CBUAE Mandates Dormant Account Rules to Protect Customer Unclaimed Funds

The Central Bank of the UAE (CBUAE) has implemented a new regulatory framework governing dormant accounts and unclaimed balances. The directive requires all licensed financial institutions (LFIs) to establish specialized systems for identifying, managing, and protecting funds in accounts that have remained inactive for extended periods. Five-Year Inactivity Threshold Under the new regulations, an account is generally classified as dormant if there has been no customer-initiated transaction for five consecutive years. This applies to current accounts, savings accounts, call accounts, and other deposit-holding facilities. Once an account reaches this threshold, LFIs are required to cease charging administrative or maintenance fees that could deplete the remaining balance. The framework mandates that banks make documented efforts to contact the account holder or their legal heirs before classifying an account as dormant. These efforts must include multiple communication channels, including registered mail and digital notifications. If the customer cannot be reached, the funds must be segregated and tracked within the bank’s internal ledger until further action is required. Transfer…