Escheatment
The requirement that unclaimed property be turned over to the state after a specified “dormancy” period – has become a valuable source of state revenue that represents billions of dollars in public capital each year. States are increasingly relying on these previously untapped resources to add millions of dollars to state revenues, and are rapidly changing escheatment regulations to speed receipt of these funds. Organizations unprepared to keep up with these changes risk fines and penalties which have dramatically increased over recent years.
Paragon has specialized experience working with financial institutions in the areas of strategy development, risk management and process optimization. Applying its integrated assessment methodology, Paragon uses process accelerators for Organization Readiness, Process Maturity and Platform Capability to create a holistic evaluation of the firm’s escheatment capabilities. As part of this assessment, Paragon will:
- Assess organizational readiness to comply with regulatory demands
- Diagnose immediate gaps of current capability, i.e. people, process, tools, data, etc.
- Prioritize actions by risk impact from multiple perspectives
- Identify improvement opportunities associated with risk prevention and potential legal defense
- Optimize capability through deliberate and continuous effort
Paragon then uses its proven templates and frameworks to help firms establish a proactive escheatment compliance strategy that enables them to respond quickly, cost effectively and defensibly to changing regulations.
Strategy Roadmap