The Sejm passed a resolution: the bank will check when you died

On Friday, the Sejm passed an amendment to the Banking Law that is intended to solve the problem of so-called dead or dormant accounts.

Banks are checking customers who don't use their accounts

For nearly 10 years, banks have been required to verify the status of an account holder who has not issued any instructions regarding an account maintained under an agreement with the bank for five years. To this end, the bank requests access to data from the Universal Electronic System for Registration of the Population (PESEL), which allows for determining whether the account holder is alive. If the agreement provides for the maintenance of more than one account, the five-year period begins on the date of the last instruction regarding all accounts.

Why does the bank need the date of death of the account holder?

This procedure, however, confirms the mere fact of death, without specifying when it occurred. However, banking law attaches certain significant consequences to the date of death, not the date of receipt of information about the death. A bank account agreement held by an individual is terminated upon the date of that individual's death. However, according to the law, the agreement is considered binding until the bank pays the deceased's funds to the person with legal title (e.g., an heir).

According to the amendment, after 5 years from the date of the last instruction concerning a given account, the bank will have to apply to the minister responsible for computerization for access to data from the PESEL register enabling the determination of whether the account holder is alive and – if dead – the date of his death or the date the body was found.

Banks will have a slightly shorter deadline, three months, to apply to the PESEL register for the date of death if the bank account agreement expires (e.g., in the case of a term deposit account) and the account holder has not previously issued a withdrawal order. This obligation will not apply if the agreement provides for the maintenance of more than one account and the account holder has issued an instruction concerning these accounts.

“Dormant accounts” of deceased clients will be easier to close

Banks are also obligated to provide heirs of deceased account holders and successor administrators with collective information about the account holder's bank account agreements that have been terminated or expired. This collective information identifies the entity that maintains or maintained the account, the account numbers specified in the account agreement, and whether the accounts are still maintained. However, the act does not specify how far back the bank must search for information.

After the amendment to the regulations, banks will not be obliged to include accounts in the collective information if the period for which they are obliged to store information and documents related to account agreements, as specified in other regulations, has expired.

The amendment will provide banks with a legal basis to confirm information about the date of death or the date the body was found of an account holder directly in the PESEL database. This will enable the rapid closure of "dormant accounts" (related to the account holder's inactivity). Heirs will also more quickly receive so-called collective information about terminated or expired bank account agreements of the deceased, which is intended to reduce the risk of payments to unauthorized parties.

The bill will now be considered by the Senate. The amendments to the Banking Law are to come into force 14 days after their publication in the Journal of Laws.