A new law would require the transfer of balances in dormant bank accounts, generally those where contact has been lost with a customer for at least 15 years, from banks in the Bailiwick to a central pot called the Bailiwick Dormant Accounts Fund.
Consultation on the topic began in 2013.
‘There is a proven and successful mechanism in the UK for collecting and using money from dormant bank accounts and use of those funds for good causes,’ the report by Policy & Resources says.
‘In addition, Jersey and the Isle of Man have recently implemented dormant account legislation.
‘The Policy & Resources Committee has taken particular account of the frameworks in the two islands in developing the proposals in this policy letter in light of the links between banking groups active in two or three of the Crown Dependencies, and as the banking sector in the Bailiwick has emphasised the importance of the framework being as consistent as possible with those in the other dependencies so as to be able to harmonise systems and operational practices between group entities.’
A ‘user friendly’ mechanism will be in place for an account holder to access transferred money again.
In this situation the bank would repay a valid claim and then be reimbursed from the fund, which P&R would manage.
Money could only be used for good causes in the Bailiwick, or passed on to a grant-giving body for that purpose, or to meet any claims from account holders and to cover costs and expenses of the process.
It is expected that the Social Investment Fund will be the initial beneficiary.
‘To ensure transparency, any grant-giving body which receives funds in relation to the BDAF should, at the least, provide an annual report to the committee on its activities under the Dormant Accounts Law, and this report should be included in the update that goes to the States,’ says the report.
‘Among other matters the grant-giving body considers to be relevant, the report should include the identity of recipients of distributions, the amounts paid to each recipient and the purposes for which the distributions were made.’
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