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Dáil Éireann debate -
Wednesday, 4 Jul 2001

Vol. 540 No. 2

Written Answers. - Dormant Accounts.

Deirdre Clune

Question:

43 Ms Clune asked the Minister for Social, Community and Family Affairs the role of his Department in respect of distributing funds which may become available from the recently announced legislation to access the funds of dormant accounts; the discussion he has had with the Department of Finance on this matter; and if he will make a statement on the matter. [19735/01]

The Dormant Accounts Bill, 2001 was introduced by my colleague, the Minister for Finance on 23 May 2001. The Bill was passed by Dáil Éireann on Friday last and I look forward to its passage through the Seanad and its early enactment.

The core objective of the legislation is to put account holders or their heirs or successors in touch with their dormant accounts in financial institutions. The scheme provided for will commence next April and will oblige banks, building societies and the post office to make contact with all customers whose accounts have become "dormant", i.e. where there has been no customer initiated transactions on the account for 15 years or more.

If the owners of accounts which have been dormant for 15 years or more, as at 31 March 2002, have not come forward by the end of March 2003 to reclaim their moneys, the balances in the accounts will be transferred to a "Dormant Accounts Fund" to be established and managed by the National Treasury Management Agency. The transfer of moneys will take place on the basis that the beneficial owners of them will have a guaranteed right of reclaim to their property at any time.

The fund will be managed by the agency for two purposes – first, to meet claims for refunds from owners and, secondly, to make payments under a scheme of disbursement. I will appoint the members of the "Dormant Accounts Fund Disbursement Board" whose remit will be to oversee a scheme for disbursement of surplus dormant funds, based on guidelines given by me. The other powers I will have include: the appointment of an inspector to ensure compliance by the financial institutions with the legislation, issuing directions and guidelines to the National Treasury Management Agency in relation to the preparation of an investment plan, extension of the legislation to other types of accounts and, provision of secretarial and administrative support to the board.
The purposes for which the moneys in the account will be disbursed are set out in the legislation.
The board will prepare a plan for disbursement of the moneys in question and I will have power to issue directions and guidelines to the board concerning the preparation of the plan.
Any disbursements of 300,000 euros or more will require my consent and I will have power to make regulations relating to the disbursement of the moneys and to determine the form, terms and conditions for the disbursements. I will also receive the board's annual report and lay it before the Houses, as I will with the audited accounts of the board.
I and officials from my Department were involved with the development of the proposals for the disbursement of funds as provided for in the legislation and officials of my Department will continue to liaise with the Department of Finance as required with regard to the implementation of the legislation.
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