Special law required for gov't to claim dormant money: FSC
December 10, 2013, 12:25 am TWN
Taipei--A special law will have to be enacted if the government is to claim the money in dormant bank accounts, the head of the Financial Supervisory Commission (FSC) said Monday.
Dormant accounts refer to those have been inactive for a certain period of time, which varies from bank to bank.
FSC Chairman Tseng Ming-tsung (曾銘宗) said one of the approaches adopted by the United Kingdom is to notify holders of dormant bank accounts that if the money is not claimed within a certain period of time, it will be transferred to the Treasury.
However, it will require special legislation to make such a move in Taiwan, Tseng said during a hearing of the Legislative Finance Committee.
Currently, there are more than 50 million dormant accounts in Taiwan, but the banks have not issued any notices to the account holders advising them to reactivate or close the accounts, according to Legislator Alex Fai of the ruling Kuomintang.
It is not in the national interest to have money lying idle and the FSC should consider what to do about dormant accounts, he said.
In response, Tseng said the FSC has asked the banks to notify clients of accounts that have become dormant.