Dormant Accounts Act (2011 Revision)
Legislation governing the identification, notification, and transfer of inactive financial accounts to the Cayman Islands Government.
Dormant_Accounts_Act_(2011_Revision).pdf
2026-04-27
The Dormant Accounts Law establishes a framework for managing financial accounts that have shown no activity for a prolonged period. This ensures that unclaimed funds are centralized under government care while maintaining the rights of the original account holders to reclaim them.
Key Definitions
- Account Provider: Includes Class A insurers, banks, trust companies, credit unions, and building societies (Section 2).
- Dormant Account: An account where no transaction has been effected by the holder for a period of seven years (Section 4).
- Transaction: Includes increasing or decreasing the balance, presenting a passbook for crediting, or corresponding in writing with the provider. Critically, the automatic application of interest or fees does not count as a transaction (Section 4).
Procedure for Dormancy
- Identification: Account providers must identify accounts reaching the seven-year dormancy threshold.
- Notification: By July 31st each year, providers must notify holders in writing that their funds will be transferred to the Government if no transaction occurs by December 31st (Section 5).
- Publication: If the provider cannot contact the holder directly (or has been instructed not to), they must publish a notice in the Gazette and local newspapers (Section 6).
- Transfer: If the account remains inactive, the provider must transfer the ledger balance to the Government by March 31st of the following year (Section 7).
Rights of the Account Holder
Once funds are transferred, the provider's liability is extinguished. The funds vest in the Government as trust assets. The account holder retains a permanent right to claim the funds from the Government. Claims must be submitted in writing to the Minister of Finance, who must pay proven claims within 28 days (Section 9).
Compliance and Enforcement
- Register: Providers must maintain a register of all dormant accounts transferred to the Government within the last six years (Section 8).
- Reporting: Providers must submit annual reports and certificates of compliance to cima and the Minister (Section 7, 11).
- Inspection: CIMA can authorize inspectors to enter premises and audit records to ensure compliance (Section 10, 11).
- Penalties: Failure to notify holders or transfer funds can result in fines of up to $20,000 (Section 5, 7).