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Changes to the unclaimed monies provisions

Regulation Impact Statement – The Treasury

On 13 August 2015, the Treasurer introduced the Banking Laws Amendment (Unclaimed Money) Bill 2015 into the House of Representatives. Under the unclaimed monies provisions, banks and life insurance providers are required to transfer accounts that have not had a transaction in the last three years other than interest or fees to the Australian Securities and Investments Commission (ASIC). The bill amends the provisions to change the required period of inactivity before accounts are transferred to ASIC from three years to seven years. It will also better protect account holders’ personal details and exempts children’s accounts and foreign currency accounts from the provisions. The changes to the provisions will commence on 31 December 2015. A Regulation Impact Statement (RIS) was prepared and certified by the Treasury under the Australian Government’s best practice regulation requirements, and has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The RIS estimates that the measure is expected to reduce regulatory burden by $35.9 million a year due to less frequent reporting requirements for banks. The OBPR has agreed to this estimate of regulatory savings.