Title
Simplifying Compliance with Unclaimed Balances Law
Law
Bot Circular No. 3-98
Decision Date
Jun 22, 1998
BOT Circular No. 3-98 streamlines the reporting process for banks and financial institutions regarding unclaimed balances, requiring consolidated reports to the Treasurer of the Philippines every odd year for deposits unclaimed for ten years or more, while imposing penalties for non-compliance.
A

Reporting Procedure and Public Posting

  • Reports must be submitted under oath.
  • A copy of the report must be posted conspicuously at the financial institution’s premises for at least sixty (60) days from filing.

Consolidation of Reports by Head Office

  • Prior practice required each branch to report separately, causing procedural complications.
  • Branches are treated as one unit with their Head Office.
  • Effective from 1999 odd years onward, the Head Office must submit a consolidated report covering all branches.

Contents of the Consolidated Report

  • Names and last known addresses of account holders with unclaimed balances, arranged alphabetically and by branch.
  • Amount and date of each unclaimed balance.
  • Nature of the unclaimed balance.
  • Date of death of the account holder if known, or date of last transaction.
  • Amount of interest due on the unclaimed balance, if applicable.
  • Confirmation of compliance with notification and posting requirements as mandated by Section 2 of Act No. 3936, including:
    • Notice given to the account holder at last known address.
    • Posting of the sworn report at the financial institution’s premises.

Penalties for Non-Compliance

  • Failure, neglect, or refusal by the Head Office to file the sworn report is subject to penalties as prescribed under Section 4 of Act No. 3936, as amended.

Administrative Details and Revocation of Inconsistent Circulars

  • The circular supersedes all prior inconsistent circulars, memoranda, or orders.
  • Officially adopted on June 22, 1998, by the Treasurer of the Philippines, Caridad Valdehuesa.

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