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What is Unclaimed Money?



Generally, unclaimed moneys are classified into the following categories:

  • All sums of money which are legally payable to the owner and have remained unpaid for a period of not less than one (1) year after they have become payable.

    Examples include:

    1. Salaries, wages, bonuses, commissions and other payments due to employees;

    2. Dividends and profits declared for distribution;

    3. Insurance claims which have been approved for payment;

    4. Bank drafts, cashier's orders and other documents of similar nature which the validity period has elapsed;

    5. Fixed deposits (without automatic renewal instructions) which have matured;

    6. Tender deposits for which the intended purposes have been fulfilled;


  • All sums of money to the credit of an account [3] that has not been operated in whatever manner by the owner for a period of not less than seven (7) years.

    Examples include:

    1. Savings accounts

    2. Current accounts

    3. Fixed deposits (with automatic renewal instructions) [2];



  • All sums of money to the credit of a trade account which has remained dormant for a period of not less than two (2) years.


Key factors that cause such moneys turned over to the Registrar of Unclaimed Moneys are:
  • change of address without notifying business contacts;

  • forgetting about small deposits of money in bank;

  • the owner dies and his or her legal heirs are unaware of the moneys;

  • leaving an account with low balance instead of closing it;

  • bank mergers resulting in name changes and branch closings and owner is unsure of which bank holds an account to which he or she has entitlement;

  • lack of financial understanding on the part of the owner.


Under the Unclaimed Moneys Act 1965 (Malay: Akta Wang Tak Dituntut 1965), such sums of money will be transferred to the Registrar of Unclaimed Moneys. The owner of the unclaimed moneys may recover the moneys from the Registrar either in person or in writing.

The Accountant General of Malaysia [1] (Malay: Akauntan Negara Malaysia) was appointed as the Registrar of Unclaimed Moneys on June 1, 1975.


References
  1. ^ The official website of Accountant General's Department of Malaysia (Malay: Jabatan Akauntan Negara Malaysia)

  2. ^ The seven (7) years period shall start from the date of the last standing instruction given by the owner. Only the initial receipt of a standing instruction is considered a transaction operated by the owner. The periodic implementation of the standing instruction performed by the banking institution will not be considered a transaction operated by the owner.

  3. ^ Refers primarily to bank accounts and accounts with other financial institutions.




Tags: unclaimed moneys, dormant accounts, unclaimed funds, inactive accounts, savings accounts, UMA, Act 370, Unclaimed Moneys Act 1965

Knowledge Base ID:1146
Last Review:May 14, 2009

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RELATED BANKING ISSUES
What is a dormant bank account? Will funds in my dormant bank account go to unclaimed moneys?

How can I reclaim funds that go to unclaimed moneys? How do I recover lost bank accounts?

Who can apply for refund of unclaimed moneys? Who is entitled to unclaimed moneys?

Do I earn interest on unclaimed money? Will my unclaimed money be repaid with interest?

Is there a time limit on when I can apply for a refund of unclaimed moneys held by the Registrar of Unclaimed Moneys? Will my information on the Registrar's database be removed after a particular time?

Who must comply with Unclaimed Moneys Act 1965? Which companies or societies come under the Act by depositing funds with the Government?


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