Next-of-kin now eligible to funds in dormant accounts —CBN
Unlike the CBN act of October 2015, next-of-kin are now eligible to access funds in dormant accounts in accordance with the newly passed BOFIA act.
Next-of-kin or beneficial owners may now make claims for unclaimed funds in inactive accounts, according to the Central Bank of Nigeria (CBN). This was explained in a story published by the CBN. It said that next-of-kin might now apply to financial institutions to claim unclaimed assets. These applications need to contain legal documentation of ownership as well as information on directors and authorized signatories for business entities. Dormant accounts and unclaimed money may be handled by the CBN.
These monies can be received and handled in trust for account holders by it. This procedure will be managed by a management committee and overseen by a special office.
The CBN will invest unclaimed money in treasury bills and other securities and lodge it in the Unclaimed Balances Trust Fund (UBTF) Pool Account. After a reclaim request, beneficiaries will get a refund of the principal plus any interest within ten business days. Owners of accounts must visit financial institutions to fill out a reclaim form and present proper identification, proof of ownership, and a written affidavit. Within ten days, financial institutions will validate the claim and forward it to the CBN. After ten days of receiving the request, the CBN will return the funds.
A dormant account is one that is not used for a year or longer. Balances that have lain dormant for a minimum of ten years are considered unclaimed.
Current and savings accounts, term deposits, share deposits, domiciliary accounts, prepaid card accounts, government-owned accounts, and more are all eligible.
Accounts that are being sued, investigated, or burdened are exempt accounts. The CBN ordered banks to send notice to account holders both on a quarterly and an inactive/dormant basis.
This update is the result of extensive analysis and stakeholder collaboration. The old act, which were released in October 2015, have been replaced with new ones that operationalize Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets, and they outline the process for the administration of these balances, funds, and assets by banks and other financial institutions, according to a statement signed by John Onojah, Acting Director, Financial Policy and Regulation Department.
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