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Bank of Uganda |Dormant Accounts, Opportunities of Trading in Diaspora Bonds and Treasury Bills

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Posted January 9, 2022 by Ugandan Diaspora News Team in Diaspora Bonds ~ 1,600 views

     


CLARIFICATION ON DORMANT ACCOUNTS

As regulator of the banking sector, Bank of Uganda (BoU) applies a set of laws to deal with unclaimed balances or dormant accounts for Supervised Financial Institutions (SFIs) and Electronic Money Issuers (EMIs) as follows:

1.       According to Section 119 of the Financial Institutions Act (FIA) 2004, a dormant account is one that has not had any activity for a period of two years. This includes fixed deposits accounts that haven’t had any activity for 2 years after the maturity date. 

2.       After two years of inactivity, the said accounts are transferred to a separate register of dormant accounts and a notice of that action is sent in writing to the depositor at his or her last known address.

3.       Once the dormant account has been on the register for three years, the Financial Institution advertises this fact in the print media. It should be noted that any account may be transferred out of the register of dormant accounts if the depositor or, if the depositor is dead, his or her legal representative, makes such a request. 

4.       Unclaimed balances shall after a period of five years from the date of the advertisement be transferred to Bank of Uganda.

5.       The public should note that Bank of Uganda shall refund any unclaimed balances to the depositor or, if the depositor is dead, his or her legal representative, if a request is made after the dormant account has been transferred to the Bank.

6.       For purposes of electronic money (mobile money), Section 57 of the National Payment Systems (NPS) Act, 2020 made similar provisions. The Public should note that the NPS Act 2020 gives Bank of Uganda the mandate to regulate Electronic Money Issuers.

7.       Under the NPS Act 2020, a dormant account is one that has not had any activity for a period of nine (9) consecutive months.  The Electronic Money Issuer shall give notice to the customer at least one (1) month before the expiry of the nine (9) months.

8.       At the expiry of the nine (9) months [including the one (1) month notice period], the e-money account will be suspended unless there is a transaction in the account. Five (5) days after blocking the e-money account, the Electronic Money Issuer shall give notice to the customer that the account is blocked and provide instructions on how the account can be activated.

9.       If the account is not activated within six (6) months after it has been blocked, the Electronic Money Issuer shall close the e-money account. Upon the closure of the e-money account, the trustees shall transfer the balance on the Electronic Money Account and the identification information to Bank of Uganda.

10.    Bank of Uganda shall refund unclaimed balances to the customer if a claim is made within 7- years; If the account owner is deceased, their legal representative, or administrator of his estate shall make such a claim.

11.    Bank of Uganda shall after those 7 years, transfer the unclaimed balances to the Consolidated Fund.

12.    The public is informed you have a period of up to 10 years within which to rectify the issue of unclaimed balances on your accounts held with Financial Institutions. Customers, who hold accounts with Electronic Money Issuers, have a total of 8 years and three months within which to deal with the issue of dormant accounts.


About the Author

Ugandan Diaspora News Team

Ugandan Diaspora News Online is an independent, non political news portal primarily aimed at serving Ugandans who work and reside outside Uganda. Our aim is to be a one stop shop for everything Ugandan and the celebration of our Ugandan heritage.

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