UNCLAIMED MONIES - now the government is making plans to take people's monies after 10 YEARS. After all, we are talking about RM11 billion Plus.
The government has all the information of people in Malaysia(especially citizens) - therefore FINDING the people to return UNCLAIMED Monies really should not be a PROBLEM. If the owner of the monies is DEAD, then return it to the heirs.
Bank Accounts - Many people have many different bank accounts, including fixed deposits. They may change banks and open new accounts when they move to a different location, or even change an employer (as many employers desire the employee wages to be deposit in a account of particular bank). This means that they will have many bank accounts, and they may forget more so since most banks have stopped sending monthly bank statements.
Some account holders may have DIED - and their family/heirs are unaware of these 'other' bank accounts/etc.
Some may have become OLD and forgotten about their accounts, maybe by reason of Alzheimer, Dementia or simply old age..Even young people can forget.
This is similar with other investments, shares and stock.
When they changed address, some may have failed to inform the bank of their change of address. Further, the postal service is not as good as it was before - and most times, they do not even send by A.R.(acknowledge receipt) Registered Post, where the recipient will have to acknowledge receipt of the letters/statement by SIGNING on the A.R. Registered Card.(After the Covid 19 pandemic, things have changed - now letters are just dumped into letter boxes(without any confirmation of receipt by the receiver)
PROBLEMS
# Bank Statements - well, now the bank does not send out monthly paper printed statements > so people can forget(Maybe, Banks should at the very least send statements once in every 6 months - this will help people remember, and also allow them to check the statements to find out is there is anything wrong. YES - it is possible to get statements online, but the process is NOT EASY especially for those not internet savvy. {Personally, I too do not know all the Bank Account numbers and it is difficult to even access statements online). With no statements or bank books, it becomes more difficult to remember bank accounts and their numbers - then, it was easier, just check your passbook or the recent bank statement. ATM or Debit Cards do not disclose the account numbers...mmmm
2nd problem - is bank accounts and even fixed deposits are becoming 'inactive' faster these days - and then the RISK of being send to UNCLAIMED Monies. A bank officer said for an account to be 'active' there must be deposits and withdrawal. Last time, this was not an issue and then they said that if there is 'no activity' for 1 year, and now someone said it has been shortened to 6 months - the said monies will be sent to UNCLAIMED MONIES. For FD, it is 5 -7 years for some banks. EITHER way, at least once a year, banks should send a statement to the owners. This could also be GOOD for tax purposes, where the owner will be able to more accurately calculate taxable incomes.
Sadly, when the monies are sent to UNCLAIMED MONIES, the monies stop earning INTEREST that banks will provide > no more income generating. {Suggest that even these UNCLAIMED Monies should continue to be income generating for the TRUE owners - not just the government. Maybe unclaimed monies should remain in banks to continue earning interests?
Last year, the Deputy Finance Minister said the amount of monies belonging to Malaysians(and/or their families, heirs and dependents is about RM11 BILLION.
So, the government, rather than TAKING IT should really return all these 'unclaimed monies' to their owners(or those now entitled). The government, with all the personal data, will be in the position to identify/find these owners(or their heirs, family) and return it.
It is so SAD that the government is now trying to amend the laws, so that these UNCLAIMED monies can be absorbed by the government sooner - reducing it from 15 years to 10 years. The amending Bill is in Parliament.
PROPOSED amendments to the Unclaimed Moneys Act 1965 will allow the government to consider unclaimed money as revenue after 10 years.Like KWSP/EPF and TRUST FUNDS, unclaimed monies should generate REVENUE for the owner(or their heirs) - not REVENUE for the Government - for these are people's OWN money.
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.
More than RM11 billion unclaimed by Malaysians, says Deputy Finance Minister
KUALA LUMPUR: A total of RM11.2 billion in unclaimed money belonging to the public has not been claimed as of April 30, the Dewan Rakyat was told today.
Deputy Finance Minister Datuk Seri Ahmad Maslan said out of the amount, 70 per cent of the money was from inactive bank accounts of seven years and more.Ads by
He also said the unclaimed money was mainly made up of bonuses and dividend payouts as well as trading accounts.
"A total of RM3.2 billion was returned to the public as of yesterday.
"The unclaimed money involved bonuses and dividend payouts in a year's period as well as money in trading accounts between companies and suppliers.
"Of the total amount, 70 per cent of the unclaimed money is from inactive bank accounts of seven years and more," Ahmad said.
He was responding to a question by Fong Kui Lun (Pakatan Harapan-Bukit Bintang), who asked the government to state the amount of accumulated unclaimed money and the proposals on how to utilise the money for national development.
The unclaimed money, said Ahmad, is being held in a consolidated trust account by the Registrar of Unclaimed Moneys in the Accountant-General's Department.
He added that RM10 billion has been put under a fixed deposit account and the yearly profit of RM250 million will be channelled back after 10 years for the development and wellbeing of the people.
Meanwhile, he said that the government will consider setting up an educational fund and scholarship to assist students with financial implications through the unclaimed money.
"It can be considered. However, we have no plans at the moment (to establish the fund) as our focus now is to return the unclaimed money to the public.
"Hence, those who want to claim their money, please go to the Accountant-General's Department official portal and claim your money.
"You can fill out the form and once it is completed, you will receive the money between 14 to 30 days time." - NST, 24/5/2023
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 (pic) 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. - Star, 12/3/2024
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