ROADTOWN Tortola BVI, June 20th, 2012 – Dormant or inactive accounts will soon be transferred to the Government of the Virgin Islands and monies will be used to increase the reserve fund, in accordance with the Dormant Accounts Act, 2011.
According to the legislation, dormant accounts are bank accounts that have not been used for more than seven years.
Prior to the commencement of the act, inactive accounts were managed by banks. The shift in management from the banks to the Government of the Virgin Islands will begin tomorrow, June 21, when banks will publish lists of all accounts which show no activity, in accordance with the legislation.
The publishing of the dormant accounts lists is in accordance with Part II, of the Dormant Accounts Act Section 6 (2), which states: “an institution shall publish or cause to be published at a conspicuous position in the Gazette and in two newspapers of wide circulation in the Territory, a notice containing a list of dormant accounts....”
All banks are mandated by law to publish a list of all inactive accounts in both the Gazette, the official newspaper of the VI Government, and two selected newspapers.
The public is invited to view copies of those lists which will be made available on June 21. Interested persons should look out for the published lists in the local newspapers, or can contact the Gazette Office at 468-3701 extension 4386 to purchase copies.
In an interview with the Department of Information and Public Relations, Financial Secretary, Mr. Neil Smith explained the purpose of the Dormant Accounts Act, 2011, saying, “The act provides framework for the management of those dormant accounts by the Government of the Virgin Islands. The act itself is guided by international standards where it is customary that governments all around the world manage any unclaimed assets within their respective jurisdictions.”
The financial secretary also explained that the funds will be used to augment Government’s reserve fund, adding, “The monies will enhance liquidity and are available for use in special social projects. This will only happen under special circumstances, where the project seeks to benefit all residents in the Virgin Islands.”
Mr. Smith also said that even after the funds are added to Government’s reserves, that persons will still have the opportunity to claim ownership of dormant accounts, once they show credible proof.
Account holders have a period of sixty (60) days to make a claim to prevent their accounts from being classified as dormant. Unclaimed assets from any dormant accounts will then be transferred to a special fund, held in the Government’s reserve fund, consisting of a reserve account and an investment and disbursement account.
A committee, chaired by the financial secretary, will be established to administer the fund. The accountant general, the director of Internal Audit, a representative of the Financial Services Commission, not below the rank of a director, two persons nominated by financial services institutions and a representative of the Attorney General will also sit on the committee.
The Dormant Accounts Act, 2011 was passed by the House of Assembly on July 14, 2011, assented by His Excellency the Governor Mr. Boyd McCleary, CMG, CVO, on August 22, 2011, and commenced on February 1, 2012.
The enactment of the Dormant Accounts legislation is in line with the mission of the Ministry of Finance, which is to promote financial stability and the sustainable development of the Virgin Islands.
*************************
DISCLAIMER
This article was posted in its entirety as received by SKNVibes.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of SKNVibes.com, its sponsors or advertisers
British Virgin Islands News