Dormant Accounts Act 2001

PART 1 Preliminary and General

1 Short title and commencement.

1.—(1) This Act may be cited as the Dormant Accounts Act, 2001.

(2) This Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2 Interpretation.

2.—(1) In this Act, except where the context otherwise requires—

“account” includes—

(a) a deposit account, share account or current account, by whatever name called, that is personal, corporate, charitable, resident or non-resident,

(b) a deposit receipt,

(c) a petty balances account,

(d) a savings certificate,

(e) a savings bond,

(f) an amount payable to a person under an instalment savings scheme,

(g) a fixed deposit, and

(h) an account prescribed under section 9;

“account holder” means—

(a) a person who holds an account,

(b) a person who, in respect of an account, is authorised, in writing, to act as the agent of the person who holds the account,

(c) a person who is authorised under a power of attorney to manage and control an account,

(d) where a person who holds an account is deceased, the heirs, executors, administrators and assigns of that person, or

(e) a class of person prescribed under section 9,

and “holder” shall be construed accordingly;

“Agency” means the National Treasury Management Agency;

“Board” means the Dormant Accounts Fund Disbursements Board established by section 30;

“dormancy period” means—

(a) a period of not less than 15 years ending on—

(i) 31 March 2002, and

(ii) 30 September in each subsequent year commencing on 30 September 2003,

or

(b) any other period prescribed under section 9;

“dormant account” shall be construed in accordance with section 7;

“establishment day” means the day appointed by the Minister under section 3 to be the establishment day for the purposes of this Act;

“financial year” means—

(a) in the case of the Agency and the Board, the period of 12 months ending on 31 December in each year, and

(b) in the case of an institution, the financial year of the institution concerned;

“fixed deposit” means a deposit of moneys with an institution for a period and at a rate of interest fixed by the institution;

“Fund” means the Dormant Accounts Fund established by section 17;

“health board” means—

(a) a health board established under the Health Act, 1970, and

(b) the Eastern Regional Health Authority, an Area Health Board and the Health Boards Executive, established under the Health (Eastern Regional Health Authority) Act, 1999;

“instalment savings scheme” means a scheme to which section 53 of the Finance Act, 1970, applies;

“institution” means an institution referred to in section 8;

“investment and disbursements account” means the investment and disbursements account of the Fund;

“local authority” means a local authority for the purposes of the Local Government Act, 1941;

“Minister” means the Minister for Social, Community and Family Affairs;

“petty balances account” means an account, by whatever name called, into which an institution transfers moneys from accounts which, in accordance with its practice and procedure—

(a) contain an amount below the minimum amount required by the institution for the purpose of maintaining separate accounts, and

(b) are deemed by the institution to be inactive;

“power of attorney” means an instrument signed by or by direction of a person (the donor), or a provision contained in such an instrument, giving the donee the power to act on behalf of the donor in accordance with the terms of the instrument;

“prescribed” means prescribed by regulations made by the Minister;

“register” means the register of dormant accounts established under section 14;

“reserve account” means the reserve account of the Fund;

“savings bond” means a savings bond issued under section 54 of the Finance Act, 1970;

“savings certificate” means a certificate issued by the Minister for Finance under section 30 of the Finance Act, 1940, in accordance with rules made for that purpose;

“transaction”, in relation to an account, means—

(a) in the case of a savings bond, savings certificate or instalment savings scheme, encashment or partial encashment by the account holder,

(b) in the case of a deposit receipt or fixed deposit, encashment or partial encashment by the account holder, and

(c) in any other case, the debiting from or crediting to the account, of an amount, by the account holder.

(2) In the case of an account in the form of a fixed deposit, savings bond, savings certificate or instalment savings scheme, the dormancy period commences on the expiration of the initial term specified in respect of that account.

(3) In this Act—

(a) a reference to a Part, Chapter, section or Schedule is to a Part, Chapter or section of or Schedule to this Act, unless it is indicated that a reference to some other enactment is intended,

(b) a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that a reference to some other provision is intended,

(c) a reference to any other enactment shall, unless the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act, and

(d) a reference to the performance of functions includes, with respect to powers and duties, a reference to the exercise of powers and the carrying out of duties.

3 Establishment day.

3.—The Minister shall by order appoint a day to be the establishment day for the purposes of this Act.

4 Regulations and orders.

4.—(1) The Minister may—

(a) by regulations provide, subject to this Act, for any matter referred to in this Act as prescribed or to be prescribed, and

(b) in addition to any other power conferred on him or her to make regulations, make regulations generally for the purposes of, and for the purpose of giving full effect to, this Act.

(2) Regulations under this Act may—

(a) contain any incidental, supplementary and consequential provisions that appear to the Minister to be necessary or expedient for the purposes of the regulations, or

(b) apply either generally or to a specified class or classes of account, institution or person (including a class or classes of account, institution or person specified in regulations under section 9) or to any other matter that may be considered by the Minister to be appropriate and may include different provisions in relation to different classes of account, institution or person.

(3) Where the Minister proposes to make regulations under section 9 or 11(7), he or she shall cause a draft of the regulations to be laid before each House of the Oireachtas and the regulations shall not be made until a resolution approving of the draft has been passed by each House.

(4) Every regulation or order under this Act (other than a regulation referred to in subsection (3) or an order made under section 1(2) or 3 shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the regulation or order is passed by either House within the next 21 days on which that House has sat after the regulation or order is laid before it, the regulation or order shall be annulled accordingly but without prejudice to the validity of anything previously done under the regulation or order.

5 Expenses.

5.—(1) Except where otherwise provided for in this Act, the expenses incurred by the Minister in the administration of this Act shall, to the extent that may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

(2) The Minister may from time to time, during the period of 2 years from the establishment day, with the consent of the Minister for Finance, advance to the Fund out of moneys provided by the Oireachtas, on the terms and conditions that the Minister, with the agreement of the Minister for Finance, thinks fit, the sum or sums that the Minister, after consultation with the Board, may determine for the purpose of defraying the costs and expenses incurred by the Board in performing its functions under this Act.

6 Penalties and proceedings.

6.—(1) Subject to subsection (2), a person guilty of an offence under this Act shall be liable—

(a) on summary conviction, to a fine not exceeding €1,900 or imprisonment for a term not exceeding 6 months, or both, or

(b) on conviction on indictment, to a fine not exceeding €100,000 or imprisonment for a term not exceeding 5 years, or both.

(2) A person guilty of an offence under section 40(2) shall be liable on summary conviction to a fine not exceeding €1,900.

(3) Where an offence under this Act is committed by a body corporate and is proved to have been committed with the consent, connivance or approval of, or to be attributable to any neglect on the part of any director, manager, secretary or other officer of the body corporate or any other person who was purporting to act in any such capacity, that officer or person as well as the body corporate shall be guilty of an offence and be liable to be proceeded against and punished as if he or she were guilty of the first-mentioned offence.

(4) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under this Act may be instituted within 2 years from the date on which the offence was committed or, if later, 2 years from the date on which evidence that, in the opinion of the person by whom the proceedings are brought, is sufficient to justify the bringing of the proceedings comes to that person's knowledge.

(5) Summary proceedings in respect of an offence under this Act may be brought and prosecuted by the Minister.

(6) Where a person is convicted of an offence under this Act, the court shall, unless it is satisfied that there are special and substantial reasons for not so doing, order the person to pay to the Minister the costs and expenses, measured by the court, incurred by the Minister in relation to the prosecution of the offence.

PART 2 Dormant Accounts

Chapter 1 Application of Act

7 Dormant accounts.

7.—An account shall be deemed to be a dormant account where, during the dormancy period, no transaction on the account has been effected by the account holder.

8 Application of Act.

8.—(1) Subject to subsection (2), this Act applies to dormant accounts held at an institution specified in Part 1 of the Schedule.

(2) This Act does not apply to an account specified in Part 2 of the Schedule.

9 Extension of application of Act.

9.—(1) The Minister, having regard to the purposes specified in subsection (3), following consultation with the Central Bank and subject to the consent of the Minister for Finance, may make regulations providing for the application of this Act and instruments made under this Act, with and subject to any modifications that may be specified in the regulations, to accounts (including accounts other than those specified in section 2(1)) that are held by any class or classes of person and at any class or classes of institution specified in the regulations.

(2) Without prejudice to the generality of subsection (1), the modifications, if any, may relate to any of the following matters:

(a) the dormancy period;

(b) the notification procedure set out in Chapter 2;

(c) the transaction, as defined in section 2(1), required to be effected in relation to an account for the purposes of this Act;

(d) the transfer of moneys to the Fund under section 12;

(e) the keeping of a register under section 14 and the particulars required to be entered therein;

(f) the disclosure of information for statistical purposes under section 15;

(g) the repayment of moneys under Chapter 5;

(h) any other matters that may appear to the Minister to be necessary for carrying the regulations into effect.

(3) The Minister may make regulations under subsection (1) for the following purposes:

(a) consumer protection;

(b) the proper and orderly regulation of the financial services industry;

(c) to facilitate the accessing or identification by persons of accounts or moneys to which they are entitled;

(d) to reduce the administrative and financial burden on persons or institutions of maintaining dormant accounts.

Chapter 2 Notification Procedure

10 Notification procedure.

10.—(1) Subject to section 11, except where a dormant account holder has been previously notified under this section in respect of the account concerned, each holder of a dormant account shall be notified, in writing, by the institution concerned of the following:

(a) the name and current address of the institution and any information regarding a change of name since the opening of the account concerned;

(b) that a dormant account is held at the institution to which the holder appears to be entitled;

(c) that if a transaction is not effected on the account on or before 31 March next following, the moneys in the account will be transferred to the Fund without further notice to the account holder;

(d) that the account holder is entitled, subject to this Act, to claim repayment of the moneys in the account from the institution concerned;

(e) any other matters that may be prescribed but which shall, without prejudice to the generality hereof, notify the account holder that his account can be reclaimed at all times subject to the provisions of this Act.

(2) The notification referred to in subsection (1) shall be sent by ordinary post to the last known address of the account holder—

(a) as soon as practicable after 31 March 2002, and

(b) in each subsequent year, as soon as practicable after 30 September.

(3) An institution that fails to notify an account holder under this section shall be guilty of an offence.

11 Publication of notice.

11.—(1) Where a dormant account is held at an institution and—

(a) the amount in the account is less than €100 or its equivalent in any other currency (or any other amount that is prescribed under subsection (7)),

(b) the institution has been instructed by the account holder not to correspond with or contact the account holder, or

(c) the institution has taken all reasonable steps to notify the account holder in writing in relation to the account and fails to do so,

section 10 does not apply and the institution shall publish or cause to have published a notice in 2 or more daily newspapers circulating in the State and in the Iris Oifigiúil.

(2) The notice shall be in the prescribed form or in a form to the like effect and shall contain the following information:

(a) subject to subsection (3), the name of the institution and the current address of its head office and any information regarding a change of name;

(b) that the institution holds dormant accounts;

(c) that if a transaction is not effected on a dormant account on or before 31 March next following, the moneys in the account will be transferred to the Fund without further notice to the account holder;

(d) that any interested persons should contact the relevant institution to establish if they hold such an account;

(e) that account holders are entitled, subject to this Act, to claim repayment of the moneys in dormant accounts from the institution concerned;

(f) any additional information that may be prescribed.

(3) (a) An institution which publishes, or causes to have published on its behalf, a notice under this section shall, on request, make available free of charge—

(i) details of the current address of its head office and any information regarding a change of name, and

(ii) subject to paragraph (b), any other relevant information specified in the request.

(b) Where the information referred to in paragraph (a)(ii) is otherwise made available to persons subject to a lawful charge, that information may be made available under this subsection subject to that charge.

(4) The notice shall be published—

(a) in the case of the first notice, on 30 April 2002, and

(b) in any other case, in each subsequent year, on the first week-day in October in that year.

(5) Copies of a notice published under this section shall be—

(a) permanently displayed in a prominent position at each premises in which the institution carries on business that is open to the public, and

(b) published in a prominent position—

(i) in all brochures and publicity material, in relation to dormant accounts, issued by the institution, and

(ii) in any relevant code of conduct of the institution.

(6) An institution that fails to comply with this section shall be guilty of an offence.

(7) The Minister may, by order, amend at any time the amount specified in subsection (1)(a) if the Minister—

(a) considers it appropriate to do so having regard to all the circumstances, and

(b) is satisfied that by doing so members of the public will not be prejudiced.

Chapter 3 Transfer of Moneys in Dormant Accounts to Dormant Accounts Fund

12 Transfer of moneys to Fund.

12.—(1) Subject to subsections (2) and (3), if a transaction is not effected on a dormant account on or before the date specified in section 10(1)(c) or 11(2)(c), as the case may be, the institution at which the account is held shall, not later than 30 April next following, transfer to the Fund the moneys in the dormant account and the first such transfer shall take place not later than 30 April 2003.

(2) Where dormant accounts to which subsection (1) applies are held at a building society specified in paragraph (b) of Part 1 of the Schedule, the amount transferred to the Fund shall be an amount equivalent to the total value of the building society's dormant accounts.