Dormant Accounts (Forms) (Amendment) Regulations, 2010

Summary

This is a short amending regulation made under the Dormant Accounts Law, 2010, which updates the prescribed form used by financial institutions when notifying the public about dormant accounts they hold. It replaces 'Form 1' in the Schedule to the Dormant Accounts (Forms) Regulations, 2010 with a new version of that notice form.

The new Form 1 requires a financial institution to publish a notice identifying itself, listing dormant accounts (account number and date opened), and warning account holders that unless a qualifying transaction occurs on or before 31 December following the notice, the funds will be transferred to the general revenue of the Cayman Islands without further notice.

• Qualifying transactions: A deposit or withdrawal, presenting a passbook, written correspondence, a trust claim, or another indication of interest.
• After transfer: The account holder loses recourse against the financial institution but gains an equivalent right against the Government.
• Inquiries: The form invites interested persons to contact the institution to check dormant account status.

In effect, this regulation does not change the substantive dormant accounts regime itself but standardises and updates the wording and content of the statutory notice financial institutions must use when publicising dormant accounts under section 6 of the Dormant Accounts Law, 2010.

Key obligations

• Financial institutions must use the new Form 1 (as substituted by this amendment) when giving public notice of dormant accounts under section 6 of the Dormant Accounts Law, 2010
• The notice given via Form 1 must list each dormant account's account number and the date the account was opened, along with the financial institution's name, number and address
• The notice must state that unless a qualifying transaction (as listed in the form) occurs on or before 31 December next following, monies in the dormant account will be transferred to general revenue without further notice
• The notice must inform account holders of their resulting rights against the Government (rather than the financial institution) after transfer of funds, and invite interested persons to contact the financial institution to establish dormant account status

Applies to

financial institutions

Deadlines

• 31st December next following: Deadline by which a qualifying transaction must be effected on a dormant account (per the notice in Form 1) before the monies are transferred to the general revenue of the Islands

Related documents

• This document amends Dormant Accounts (Forms) Regulations, 2010