Unclaimed money set to go to govt after 10 years

PROPOSED amendments to the Unclaimed Moneys Act 1965 will allow the government to consider unclaimed money as revenue after 10 years.

Under the existing law, unclaimed money previously held by companies and lodged with the Registrar of Unclaimed Moneys is to be credited into the Consolidated Trust Account.

After a lapse of 15 years, the unclaimed money under the trust fund is to be transferred to the Consolidated Revenue Account.

The proposed amendments to Section 11 under the Act will see the 15-year period shortened to 10 years.

Finance Minister II Datuk Seri Amir Hamzah Azizan tabled the amendments for the first reading in the Dewan Rakyat yesterday.

He informed Deputy Speaker Datuk Ramli Mohd Nor that the government intends to pass the proposed amendments during the current Parliament meeting.

Also to be amended is the definition of unclaimed money under a new Section 2A.

The term “unclaimed moneys” will refer to all sums of money legally payable to the owner and have remained unpaid for a period of not less than two years after they have become payable.

The existing definition under Section 8 states that the period when payable money is deemed unclaimed if it remains unpaid is not less than one year.

Unclaimed funds to the credit of an account that the owner has not used in any way for a minimum of seven years are defined as being “unchanged”.

This also includes the credit of a trade account that has remained dormant for a period of not less than two years.

Other notable proposed amendments include the inclusion of a new Section 4A that gives power to the Finance Minister to appoint any officer in the government service to be the Registrar of Unclaimed Moneys.

The Minister may also appoint officers in the government service to be Deputy Registrars and Assistant Registrars.

The current Parliament meeting started on Feb 26 and ends on March 27.