CBN Moves to Invest Unclaimed Funds in Dormant Accounts in T-bills.

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According to a proposal made by the Central Bank of Nigeria, banks should move money from accounts that have been inactive for up to ten years into a trust fund account. According to the proposal, all unclaimed funds must be transferred by banks and other financial institutions into a pool account for the Unclaimed Balances Trust Fund, which would be based at the CBN.

The balances would be invested in government assets like Treasury Bills and refunded to the beneficiaries with no later than ten days’ notice, according to the apex bank. “The Central Bank of Nigeria must open and maintain an account designated for the purpose of storing unclaimed funds in qualifying accounts. Unclaimed Balances Trust Fund Pool Account shall be the name of the account”.

The qualified 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 others.

Central bank said any bank or financial institution that contravenes any provision of the new guidelines would attract a penalty of not less than N2,000,000.

Punch.

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