2.12 Escheatment Processing in Oracle Banking Retail Accounts

This topic describes the processing of escheatment in Oracle Banking Retail Accounts.

Similar to inactive and dormancy - The escheatment laws differ by state in United States. The account is closed post the escheatment processing. The unclaimed funds are transferred to the state and retained by bank based on a configured threshold and percentage.

The state-group parameter configuration screen for inactive and dormancy is applicable for configuring the escheatment parameters too. Escheatment threshold allows the user to define a value over which the balance in the account will be considered for transfer to State. The percentage config available in the config screen will determine the percentage of funds to be transferred to bank GL and state GL (For Example: 70% denotes - 70% of the balance will be transferred to State GL and rest 30% will be retained by the bank).

Note:

An account will be considered for escheatment based on the customer Last contact date with the bank - For Example: the customer has had no contact with the bank through any of the channels for 5 years (where 5 years is the escheatment period), in this case, once the account balance is proportioned between bank and state, the account will be closed automatically.

Note:

For more information about the configurations, refer to the sections State Group Parameters and State Code Mapping in the Account Configurations User Guide.