Introduction

As a Malaysian citizen or company officer, you may be happy to know that if you inadvertently lose track of some money, it will pass to the government for safekeeping. You can then apply to the government for your money's return.

That is, in essence, the theory behind the Unclaimed Moneys legislation, which was first introduced in 1965, and which has been updated as recently as 2002.

Around the world, different countries have different ways of dealing with lost, forgotten, or unclaimed moneys. But wherever there is a central register, the sums involved are massive. Even here in Malaysia, the Registrar of Unclaimed Moneys is holding billions of ringgit.

The basic principles are simple enough. At the end of each year, the law requires every commercial organisation to review its accounts for any unclaimed moneys it might be holding. What, exactly, are unclaimed moneys?

The definition is quite broad and includes:

• unpaid wages
• dormant bank accounts
• unclaimed insurance policies
• stale cheques
• university deposits
• unclaimed dividends
• trade accounts, and much more.

All such unclaimed moneys must then be transferred to the Registrar of Unclaimed Moneys, a statutory office under the Ministry of Finance. Details of the individual sums are published in the Malaysian Government Gazette. You can read through the Gazette to see if there is any money in your name. If there is in fact money due you, simply apply to the Registrar. If you satisfy the Registrar that you are the true owner, you will receive repayment within six weeks or so.

In theory, it is simple, straightforward, and socially beneficial. In practice, there are a few bumps along the road:

• Although company officers can be liable for a RM20,000 fine for non-compliance, many directors, auditors and company lawyers appear unaware of, or unclear about, the Act. As a result, the amount of unclaimed moneys that should be available for companies and individuals to reclaim is substantially under-reported.

• Even amongst the companies who submit reports and unclaimed moneys to the Registrar, there is confusion about how the system is supposed to work. For example, some organisations fail to record owners' names and identity card numbers; others do not file their reports on time.

• Although the wording of the Act suggests that reclaiming your own money will be a straightforward process; in reality, it can prove a complex – and sometimes impossible – task. As a result, Malaysian citizens are missing the chance to recover money which is rightfully theirs.

The Act's goal is excellent: if you inadvertently lose some money in Malaysia, it passes to the government for safekeeping, and you can apply to the government at any time for a refund.

There is surprisingly little written research available on this area of law, considering how many people and businesses it touches, and given the remarkably large sums of money involved. We hope this book will help in some small way to address this gap, and will act as a useful reference for general readers. We hope it will raise issues, spark discussion, and help to clarify some of the uncertainties. Look for a more technically detailed version of the book, intended for legal, academic and accounting professionals, coming soon!

We thank the government officers and agencies who have helped us in our research into this subject. Since it was first introduced more than 40 years ago, the Unclaimed Moneys Act 1965 (Act 370) has certainly benefited many Malaysians. We applaud it, and we hope that all readers will perceive our occasional suggestions for improvements as constructive and helpful.