FSM Banking Regulations: Dormant Accounts
Section 106. Banking Practices- Dormant and Inactive Accounts.
Dormant and Inactive 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
(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.
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.
Notice of inactive accounts shall be published in a newspaper of general
circulation or by other means as determined by the Banking Board.
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.