Managing Your Money Series | Managing Unclaimed Money

DEFINITION OF UNCLAIMED MONEYS

1. Moneys which are lawfully owed to the owner but have remained unpaid for a period of not less than one year.

Examples within this category are:

• Salaries, salaries, bonuses, commissions and other payments payable to workers;
• Dividend;
• Profits declared for payouts;
• Insurance claims which have been granted for payment;
• Bank draught, cashier's order and other papers of similar type where validity time have passed;
• Fixed deposits (without automatic renewal instructions ) which have matured;
• Tender deposits for which the original purpose has been completed;
• Sundry creditors or sundry debtors having credit balance.

2. Moneys existing to the credit of an account that has not been managed in any form by the owner for a period of not less than seven years

Examples within this category are:

• Saving account;
• Current account;
• Fixed deposit (with automatic renewal instructions) (with automatic renewal instructions).

3. Moneys to the credit of a trading account that has been inactive for a period of not less than two years.

Examples within this category are:

• Trade creditors account
• Trade debtors account with credit balance.

Please visit The Official Portal Accountant General's Department of Malaysia for additional details.

THE ROLE OF THE REGISTRAR OF UNCLAIMED MONEY

The Registrar is responsible for carrying out the responsibilities and powers bestowed under Part II of the Unclaimed Moneys Act 1965 as follows:

• As trustee to the unclaimed moneys received;
• To repay the unclaimed moneys to claimants who produce evidence that he has a legal right over the money to be claimed
• To check the records of corporation or firm to guarantee compliance with the terms of the Act;
• To advise the imposition of compound and penalty on corporation or firm that has committed an infraction under the Act.

Accountant General was appointed by the Finance Minister as Registrar of Unclaimed Moneys ( WTD ) on June 1, 1975.

Appointment of Registrar of Unclaimed Moneys subject to section 9 ( 1 ) and section 9 ( 2 ) Unclaimed Monies Act 1965 are as follows:

P.U.(B) 221

"In exercise of the authority provided by sub-section ( 1 ) of section 9 of the Unclaimed Monies Act 1965, the Minister of Finance has designated the Accountant General as the Registrar of Unclaimed Moneys with effect from the 1st day of June, 1975." [Made. ( 12:20 ) -1 vol.2 443/34 ; Sp.N . ( PU2 ) 254.]

Please visit The Official Portal Accountant General's Department of Malaysia for additional details.

WHO SHOULD COMPLY WITH THE PROVISION OF THE ACT

• Company formed under the terms of The Corporations Act 1965 (or Foreign companies as stated under Division 2 of Part XI of the same Act ) and comprises;
• Boards created to administer money pertaining to retirement benefits;
• All registered societies and cooperative societies;
• Corporations, governmental agencies and trade unions;
• Firms (i.e unincorporated body of individuals grouped together to conduct out business) (i.e unincorporated body of persons associated together to carry out business)

Please visit The Official Portal Accountant General's Department of Malaysia for additional details.

SUBMISSION OF UNCLAIMED MONEYS

In line with Section 10 of the Unclaimed Moneys Act 1965, companies/firms are required to:

• Manage and maintain a registry for unclaimed moneys until the 31st of December in the manner prescribed by the UM Registrar.
• Submit the money as well as the unclaimed moneys register no later than the 31st of March of the following year.
• Submit unclaimed moneys for gazetting purposes.

As of 2016, submission of UM must be done using Online Banking.

Companies/Firms are expected to supply the following information while filing UM:

Please refer to UM Submission Document Checklist.

UM submission procedure: UM Submission Notice.

REFUND OF UNCLAIMED MONEYS

Section 13 (1), Unclaimed Moneys Act 1965

• Registrar of Unclaimed Money upon being satisfied that the claimant is the owner of the moneys, shall approve payment thereof to be given to him out of Consolidated Trust Account or Revenue Account.
• Claimant need to establish to Registrar that he is the rightful owner of the unclaimed moneys or have the legal right over the unclaimed moneys.
• There are no time limits for the application of unclaimed moneys
• The Registrar has previously defined the standards for application of unclaimed moneys by specifying the papers necessary to be supplied simultaneously with the application.

Please visit Accountant General's Department of Malaysia Portal for additional details.

UNCLAIMED SECURITIES

Unclaimed securities consist of shares, bonds and other financial instruments belonging to the public which are transferred to the Government in the name of Minister of Finance and Accountant General under the numerous Acts. Although these assets are transferred to the Minister of Finance or the Accountant General, the Government nonetheless keeps the record of original owners for the express purpose of returning these securities/proceeds therefrom to the owners/their heirs someday in the future.

The Government through Accountant General Department’s acts as a trustee for all the unclaimed securities surrendered to the Government pursuant to Section 14, 29 and 30 of Securities Central Industry Depositories Act 1991 (SICDA), Section 65 Trustee Act 1949, Section 36 Trust Companies Act 1949 and Section 353 Companies Act 1965.

All revenues in the form of dividends, interest and proceeds from the sale of securities are initially accumulated in the records to the owner before the money is registered with the Registrar of Unclaimed Moneys. The deposited moneys will be subjected to Unclaimed Moneys Act 1965 and the owner/his successor/ heir may advance his claim at any time there is no restriction of term imposed.

Please visit The Official Portal Accountant General's Department of Malaysia for additional details.

Happy Investing! 😉