FSM Banking Regulations: Dormant Accounts

 
(1) In the event there has been no activity or deposits or withdrawals in a saving account and no contact has been made with the account holder of such saving account for at least ten years, the account shall be deemed a "dormant account" and the bank in which such account is kept shall act to close the dormant account in accordance with the procedures set forth below in this section.

(2) In the event there has been no activity of deposits or withdrawals in a checking account and no contact has been made with the account holder of such checking account for at least two years, the account shall be deemed a "dormant account" and the bank in which such account is kept shall act to close the dormant account in accordance with the procedures set forth below in this section.

(3) Bank actions in crediting interest payments to an acount or assessing service charges against an account shall not count as activity for the purposes of determining dormancy.

(4) Dormant accounts shall be identified annually by each bank during the month of June. Any dormant account with a balance of $25 or less is not subject to the procedures required by this section.

(5) Upon identification of a dormant account, the bank shall send written notice to the depositor at the depositor's last known address, informing the depositor that the depositor's account will be closed and the funds therein transferred to the Secretary of Finance if the depositor does not claim the funds in the dormant account by December 31 of that calendar year. The notice shall be sent no later than October 1 of that calendar year.

(6) Between November 1 and November 15 and between December 1 and December 15 of each year, each bank shall publish a "Notice of Inactive Bank Accounts", which shall contain:

    (a) the names, in alphabetical order, and last known addresses of depositors of
          of dormant accounts; and

    (b) a statement that, if not claimed, such funds shall be transferred to the Secretary of
          Finance during the month of January of the following year.

The Notice of inactive accounts shall be published in a newspaper of general circulation or by other means as determined by the Banking Board.

(7)  During the month of January of the calendar year immediately following the notification and publication required by subsections (4) and (5) of this section, 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.