Dormant Account Funds Now Accessible to Next-of-Kin — CBN

Olayemi Cardoso

Next-of-Kin can claim dormant account funds, says CBN...

CBN allows next-of-kin to claim dormant account funds. Learn how to reclaim unclaimed balances, required documents, and the process for submitting claims to financial institutions.

The Central Bank of Nigeria (CBN) has announced that next-of-kin, legal representatives, or beneficial owners can now claim funds from dormant accounts.

In a recent report, the CBN outlined the process for claiming unclaimed funds, stating that applicants must submit required documents, including legal proof of title, to financial institutions.

For corporate entities, additional documentation, such as details of directors and authorized signatories, will be required.

The CBN has the authority to manage dormant accounts and unclaimed funds, holding these funds in trust for account holders until claimed.

A dedicated office, overseen by a management committee, will supervise the process of managing and releasing these funds to rightful claimants.

The CBN will transfer unclaimed funds to the Unclaimed Balances Trust Fund (UBTF) Pool Account, where they will be invested in treasury bills and other securities.

Beneficiaries can reclaim their funds, along with accrued interest, within 10 working days of submitting a request. 

To do so, they must:

• Visit a financial institution to complete a reclaim form

• Provide proof of ownership

• Submit a sworn affidavit

•  Show a valid ID

Financial institutions will verify the claim and forward it to the CBN within 10 days, facilitating a smooth reclaim process.

The CBN will process refund requests within 10 days of receipt, ensuring a timely return of unclaimed funds to their rightful owners.

In the event of a financial institution's license being revoked, the Nigeria Deposit Insurance Corporation (NDIC) will take over the management of dormant accounts, safeguarding account holders' interests.

This policy covers balances in dormant domiciliary accounts, but excludes active domiciliary accounts. Note that an account is considered inactive if it has no customer-initiated transactions for 6-12 months, and dormant if it remains inactive for over a year.

Unclaimed balances, defined as those that have been dormant for at least 10 years, will be subject to this policy, allowing long-abandoned funds to be reclaimed by their rightful owners.