UAE Central Bank expands framework for dormant accounts and unclaimed funds across all licensed financial institutions
New Central Bank rules require banks, finance firms, exchange houses and insurers to trace beneficiaries and transfer unclaimed funds to a central register after set notice periods.
The Central Bank of the UAE has issued an expanded system regulating dormant accounts and unclaimed funds across all licensed financial institutions, requiring documented outreach to beneficiaries and mandatory transfer of unclaimed monies to a central register when claimants cannot be located. The move obliges banks, finance companies, exchange houses and insurers to follow consistent steps to trace customers and preserve their rights to recover funds. The reforms aim to protect customer assets, reduce operational ambiguity and create a single record — the Register of Dormant Accounts and Unclaimed Funds — for monies held until claimed.
Scope of the new Central Bank directive
The revised system covers every licensed financial institution operating in the UAE, including retail and wholesale banks, licensed finance companies, exchange and remittance businesses, and insurance firms. Institutions are now required to identify accounts, balances and instruments that meet the criteria for dormancy or are otherwise unclaimed, and to classify them under the new framework. The directive standardizes definitions and procedures so that similar cases are treated consistently across the sector.
Definitions of dormant clients and unclaimed assets
Under the framework, a “dormant client” is any natural or legal person holding accounts, balances or insurance policies with no activity and with no known current address, provided there are no legal disputes or regulator-imposed holds. Unclaimed assets explicitly include uncollected bank cheques, unpaid bank transfers and unclaimed payment orders that remain outstanding for at least one year after documented outreach. The regulations also extend to unclaimed dividend distributions and contents of safe-deposit boxes where annual fees remain unpaid for over three years and no contact has been received from the renter.
Specific rules for exchange houses and insurers
The Central Bank clarified industry-specific applications of dormancy rules. For exchange and remittance businesses, funds received for delivery to a named beneficiary that remain available but uncollected, and where the client’s whereabouts cannot be determined within one year despite outreach, will be treated as dormant. For insurance companies, dormancy is assessed at the customer level and applies when no other active policies exist with the same insurer; insurance payouts or maturity benefits not claimed within three years of entitlement are classified as unclaimed funds.
Required outreach and documentation by institutions
Licensed institutions must make reasonable, documented efforts to contact dormant clients and beneficiaries before declaring accounts dormant or transferring funds. Outreach may include written and electronic correspondence and recorded telephone calls, and institutions are required to log and retain evidence of these attempts. The rules also require firms to notify issuers of unpresented cheques or payment orders to prevent unwarranted cashing, and to send a final written notice to safe-deposit box renters at the last known address prior to transferring assets.
Transfer, reporting and the Register of Dormant Accounts
If a dormant client or beneficiary does not respond within the prescribed three-month reply window following outreach, the financial institution must transfer the unclaimed funds to a dedicated account: the Register of Dormant Accounts and Unclaimed Funds. Institutions are then required to include details of all transfers in their quarterly regulatory reports to the Central Bank. The centralized register will retain the funds until a valid claim is submitted and verified, ensuring an auditable trail and a single location for recovery.
Claims process and required documentation
Clients or lawful heirs wishing to recover funds classified as dormant must make a formal claim directly with the financial institution or through a legally appointed agent. The claimant must submit all supporting documentation proving identity and entitlement, including identification documents and legal proof of inheritance where relevant. Institutions are expected to verify claims against their records and the register before releasing funds, while preserving the right to request further documentation as needed to prevent fraud.
Sector impact and customer protections
The new framework is designed to strengthen consumer protection by making it easier for customers and heirs to reclaim dormant balances while reducing the risk of mismanagement of unclaimed assets. Standardizing procedures across banks, finance companies, exchange houses and insurers also reduces compliance complexity and enhances supervisory oversight. For customers, the rules create clearer timelines and expectations for when funds will be moved to the central register, and they emphasize the importance of maintaining up-to-date contact details with financial providers.
The Central Bank’s expanded dormant accounts system introduces a formal, documented pathway for dealing with unclaimed funds and dormant relationships across the UAE financial sector, aiming to preserve client assets and ensure transparent recovery procedures for owners and heirs.
