Circular CN-BSD/2014/04: Procedures for Treatment of Dormant Accounts

MALDIVES MONETARY AUTHORITY MALDIVES

Circular no: CN-BSD/2014/04

24th December 2014

To: All Commercial Banks

Dear Sir,

Procedures for treatment of Dormant Accounts

As you would be aware, Section 35 of the Banking Act sets out requirements for treatment of dormant accounts. Attached please find detailed procedures to be followed by the banks with respect to dormant accounts.

Banks that have not remitted dormant account funds to MMA are required to do so by 31st March 2015, together with a detailed report (as per the attached format) via email, at bsd@mma.gov.mv. Please note that the amount should be inclusive of any interest payable on the account up to the day of transfer of the funds to MMA.

Yours sincerely,

Neeza Imad Assistant Governor, Financial Stability

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Procedure for handling dormant accounts

I. Notifying dormant account holders

As per Section 35(a) of the Banking Act (2010) banks are required to do the following:

i. If an account holder has not conducted a transaction from the account or written correspondence with the bank for 5 (five) years, on the first business day of the following calendar year the bank shall dispatch by registered post a notice to the account holder at his last known address containing particulars of the dormant account.

ii. The bank shall publish in at least 1 (one) local newspaper and in the Government Gazette the names of account holders that do not respond to the letter.

iii. Not less than 60 (sixty) days after such notice and publication, if the account holder cannot be located, the bank shall make a detailed report to the MMA and shall turn over the amount on deposit to the MMA, to be held in a special account at the MMA.

II. Transferring dormant account funds to MMA

i. Not later than 30th June each year, remit the amount in dormant accounts to the relevant account at MMA, together with a detailed report (as per the attached format) via email to bsd@mma.gov.mv. The amount should be inclusive of any interest payable on the account up to the day of transfer of the funds to MMA.

ii. For local currency accounts, remittance shall be made in local currency and for all other currencies, remittance shall be made in US Dollars, at the prevailing exchange rate on the day of transfer.

iii. Even after funds have been transferred to the MMA, bank shall maintain account opening form and any other documents identifying the account holder (including signature cards, signing authorities) and evidence to demonstrate bank’s attempts to contact the customers before funds were transferred to MMA (e.g., mails to customers, notes to the file of various attempts to contact customers).

III. Disbursing funds to claimants

i. Dormant Account holders shall submit a completed claim form to MMA to obtain the funds. The claim form shall be made available at the banks and in cases where claimant approach the bank, the bank shall provide them a claim form and advise them to submit the completed form to the MMA.

ii. Upon receipt of a completed claim form, MMA shall forward it within 2 (two) working days to the relevant bank for verification, to be returned by the bank within 5 (five) working days with the information required below:

a. Confirmation that the claimant is the entitled beneficiary of the funds. If the bank is not certain that the claimant is the beneficiary, then this should also be advised in writing to the MMA. This information should be provided on the designated part in the claim form.

b. Documentation evidencing proof of ownership of funds. At a minimum the following documents shall be submitted to the MMA: i. Copy of passport or national identity card, attested by bank. ii. Original signature cards iii. Original account opening forms with account operating instructions iv. An account statement over the 5 years preceding the transfer of funds to MMA.

iii. If claimant is a person (heirs or other beneficiary) other than the customer, advise the claimant to contact the Civil Court for claims on dormant account funds.

iv. Where the account holder or person entitled to funds (the claimant) is not able to be present in person to claim the funds, a representative can be assigned to do so. In such case: a) Details of representative should be completed in the claim form. b) Original photo ID (national identity card for locals, or passport for foreigners) of both the claimant and the representative shall be presented to the MMA before funds can be paid. c) The claim form should still be signed by the person entitled to the funds (the claimant).

v. In cases where an amount is claimed that is different from the amount transferred by the bank, MMA shall disburse only the amount transferred by the bank. Any dispute over the entitled amount shall be settled between the bank and the claimant.

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DORMANT ACCOUNT REPORTING FORM FOR LOCAL CURRENCY DEPOSITS

BANK: DATE:

Account Number	Name	Permanent Address	ID card/Passport/company registration number	Contact No.	Principal Amount	Interest Payable	Total Payable	Type of Account	Date of Last Transaction

DORMANT ACCOUNT REPORTING FORM FOR FOREIGN CURRENCY DEPOSITS

BANK: DATE:

Account Number	Name	Address	ID card/Passport/company registration number	Contact No.	Currency	Principal Amount	Interest Payable	Total Payable	Conversion rate	Equiv USD	Type of Account	Date of Last Transaction