A while back, we covered the topic of unclaimed property compliance [see the article “(Unclaimed) Property Damage”]. The initial basis of that blog post was the impact that one insurance company’s unclaimed property settlement would have on the insurance industry. That topic remains a hot button issue, as evidenced by a recent article from a leading corporate law firm. “Unclaimed property compliance was once an area of law that received little attention,” the article states. “But compliance now is being pursued aggressively, resulting in unexpected and substantial liabilities for many companies. States are expending more resources to ensure compliance and are conducting more investigations into whether companies are properly reporting unclaimed property.”
As the article suggests, all companies—not just those in the insurance industry—need to remain fully informed about unclaimed property compliance statutes. The number of audits is increasing, and states are assessing interest and penalties against companies that fail to escheat property in compliance with annual reporting as mandated by unclaimed property statutes.
That is where we come in, so to speak.
As our Unclaimed Property Compliance System (UPCS®) clients can attest, Chesapeake provides regular updates regarding new rules and regulations within the 54 reporting jurisdictions for more than 100 types of unclaimed property. Additionally, we provide updates to all of our customers through our quarterly newsletter. The most recent issue (Q2 2012) included updates about California, New Jersey, and South Dakota—the last item specifically announced a change in the state’s dormancy period and discussed the altered requirements for advertising unclaimed property.
Unclaimed property compliance can be a time and labor intensive activity for any company. Chesapeake, however, can ease the burden. Our UPCS solution automates the collection, tracking, management, and reporting processes. Our system produces annual reports and maintains audit trails to document compliance.
For more information about how UPCS can benefit your organization, click here.
For more information about our Unclaimed Property Compliance System, you can contact Chesapeake Systems Solutions by calling 410.356.6805 or visit Chessys.com today!
Chesapeake provides industry-leading, end-to-end financial solutions that seamlessly integrate cash management/treasury with general ledger account reconciliation, account analysis, and regulatory compliance functions. Information-sharing across all applications optimizes funds management, improves the financial close process, increases the efficiency and accuracy of general ledger account reconciliation, and simplifies compliance by enforcing company policies and procedures and financial regulations. Chesapeake solutions deliver actionable information and productivity improvements that can benefit a wide range of organizations, yielding tangible ROI from your software investment. From retailers to banks and financial services organizations to insurance companies, Chesapeake solutions help minimize risk, reduce costs, and maximize profitability.