Unclaimed Money
Unclaimed Money
Recently, one of our #ktp clients received an audit letter from Unit Wang Tak Dituntut, JANM Negeri Johor. We are pleased to share the details of the letter and remind you about the Unclaimed Money Act 1965.
Inspection Notice
According to Section 12 (1) of the Unclaimed Money Act 1965, the Registrar of Unclaimed Money or an authorized officer can inspect documents and financial records to ensure your company complies with the act.
An inspection will be conducted on your company on 20 June 2024. Please take the following actions:
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Prepare Documents : Get your books, registers, records, or documents ready as listed in Appendix A.
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Complete Appendix B : Fill out Appendix B with the information of your company representative involved in the inspection. Return it no later than seven days before the inspection date to the provided email address.
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Presence During Inspection : Ensure you or a company representative is present with the Inspector throughout the inspection.
Failure to cooperate may result in a fine up to RM5,000 or imprisonment for up to three months, or both, under Section 12(4) of the Unclaimed Money Act 1965.
About the Unclaimed Money Act 1965
The Unclaimed Money Act 1965 assigns the following roles to the Accountant General, appointed as the Registrar by the Minister of Finance:
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Trustee for Unclaimed Money : Acts as a trustee for unclaimed money received.
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Refunds to Claimants : Responsible for refunding unclaimed money to rightful claimants.
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Compliance Enforcement Ensures companies comply with the Act.
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Penalties : Imposes penalties for non-compliance.
What is Unclaimed Money?
Unclaimed money includes:
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Unpaid Obligations : Money legally due to a person or company but unpaid for more than one year, such as salaries, bonuses, dividends, fixed deposits, and sundry creditors.
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Dormant Bank Accounts : Bank accounts with no transactions for over seven years, including savings accounts, current accounts, and fixed deposits with automatic renewal.
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Dormant Trade Balances : Trade creditors or trade debtors with a credit balance dormant for more than two years.
How to Register and Lodge Unclaimed Money
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Record Keeping : Companies must record all unclaimed money in a register.
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Annual Submission : Lodge the register with all unclaimed money up to December 31 annually and submit it by March 31 of the following year.
Guideline on Submission of Unclaimed Money (2020 Edition)
For detailed guidelines, please refer to the Guideline on Submission of Unclaimed Money (2020 Edition).
Consequences of Non-Compliance
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Fines : The company and every responsible officer may be fined up to RM20,000.
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Additional Fines : An additional fine of up to RM1,000 for each day the offence continues.
Should you have any questions or need further assistance, please do not hesitate to contact us.
Visit Us
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Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
KTP (Audit, Tax, Advisory)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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