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  • BC-4.20 BC-4.20 Dormant Accounts and Unclaimed Balances

    • BC-4.20.1

      This section sets out the requirements relating to dormant accounts which represents unrestricted investment accounts, restricted investment accounts, current or call accounts which turn dormant due to inactivity or no claim or renewal request being made and unclaimed balances relating to various negotiable instruments such as manager cheques, amounts remaining unpaid to customers relating to their investments or amounts remaining unclaimed for other reasons such as cash not dispensed from ATMs etc.

       

      Added: January 2022

    • BC-4.20.2

      Islamic retail bank licensees must establish policies and procedures to deal with dormant accounts and unclaimed balances which must include measures to contact the customer concerned, activation of the accounts where appropriate, return of the moneys to the customer and control measures to prevent frauds and misuse of such accounts.

       

      Added: January 2022

    • Dormant Accounts Treatment

      • BC-4.20.3

        Islamic retail bank licensees must treat customer accounts as dormant accounts in the following cases:

        (a) Current and call accounts, where there have been no transactions initiated by the customer for a period of 12 months; or
        (b) Unrestricted investment Accounts (savings accounts) with no fixed maturity dates of any type, where there have been no transactions for a period of 24 months; or
        (c) Unrestricted investment accounts and other accounts which have fixed maturity dates where there has been no claim or renewal request for a period of 6 months from the maturity date.

         

        Added: January 2022

      • BC-4.20.4

        For the purpose of Paragraph BC-4.20.3 (b), savings certificates with no expected withdrawals and deposit should not be considered as “dormant” unless the licensee has become aware of non-traceability of the customer and there is evidence for the same.

         

        Added: January 2022

      • BC-4.20.5

        Islamic retail bank licensees must not treat a customer account as dormant if any one or more of the following criteria are met:

        a) The customer has other accounts, of any nature, with the licensee in respect of which there are active transactions initiated by the account holder;
        b) The account is blocked under the requirements of a relevant competent authority; or
        c) The account is subject to litigations or constraints from other regulatory authorities or the customer is deceased.

         

        Added: January 2022

      • BC-4.20.6

        Notwithstanding the requirement under BC-4.20.5, Islamic retail bank licensees must notify the customer by mail, e-mail or other communication channel, when any of his accounts becomes inactive.

         

        Added: January 2022

      • BC-4.20.7

        Islamic retail bank licensees must ensure that no withdrawal or transfer or inward clearing cheque is permitted from dormant accounts unless the activation procedures set out in this section are complied with.

         

        Amended: July 2022
        Added: January 2022

      • BC-4.20.8

        Islamic retail bank licensees must comply with the following additional requirements in transactions relating to dormant accounts:

        (a) Allow electronic and manual transfers to the account;
        (b) Accrue profit in respect of profit-bearing accounts at rates depending on the terms of the contract between the bank and the customer;
        (c) Ensure only fees or expenses permitted by CBB is charged, provided, however, that no fee is charged when the account balances become zero;
        (d) Ensure that an account is closed within six months from the date the account becomes dormant and its balance becomes zero following which, a closure notification is sent to the customer by mail, e-mail or other communication channel;
        (e) Make attempts to periodically contact the customer through different communication means and such attempts must be documented;
        (f) Ensure that the movements in dormant accounts are monitored to ensure that such accounts are not being used for money laundering or fraudulent purposes by internal or external parties;
        (g) Licensees must ensure that any movement in dormant accounts is subject to principles of “four-eyes” or “maker and checker” involving at least one authorised signatory of the licensee; and
        (h) Ensure that changes in respect of the dormant accounts, including movement in balances, change of customer contact details, status etc. are subject to internal audit every six months.

         

        Added: January 2022

      • BC-4.20.9

        Islamic retail bank licensees must ensure that the terms and conditions of deposit agreements include provisions relevant to Subparagraphs BC-4.20.8 (a) and (d) above.

         

        Added: January 2022

    • Activation of Dormant Accounts

      • BC-4.20.10

        To activate a dormant account, Islamic retail bank licensees must ensure the following:

        (a) The customer provides the licensee with a written or electronic request to activate the account stating the reasons for dormancy of the account;
        (b) The customer submits updated KYC information;
        (c) Activation of the account is subject to principles of “four-eyes” or “maker and checker” / dual authority checks involving at least one authorised signatory of the licensee; and
        (d) In case of a joint account, the request for activation of the dormant account is signed by the joint accountholders authorised to operate the account unless a valid power of attorney is given.

         

        Added: January 2022

      • BC-4.20.11

        In case of requests for activation of a dormant account through electronic channels using digital signature, the Islamic retail bank licensee must check the authenticity of the request and related information, for example, through telephone or video calls, email or other measures to satisfy itself about the authenticity.

         

        Added: January 2022

    • Unclaimed Balances

      • BC-4.20.12

        Islamic retail bank licensees must treat the following balances that remain unpaid due to operational or other reasons as unclaimed balances:

        (a) Unclaimed balances relating to manager cheques, demand drafts, or cashier cheques which have not been presented /claimed during their validity periods;
        (b) Positive credit card balances relating to credit cards not used for a period of 1 year or more;
        (c) Unclaimed cash due to failed ATM/POS or electronic transactions for a period of 1 month or more;
        (d) Dividends that remained unpaid by non-listed Islamic retail bank licensees for a period of 1 year or more; and
        (e) Unclaimed balances relating to investments, including undistributed profits and accrued profit for a period of 1 year or more.

         

        Added: January 2022

      • BC-4.20.13

        For purposes of Subparagraph BC-4.20.12 (d), listed companies must follow the guidelines stipulated in Bahrain Bourse Resolution of year 2020, mandating the transfer of unclaimed cash dividends into the Unclaimed Cash Dividends Fund account maintained by Bahrain Clear.

         

        Added: January 2022

      • BC-4.20.14

        Islamic retail bank licensees must make attempts to periodically contact the relevant customers or the rightful parties to return the unclaimed balances through different communication means. The licensee must maintain documentary evidence of such attempts.

         

        Added: January 2022

    • Reporting

      • BC-4.20.15

        Islamic retail bank licensees must report the particulars of dormant accounts and unclaimed balances in the relevant section of the Prudential Information Return for Islamic Banks ('Form PIRI').

         

        Added: January 2022

    • Prohibition of Transfer of Balances

      • BC-4.20.16

        Islamic retail bank licensees must not transfer any of the balances in dormant accounts or unclaimed balances to their income statements.

         

        Added: January 2022