Gov to access unclaimed cash

Similar unclaimed property laws exist in every state in the United States, Puerto Rico, Guam, the Virgin Islands, Alberta (Canada), Ireland and other countries. The idea is to protect the consumer's money.

So piracy still exists in Cayman! 

i work at a bank and we allow 15 years before classifiying an account as dormant. can anyone clarify what this policy means? does it mean that we have a further 6 years to try to reach the client and if we don't then the funds go to government? (i think that is what the article means?)

calm down guys. I am a civil servant and I can confirm that the FS consulted with the local banks on this issue several months ago actuallly (i heard it was discussed a few years ago as well). in many cases these banks would have these accounst inactive for as much as 30 years so the way the law is written it means that they have a further 6 years to try to reach the client before any funds can go to the government. I don't know how many countries do this but it does happen in most of the advanced countries like US, UK etc.

It seems to say 6 years 'after' the accounts are dormant..so in effect these accounts could easily have been inactive for as much as 16 or 21 years or more. I agree with tim that it is unlikely to raise much cash at all. and this is something that occurs pretty much everywhere else in the world. banks have been classifying accounts as 'dormant' for more than a century and the funds just sit there.  I think some of them would like to move these amounts off their balance sheets (at least those which have been there for 20 years or so).

Why doesn't Mac just say which account he is specifically after? Clearly this is about something that he knows and thinks he can get his hands on.

This bill should be re-examined expeditiously and revised with great caution, as it could possibly cause the downfall of Cayman’s vital financial industry.

Regardless of what other countries have done, we need to study the pros and cons that could affect us and possibly wipe out our Banking industry.

The cost of implementation and the conflicts that may arise are likely to outweigh the gain. Is it really worth the problems, risks and complications that it will create?

In my opinion 25 years may be a realistic time but 6 years is likely to be disastrous.

I therefore beg the powers that be to suspend, amend or repeal the bill, and take every precaution to avoid consequences that could be catastrophic and irreversible..

Which NINCOMPOOP came up with this one!!!  6yrs!!  R U NUTS??  Do you have any idea what a FLOODGATE OUT of the Cayman financial services sector this will open?  In Switzerland, a country that is unequivocally the global stalwart of private banking,  the information on  Holocaust and other dormant was only released after 50yrs!! MAC and his 'advisors' haven't got a clue! Instead of curbing his spending, he trying to grab private property so that he can continue his  current rate of spending on first class travel and private chefs.  <see: http://www.swconsult.ch/chbanks/faq.htm>

Wake up CAYMAN BANKING !!!

Where is the banking industry in all of this, and why have they not stood up to this man, and do the "ethical" and "right thing". which is to protect the interests of their customers and not allow the outright stealing of other peoples assets.

This is "really great" for our reputation as a world financial centre, does this man have half a brain, because this is what the Swiss did, stealing the money in peoples accounts, especially the Jews after the second world war rather than trying to trace the families or rightful heirs to the assets deposted in their banks..

Our DICTATOR is at work and you all standby and let him get away with this just like Zimbabwe has allowed Mugabe to wreck his havoc on their country.

NEXT on the agenda will be the seizure of all dormant land.

I suspect that this law is a breach of the right to property under the ECHR.  So Mac will end up paying all the money back plus interest one day.

And yet ANOTHER way to try to get someone else to pay for the Governments over bloated paychecks that gives no benifit to those who pay. Government of the day has proven time and time again that they do not have the ability to be responsible for their own finainces and yet they are still in charge of the countrys. What is now happening to Cayman is the same thing that has already happened to many island countries. In the end Total finacial ruin. Soon come.

Further to my posting re the proposal to gazette and publicize the names of deposit holders that would lead to the breaking of the confidentiality law that has made Cayman's finance sector what it is, (successful or not) I am baffled by the entire matter regarding any benefits that the elected officials might see accruing to the Govt. of the Cayman Islands. Here is how I see this proposal of our brilliantly-minded elected (and appointed?) officials.

These geniouses would be appointing the Govt. of the Cayman Islands as trustees of millions, or over time possibly billions, of dollars of deposits THAT IT CANNOT USE WITHOUT CREATING AN OFFSETTING CONTINGENT LIABILITY OF AT LEAST THE SAME AMOUNT OR MORE. Mr. Ridley is right about the mnimal benefit of this move BUT THIS  ASSUMES THAT THE GOVT. CAN UTILIZE ANY OF THE FUNDS.

Let me explain to you the difference between the Banks appropriating these funds to profits than a country TRYING to do the same.

When the deposit holder opened their accounts, IN THE FINE PRINT OF THE ACCOUNT OPENING FORMS, it would say that if the account remained dormant for a set time, then the account would be closed and no interest is paid/earned. (It would not say that the principal sum is lost). The reason the Bank can close the account is because the account opening form is a contract/agreement that gives them the right to do this. BUT EVEN THE BANK KNOWS THAT IF THE ACCOUNT HOLDER CAN SHOW THAT IT IS THEIR MONEY THE BANK MUST RETURN IT. In the meantime, the Bank has had, by mandate, stopped paying interest and had use of the funds for investment AT NO COST TO THEM. So they can gladly return the funds WHICH ARE NOT THEIRS TO BEGIN WITH AND THAT THEY OTHERWISE MIGHT BE PAYING INTEREST ON.

However, the difference between a Bank and a Country doing this, OR EVEN TRYING TO DO THIS, is as follows.

1. If the Bank goes bankrupt, the claim of a depositor would die with that Bank . (or if a new entity assumed it's operations, then it may accrue to the new entity).

2. If the Govt. takes the money, then the liability rests with the COUNTRY (if it is to maintain any credibility) indefinitely.

Therefore, the GOVT. will always have this contingent liability on its books. Now before anyone says that is okay or better than a direct liability let me explain why that is not good. Whilst the bank may have a right and the benefit of the individual wanting confidentiality, once the Govt. is trustee and the benefit of confidentiality is negated the deposit holders or heirs would expect due compensation FOR THE USE OF THE FUNDS. So the liability would increase to Govt. and it cannot use the funds and/or if it loses any part of the funds through no fault of itself, IT WOULD STILL HAVE TO REPAY THE FULL AMOUNT PLUS whatever a just court might award.

Now let me explain why contingent liabilities are bad and give an example. UNFUNDED PENSIONS ; need I say more. The problem with contingent liabilities is that this liability is used by Govts. in particular to justify MORE debt and that enevitably Govts. fail to make ANY or much less than proper provision for them.

I will end here for the time being but I could go on and on... on the stupidity of this move. Follow for further posting on a much more sensible solution to this situation. (Within the day)

Sounds like a good idea if you live in Cuba

Like someone posted the royal opposition got their MBE's and OBE's they are now part of the Clique no more regard for the constituents they are now above us all and immune from prosecution also. What a really sad state we find our little island in, not so much as a peep from the Governing power wow !!!!! and What will "Desperate Dan" do next????? 

Millions more for the government to WASTE!

Just when I think that McKeewa cannot possibly surprise me I find myself gasping and shaking my head like I am now.  There is no doubt that he will take this money.  It sounds as though the total amount is spread out over numerous accounts, but this money has surely not been abandoned.  It may be someone's trust fund or it maybe just that someone has it on account gaining interest.  There are people to whom this amount of money would be insignificant.  No matter the money belongs to someone. 

I believe that the reason the premier wants this money is that the $155 million that he borrowed, in addition to all the other revenue, is not nearly enough to finance the craziness that he has planned for the bank account that belongs to the people of the Cayman Islands.  That is especially since the first thing that he did after securing the loan was to give $30 million of it to two organizations that will expect to get more when they spend it simply because that has always been the case. 

It is almost as though McKeewa is playing a game and the people of this country are just pawns (or board pieces) and are of no consequence to him.  I do give credit to the opposition because they objected at the speed with which he presented this new proposed law, but lets face it; they will be out voted when the time comes.  In my opinion the premier XXXXX should be  immediately removed from office.  It is apparent that the vast majority of the people, while against him and his actions, are affraid to speak up against him for fear of social retribution in such a small country.  I surmise this as this is my situation.  This must also be the case with the other members of the house.  While some of them do often speak it is unfortunately too little too late and it is obvious that they to are afraid of not being re-elected.  There have to be a few among them that have sense, but the greed is seemingly just too powerful.

I just cannot fathom that the future of the Cayman Islands has been placed in the hands of an egomaniac and there is nothing that can be done about it.  I have no confidence in the premier nor for any of the other members of the legislature for that matter.  The blame game is so prevalent that it has become standard operating procedure and when it is not a member of the opposite party it is a law that was slipped into being while we the people were sleeping or blinked. 

The new constitution is also taking some blame lately and I feel that this is rightly so.  I did not vote for the constitution because I did not agree with the way that it was being rushed into law.  Whether this was a ploy by the former party to show that they had done enough to get re-elected I dont know, but I took issue with the lack of interest in equal human rights for all and the simple fact I felt that the people in charge of composing the articles of the document were not qualified to do so.  There were too many people using religion and personal beliefs to set the guidelines for which the rest of the country should function by for a very long time.

I have no idea how to contribute to the movement that is so desperatly needed to resuscitate this country, but I hope that somehow a solution is found soon enough to prevent the economic death of such a wonderful little bit of paradise on earth.