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Give Diligence its Due
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February is not when businesses typically start thinking about unclaimed property. After all, in most states the reporting deadline is in November. However, escheatment is a year-round task.
This issue features information to help you better manage your unclaimed property, as well as comply with new due diligence requirements in California.
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| Patrick Harbin – Editor
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Due Diligence Law |
Starting this year, financial organizations holding unclaimed property in California have new due diligence requirements to follow whenever a customer opens a new account.
See California Banks Face New Due Diligence Rules on TAPC.
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Due Diligence Minimums |
It is not always easy tracking down the owners of unclaimed property. Many states have due diligence minimums, meaning holders do not have to perform due diligence if the item is worth less than $25, 50, or $100. However, due diligence minimums can have unforeseen consequences:
- You must still report this property to the state, which may be more time consuming than alerting the property owner
- Resolving the matter with the vendor can help maintain good vendor relationships, as the state may charge the owner a fee for filing a claim
- Minimums do not apply to all property types. Failure to perform due diligence on these property types could make you liable for fines
For more on escheatment, be sure to attend the session, "Unclaimed Property: Avoid Escheatment Hassles and Headaches," part of the upcoming The Accounts Payable Network's AP Leadership Conference. The session will be presented by Carla McGlynn, partner, Unclaimed Property Consulting & Reporting LLC.
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Just for Fun! |
One woman's feud with an Idaho public library ended in a guilty plea and a one-month jail sentence. The library books are now safe again from condiments. See Ketchup Attack on Library: Woman Pleads Guilty.
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