Charities and Trustee Investment (Scotland) Act 2005

Dormant charity accounts

47Dormant accounts of charities

(1)Subsection (3) applies where—

(a)a relevant financial institution (whether or not in response to a request from OSCR) informs OSCR that every account held by the institution in the name of or on behalf of a body appearing to the institution to be a relevant body is dormant,

(b)OSCR is satisfied that the body is a relevant body, and

(c)OSCR is unable, after making reasonable inquiries, to locate any person concerned in the management or control of the body.

(2)A relevant body is one which is, has at any time been or, in the case of a body which has ceased to exist, was prior to such cessation—

(a)a charity, or

(b)entitled by virtue of section 1(7) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40) to describe itself as a “Scottish charity”.

(3)OSCR must transfer the amount standing to the credit of the relevant body in the dormant accounts (less any amount which it is authorised by regulations under section 48(1) to retain) to—

(a)such charity as OSCR may determine, having regard to the purposes of the relevant body and the purposes of the charity, or

(b)where OSCR is unable to ascertain the purposes of the relevant body, to such charity as OSCR considers appropriate.

(4)For the purposes of subsection (3), OSCR may effect any transaction in relation to the dormant accounts (including a transaction closing any such account).

(5)Where under subsection (3) OSCR transfers an amount to 2 or more charities, it may divide the amount among those charities as it thinks fit.

(6)A charity to which an amount is transferred under this section may apply the amount for its purposes as it thinks fit.

(7)The receipt by—

(a)OSCR of an amount withdrawn or transferred from an account by virtue of this section is a complete discharge of the relevant financial institution, or

(b)a charity of an amount received from OSCR by virtue of this section is a complete discharge of OSCR,

in respect of the amount.

(8)OSCR’s power under subsection (3) ceases—

(a)if the relevant financial institution by which the accounts are held informs OSCR that the accounts (or any of them) are no longer dormant, or

(b)if OSCR becomes aware of the identity of a person concerned in the management or control of the relevant body and informs the relevant financial institution of that fact.

48Dormant accounts of charities: procedure and interpretation

(1)The Scottish Ministers may, by regulations, make provision as to—

(a)the procedure to be followed by OSCR under section 47,

(b)the extent to which OSCR, in transferring an amount under subsection (3) of that section, may retain a sum in respect of its expenses in exercising its functions under that section.

(2)An account is dormant for the purposes of section 47 if no transaction other than—

(a)a payment into the account, or

(b)a transaction effected by the relevant financial institution holding the account,

has been effected in relation to the account within the period of 5 years immediately preceding the dormancy date.

(3)An account is no longer dormant for the purposes of that section if a transaction other than—

(a)a payment into the account,

(b)a transaction effected by the relevant financial institution holding the account, or

(c)a transaction effected by OSCR in pursuance of subsection (3) of that section,

is effected after the dormancy date.

(4)The dormancy date is the date on which the institution informs OSCR as mentioned in section 47(1)(a).