Overview
On July 19, 2024, the Central Bank of Nigeria (CBN) issued a revised guideline on the management of dormant accounts and other unclaimed funds. This new framework replaces the 2015 guideline and introduces significant changes, including a ten-year dormancy threshold before funds are transferred to the Unclaimed Balances Trust Fund (UBTF) pool account domiciled with the CBN.
For Financial Institutions (FIs), the guideline sets out clear obligations. They must monitor inactive accounts, notify customers, maintain records of contact efforts, and follow a detailed reactivation procedure within three working days. The CBN will oversee the UBTF pool account, invest the funds in Nigerian Treasury Bills, and refund beneficiaries within ten working days of a request.
This insight examines the key provisions of the revised guideline, including eligibility and exemptions, the role of FIs, the reactivation process, and the implications for compliance and consumer protection.
