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CBN and banks

Nigerians reject CBN plans to corner dormant account balances, unclaimed funds

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The Central Bank of Nigeria’s (CBN) proposal that banks should transfer funds in accounts that have been dormant for up to 10 years into a trust fund account has begun to receive massive rejection from Nigerians.
Already, many experts say the best idea for the apex bank would be to advice banks to move the balances to their next-of-kins than mopping them up.
This is contained in the recently released exposure draft of guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions In Nigeria. A circular accompanying the exposure draft stated that the guideline was in response to requests from banks and other stakeholders for the CBN to clarify the procedures for the management of dormant and inactive accounts by banks in the country. The circular, which was signed by the Director of Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi, also called for inputs that should be sent within three weeks. The draft states that banks and other financial institutions are expected to transfer all unclaimed funds into an Unclaimed Balances Trust Fund pool account, which will be domiciled at the CBN. The apex bank said the balances would be invested in government securities like Treasury Bills and would be returned to the beneficiaries not later than ten days of notice.

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