The new bank bandits !

Some people are getting a nasty shock when they try to access money they have saved " for a rainy day " - tucked away in a savings account in a bank, building society or credit union.   Unless you have made a deposit or withdrawn from it in the past three years there is every chance that the Australian Securities and Investment Commission ( ASIC ) has cleaned out your bank account and transferred your funds to the Federal government's  " Consolidated Revenue " account - and they are now spending your money !

ASIC can do that because of a legal change that deems your account as " inactive ".   Many years ago the Feds decided that they needed to " protect  absent minded  people " who simply forgot that they had money and take it into care until someone came forward and claimed it.    Seven years was the point when an untouched account became " inactive ".

In 2012 the government was desperate to fill a financial black hole and Treasurer Wayne Swan quietly dropped that seven year time frame - to just three years.  As a result, ASIC has been on the rampage and there is now a whopping $ 1.2 billion sitting in Consolidated Revenue - being used interest free without the knowledge of it's former owners.

Of course you do have the right to demand that the government return your funds, but now the onus is on you to prove that you are the true owner - and that these funds are legally yours and not the proceeds of some sort of crime - and it will be a long and tedious process that may take a lot of time and effort - and probably extend for weeks - or even months, and when the money is returned - it is without any interest payments for the time it has been in government hands.

Many people are affronted that the banks do little to warn them that their account is being raided.  That seems to be a grey area that depends on the outlook of individual managers but the media has been giving clear warnings that those with a little used deposit need to activate the account - perhaps a diary entry to make at least a one dollar deposit once a year.

We live in a "  money hungry " world with ever tightening rules.    It is noticeable that the " onus of proof " is subtly changing with the onset of " proceeds of crime " legislation seeking to fill government coffers.    In the dim past, it was the task of law enforcement to prove that money in our possession was dishonestly obtained.   Today, we need to be able to justify any funds in our purse or wallet as legitimately obtained - or it can be seized and it becomes our responsibility to go to court and sue for it's return.

Even a win in a lottery now has fresh hazards.   Formerly, a misplaced ticket could still claim the prize if it surfaced after a long period of time.   Today - it disappears into the hungry maw of consolidated revenue with the claim period reduced to just twelve months - and that even applies to winning bets on horse racing events.

These days the bank bandits are not the guys wearing a mask and carrying a gun.  They wear business suits and carry a brief case - and they are usually servants of the government !