Understanding dormancy periods for unclaimed funds in BC

Every year, organizations across British Columbia hold on to money that no longer belongs on their books. Whether it’s an uncashed cheque, a deposit, or money paid into court, the clock starts ticking the moment those funds go untouched.

But when does that money officially become unclaimed?

In BC, that depends on what type of property it is, how long it has been inactive, and what legislation governs the organization holding it. These timeframes are called dormancy periods, and they vary from one sector to another.

Here’s a breakdown of common dormancy periods in British Columbia, and what they mean for holders and rightful owners alike.

What is a dormancy period

A dormancy period is the amount of time that must pass without any activity or contact from the rightful owner before funds are considered unclaimed. This can range from as little as 7 days to as long as 10 years, depending on the type of property and the organization holding it.

After the dormancy period ends, the organization must make reasonable efforts to locate and notify the rightful owner. If those efforts are unsuccessful, the funds may need to be reported or transferred to BC Unclaimed under the Unclaimed Property Act.

Some organizations, such as credit unions, courts, and municipal governments, are legally required to report unclaimed funds. Others, like nonprofits or insurance companies, are voluntary holders and are encouraged to transfer funds once the dormancy period has passed and the owner cannot be found. If the funds are not transferred to BC Unclaimed, the organization is responsible for maintaining its own database of unclaimed funds and making it accessible to the public.

Dormancy periods by organization type

These timelines are set out in a range of BC laws, including the Unclaimed Property Act, Financial Institutions Act, Employment Standards Act, and others.

Why dormancy matters

Leaving funds dormant creates more than just clutter on your books. It adds risk, increases administrative workload, and ties up resources that could be put to better use.

For organizations, holding on to unclaimed property means:

• Ongoing responsibility for tracking, reconciling, and securely storing inactive accounts

• Legal liability if the rightful owners come forward in the future

• Potential reputational risk if the funds are mishandled or overlooked

For rightful owners, including individuals, businesses, and estates, the longer funds sit unreported, the harder they are to trace and recover.

Transferring unclaimed funds to BC Unclaimed helps solve both sides of the problem. It:

• Removes liability from your organization

• Reduces administrative burden and clears inactive accounts from your books

• Improves transparency and supports good governance

• Gives owners a better chance to reclaim what is theirs through a secure, centralized platform

• Supports community programs through our partnership with Vancouver Foundation when funds cannot be reunited

Reporting unclaimed funds is not just a compliance task. It’s a practical step that benefits your organization, the rightful owners, and communities across BC.

Need help interpreting the rules

Many dormancy periods are clear and time-based. Others are subject to interpretation or vary based on context. If your organization holds funds that may be unclaimed, we’re here to help.

We offer compliance guidance and clear reporting tools for all types of holders, whether you are legally required to report or are considering voluntary participation.

Explore our holder resources or contact us directly for support.