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  • 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