Manx charities are set to benefit from a windfall of £657,000 as a result of banks releasing money left in accounts untouched for at least 15 years.
More than £4 million has been received by the Treasury following the introduction of new legislation, and the first payment has now been released for distribution by the Manx Lottery Trust.
The Dormant Assets Act was signed in Tynwald on 18 June 2019, approving the creation of a fund for the transfer and redistribution of dormant assets for charitable purposes.
Proceeds of a bank account are considered dormant when it has been inactive for at least 15 years. During that period the account owner will not have made contact with the bank, or responded to any requests for information or notifications.
The release to the Manx Lottery Trust, as the fund’s administrator, is in line with the Distribution Policy, which allows one fifth of the annual transfer value to be distributed, less 20 per cent to provide for repayment claims.
The Manx Lottery Trust will now choose how to distribute the funds in the most appropriate way based on grant applications it receives.
Treasury Minister Alfred Cannan MHK commented:
‘I am pleased that the Dormant Assets legislation is having a positive impact on our community and that local charities can have access to a new source of funding.
‘I want to thank the banking industry for their cooperation in achieving this outcome.’
Anyone whose money transfers into the fund retains the right to reclaim their money indefinitely.