Dáil Éireann debate -
Tuesday, 27 Apr 1993

Vol. 429 No. 6

Written Answers. - Deposit Accounts.

Peter Barry

Question:

66 Mr. Barry asked the Minister for Finance if, in respect of dormant deposit accounts, he will give his views on whether there should be a legal obligation on the banks to notify, upon the death of the account holder, the spouse or next of kin of the existance of the account, rather than letting the entire onus rest on the family, who may not be aware of the account; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

The Central Bank is the supervisory authority for banks under the Central Bank Act, 1989.

The Central Bank has informed me that the banks duty of secrecy prevents them from disclosing information to a third party without the prior consent of an account holder. This duty of secrecy is a legal duty arising from the implied contract between bank and customers and is fully recognisable in case law.

Regardless of its legal obligations, unless a bank or other credit institution is informed of a customer's death it may not be aware of the death of a customer.

People who have deposits in banks or other credit institutions or other assets should make sure their next of kin are aware of the existence of these assets by will or some other instrument.

I understand the Central Bank is discussing the matter of dormant accounts with the representative bodies of the banks and I have asked then to keep my Department fully informed.