Dormant accounts going to charity

Saturday 25 July 2015

Thousands of pounds in dormant accounts and precious metal and gems left in safety deposit boxes could be seized and given to charity.

Jersey is considering introducing a law to seize funds, precious metal and gems where the owner has not made any contact with the bank for 15 years, and put it in a fund to benefit charities.

Similar laws already exist in the UK, Ireland and Cayman Islands and a consultation is now taking place in the Isle of Man.

Jersey has now launched a consultation – the law being proposed would offer protection to account holders, who would have the option of making a claim for repayment at any time if their funds are taken.

Although cash, precious metals and gems would be covered by the new powers, jewellery would not, because of the potential sentimental value that can make it irreplaceable from the point of view of the owner.

Assistant Chief Minister Philip Ozouf – who has responsibility for the finance industry – said that strict controls and processes were being included in the proposed law to make sure that account holders’ rights were protected.

He said: “The draft Dormant Accounts Law is an important and significant step forward that will bring us into line with many other developed economies and bring considerable benefits to local good causes.

“If the public and the States agree, these proposals will result in money left dormant in banks becoming available for community uses. The strict controls over the definition of a dormant account and the processes to be followed will protect and provide additional reassurance to customers.”