Jamaican banks move to eliminate controversial fees for dormant accounts

Jamaican banks have decided to stop charging fees on dormant savings accounts, putting an end to a long-standing and controversial practice.

Jide Lewis, Deputy Governor of the Bank of Jamaica (BOJ), announced that banks have upgraded their methods for monitoring dormant accounts from manual processes to advanced technology. This new system, approved by the BOJ, aims to enhance efficiency in account management.

Additionally, banks have introduced a transaction-monitoring system that allows senior staff to detect and prevent unauthorized access to dormant accounts.

In Jamaica, the criteria for classifying an account as dormant are set by individual banks. Reports show that 60 percent of dormant accounts are between one and seven years old, with an average dormancy of 4.8 years. Moreover, 94 percent of these accounts hold unclaimed funds that have been inactive for over 15 years.

Funds that remain unclaimed in a deposit-taking institution for 15 years or more are transferred to Jamaica’s revenue. This process involves publishing a notice in the newspaper and on the Ministry of Finance’s website for a year. After this period, the Accountant General receives the funds, and individuals have up to 15 years to reclaim them if they can prove ownership.

To reactivate a dormant account, individuals can either contact their bank directly or make a transaction. They may need to provide detailed information, such as the account number, account holder’s name, balance, and any relevant statements, to verify their identity and recover their funds.