What BC businesses need to know about reporting unclaimed property

​​Most organizations holding unclaimed property in British Columbia are aware of their obligations when it comes to managing these funds. However, fewer are familiar with how the Unclaimed Property Act affects liability, audits, and long-term recordkeeping and what changes when funds are transferred to BC Unclaimed —including the social impact made by those funds.

If your organization is preparing for an internal audit, reviewing compliance processes, or considering a business transaction, here are key insights that go beyond the standard steps of reporting.

1. Transferring funds to BC Unclaimed extinguishes liability

Under section 12 of the Act, when a holder voluntarily transfers unclaimed property to the BC Unclaimed Property Society (BC Unclaimed), the administrator’s receipt serves as a full legal discharge. Once the funds are accepted, your organization is no longer liable for:

• Maintaining a database of unclaimed property

• Responding to future claims or disputes

• Managing owner inquiries or reissue requests

• Retaining records beyond the initial transfer requirements

This can significantly reduce risk exposure for organizations with large volumes of dormant accounts or legacy balances.

2. Not all holders can use the public database option

Many organizations assume they can meet their compliance requirements by maintaining a public database. While that’s true for some, designated sectors like credit unions and collection companies must remit funds to BC Unclaimed. The database option is not permitted.

If you fall into a mandatory transfer category and are still maintaining a public registry, your organization may be inadvertently out of compliance.

3. There’s no penalty, but there are consequences

While there are currently no automatic financial penalties for non-compliance, the risks are real:

• Audit complications: Dormant liabilities on your books may raise flags during financial or regulatory audits.

• Deal-breakers in M&A: Unaddressed unclaimed property can delay or complicate mergers, acquisitions, or succession planning.

• Reputational risk: Failing to transfer or disclose unclaimed property could be seen as poor financial stewardship.

• Regulatory consequences: In limited circumstances, non-compliance may constitute an offence under the Unclaimed Property Act. This includes knowingly submitting false or misleading information or failing to maintain required records. These offences are subject to the Offence Act, which allows for fines or imprisonment, though enforcement is uncommon.

4. Record retention standards are longer than you might think

Depending on the value of the property, holders must retain records related to unclaimed funds for:

• 6 years for amounts under $1,000

• 10 years for amounts between $1,000 and $25,000

• 30 years for amounts over $25,000

These timelines apply even if your organization opts to maintain a public database instead of transferring funds. Transferring to BC Unclaimed reduces your long-term recordkeeping obligations, especially for legacy accounts.

5. Voluntary compliance sends a strong signal

Even if you’re not a mandatory holder, choosing to participate voluntarily demonstrates:

• Strong internal governance

• Transparency in financial reporting

• A commitment to public trust and community benefit

Transferring funds to BC Unclaimed is especially helpful for organizations with low-value or inactive accounts that are unlikely to be claimed independently.

6. Transfers are simple and supported

If you choose to transfer funds, BC Unclaimed provides:

• Secure online and mail-in submission options

• Step-by-step guides and templates

• Direct support for submitting account-level details

• Options for transferring payment by cheque or EFT

Once transferred, BC Unclaimed continues the work of reuniting owners with their funds or, when that’s not possible, redirecting them to benefit communities across BC through Vancouver Foundation.

Is it time to revisit your unclaimed property process?

Whether you're looking to reduce administrative risk, clean up old balances, or prepare for a financial review, now is a good time to assess how your organization manages unclaimed property.

Voluntary participation not only streamlines your operations, but it also aligns with broader Environmental, Social, and Governance (ESG) goals. By transferring unclaimed funds to BC Unclaimed, you’re reinforcing responsible governance increasing the likelihood of the funds being returned to their rightful owner,  and contributing to social good across the province.

Visit bcunclaimed.ca/submit/why to learn more or connect with our team for guidance.