Imagine a package that’s meant for you being delivered by a courier to your house. However, upon arrival it appears that no one’s home. The courier then proceeds to head back to HQ, keeping hold of the package until they can determine either you or a family member of yours is around.
Similarly, today, when it pertains to monies that we have either forgotten or failed to claim, be it in the form of salary or perhaps dividends, the sender would then report to the Registrar of Unclaimed Monies Act on the matter to ensure the potential recipient receives it later.
This article pertains to the nature and process on how to make an Unclaimed Money report/claim as a company owner and the legal act revolving around it, Unclaimed Monies Act 1965. With that, let’s begin!
About Unclaimed Monies
According to UMA (Unclaimed Monies Act 1965), unclaimed monies are defined as monetary assets legally payable to a recipient but yet remains unpaid for a period of not less than one year.
For example, if you have a bank account that has been dormant for the past seven years and there’s remaining cash inside, your local bank will then proceed to transfer the funds over to “Bank Negara” where you’re able to both apply and claim those “unclaimed money” from there. Such is the case for the website dubbed, E-Gumis that allows you to do so.
Another example would be from the perspective of deposits. Imagine providing one to your supplier should you for instance, become a business owner. Two years later from the date of contract termination with them, the given deposit you may have forgotten about would be handed over to “Bank Negara” by your supplier who would then act as a “trustee” for it till your personal retrieval.
Alternatively, you may seek the assistance and service of a Company Secretary (CoSec). But what other categories are considered as part of “Unclaimed Monies”? Attached below is the table consisting of some examples of transactions for both your perusal and
a. Standard Unclaimed Monies Transaction
i. Salaries, Wages, and Bonuses
iii. Sundry Creditors
iv. Unclaimed & Unpresented Cheques
vi. Commissions & Fees
vii. Insurance & Claims
viii. Bank Drafts/Cashier Orders
ix. Telegraphic Transfer
xi. Outstanding Credits of Trade Collectors
(Those who have not been transacting with the company for a period of more than two years)
b. Cash Credited to Accounts That are Dormant for More Than 7 Years
i. Saving Accounts
ii. Current Accounts, &
iii. Fixed Deposits (with automatic renewal instructions)
c. Cash Credited to Trade Accounts That Have Remained Dormant for Not Less Than 2 Years
i. Trade Creditor Accounts,
ii. Trade Debtor Accounts with Credit Balance
Companies & Firms Under UMA 1965 Jurisdiction
Directors would be responsible in the declaration of the UMA (Unclaimed Money Act) with the Registrar of the UMA. Despite that, Company Secretaries, as compliance officer are there to assist in ensuring that the Director(s) adhere with the UMA during Annual Return submissions to SSM. UMA 1965 is therefore enforceable for companies incorporated under CA 2016/CA 1965, and in addition, societies registered under ROS (Registrar of Societies), Corporations, public authorities, and trade unions, etc.
Requirements for Unclaimed Monies Submission
Following, handing in an Unclaimed Money submission isn’t just a simple linear process. In fact, several essential requirements are needed to be adhered to prior which are in accordance with Section 10: –
i. Maintain and update the record of Unclaimed Monies (Beneficiary Name & IC No., and unclaimed money amount) in the register
ii. Lodge with the Registrar of UMA a copy of the Unclaimed Monies register not later than the last day of March
iii. Submit a copy of the Unclaimed Monies register for publication on the Gazette
Non-Compliance of Unclaimed Money Act
Failure to comply with the regulations of Unclaimed Money Act would result in the violator either:
i. Paying a fine of RM500,000
ii. Being imprisoned for 3 months or worse
Unclaimed Monies Application Process
Upon successful compliance with the stated factors above, you’re now able to proceed with submitting an application of Unclaimed Monies with little to no hindrance via a simple to follow step-by-step guide below:
With numerous aspects to keep track of, it’s easy to get lost in the details, especially if you’re unfamiliar with both the Unclaimed Money Act and its accompanying processes… So why trouble yourself when you can instead partner with us in resolving that situation?
Afterall, at Incorp, our team of professionals and seasoned veterans are equipped with close to 38 years’ worth of experience in the field of company secretarial services, capable of seeing through your Unclaimed Monies submission both compliantly and efficiently, assuring you that peace of mind you truly deserve.
Interested? Feel free to liaise with us through either our email or WhatsApp with the relevant details located below and we’ll revert as soon as possible: –