Most countries have laws concerning unclaimed properties. These laws define the period of dormancy, and what happens to the funds after that. In many countries, including Australia, Malaysia and the USA, moneys that remain unclaimed at the end of the dormancy period pass to the government – partly for safe-keeping, and partly so that funds which remained unclaimed indefinitely can be used for the public good. Should someone appear and be able to prove his rightful ownership of the asset, he can most likely reclaim it, regardless of the elapsed time. In practice, however, even when governments make concerted efforts to trace rightful owners, the vast majority of "lost" money remains just that – lost. The owners never come forward to make a claim, and the government can put those funds to work for the benefit of the wider public.

Laws and practices differ from one country to another. In Malaysia, one can search the gazette in printed form. In Australia, each state/territory has its own policies, but the records are all public. The US is very vigorous in its efforts to restore assets to their owners; each state's Treasury Department publicises its own unclaimed assets on the internet, in the press, and even televised call-in programmes, listing assets ranging from forgotten bank accounts to un-cashed tax refund checks.

In the UK, however, it's a somewhat different story. Ireland passed a Dormant Accounts Act in 2001, covering unclaimed moneys held for more than 15 years by banks and credit unions. The UK's Dormant Accounts Act is based upon the Irish one, but Prime Minister Gordon Brown declared that the government would use the pool of unclaimed assets for charitable causes. While this earned points in the public relations category, TPR has always argued that the Act contains a few significant weaknesses.

According to a BBC News article: "There is an estimated £15 billion held in dormant accounts." The British government does not take possession of the money in the dormant accounts. Rather, it allows interested parties to set up specialist commercial companies called Reclaim Funds to do the job. These companies -- which can quite legitimately be established by the banks that were previously holding the dormant accounts -- are entitled to charge their expenses against the money that they're holding and managing. Part of the funds are then passed to the Big Lottery Fund for distribution to good causes, which is fine, but given the financial industry's recent history of overpaying itself, wouldn't it be more prudent and transparent to have the Reclaim Funds under direct Treasury Control, or at least require them to make a total disclosure of fees charged and salaries paid?

When it comes to advertising unclaimed assets, other countries are clear: They make the lists of unclaimed moneys publicly available with, of course, appropriate safeguards to preserve personal privacy and to protect against fraudulent claims. There's no such openness in the present UK system. A claimant must first remember that he has lost some money, and then remember sufficient details to know which Reclaim Fund to approach. Should he manage to locate his missing assets, he must find a way to identify the money he may be entitled to.

The effectiveness of the Act is being kept under review by the Treasury, and they invite people's comments. Looking at similar schemes operating successfully in other countries, it is clear that the UK system could be greatly improved with just a few simple changes. TPR will continue to press for openness and more transparency in the Unclaimed Moneys system in the UK.

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