WA DOR Assessing Fines for not Remitting Funds for Unclaimed Accounts Electronically


The Northwest Credit Union Association has learned that the Washington State Department of Revenue is starting to assess 5 percent penalty fees for unclaimed property reports that are not filed and paid electronically.

The requirement for filing and paying electronically came out of the 2015 extended legislative session and was an item that was tagged onto the funding budget.

The DOR’s amendment affects the unclaimed property reports that are filed with the state by credit unions. Beginning on July 1, 2016, credit unions are required to file their reports electronically, which really means for the reports that will be filed November 2016. Many credit unions already use the UPExchange system to file their reports. Those using the system did not have to do anything differently.

Others needed to create an account with the electronic filing system in order to comply with the DOR’s requirement.

In addition, the DOR’s amendment requires payments to be submitted electronically, which many credit unions are already using the UPExchange system to do.

From the current version of the Guide to Reporting Unclaimed Property:

Electronic filing and payment now required

Beginning July 1, 2016, unclaimed property holders must file and pay electronically (RCW

63.29.170 (5)(a)). The Department of Revenue may waive this requirement for any holder.

Penalty changes

Beginning July 1, 2017, the Department of Revenue will begin assessing penalties.

(RCW 63.29.340):

  • 5 percent penalty for not filing and paying electronically when required
  • 10 percent penalty for not filing an unclaimed property report by the due date
  • 10 percent penalty for not paying or delivering unclaimed property by the due date
  • 10 percent assessment penalty
  • 5 percent penalty for not paying an assessment by the due date

Penalty and interest waiver

To request to have penalties and interest waived, an unclaimed property holder must complete

the steps below (RCW 63.29.340):

  1. Send a written request to ucp@dor.wa.gov. Please include the name of the business and Federal ID Number (FEIN) in your request.
  2. File a report that includes all property.
  3. Pay and deliver all amounts identified on the report.

Additional information can be found on the Washington State DOR’s Report Unclaimed Property website.

Question of the Week

If initial disclosures are silent on skip payments, does the credit union have to provide a disclosure for skip payments on closed-end loans if a fee is charged?

No, Regulation Z does not require subsequent disclosures for skip payments on closed-end loans. Generally, the only time new Truth in Lending (TIL) disclosures are required for closed-end loans is if a refinancing occurs. This is because the existing obligation is replaced by a new obligation for the same consumer. If the existing agreement is only being modified, no new disclosure is required.

Related Links:

12 CFR 1026.20

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA’s recording of the June 21, 2018 board meeting is now available.

Federal Reserve Board (FRB)

The FRB launched a new publication, the Consumer Compliance Supervision Bulletin, aimed at providing financial institutions interested in consumer protection with summaries of supervisory issues.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of July 25, 2018. The last update prior to this was July 19, 2018.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance News, Compliance News.