Use of Dormant Deposits for Public Interest Starts in Japan
Tokyo, Jan. 8 (Jiji Press)--A system to divert funds sleeping in bank accounts for 10 years or longer for use in public-interest activities such as assistance to families in poverty started on a full scale in Japan this month.
About 70 billion yen in such bank accounts is expected to be newly deemed dormant every year.
Banks are alerting depositors to inactive accounts becoming dormant. Koji Fujiwara, chairman of the Japanese Bankers Association, or Zenginkyo, has urged the public to check any deposits that have been left untouched for a long time.
Under the law for the use of dormant deposits, which came into force in January 2018, a bank account is regarded as dormant if no deposit, withdrawal or other activity has been made for 10 years or longer and the account holder cannot be contacted.
The law applies to accounts for which at least 10 years have passed since the last transaction was made on Jan. 1, 2009, or later. This month, deposits started to become dormant under the law.
[Copyright The Jiji Press, Ltd.]