State will use dormant funds for charitable purposes

MILLIONS of euro from dormant accounts is to be ploughed into projects for disadvantaged and disabled people within the next few months.

An estimated €178m is lying in dormant accounts and is due to be seized by the State if it is not touched by the end of March 2003.

Financial institutions have been trying to contact the holders of dormant accounts with more than 100 since February last year.

The Dormant Accounts Disbursement Board, appointed by Junior Minister Noel Ahern, is drawing up a plan for disbursing the finds from May this year.

The board is chaired by Conleth Bradley, a barrister, and includes representatives from the financial services industry, community and voluntary sector, disability organisations and the education sector.

It is planning to plough the money into projects aimed at alleviating poverty and programmes to assist people with disabilities or primary school students with learning difficulties.

Minister Ahern said the board had an important role to decide where the money went but stressed that account holders would still be able to claim their money back after the March deadline.

“While all surplus moneys will be used to fund programmes and projects designed to assist the people who are disadvantaged in our society, I would like to reassure people that the legislation provides for a guaranteed right of reclaim to the funds, by the rightful owner, at any time in the future.”

Department of Finance estimates compiled late last year, set the cumulative value of these accounts at about €178 million.

Dormant accounts are those in any bank, building society or Post Office where the money has not been touched for 15 years.

The move to take these funds was prompted by the DIRT inquiry report which found that banks were able to use this money to their benefit, Instead, the report urged that the funds be used for charitable purposes.

While the disbursement board is free to draw up its own plans on how to give out the money, legislation states that Social Welfare Minister Mary Coughlan may issue directions or guidelines on how money should be given out.

It is still too early to estimate exactly how much will be claimed from dormant accounts, as customers are still free to claim money back from dormant accounts.

An Post alone has identified around 50m in dormant accounts last year while it is expected that bigger financial institutions such as AIB and Bank of Ireland will find much more.

Banks and financial institutions have guides for customers on how to retrieve money from dormant accounts. The Irish Bankers Federation also has an online guide (see below) for customers.

For further information: www.ibf.ie/frames/fed.html