During a session of Parliament’s Economy and Production Committee, Anthony Hylton, Member of Parliament for St Andrew Western, proposed new legislation to protect dormant bank accounts. Hylton’s suggestion followed comments from Dr. Jide Lewis, Deputy Governor of the Bank of Jamaica (BOJ), who noted that deposit-taking institutions (DTIs) have not charged fees on dormant accounts for nearly three years, thanks to technological advancements.
Lewis explained that DTIs had previously relied on manual processes to manage dormant accounts, including measures to prevent staff access and ensure compliance with Know Your Customer (KYC) regulations. However, modern electronic systems now alert banks if dormant accounts are accessed, reducing internal fraud risks.
Although Hylton welcomed these technological improvements, he urged the Government and Parliament to establish clear legislative or regulatory frameworks to safeguard these accounts and prevent banks from potentially reintroducing fees for maintaining dormant and inactive accounts.
Addressing concerns about fraud, Lewis confirmed that banks are legally obligated to implement fraud risk management measures and must notify the supervisor immediately in case of fraud-related financial losses. Internal fraud involving staff members triggers actions by both the bank and law enforcement, with account restoration, including lost interest, typically covered by the financial institution.
Hylton argued for the inclusion of civil remedies alongside regulatory and criminal actions, suggesting that depositors who can prove financial losses due to restricted access during investigations should have the right to seek civil compensation. He questioned whether current practices of account restoration adequately compensate customers for damages resulting from criminal or other actions by bank staff, emphasizing that compensation should not be limited to lost interest but also consider other significant damages depositors may have suffered.
In conclusion, Hylton asserted that depositors should have the right to pursue claims against both the bank and its employees for damages in cases of fraud or misconduct.
