Sat | Mar 17, 2018

NCB suspends dormant account charges

Published:Wednesday | March 15, 2017 | 10:36 AM
NCB headquarters, The Atrium. - File
Tugwell Henry

National Commercial Bank Jamaica Limited (NCB) has suspended with immediate effect charges applied to local and foreign currency accounts classified as dormant.

It said the move was being made as part of its periodic and annual reviews of the delivery of its products and services.

“We are suspending these dormant charges indefinitely,” the Bank said in a release.

“While they are suspended, we will review our current processes and determine how we can best address the real costs associated with effectively maintaining and monitoring these accounts,” said Audrey Tugwell Henry, Senior General Manager, Retail Banking.

“We will, in the meantime, seek to identify solutions that meet our customers' needs and our performance standards while remaining compliant with all regulatory requirements associated with maintaining the accounts,” she added.

NCB said a charge of $450 plus general consumption tax was previously applied to both business and personal accounts classified as dormant.

Accounts are classified as dormant if there is no customer induced activity on them for two years for saving accounts, and a one year for current accounts.

Under the Banking Services Act, deposit taking institutions such as NCB are required to report to the Bank of Jamaica deposits treated as unclaimed due to the absence of a transaction or request for a statement for seven years.

After a further eight years – thus totalling 15 years – the Act provides for the Minister of Finance to publish information on the unclaimed funds to begin a procedure under which the unclaimed amounts are paid over to the Government of Jamaica.