Bank of Jamaica Deputy Governor Jide Lewis recently announced a significant change in banking practices across Jamaica: all local banks have now stopped charging fees on dormant savings accounts.
This move addresses a long-standing issue that has stirred considerable debate among Jamaicans, who have advocated for an end to such fees on inactive accounts.
During a recent session of the Economy and Production Committee of Parliament, Lewis shared that banks have transitioned from manual processes to sophisticated technology for monitoring dormant accounts. This technology has received verification from the Bank of Jamaica (BOJ).
Furthermore, banks have implemented advanced transaction-monitoring systems. These systems enable senior staff to detect and prevent any attempts by employees to access dormant accounts fraudulently.
Committee member Anthony Hylton expressed his satisfaction with this development. He mentioned past concerns about bank employees posing a risk to dormant accounts and emphasized that banks must take responsibility for addressing such vulnerabilities.
Lewis confirmed that banks take decisive action when internal fraud involves an employee, including police intervention. Additionally, banks must report incidents of internal fraud to the BOJ.
Hylton underscored the importance of protecting depositors’ savings, suggesting that account holders should be able to seek compensation through civil court if they suffer losses due to bank employee actions.
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Lewis assured that in cases where customers’ accounts are compromised, the banks will reinstate the accounts, bearing the liability themselves. He emphasized that if a customer adheres to the account’s terms and conditions and their account is tampered with, the bank must fully restore the customer’s funds.
Under the banking code of conduct, aggrieved customers can write to their bank for redress. If the bank fails to comply, customers have the option to seek intervention from the central bank or pursue the matter in court.
