Reed Smith Client Alerts

Key takeaways
  • Holders should acknowledge receipt of a request to submit a verified report within the first 30 days (or as soon as possible if that deadline has passed).
  • Holders should consider whether they can adequately respond to Delaware’s verified report request, and if they have concerns, they should consider opting in to the Delaware Secretary of State’s Voluntary Disclosure Agreement program instead.
  • Holders should consider confidentiality and privacy issues before providing sensitive data to Delaware’s contractors.


The Delaware Department of Finance (the Department), Office of Unclaimed Property sent out notices in November 2023 entitled “Notice Requiring Verified Report for Report Year 2022” (the Notice). The Notice is yet another outreach from Delaware regarding its unclaimed property requirements and raises new questions for companies about the various Delaware unclaimed property compliance programs and how best to comply.

To complete the verified report process, holders are required to provide the following information, often directly to a third-party contractor hired by the state:

  • A completed verified report form (included with the Notice)
  • A list of legal entities included in the verified report
  • A copy of the holder’s unclaimed property policies and procedures, if any

To the extent the Department of Finance determines that the holder failed to respond or complete the verified report request, it can initiate an audit without inviting the holder to participate in the Secretary of State’s (SOS) Voluntary Disclosure Agreement (VDA) program. In this way, the verified report process could pull holders into audit without the opportunity to voluntarily comply. Holders should therefore consider opting in to the SOS’s program to the extent they have concerns about responding to the verified report request.

Further, the Department of Finance has assigned review of the verified report materials to its third-party contractors, the same firms that conduct unclaimed property audits. While such contractors are subject to the confidentiality requirements of Del. Code Ann. tit. 12, sec. 1189, holders should request that any contractor reviewing its verified report materials enter into a nondisclosure agreement to clarify the contractor’s specific obligations with respect to any sensitive data.