Daily Archives: September 26, 2014

Current banking accounts with no movement in 10 years will go to the TGN

Pagina Siete reports:


Current accounts with no movement in 10 years will go to the TGN

Entities must inform the client within two years of termination.

2014-09-25 07.15.50 amChecking accounts that have no movement for 10 years will be transferred to the General Treasury of the Nation (TGN); however, financial institutions must report, within two years, the return of the balance and termination.

The Financial Supervisory Authority System (ASFI) warned about this by Resolution 657 of September 16, which gives effect to the amendments to the current model contract that people signed with financial institutions.

“It will close the contract in the event that the current account remains inactive for more than two years, having the financial intermediary to communicate in writing to the financial client about the refund of his balance,” says the third point of the resolution.

For this reason, the fourteenth clause in the current account of Book 2, Title V and Chapter VII of the Rules of Contract requires banks to inform customers of the inactivity of their account.

In addition, this clause states that “in the span of 10 years, counting from the last movement, the amounts that were available (of) client (s) Financial (s) will be transferred to the General Treasury of the Nation” (TGN).

The bank account is the contract signed between a person or entity with a financial institution and which the person can enter the financial institution cash amounts that make up a credit balance from which the user can have immediate, partially or in full access.

The sixteenth clause of the regulation clarifies that financial institutions may not unilaterally modify these terms.

Resolution 657 of the regulator states that the fourteenth amendment of the clause is based on the provisions of Article 1357 of the Commercial Code, that terminating the contract of current account when it is inactive for two years.