Ecuadorian Banks can expropriate money from dormant accounts

Ecuadorian law allows banks to close a bank account that has been dormant for at least five years.  Banks and cooperatives are obligated to transfer those funds to the government, where they will be used for social services. It is illegal for banks to transfer dormant funds to their own accounts. “The only deposits which are exempt from these regulations are those that are immobilized due to a claim, lawsuit or legal disposition when duly notified of the financial entity which holds them,” according to the Organic Code of the Monetary and Financial System. The National Organic Code stipulates: “All…

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