The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has sounded an alarm about the susceptibility of inactive bank accounts to fraudulent activities.
This warning came during a press briefing following a two-day Monetary Policy Committee (MPC) meeting on Tuesday, where the benchmark interest rate was increased by 50 basis points to 26.75 percent.
Addressing journalists, Mr. Cardoso emphasized the potential dangers of leaving bank accounts dormant for extended periods.
He stated, “With respect to dormant accounts, what I found personally is that if you leave accounts dormant in banks, they are sometimes more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money.”
The CBN Governor further explained the rationale behind the central bank’s recent policy on dormant accounts.
“The policy and the directive are meant to ensure that all those monies come to the Central Bank for safekeeping and it is at zero cost to the beneficiaries. All that will happen is that the Central Bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income has accrued,” Mr. Cardoso clarified.
This statement follows the CBN’s recent announcement of new guidelines for managing dormant accounts, unclaimed balances, and other financial assets in Nigerian banks and financial institutions. Under these guidelines, the CBN plans to invest funds from dormant accounts and unclaimed balances in Nigerian Treasury Bills (NTBs) and other government securities.
The new policy outlines the creation of an “Unclaimed Balances Trust Fund (UBTF) Pool Account” to be managed by the CBN. A dedicated committee will oversee this account, issuing guidelines, monitoring compliance, managing funds, and handling claims and complaints.
According to the guidelines, accounts eligible for transfer to the CBN include those that have been inactive for ten years or more. These encompass a range of account types, including current, savings, and term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts and wallets, government-owned accounts, and proceeds from uncleared financial instruments.
The CBN also noted that unclaimed salaries, wages, commissions, bonuses, proceeds from stale drafts, and funds received from correspondent banks without clear beneficiary details would fall under this policy.
This move by the CBN aims to protect dormant account holders from potential fraud while ensuring that unclaimed funds are productively managed until rightful owners come forward.
