Billy Timmins
Ceist:41 Mr. Timmins asked the Minister for Finance if his Department has carried out a review of the process of issuing and cashing bank drafts by financial institutions; and if he will make a statement on the matter. [4645/01]
Other Questions. - Dormant Accounts Scheme.
I understand the Deputy wishes to know whether unclaimed bank drafts are to be included in the dormant accounts scheme. The scheme, as proposed, extends to accounts which have become dormant in financial institutions. It does not extend to items such as uncashed bank drafts, at present. However, when the scheme is up and running, it is my intention that consideration should be given to extending it to other financial products, as appropriate, and I will review the question of bank drafts at that stage.
Is it not true that considerable quantities of money are being held by banks because the people who took out or cashed the bank drafts have died? As the Minister rightly stated, there is no provision in law to hand those amounts over to their next-of-kin. Surely something should be done about that hugely anomalous situation? Has the Minister inquired from the individual banks what the amounts are and, if not, will he do so in order to ensure that families who are entitled to such money will receive it?
As the Deputy will be aware, traditionally, bank drafts have been referred to as cash in hand. I am not aware of the legal position if a draft is encashed for whatever reason. However, I will ask the Central Bank to discuss this matter with the banks and to let me know the position. I can foresee considerable difficulty in trying to trace all these bank drafts, and I do not know whether the banks have any idea of the extent of this problem. I am aware that Deputy Timmins has been pursuing this matter. I have read newspaper reports in which he has raised this issue and he also raised the matter with me some time last year.
Yes.
I will examine the matter further, however. I hope that later this year, the dormant accounts legislation will be before the House. I will have the matter investigated before then. We should adopt a particular course on this. I am trying to get the dormant accounts legislation up and running and hopefully it will be in situ later this year.
It has come to our attention that considerable sums of money have been retained by the banks, when they should have been passed on to the rightful owners following the death of the person who lodged the bonds in question.
There is a difficulty there. Bank drafts are kept by certain individuals for a variety of reasons. People get bank drafts and hold on to them for whatever reason because they regard them as being more or less the same as cash, or safer than cash.
They have become very topical during the current tribunals. Some members of previous Governments got considerable sums of money in bank drafts.
Many things have been very topical during recent tribunals.
Luckily enough they did not die.