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December 5, 2023New York Unclaimed Funds and Reporting Requirements
Companies send unclaimed funds to the New York State Comptroller’s Office of Unclaimed Funds (OUF) based on the requirements of the Abandoned Property Law (APL), New York’s law regarding financial assets whose rightful owner cannot be located. The New York State APL requires businesses and organizations to report bank accounts, uncashed checks, credit balances, utility deposits, insurance policies, gift cards, and other properties when the last known address of the rightful owner is in New York State. In the fiscal year 2022-23, OUF collected $1.087 billion in unclaimed funds. Banks, Corporations and Insurance Companies were the largest source of these funds.
Companies should review the APL and OUF materials annually to make sure requirements are met before reporting. Organizations start by identifying the section(s) of the APL that applies to their business and reporting industry. The statutory requirements determine which properties are covered and their respective dormancy periods. Dormancy refers to the time that has passed since action was taken by the property owner on their property and varies based on property type. Using this information, they should review books and records to establish which properties are subject to reporting. Reporting property once the applicable dormancy period has elapsed is a legal requirement under the APL.
OUF offers a Voluntary Compliance Program (VCP). Last year, 155 companies enrolled in the program, that allowed them to complete a self-audit checklist online and receive guidance from OUF on reporting requirements. Companies that are accepted into the program and participate in it are provided amnesty from penalties and interest for past due items reported.
Untracked, unclaimed property can present the risk of accounting errors, and the chance that accounting records could be misrepresented. During the due diligence process, the company is required to contact the customer in an attempt to make the customers aware of the funds and connect them with the rightful owners. Companies are required to report abandoned property if they can’t reach the rightful owner, and owners can claim the funds from OUF at any time.
Find additional information such as Handbook for Reporters, the APL, and eligibility requirements for the VCP on our website. If you have any questions or would like to request participation in the VCP, contact us at NYSVCU@osc.ny.gov.
