Jamaican banks will no longer apply fees to dormant saving accounts ending a practice that has been controversial for decades.
Bank of Jamaica (BOJ) Deputy Governor Jide Lewis says that the banks have moved away from using manual processes to monitor dormant accounts and have introduced technology to carry out the task. He said the technology has been verified by the BOJ.
In addition, the banks have introduced a transaction-monitoring system to allow senior staff members to detect and identify employees who try to access dormant accounts.
Anthony Hylton at a meeting with the Economy and Production Committee of Parliament said he was pleased with the news, noting that he had been advised by a senior banking official in the past that it was bank employees who posed a risk to dormant accounts.
“My concern leading up to now has been that if members of staff were the ones accessing these accounts, then the responsibility must devolve on the banks to address this situation,” the opposition lawmaker said.
However, Lewis said when a bank employee is involved in internal fraud, there are actions that the institution will take in addition to the intervention of the police.
He said that banks are also required to report internal fraud to the BOJ.
But Hylton said where depositors’ savings are at risk and they suffer loss as a result of the actions of bank employees, the account holder should be able to recover losses through civil action in the courts.
Lewis said in all such cases, the customers’ accounts are reinstated and the liability is borne by the banks.
In Jamaica, banking institutions decide when to classify an account as dormant. According to reports 60% of dormant accounts are between one and seven years old, with a median duration of 4.8 years. 94% of dormant accounts have funds that have not been claimed for more than 15 years.
If money is left unclaimed in a deposit-taking institution for 15 years or more, it becomes part of Jamaica’s revenue after being published in the newspaper and on the Ministry of Finance’s website for one year. The Accountant General then receives the funds, and individuals have up to 15 years to claim them if they can provide proof of ownership.
To reactivate a dormant account, individuals can contact their bank or make a transaction. They may need to provide detailed information, such as the account number, holder’s name, balance, and any statements, to verify their identity and reclaim their funds
