At the same time as the Banking Laws Amendment (Unclaimed Money) Act 2015 commences on 31 December 2015 the Banking Amendment (Unclaimed Money) Regulation 2015 will extend the unclaimed money period from three years to seven years for linked accounts, sub accounts, frozen accounts and security, set-off or escrow accounts held with an ADI.(Background).

The regulation extends the period (from three to seven years) within which an account holder (or agent) can notify an ADI that an account should be treated as active so that the account does not have to be transferred to the Commonwealth.

if an account is deemed to be inactive on 31 December but the account holder satisfies the notification requirements prior to their funds being transferred to ASIC, their account will not have to be transferred and will not be at risk of becoming unclaimed until it has been inactive for a further seven years.

Under the existing regulations, an account holder or their agent can satisfy the notification requirements by, for example, checking the account balance online or over the phone, or by advising their bank that they wish for the account to remain active.

The Regulation also repeals the special treatment provided to children’s accounts and removes the definition of a children’s account as children’s accounts will receive a full exemption from the unclaimed moneys provisions under the Banking Laws Amendment (Unclaimed Money) Act 2015.