By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has given a next-of-kin the authority to access funds in dormant accounts of their loved ones, especially after death and incapacitation.
In a report released over the weekend, the banking sector regulator in the country said legal representatives or beneficial owners could also claim the unclaimed balances in dormant accounts.
It explained that such dormant accounts could be those that have remained idle for about 10 years, giving relief to family members of deceased bank account owners who have been unable to access such funds.
Recall that recently, the central bank asked financial institutions to transfer all funds in dormant accounts to its vaults.
Last Tuesday, the CBN Governor, Mr Yemi Cardoso, after the Monetary Policy Committee (MPC) meeting in Abuja, explained that the development was to protect the funds from fraud.
According to him, leaving the funds with banks could expose them to fraud, noting that it will be safe under its care.
It was disclosed that the apex bank would place unclaimed funds in the Unclaimed Balances Trust Fund Pool Account and invest them in treasury bills and other securities. The principal and any interest will be refunded to beneficiaries within 10 working days of a reclaim request.
The central bank chief gave the explanation after it was speculated that the federal government, which is struggling with a shortfall in earnings, was looking to spend money in dormant accounts after it failed to access funds in unclaimed dividends in the capital market.
In the guidelines released over the weekend, the CBN noted that next-of-kin, legal representatives or beneficial owners could only claim unclaimed balances in dormant accounts if they could provide legal proof of title and for corporate entities, details of directors, authorized signatories, business addresses and any other customer update for the reclaim of balances transferred to CBN.
They must also complete a reclaim form, provide evidence of ownership, a sworn affidavit, and a valid means of identification.
