Central Bank of Nigeria has ordered banks and financial institutions to transfer unclaimed dividends and dormant account balances into an account controlled by the CBN.

The apex bank said it would determine what government securities to invest the funds subject to the approval of Unclaimed Balances Management Committee.

The bank gave the directive in the ‘Guidelines on Management of Dormant Account and Unclaimed Fund’ published on Friday.

The directive takes effect from the date of issue, said the CBN.

“The CBN 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 (UBTF) Pool Account,” the apex bank said in the document obtained by THE WHISTLER.

According to the Securities and Exchange Commission, the value unclaimed dividends was N190bn as of August 2023.

The debate began when the Finance Act 2020 was signed into law by former president Muhammadu Buhari.

The federal government said that any unclaimed dividends of a public limited liability company quoted on the Nigerian Exchange Limited (NGX) and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank, which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account, shall be transferred immediately to Unclaimed Funds Trust Fund.

But a Federal High Court sitting in Abeokuta blocked the federal government from taking unclaimed dividends.

This is coming few days after President Bola Tinubu requested for the approval of additional N6.2tn which raised the 2024 budget from N28tn to N34tn.

To fund the budget, the federal government is planning to tax foreign exchange gains of banks.

For the unclaimed dividend and dormant account balances, the CBN said banks should maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.


Also, dormant accounts and financial assets in addition to the unclaimed dividend would be invested in FG securities.

CBN said it will, “Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’.

“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than ten (10) working days from the date of receipt of the request.

“Where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension.”

https://thewhistler.ng/just-in-cbn-directs-banks-to-transfer-over-n200bn-dormant-account-balances-unclaimed-dividends-in-fg-tbs-bond/

“The CBN 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 (UBTF) Pool Account,” the apex bank said in the document obtained by THE WHISTLER.

For the unclaimed dividend and dormant account balances, the CBN said banks should maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.


The funds are not permanently taken away from the owners but for keep with the CBN so that banks will not use it for their recapitalisation.

CBN insists that only fresh funds should be used for the bank recapitalisation.

May God bless Nigeria for ever! Check my signature for free stuffs!

They should not try any nonsense transfer. The funds do not belong toFG or CBN. A restraining will be instituted soon.

Validated:
They should not try any nonsense transfer. The funds do not belong toFG or CBN. A restraining will be instituted soon.

Read the report. If you have funds in dormant account, please go reactivate your dormant bank account now instead of making empty threats online.

Some of the accounts have been dormant for decades and sitting idle in the bank vaults. It makes no difference if it is warehoused with CBN because it doesn't belong to the banks and have been dormant for long.

Btw, FG is not taking away the funds from the owners permanently. The banks should have been repeatedly ensuring that the owners of dormant bank accounts are sensitized to reactivate their accounts but there's nothing the bank can do even if they do so yet owners of the dormant account don't reactivate their dormant accounts.

The real point is that the money is better warehoused with CBN and if the owners need their funds, they go through their banks first to reactivate their bank accounts and get back their funds.
Shikena

Then How would CBN know Banks have actually send all monies from dormant accounts in respective Banks. Maybe they have records but they would still be a foul play

I hope they don’t try and steal people’s money
It’s better to inform family members as Nigerians don’t have wills or tell their family members all their accounts

EcoNews:
Who you de threaten...lol. You think you are talking to Kanu or Pandora Obi ? Your mumu never do.

Imagine how shameless you guys are.

Clowns in power looking for every avenue to steal from the citizens.

FreeStuffsNG:
“The CBN 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 (UBTF) Pool Account,” the apex bank said in the document obtained by THE WHISTLER.

For the unclaimed dividend and dormant account balances, the CBN said banks should maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.


The funds are not permanently taken away from the owners but for keep with the CBN so that banks will not use it for their recapitalisation.

CBN insists that only fresh funds should be used for the bank recapitalisation.

May God bless Nigeria for ever! Check my signature for free stuffs!

Be deceiving yourself. FG has been after the unclaimed dividends and dormant account balances since Buhari's tenure. What makes you think this is about recapitalization?

FreeStuffsNG:

Read the report. If you have funds in dormant account, please go reactivate your dormant bank account now instead of making empty threats online.

Some of the accounts have been dormant for decades and sitting idle in the bank vaults. It makes no difference if it is warehoused with CBN because it doesn't belong to the banks and have been dormant for long.

Btw, FG is not taking away the funds from the owners permanently. The banks should have been repeatedly ensuring that the owners of dormant bank accounts are sensitized to reactivate their accounts but there's nothing the bank can do even of they do so. The real point is that the money is better warehoused with CBN and if the owners need their funds, they go through their banks first to reactivate their bank accounts and get back their funds.
Shikena

You're delusional if you think the money is better warehoused at CBN. Did you read the part where they said it'd take 10 working days to release the funds upon request and they might not be able to release funds in that time for specific reasons? Which bank will hold your funds once your dormant account is reactivated?

..............any unutilised amounts in a dormant bank account maintained in or by a deposit money bank, which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account, shall be transferred immediately to Unclaimed Funds Trust Fund.

Nigerians,
Especially those in diaspora,
please go reactivate your dormant bank account now.
Just a phone call will do.
We only pray toi won't fall into the hands of some fraudulent bankers who will capitalize on this by not picking up calls.

Nigeria will be great in our lifetime.

I tried to claim my dividends in 2022, Zenith bank run me street. It’s better this way, CBN should seize it

Lagos mentality of stealing from everything within reach.

iLoveYouToo:
I tried to claim my dividends in 2022, Zenith bank run me street. It’s better this way, CBN should seize it

And are you fine with that?
And you left your money for Zenith Bank just like that??
Cos dem run u street?
No one will leave their hard earned money for any bank like that, if it was legitimate!

Our kobo!!

maivd:
Lagos mentality of stealing from everything within reach.

Lagos
After all you read here?
Hatred for Lagos has eaten too deep into some people's medulla oblongata sha!

Education no be scam o.

This APC administration sha 😂

maivd:
Lagos mentality of stealing from everything within reach.

Illiteracy is not a disease,

It's something worse!!!

The Central Bank of Nigeria's directive to banks to transfer funds from dormant accounts and unclaimed dividends is a commendable move.

This initiative ensures that idle funds are effectively managed and possibly redirected for more productive uses, benefitting the broader economy.

Additionally, it provides a mechanism to address the issue of unclaimed financial assets, enhancing transparency and accountability within the financial sector.

Thief catch thieves game

Bad news for Banks

post=131047279:

Illiteracy is not a disease,

It's something worse!!!

MANNABBQGRILL.S… you know how to attack and insult people but when they retaliate you start calling the mode like a child looking for his mom

Medipharm:
Then How would CBN know Banks have actually send all monies from dormant accounts in respective Banks. Maybe they have records but they would still be a foul play

That will be violation of the regulations which comes with a heavy fine. Maybe 10m naira per violation. No business will risk regulator's violation.

You wan kill first bank. First bank and Union bank has the highest dormant accounts and most of the owners are dead and their descendants not aware..

If implemented, it go shake first bank small, maybe they will improve in their customers services.

Useless,if they don't have money to run the country then they should declare the country bankrupt. A bag of rice is 90k,garri is 85k and electricity out of reach , transport fare out of reach and fuel 780 and peoply are online talking and supporting rubbish because of ethnicity and religious inclination. Shame shame to those that are blind and can't condemned evil and bad governance. Ndume GOD bless your spirit and soul wherever u are. You lie you die and you say the truth you die, choose your choice.

Hmmm

AcuraZDX:


Imagine how shameless you guys are.

Clowns in power looking for every avenue to steal from the citizens.

APC are thieves and criminals!

post=131047279:

Illiteracy is not a disease,

It's something worse!!!

.
See this ozuor talking about illiteracy.

Smh

Eyeing other people's money.. shey you have BVN while not notify the person or pay the dividend to the person's active account. If a Bank process is frustrating you like the orange bank that expect you to deposit cash at the counter to activate your account only for the officer in charge to be forming absentee or the Bank in white that lock you out once you password your token...of course you abandon them for efficiently run banks.

franugo:


You're delusional if you think the money is better warehoused at CBN. Did you read the part where they said it'd take 10 working days to release the funds upon request and they might not be able to release funds in that time for specific reasons? Which bank will hold your funds once your dormant account is reactivated?

Federal govt might be slow but they will not owe you. Did you read the part the money will be invested in security like Treasury bills and your money will be returned with interest. that means you may even have 3X your money after 7 - 10 years. This was not the case with bank holding your money.

UselessBuharist:



MANNABBQGRILL.S… you know how to attack and insult people but when they retaliate you start calling the mode like a child looking for his mom

Will you keep shut, when has correcting someone or saying the truth became an insult.
No wonder una wan kill Reno pikin, after saying the truth repeatedly about yna bitter obi.tuary obi the terrorist supporter and liar.

Truth is always a problem with una obiden.se

Matheusmartin:
.
See this ozuor talking about illiteracy.

Smh

Ozuor calling another person ozuor

post=131047269:

Lagos
After all you read here?
Hatred for Lagos has eaten too deep into some people's medulla oblongata sha!

Education no be scam o.

Keeping deceiving yourselves,forming woke when they are draining you from all corners. If you trust this government with there constant lies and economic mismanagement then you need to evaluate your life.