FSM Banking Regulations: Dormant Accounts
Section 106. Banking Practices- Dormant and Inactive Accounts.
Dormant and Inactive Accounts:
(7) During the month of January of the calendar year immediately
following the notification and publication required by subsections (4) and
(5) above, each bank shall transfer to the Secretary of Finance, for the
account of the depositor, the full balance of each dormant account, provided
however, that the bank may deduct costs of notice and publication in a
manner to be determined by the Banking Board in regulations.
(8) Except as provided for this section, no bank shall assess any fee
against any bank account for reasons of inactivity.
(9) In the event
that a bank holds, for three years or more, any funds for which the owner or
payor cannot be determined by the bank or for which the owner or payor
cannot be located by the bank, the bank shall transfer such funds to the
Secretary of Finance for the account of the owner or payor, in the event
such owner or payor is determined or located at a later date.
Upon receiving sums of money pursuant to this section, the Secretary of
Finance shall furnish the transferring bank with a receipt for such
transferred funds and shall deposit such sums into a custodial interest
bearing account separate and apart from the General Fund of the FSM National
Government and shall not be paid to the owner of the funds.
Secretary of Finance shall be responsible for maintaining accurate records
of funds received pursuant to this section in accordance with any
regulations adopted by the banking Board.
(12) At any time within 20
years of the date of transfer of funds to the Secretary of Finance pursuant
to this section, such funds may be claimed by their rightful owner or owners
by furnishing proof of his, her or their right to such funds, which proof is
deemed satisfactory to the Secretary of Finance.
(13) All funds transferred to the Secetary of Finance pursuant to this
section shall escheat to the National Government of the Federated States of
Micronesia 20 years following the date of such transfer.
Each bank shall hold the FSM National Government harmless for any liability
incurred due to the handling of an account by the bank. The FSM National
Government shall not be liable for any transaction on an account made by any
bank, including the transfer of the balance of the account to the Secretary
of Finance pursuant to this section. The FSM National Government shall not
be liable for damages or penalties for any payment to a claimant of funds
deposited pursuant to this section.
(15) The bank shall not be liable
for any mishandling of an account by the Secretary of Finance.
The Banking Board may adopt such rules and regulations as may be necessary
to implement the provisions of this section.
Source: PL 13-56 Section
The statutory Provisions on the President and the Executive are found in
Title 2 of this code.