Brian Cowen (Laois-Offaly, Fianna Fail)

While I do not have a statutory function in this matter, I am aware there are bank drafts which have remained uncashed for various periods. The overall regulation of the banking system is a matter for the Irish Financial Services Regulatory Authority. I have not been made aware by that body or any other organisation that there is any particular dissatisfaction with the way banks issue drafts to their customers.

There is an issue, however, with uncashed bank drafts. The Irish Financial Services Regulatory Authority recently provided some preliminary estimates of the extent of funds in uncashed bank drafts for periods of up to two years. It is firming up these figures and looking at the extent to which such drafts remain uncashed for longer periods. When these figures are available, I will be in a position to consider whether these uncashed amounts should be dealt with as if they were dormant accounts, within the terms of dormant accounts legislation. My Department is examining this issue and is considering the legal issues arising in conjunction with the Attorney General's office. Whatever legislation is appropriate could be accommodated in financial services legislation under development in my Department.

Any legislative amendments would need to recognise the fundamental differences between prepaid instruments, where the customer does not hold an account, and dormant bank accounts. Unlike conventional dormant bank accounts, establishing the beneficial ownership of dormant bank drafts is not straightforward.

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