Merrill Lynch Wealth Management, an arm of Merrill Lynch Bank of America, which provides financial strategies and solutions to countries and high networth corporates and other organisations globally, has blacklisted customers resident in Nigeria, undermining recent achievements by some Nigerians who feature among the richest individuals in the world.
Consequently, the global wealth and investment management outfit, which based its action on recent reviews of the wealth management business across the globe, has given the affected Nigerians with performing accounts, up till the end of this month (December) to transfer them to other institutions, failing which the assets would be distributed directly to the affected persons.
However, accounts without activity in the last three consecutive months, are considered closed, as no further action is required, Merrill Lynch said.
In response, industry analysts have described the action of the organisation as discriminatory and capable of undermining the integrity of Nigeria and Nigerians, as well as recent efforts by government at sanitising the polity. The analysts have called on the Finance Minister and Central Bank of Nigeria to intervene.
Merrill Lynch, in an action also regarded by analysts as a great assault on the sensibilities of Nigerians, directed in a memo to its clients in the country, dated October 11, that should they fail to comply with any of the liquidation windows, the organisation would not have any option but to deliver the assets, using the addresses on the mandate files.
Worse still, for any client currently enrolled in a managed platform such as International Asset Power (IAP), and International Cash Asset Management Account (ICMA) signature rewards or Access cards will be terminated and closed at the time of account closure.
However should the assets be liquidated, it may be considered a taxable event and may result in the customers incurring fees, in which case Merrill Lynch recommends that they should consult an independent tax advisor, to determine effect of liquidation on their assets.
Part of the memo signed by Kenneth Iwelumo, financial advisor reads, “We recently conducted a review of our wealth management business across the globe to identify those markets where our structure and presence enable us to make the most significant positive impact in serving our clients .As an outcome of this review, the scope of the market we serve will be changing.
“While we have appreciated the opportunity to serve you, this change in the market scope means we will no longer be able to service your account(s)…If you have a balance in your account, there are two options we can offer: 1- Transfer our assets to another financial institution .2- Distribute the assets directly to you.
Action required – please contact your advisor at the address /phone number below to provide your instruction regarding the liquidation or distribution of you asset, or the transfer of your assets. If you would prefer to have the assets distributed to you, we will deliver cash and /or securities as outline below.
“Cash bank deposits and money market mutual funds will be liquidated or withdrawn and the proceeds will be issued to you in the form of a check.