Laws on unclaimed savings accounts in France and the Usa – suggestions for Vietnam

Abstract

Unclaimed savings deposit accounts are bank accounts with no transactions over a long period and no clear beneficiary. France and the United States have regulations for handling these accounts to protect depositor rights, optimize capital within the banking system, and prevent the waste of unused assets. In France, the law stipulates that inactive accounts (typically after 10 years) are transferred to the Caisse des Dépôts et Consignations. This institution holds unclaimed assets before they become state property if no claim is made. The United States has a similar process, with each state enforcing escheatment laws that require banks to transfer funds from inactive accounts to a state agency after a specific period, usually 3 to 5 years. The regulations on unclaimed assets in these two countries can be considered quite comprehensive, covering concepts, classifications, holding periods, and the procedures for handling these assets. However, in Vietnam, banking laws and internal regulations of banks lack specific provisions for this type of asset. This leads to practical issues; for example, if a forgotten account is left behind by an owner who has passed away or suffers from memory loss, and their relatives or legal heirs are unaware of the account’s existence, there is no straightforward procedure for managing it, leaving it effectively lost. Through this study, the authors propose that Vietnam establish a specific legal framework for unclaimed accounts, including clear regulations on the inactivity period and the rights and responsibilities of banks and state agencies in managing unclaimed assets. Additionally, efforts should be strengthened in notification and communication to ensure citizens are informed and can update their account information promptly. Researching and applying experiences from France and the United States could help Vietnam protect depositor rights, improve unclaimed asset management, and create a sustainable source of revenue for the national budget.