Let’s debunk nine myths and misconceptions about unclaimed property reporting!
- Reporting is voluntary: Reporting unclaimed property to New Brunswick’s Unclaimed Property Program is mandatory. The province’s Unclaimed Property Act and Rules require businesses and organizations to report and remit unclaimed property to the Financial and Consumer Services Commission of New Brunswick when certain conditions are met. Failure to comply with the Act and Rules can lead to legal and financial consequences.
- Reporting only applies to large corporations: The Unclaimed Property Act and Rules apply to a wide range of businesses and organizations, including small businesses, non-profits, government entities, and more.
- You can keep the unclaimed property as revenue: When monetary property goes unclaimed, you can’t keep it as revenue. Unclaimed property on your books is not an asset; it is a liability owed to another person, business or entity that, for some reason, remains outstanding. The purpose of New Brunswick’s Unclaimed Property Act and Rules is to protect the rightful owners of the financial assets. Businesses and organizations are merely custodians until the monetary property can be returned to its owners.
- Reporting isn’t necessary if you've made efforts to find the owner: Conducting due diligence efforts to locate the owner is important, but it doesn't absolve a business from its reporting obligations. If a business cannot find the rightful owner of the monetary property, reporting is still required. New Brunswick’s Unclaimed Property Program works to reunite owners with their property.
- Reporting is a one-time process: Businesses and organizations must regularly review their records and identify unclaimed property. Reporting deadlines occur annually.
- Only financial institutions need to report: While financial institutions -- like credit unions and insurance companies -- do have significant unclaimed property obligations, other industries also have reporting requirements. Retailers, utilities, health-care providers, educational institutions and various other businesses can all hold unclaimed property that must be reported.
- Unclaimed property is another tax: While there is an annual reporting and remitting requirement under the law, unclaimed property is not a tax. It is money and other monetary property that your business or organization is holding that belongs to someone else. The Financial and Consumer Services Commission of New Brunswick serves as a custodian to protect financial assets until the rightful owners come forward to claim them. The Commission maintains a database and makes efforts to reunite owners with their monetary property.
- Only New Brunswick-based businesses must report: Businesses may mistakenly believe they only need to report unclaimed property in their home province or state. In fact, businesses and other entities carrying on business in New Brunswick (even if they are not based here) have reporting obligations if the owner’s last known address is in New Brunswick. The Unclaimed Property Act provides specifics on who has an obligation to report.
- Reporting is not a priority for regulators: Unclaimed property compliance is taken seriously by the Financial and Consumer Services Commission of New Brunswick. Ignoring unclaimed property reporting obligations can lead to legal and financial consequences.
Businesses must be aware of their unclaimed property reporting obligations, maintain proper records, and stay informed about the specific requirements of New Brunswick’s Unclaimed Property Program. For more information on how to report, visit Frequently Asked Questions or subscribe here for updates from the Unclaimed Property Program.