Unclaimed Assets Scheme remains optional

January 2009

The Dormant Bank and Building Society Accounts Act – which will underpin the Unclaimed Assets Scheme, due to come into force mid-2009 – received Royal Assent on 26 November 2008.

The aim of the scheme is to promote the transfer of dormant account cash to charity. The Act provides for money in accounts which have been dormant for 15 years or more to be handed over to a central reclaim fund, and any money that is not reclaimed by customers will be transferred to the Big Lottery Fund for distribution to charities. The charities designated to receive the money are those in the fields of youth services, financial inclusion and financial capability. Customers with dormant accounts retain their right to reclaim their money at any point in time – even after it has been transferred to the scheme.

However, the scheme is entirely voluntary and because of this, there is no guarantee of full co-operation from the financial institutions. Although the Act does provide for Government review of the scheme’s effectiveness within three years of its operation, the Unclaimed Assets Charity Coalition’s (UACC) preferred option is the establishment of a national register of unclaimed assets, searchable by members of the public and charities.

See also the public policy section of www.cancerresearch.org.uk.

The full act is viewable from the Office of Public Sector Information website:

http://www.opsi.gov.uk/acts/acts2008/ukpga_20080031_en_1

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Unclaimed Assets Scheme remains optional