Unanswered Questions About Unclaimed Funds Awaits Senate Action Almost a Year Later

The Virgin Islands Code establishes a process by which the Government must attempt to establish contact with any individuals that may have a legal claim to the account. After the government follows those steps, the government has a legal right to take hold of the unclaimed asset. But where does the money go?

One lawmaker tried to answer that question, along with the many that would likely follow, almost a year ago. In a direct letter to the Office of the Lieutenant Governor Tregenza A. Roach dated June 9th, Senator Alma Francis Heyliger wrote to:

“[S]eek clarification on the Office of the Lieutenant Governor’s Division of Banking & Insurance and Financial Regulation policy of collecting financial assets that have been reported as unclaimed.”

In the letter, Sen. Francis Heyliger asked the following questions:

• “How is the public informed about unclaimed property collected by your office?

• How often does your office produce a public report and how is that information accessed by the public?

• What is the total amount of individuals that currently have unclaimed property collected by your office?

• What happens to unclaimed property once it becomes the possession of the Office of the Lieutenant Governor?

• What is the action plan steps and timeline being followed when your office possesses unclaimed property?

• The VI Code specifies a procedure for unclaimed property. What is the internal process in place to ensure that your office is in full compliance with the VI Code?”

As of the writing of this article in late May 2022, the Office of the Lieutenant Governor has never responded to that inquiry, even though his top representatives would defer to that letter just a short time later in July 2021 in an attempt to dodge many of the same questions during a session held by the Committee of Finance on July 21, 2021.

Despite their attempts to deflect direct questions from Sen. Francis Heyliger during that session, lawmakers learned that day that an estimated $13 million in revenue floats somewhere around the government’s coffers, but insisted the Lieutenant Governor would address every single one of the concerns in the letter.

In the meantime, Sen. Francis Heyliger has introduced legislation that will guarantee those funds receive the same level of transparency as any other money it handles.

The 34th Legislature’s Committee on Government Operations and Consumer Protection will consider her sponsored legislation, Bill No. 34-0212, which seeks to amend Title 28, chapter 29, section 660 of the Virgin Islands Code to include additional requirements for the notice and publication of lists of abandoned property.

According to the Legislature’s official bill tracker, the bill states the following:

“The administrator [Office of the Lieutenant Governor] shall keep an online, searchable database that allows the public to search all property and funds that have been collected by the Lieutenant Governor pursuant to this chapter. The database must include at least the following information:

(1) The name of each person appearing to be the owner of the property;

(2) The last known address of each person appearing to be the owner of the property;

(3) A description of the property considered to be abandoned or unclaimed;

(4) The value of the property;

(5) The date on which the property was transferred to the administrator; and

(6) Clear instructions on the process by which a person may claim the abandoned or unclaimed property, including access to forms, and

(7) A secure verification of the identity of the person appearing to be the owner of the property. (d) Not later than 30 days after the abandoned or unclaimed property is paid or delivered to the administrator, the administrator shall add all information required under subsection (c) to the database.”

That bill, according to its sponsor, Sen. Francis Heyliger, will establish oversight with regards to unclaimed funds. In a recent press release regarding the introduction of the bill, Sen. Francis Heyliger said:

“Our government has an estimated $13 million in money that is essentially unaccounted for,” said Sen. Francis Heyliger. “As it stands, without appropriate oversight and public information, that money remains hidden in a cookie jar on top of the government’s fridge, when in reality that money belongs directly in the hands of the people to which it is owed.”

In the same release, Sen. Francis Heyliger stated that she had formally requested assistance from the USVI Inspector General with regards to investigating whether the handling of these funds complies with the Virgin Islands Code.

Originally slated for the May 11th session of the 34th Legislature’s Committee on Government Operations and Consumer Protection, consideration of the bill was pushed back after the Committee’s Chair, Carla A. Joseph postponed the meeting until June 2nd due to unforeseen circumstances.