Bankers Association (KBA), the umbrella body of the banking
industry, has partnered with the Unclaimed Financial Assets
Authority (UFAA), to run a public awareness campaign during the
month of October as the financial sector prepares for the first
year of formal reporting to the recently-launched sector
Financial Assets (UFA) Awareness Month” campaign will target
financial institutions, including banks, microfinance
institutions, stock brokers, as well as the other institutions
such as large corporations, schools, courts, utility companies
and other holders of unclaimed or unpaid cash, cheques,
interest, wages and other classes of financial assets.
In addition to
raising awareness regarding the reporting policy, institutions
will be sensitised on the requirement that all holders of
unclaimed financial assets, as defined by the UFA Act 2011, must
remit these assets to the UFAA on or before 1st
November of every year.
Speaking during the
launch of the campaign, UFAA CEO Mrs. Kellen Kariuki, MBS, noted
the importance of the partnership in facilitating the
re-unification of customers with their assets.
responsibility of assets reunification is by holders themselves.
UFAA assume that role on whatever else remain unclaimed. This
initiative on education and awareness between UFAA and holding
institutions will go a long way in enhancing reunification
rate,” said Kellen.
Chief Executive Officer of Kenya Bankers Association Mr.
Olaka and UFAA CEO Mrs. Kellen Kariuki,
“Currently banks are
at the forefront of implementing the new requirements and we
expect the industry will improve in implementation now that
there are formal reporting structures and as the regulations
which streamline the process are finalised,” said Mr. Olaka,
Chief Executive Officer of Kenya Bankers Association.
“We are pleased to
partner with the UFAA, and we are confident that this important
initiative will support the process of reunification,” he said.
Mr. Olaka reiterated
the banking industry’s commitment to compliance with the UFA
During the campaign,
the public will be reminded to routinely update their records as
a matter of basic good financial practice to ensure their assets
are not deemed unclaimed or abandoned. Owners of unclaimed
assets will also be educated on how to contact the Authority to
establish if the regulator has their funds; and the procedures
for filing a claim.
According to the
Unclaimed Financial Assets Act - 2011, a financial asset is
considered unclaimed when no claims have been made, no
transactions have been performed or no instructions have been
given with respect to the asset for a period of time. The Act
has set different periods within which assets can be declared
dormant and hence unclaimed; the periods range from two years
for cheques to seven years for bank accounts.