Section 59: Abandoned funds

59. Abandoned funds (1) Notwithstanding anything in any agreement between a financial institution and its customer and irrespective of the amount, where a customer’s deposit, or money lodged with a financial institution for any purpose, has been left untouched and not reclaimed for 7 years or more and the customer has not responded within 6 months to a letter from the financial institution B3 – 43 [Issue 4] Banking Act about the dormant deposit or money sent by registered post to the customer’s last known address, the deposit or money, as the case may be, shall be deemed to have been abandoned and shall, without further formality, be transferred forthwith by the financial institution concerned to the central bank to be dealt with as decided by the central bank. (2) The central bank shall maintain such records of any deposit or money abandoned as to enable the financial institution to refund to the owner or his heirs or assigns the deposit or money to which a rightful claim is established to the satisfaction of the central bank. (3) No refund made under subsection (2) shall carry any interest. [S. 59 amended by s. 2 (d) of Act 14 of 2005 w.e.f. 10 November 2004; s. 4 (a) of Act 20 of 2011 w.e.f. 16 July 2011.]