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Press Release - Dormant bank accounts 31 10 19

For immediate release: 31st October 2019

Alderney charities to gain from dormant bank accounts

Proposed changes to Guernsey Law to use money in dormant bank accounts will benefit local charities.

Alderney's Policy & Finance Committee agreed in principle to plans by Guernsey States to transfer account balances where the bank has had no contact with a customer for at least 15 years.

But the committee stressed it wanted Alderney charities to have their fair share.

The move which mirrors UK policy will see cash for dormant accounts placed in a statutory central fund called the Bailiwick Dormant Accounts Fund (BDAF), which is to be set up to support charitable and social causes.

The framework of a similar scheme in Jersey, consistent with other Crown Dependencies, has been followed and is supported by the Association of Guernsey Banks.

The cash will be distributed to charities in the Bailiwick after deduction of reasonable BDAF costs. It is expected the beneficiaries will be selected by a new Social Investment Commission together with a Guernsey committee delegate. The Registrar of Guernsey and Alderney Non Profit Organisations will be asked for their advice on charity applicants.

Money that is subject to criminal justice legislation such as suspicion of money laundering or where litigation is involved will not be transferred to the BDAF.

Reimbursement claims made for accounts after they have been transferred will be dealt with under a "user-friendly mechanism" between the bank concerned and the BDAF, funded from BDAF reserves.

States of Guernsey Policy & Resources will publish an annual report on BDAF's operation and accounts.