Abandoned Property

Sept 03, 2009 (LBO) – Sri Lanka’s Central Bank said it has issued new instructions to banks to put assets unclaimed by customers for a long period to an account in the Central Bank. All licensed commercial banks holding any abandoned property are required to inform the banking regulator each year and transfer such monies maintained in Sri Lanka rupees to a special account in the Central Bank.

The Central Bank did not say whether what interest would be paid on the property of that is transfered out of banks.

The regulator said in a statement that banks are also expected to meet any subsequent claims made by the customers or other beneficiaries and report such claims to the Central Bank for reimbursement.

Banks are also expected to advertise in newspapers giving the name of the owner and particulars of the abandoned property and also to dispatch notices by registered post to the owner’s last known address.

The statement said that the most common reasons for unclaimed assets are change of residence, migration and death.

Customers’ assets such as gold and other valuables may also remain unclaimed in safety deposit boxes for a long time, it said.

“When