Financial institutions will have to issue statements at least once a year on all accounts with more than 20 euros in them, according to new codes of banking practice announced yesterday by the Minister for Finance, Mr McCreevy.
The new codes will begin on July 1st but credit institutions will be allowed six months to implement any necessary changes to procedures and controls.
The Minister referred to the codes during the final stages of the debate on the Dormant Accounts Bill, which now goes to the Seanad.
Under the legislation, accounts with no customer-initiated transactions for the previous 15 years will be put into a fund for eventual dispersal to worthy causes. However, beneficial owners or their successors are guaranteed the right to seek a refund at any point in the future. Dormant accounts will only be handed over to the State where owners cannot be traced.
The new banking codes were a welcome development in the banking sector, Mr McCreevy said.
The Minister explained that Department officials and the Central Bank had last week finished consultations on "a new statutory code of practice" which contained "standards of good banking practice which are to be followed by all credit institutions".
The code meant there was no need for an amendment to the legislation, originally tabled by Labour's finance spokesman, Mr Derek McDowell, which would oblige banks and institutions to send customers an account statement or other reminder, once a year.
Mr Paul McGrath (FG, Westmeath) had said "banks avoid having to send statements and if there is no activity in an account they will be happy not to send any reminder at all".
Mr McCreevy said the code should deal with "banks not keeping in contact with their customers and not bothering to send statements if there is no activity in the account. However, I get statements from a bank in which I have a current account I have not used for 25 years - my balance is 51 pence. Maybe that is a new practice on the part of that bank."
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