Money In Banks Left Untouched For 7 Years Will Be Handed Over To Govt. Here’s What To Know

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Did you know that leaving money in a bank account untouched for seven years will prompt the bank to transfer the money to the Registrar of Unclaimed Moneys?

Under the Unclaimed Moneys Act 1965 (Amended 2002), financial institutions are mandated to hand over dormant funds to the Registrar of Unclaimed Moneys, which operates under the Accountant General's Department of Malaysia (JANM).

This regulatory measure applies to all accounts, regardless of the monetary amount involved.

While the seven-year threshold is commonly associated with standard savings and current bank accounts, the Act stipulates different inactivity periods before funds are classified as "unclaimed moneys".

According to the JANM's website, the legislation categorises these funds into three primary classifications:

Category	Period	Examples
Unpaid Moneys	2 years	Salaries, wages, bonuses, commissions, and other payments due to employees Dividends and profits declared for distribution Insurance claims which have been approved for payment Bank drafts, cashier's orders, and other documents of a similar nature whose validity periods have lapsed Fixed deposits (without automatic renewal instructions) which have matured Tender deposits for which the intended purpose has been fulfilled Sundry creditors or sundry debtors with a credit balance
Inactive Accounts	7 years	Savings accounts Current accounts Fixed deposits (with automatic renewal instructions)
Dormant Trade Accounts	2 years	Trade creditors accounts Trade debtors accounts with a credit balance

Prior to the transfer, banks and service providers are required to issue notifications to the account holders via mail or email

If the owner fails to respond, claim, or reactivate the account during the respective period, the funds are legally remitted to JANM.

Despite the transfer of funds to the state, the public retains the absolute right to recover their money.

According to Section 13 of the Act, there is no statutory time limit for reclaiming these funds.

The rightful owner, or their legal administrators and heirs, can step forward to submit a claim to the government at any time, whether it has been a decade or longer since the transfer.

However, claimants should be aware that the funds will not generate any yield while in the government's possession.

The exact principal amount that was transferred to JANM is the exact amount that will be refunded, meaning the funds will not adjust for inflation, nor with interest paid, over the holding period.

The public is advised to maintain active bank accounts, regularly update their contact information, and mailing addresses with financial institutions, and promptly cash out dividends or matured policies.

According to JANM, more than RM13 billion in unclaimed money has been recorded as of 31 January.

Individuals seeking to check if they have any unclaimed moneys, or wish to initiate a claim, can do so securely through the government's official Electronic Government Unclaimed Moneys Information System (eGUMIS) portal here.

You can also read our step-by-step guide here to learn how to reclaim your money.