CBN’s New Dormant Account Guidelines
The Central Bank of Nigeria (CBN) has recently issued new guidelines on the management of dormant accounts and unclaimed balances. While ostensibly aimed at reuniting funds with their rightful owners, these regulations raise several concerns that merit critical examination.
Firstly, the CBN’s decision to transfer funds from accounts dormant for 10 years to a centralized “Unclaimed Balances Trust Fund” is a significant shift in policy. While the intention may be to streamline the process of managing these funds, it effectively removes them from the custody of the banks where account holders originally deposited them. This centralization could potentially make the reclamation process more bureaucratic and less accessible for account owners.
Moreover, the requirement for account holders to provide an affidavit on the accuracy of their information to reactivate a dormant account seems unnecessarily burdensome. Many Nigerians, particularly those in rural areas or with limited resources, may find this legal requirement challenging to fulfill. This could inadvertently create barriers for legitimate account owners trying to access their funds.
The guidelines also raise questions about the potential for misuse of these unclaimed funds. While the CBN states it will establish a management committee to oversee the trust fund, the lack of specifics on how this committee will operate and be held accountable is concerning. There’s a risk that these funds could be used for purposes that don’t align with the interests of the original account holders.
Furthermore, the indefinite right of beneficial owners to reclaim their funds, while seemingly positive, could create long-term administrative challenges. How will the CBN ensure that records are maintained accurately over extended periods, potentially spanning decades?
On a positive note, the prohibition on charging fees for account reactivation is commendable. However, this raises questions about how banks will recoup the costs associated with maintaining dormant accounts and processing reactivations.
The CBN’s efforts to standardize the management of dormant accounts and unclaimed balances with Dormant account guidelines are a step in the right direction. However, implementing these guidelines needs careful monitoring to ensure they truly serve the interests of account holders and don’t create unintended consequences.
As these new regulations take effect, it’s crucial for both the CBN and financial institutions to prioritize transparency and accessibility. They should work to educate the public about these changes and simplify the reclamation process as much as possible. Only then can we ensure that these guidelines achieve their stated goal of reuniting funds with their rightful owners, rather than creating new obstacles in the Nigerian banking system.
Reference
CBN directs banks to deposit unclaimed balances, funds in dormant accounts published in the Cable