BANK DORMANT ACCOUNT POLICY CODE

The CBN stated that three months to the end of the six years, both the account holder and the next-of-kin would be notified, adding that revalidation of inactive/dormant accounts would not attract any charge to the account holder as the banks would have made ample use of the idle funds. вЂњOnce dormant accounts exceed a six-year period, they shall be reported to the CBN along with efforts made by the obligor bank to locate the owners or their personal representatives.вЂќ Deposit-taking financial institutions shall continue to monitor accounts that show tendencies of inactivity and where necessary, initiate actions for their activation or protection from wrong usage. The CBN also said, вЂњAccounts shall retain their interest earning status during the period of dormancy in the bank. However, such an account shall be recognised as inactive after the first six months of non-depositor or customer originated transaction in it.вЂќ вЂњA dormant account shall be a bank account that has no customer or depositor originated transaction within a specified period of six years after the last customer or depositor initiated a transaction. вЂњThe purpose of the policy is to curb possible abuse in the operation of dormant accounts, set operational standards for banks and other financial institutions in line with best practice, and to reinforce the property rights as guaranteed in the 1999 Constitution of the Federal Republic of Nigeria (as amended). The directive stated, вЂњIt is in view of the above and the imperative to promote transparency in the financial system that the CBN hereby issues these guidelines to provide a standard for the treatment and management of dormant account balances in Nigeria. It said representations received by the CBN from stakeholders on the subject highlighted the need for the bank to develop a regulatory framework for the management of dormant accounts for the benefit of the banking system and the Nigerian economy. This, it noted, was generating concern among bank account holders, regulators and other stakeholders. Kevin Amugo, on Tuesday, stated that the absence of clear guidelines for the management of dormant accounts had resulted in the disproportionate treatment of such account balances by deposit-taking financial institutions. The bank, in a circular released signed by its Director, Financial Policy and Regulation Department, Mr. Part of the objectives of the policy, according to the CBN, is to ensure that dormant account funds are identified and channelled through appropriate institutions to make them more productive to the economy and eliminate the possibility of banks converting dormant account balances to income. The funding section is also intended to be read with the Management Expenses Levy Limit and Base Costs Part and the Management Expenses in respect of Relevant Schemes Part of the PRA Rulebook.The Central Bank of Nigeria has introduced new guidelines for the treatment and management of dormant account balances by deposit-taking financial institutions. This statement of policy is intended to be read together with the rules specific to dormant accounts as set out in the Dormant Accounts Scheme Part of the PRA Rulebook, which applies to the FSCS, dormant account fund operators and firms that are DAS members. (c) the FSCSвЂ™s role in the funding of the DAS.Д«y providing further information to the FSCS with regard to its duties and role in paying and funding compensation of the DAS, this statement of policy aims to ensure an effective DAS. (b) the FSCSвЂ™s role in assessing and paying compensation in respect of dormant accounts and The purpose of this statement is to set out the PRAвЂ™s expectations of the FSCS with regards to: These rules are set out in the Dormant Account Scheme Part of the PRA Rulebook, and apply to the FSCS and firms that are DAS members. The Prudential Regulation Authority (PRA) is required, under section 213 of the Financial Services and Markets Act (FSMA), to make rules establishing a scheme for compensating persons in cases where a dormant account fund operator is unable, or likely to be unable, to satisfy a repayment claim against it. This statement of policy is aimed at the Financial Services Compensation Scheme (FSCS) in respect of its role as scheme manager of the Dormant Account Scheme (DAS) but may also be of interest to firms and depositors. News and publications Open News and publications sub menu.Option-implied probability density functions Gross Domestic Product Real-Time Database The PRAвЂ™s statutory powers and enforcement

BANK DORMANT ACCOUNT POLICY CODE

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Bank dormant account policy