Speaking in a press briefing in Kampala yesterday Deputy Bank of Uganda Governor Michael Atingi-Ego, said the amount of money in commercial bank dormant accounts had of December 2014 stood at Shs700m but has grown to an estimated Shs9.5b. 

However, Dr Atingi-Ego said the Central Bank currently has no estimates of money held in dormant mobile money accounts, noting that the new National Payment Systems Act, which was recently enacted only transferred mobile money to the Central Bank recently. 

Mobile money had been previously regulated by the Uganda Telecommunications Commission. 

However, in an interview recently, Mr Mackay Awomu, the Bank of Uganda director National Payments Systems, said money held in dormant mobile money accounts was estimated at Shs17.9b. 

Uganda currently has about 25 million mobile money accounts compared to about 13 million commercial bank accounts, according to Uganda Bankers Association. 

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At the same meeting, Finance Minister Matia Kasaija, said there was no law that bars Ugandans from accessing their money even when their accounts are declared dormant.  

The law stipulates that money held on dormant accounts is transferred to the Central Bank, which is later transferred to the Consolidated Fund in case it is not claimed after a specific period of time. 

Yesterday Bank of Uganda and the Finance Ministry also dismissed claims that government under the National Payment Systems Act, would take over money that is held in both commercial bank and mobile money accounts for a long time. 

The law defines a dormant account (for commercial banks) as one that has not had any activity for a period of two years, for which the law provides that money held on such an account is transferred in a separate register, pending issuance of a notice informing the account holder of the action of the bank.  

“Bank of Uganda shall refund any unclaimed balances to a depositor of a supervised financial institution. If the depositor is dead, the money is transferred to his or her legal representative,” Mr Kasaija said.  

Similarly, he said, the law provides that Bank of Uganda regulates electronic money, noting that a mobile money or electronic account is assumed to be dormant if nine months pass without any activity after which a customers is informed that the account will be suspended unless it registers some activity. 

The law on about mobile money or banks’ dormant  accounts       

Mobile money accounts: In the case of an electronic money account or mobile money, if the account is not activated within six months after it has been blocked, the account is closed, upon which balances on it is transferred to Bank of Uganda. If the money is not claimed after seven years, the Central Bank shall transfer it to the Consolidated Fund.

Commercial bank accounts: Accounts that have been dormant for a period of two years are transferred to a separate register, before a notice in writing is given to the depositor. Such an account may be transferred out of the register of dormant accounts. However, if it is unclaimed after a period of five years the money shall be transferred to the Central Bank. Even then a depositor or his or her legal representatives have 10 years to claim balances on such an account, failure of which the money is transferred to the Consolidated Fund.