Unclaimed balances in inactive accounts can now be claimed by next-of-kin, legal agents, or beneficial owners, according to the Central Bank of Nigeria (CBN).
In a report published over the weekend, the apex bank announced that next-of-kin can now apply to financial institutions to claim unclaimed cash. Legal documentation of ownership and, for corporate entities, information about directors and authorized signatures must be included with these applications.
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 go to banking 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.
Dormant accounts will be handled by the Nigeria Deposit Insurance Corporation (NDIC) in the event that a financial institution’s license is revoked. This restriction also applies to balances in inactive domiciliary accounts; active domiciliary accounts are not affected.
For six to twelve months, there are no customer-initiated transactions on an inactive account. 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.
Remember that the CBN just gave financial institutions instructions to move all money that has not been claimed to an account run by the top bank.
