Introduction to Account Inactivity and Dormancy

As part of the account maintenance process, Financial Institutions in Canada need to have an ability to monitor accounts which are not operated for a specified period of time and to comply with any statutory regulations.

The business requirements pertain to the change in the account status triggered by the absence of customer originated transactions for a defined period, which makes the account inactive or dormant, necessitating supervisory controls over these accounts to prevent fraudulent activity.

Prolonged inactivity on the account makes an account Escheat, which implies that any customer activity through any channels would not be permitted, unless there is a supervisory approval from a bank user to authorize the transaction.