Regulatory Alerts2021-02-15
Added · Updated
Management of Unclaimed Liabilities of a Bank Directive No. SBB/75/2020
The National Bank of Ethiopia requires all banks operating in Ethiopia to transfer unclaimed liabilities held for 15 consecutive years or more to the National Bank after publishing a notice for 90 calendar days. Banks must capitalize interest on these liabilities for the first 15 years only if the pre-signed agreement specifies interest-bearing instruments, and they remain relieved of liability upon transfer while retaining responsibility to supply claimant information. The National Bank establishes an Unclaimed Liabilities Account to pay rightful claimants without interest, may delegate payment facilitation to banks, and may loan unclaimed funds to the Deposit Insurance Fund. The directive applies to all banks and entered into effect on August 24, 2020.