Unclaimed Asset Rules Effective June 30, 2023

Summary#

This is an order that fixes June 30, 2023 as the day certain parts of the Budget Implementation Act, 2021, No. 1 come into force. Practically, it turns on changes that update the federal unclaimed-asset system so more types of accounts are included and so owners can be contacted more easily.

What it does#

• Fixes June 30, 2023 as the coming-into-force date for sections 140 and 143 to 148 of the Budget Implementation Act, 2021, No. 1.
• Expands which accounts count as unclaimed assets by adding foreign‑currency deposits and instruments (so these can be transferred to the federal custodian).
• Requires federally regulated financial institutions to try electronic notification (for example, email) in addition to mail when contacting owners of inactive accounts.
• Requires financial institutions to give the Bank of Canada more identifying information about owners, including social insurance number and date of birth, and to provide owner signatures to help validate claims.
• Requires foreign‑currency deposits to be converted to Canadian dollars before transfer to the Bank of Canada.
• Gives the Bank of Canada an explicit power to publish unclaimed-asset information online to help people find and claim money.
• Sets a deadline (in the explanatory material) for institutions to transfer newly covered foreign assets and required owner information by December 31, 2023, and says the electronic-notice requirement will apply to notices sent starting January 2024.

Who's affected#

• Federally regulated banks and trust and loan companies — they must identify, prepare and transfer more types of unclaimed assets and personal data to the Bank of Canada.
• Bank of Canada — will receive more data, hold more (including converted) funds, and may publish searchable information online.
• Canadians with inactive or forgotten accounts (owners or heirs) — more types of lost money may be findable and easier to reclaim.
• Industry groups such as the Canadian Bankers Association were consulted and are involved in implementation.

If anything is unclear from the source (for example, precise operational steps for each institution), the explanatory note indicates further planning between Finance Canada, financial institutions and the Bank of Canada.

Why it matters#

• More lost or forgotten money could be reunited with its owners because foreign‑currency accounts are included and because institutions will use email and other electronic methods to notify owners.
• The Bank of Canada publishing information online should make searching for unclaimed funds easier for the public.
• Financial institutions will no longer have to hold some inactive assets indefinitely, but they will have to share more personal data (SIN, date of birth, signatures) with the Bank of Canada, which has privacy and operational implications for both institutions and account holders.