For financial institutions, unclaimed property compliance is not optional. Failure to follow state escheatment laws can result in costly penalties, strained regulator relationships, and reputational damage.
Escheatment risk is the possibility that your organization fails to meet these requirements, whether from missed deadlines, inaccurate reporting, or incomplete due diligence.
At Eisen, we understand that the escheatment process is complex, especially when you are managing multiple states with varying regulations. Our goal is to help you not only meet compliance requirements, but to do so with a process that is efficient, consistent, and reduces your exposure to risk.
What Creates Escheatment Risk?
Escheatment risk can arise from a range of operational and procedural issues, including:
- Failure to review all applicable records for dormant property
- Incomplete owner outreach before reporting property to the state
- Inaccurate or incomplete data in reporting files
- Missed state deadlines due to poor tracking
- Inconsistent internal procedures across departments or locations
- Unawareness of law changes in different jurisdictions
These issues not only increase the likelihood of penalties but can also trigger more frequent and intensive audits.
The Cost of Noncompliance
State agencies take escheatment compliance seriously, and fines can add up quickly. Many states impose both per-day and per-property penalties, which can easily reach thousands of dollars. In some jurisdictions, willful neglect or fraudulent reporting carries additional legal consequences.
The table below provides an overview of potential penalties and fines for escheatment violations by state.
| Jurisdiction |
Statute |
Interest Rate Penalty |
Willful Report Failure Penalty |
| Alabama | Ala. Code § 35-12-92 | N/A | $500 per business day |
| Alaska | Alaska Stat. § 34.45.470 (a) | 12% per year | 5% of property value |
| Arizona | Ariz. Rev. Stat. § 44-326 | 1.5% per month | $100 per day |
| Arkansas | Ark. Code § 18-28-224 | Prime rate + 2% per year | $1,000 per day |
| California | Cal. Code Civ. Proc. § 1576 | 12% per year | $100 per day |
| Colorado | Colo. Rev. Stat. § 38-13-1204 | Prime rate + 3% per year | $1,000 per day |
| Connecticut | Conn. Gen. Stat. § 3-65b | 15% per year | N/A |
| Delaware | Del. Code tit. 12 § 1183 | 0.5% per month | $1,000 per day |
| District of Columbia | D.C. Code § 41-162.04 | 10% per year | $1,000 per day |
| Florida | Fla. Stat. § 717.134 | 12% per year | $500 per day |
| Georgia | Ga. Code § 44-12-227 | N/A | $100 per day |
| Hawaii | Haw. Rev. Stat. § 523A-24 | 52W T-bill rate + 2% per year | $1,000 per day |
| Idaho | Idaho Code § 14-5-1204 | 12% per year | $1,000 per day |
| Illinois | 765 ILCS 1026/15-1204 | 1% per month | $1,000 per day |
| Indiana | Ind. Code § 32-34-1.5-71 | 52W T-bill rate + 1% per year | $1,000 per day |
| Iowa | Iowa Code § 556.25 | 10% per year | 25% of property value |
| Kansas | Kan. Stat. § 58-3967 | 52W T-bill rate + 10% per year | $100 per day |
| Kentucky | Ky. Rev. Stat. § 393A.730 | Prime rate + 2% per year | $1,000 per day |
| Louisiana | La. Stat. tit. 9 § 176 | Prime rate + 3.25% per year | $1,000 per day |
| Maine | Me. Stat. tit. 33 § 2194 | 52W T-bill rate + 10%, max 18% per year | $1,000 per day |
| Maryland | Md. Code, Com. § 17-323 | 15% per year | $100 per day |
| Massachusetts | Mass. Gen. Laws ch. 200A § 12 | AFR + 3%, max 12% per year | N/A |
| Michigan | Mich. Comp. Laws § 567.255 | Prime rate + 1% per year | $100 per day |
| Minnesota | Minn. Stat. § 345.55 | 12% per year | N/A |
| Mississippi | Miss. Code § 89-12-47 | 1% per month | N/A |
| Missouri | Mo. Rev. Stat. § 447.539 | 1.5% per month | 5% of property value |
| Montana | Mont. Code § 70-9-824 | 12% per year | $1,000 per day |
| Nebraska | Neb. Rev. Stat. § 69-1324 | 52W T-bill rate + 1% per year | $100 per day |
| Nevada | Nev. Rev. Stat. § 120A.730 | 18% per year | $1,000 per day |
| New Hampshire | N.H. Rev. Stat. § 471-C:38 | 18% per year | $100 per day |
| New Jersey | N.J. Stat. § 46:30B-103 | 52W T-bill rate + 10% per year | $200 per day |
| New Mexico | N.M. Stat. § 7-8A-24 | 15% per year | $250 per day |
| New York | N.Y. Aband. Prop. Law § 1412 | 10% per year | $100 per day |
| North Carolina | N.C. Gen. Stat. § 116B-77 | NCDOR rate per year | $1,000 per day |
| North Dakota | N.D. Cent. Code § 47-30.2-65 | 1% per month | $1,000 per day |
| Ohio | Ohio Rev. Code § 169.12 | 6M T-bill rate per year | $500 per day |
| Oklahoma | Okla. Stat. tit. 60 § 680 | 10% per year | $100 per day |
| Oregon | Or. Rev. Stat. § 98.416 | 10% per year | Up to $50,000 |
| Pennsylvania | 72 Pa. Stat. § 1301.24 | 12% per year | $100 per day |
| Puerto Rico | P.R. Laws tit. 7, § 2108 | N/A | $5,000 every 5 days |
| Rhode Island | R.I. Gen. Laws § 33-21.1-34 | 52W T-bill rate + 12% per year | Up to $500 per day |
| South Carolina | S.C. Code § 27-18-350 | AFR + 3% per year | $100 per day |
| South Dakota | S.D. Codified Laws § 43-41B-35 | 4.5% per year | N/A |
| Tennessee | Tenn. Code § 66-29-173 | N/A | $1,000 per day |
| Texas | Tex. Prop. Code § 74.705 | 10% per year | $100 per day + 5% of property value |
| Utah | Utah Code § 67-4a-1204 | AFR + 4% per year | $1,000 per day |
| Vermont | Vt. Stat. tit. 27 § 1594 | VT Tax or Prime rate per year | $1,000 per day |
| Virginia | Va. Code § 55.1-2540 | AFR + 8% per year | $1,000 per day |
| Washington | RCW 63.30.690 | AFR + 2% per year | 10% of property value |
| West Virginia | W. Va. Code § 36-8-24 | 12% per year | $1,000 per day |
| Wisconsin | Wis. Stat. § 177.1204 | 15% of property value | $100 per day |
| Wyoming | Wyo. Stat. § 34-24-135 | 52W T-bill rate + 10% per year | $100 per day |
Note: This table is for illustrative purposes only. Always verify current penalties with the appropriate state agency.
How to Reduce Escheatment Risk
The key to mitigating escheatment risk is building a proactive, well-documented compliance program. That means:
- Automating deadline tracking to ensure reports are submitted on time for every state.
- Standardizing procedures across teams so every account follows the same compliance steps.
- Conducting regular audits of your data and processes to identify and correct issues early.
- Keeping current with state law changes and updating internal policies accordingly.
- Partnering with a trusted compliance provider who can manage complexity at scale.
At Eisen, we help financial institutions streamline their escheatment process, from owner outreach to final reporting, so you can focus on your customers and your business.
The Bottom Line
Escheatment risk is not just a regulatory concern—it is a business risk. By addressing the root causes of noncompliance and implementing the right systems, you can avoid costly penalties and protect your organization’s reputation. With Eisen, you have a partner who understands the challenges and delivers solutions that create measurable results.
Reach out to learn more about our escheatment services and how we can help you stay compliant.
