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States could be granted power to absorb dormant funds

States could be granted power to absorb dormant funds

Friday 04 December 2020

States could be granted power to absorb dormant funds


A law is being proposed which will allow funds from Guernsey-held bank accounts, which are dormant, to be absorbed into a States charitable fund.

Under the proposals, money from the Bailiwick Dormant Accounts Fund will then be put towards "various good causes" across the Bailiwick.

To be considered dormant, a bank account will need to have been inactive for at least 15 years. There’ll be a framework in place to allow the owners of the bank accounts to reclaim their money if they want to.

Policy & Resources' Policy Letter stresses that a number of checks and balances will take place. 

"There must be as much certainty as possible over what comprises a dormant account and, therefore, what money will be available for transfer to the BDAF."

 Banking.jpg

Pictured: Guernsey banks undertake significant effort to contact customers with dormant bank accounts.

Contacted by Express, P&R Committee Member Deputy Mark Helyar added: “This legislation would apply to Guernsey bank accounts only. It’s not unusual and dormant account legislation exists already in the UK, the Isle of Man and Jersey, and will include clear rules on ‘dormancy’.”

It will require a clear understanding and working process between the States of Guernsey and banking institutions in the island.

“We’ve sought to make this system similar to those operated in Jersey and the Isle of Man, which is something banks wanted to see when we consulted with them.”

The implementation of the law will be debated in this month's States meeting. 

Pictured top: P&R is requesting the power to redistribute funds to worthy causes in Guernsey and Alderney.

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