Dormant Account Fund

It's not uncommon, for someone living in Australia, to find old bank or postal documents, such as a savings book, a bank statement, or a letter from the bank, related to accounts opened in Italy by a deceased parent or other close relatives.

It's natural to wonder if that money can still be recovered.

Let's look at what you need to know and what to do.

What happens if the account isn't used for years

In Italy, a bank account, or other financial dealings (such as a deposit, passbook, or investments) become dormant if they have not been used for 10 years.

If the balance is higher than €100, the bank must notify the account holder and ask them to make a transaction within 180 days. If no transaction is made — for example, because the account holder has died or the address is out of date — the account is closed and the funds are transferred to a State Fund managed by a state-owned company called Concessionaria Servizi Assicurativi Pubblici Spa (CONSAP).

What is Consap and what does it do?

Consap Spa is a public company that, among other things, manages the Dormant Account Fund.

This fund contains funds from accounts, passbooks, or financial instruments that have not been used for more than 10 years.

Refunds can be requested for up to 10 years from the date of their transfer to CONSAP.

Who can request a refund and how?

The refund can be requested either by the account holder or their heirs.

To obtain a refund, they must:

• request a document from the bank, or other credit institution where the dormant account was held, confirming that the account has been transferred to the Fund;

• send the refund request to Consap, attaching:

the document issued by the bank;

the documents demonstrating the right to request the refund.

The submission can be filed by any person claiming the payment.

However, since the process is quite cumbersome, unless the amount involved is little, it is advisable to rely on a trusted professional in Italy to avoid mistakes that could permanently compromise the recovery of the funds.

Timeframe

Given the high volume of requests, Consap would generally take between 6 and 10 months to process the refund, depending on the completeness and accuracy of the application and related attachments.

When refunds are no longer possible

The following instruments are not refundable:

• life insurance policies;

• postal savings bonds not cashed within 10 years of maturity;

• banker's checks expired by more than 3 years for beneficiaries and 10 years for payers;

• dormant accounts for which more than 10 years have elapsed since their transfer to the Fund.

In summary

Discovering the existence of an old bank account belonging to a deceased relative may entitle to some refund; however complex, recovering savings is possible if you act correctly and, above all, in time and with the help of a trusted professional in Italy.