No, we do not believe you are required to return social security deposits solely because they are being deposited into a dormant account, provided that the recipient has not died (to your knowledge) and your bank has not yet closed or frozen the account.

The Treasury Department’s Guide to Federal ACH Payments (the Green Book) requires a Receiving Depository Financial Institution (RDFI) to return social security and other federal benefit payments received after it knows that the recipient is dead or legally incapacitated (or would know if it followed commercially reasonable business practices). Additionally, payments must be returned if the RDFI closes an account receiving benefits payments after giving the recipient thirty days’ written notice, among other reasons. However, the Green Book does not require RDFIs to return payments solely because the recipient’s account is dormant.

Additionally, we note that under the Illinois Revised Uniform Unclaimed Property Act, a dormant account will be considered abandoned after three years of inactivity and must be turned over to the State Treasurer. A previously authorized recurring ACH credit, such as the social security deposits, would not indicate account activity that would avoid the presumption of abandonment.

For resources related to our guidance, please see:

• U.S. Treasury Green Book, A Guide to Federal Government ACH Payments, Chapter 4, page 2 (“All ACH Payments must be returned in accordance with Nacha Operating Rules & Guidelines. An ACH payment must be returned if: . . .

The financial institution receives a benefit payment after it has actual or constructive knowledge of the death or legal incapacity of a recipient, including a representative payee . . . .

The account has been closed by the recipient, or the financial institution has closed an account to which benefit payments are being delivered after giving the recipient 30 days written notice (except where fraud is suspected; then the account may be closed immediately)

For any other reason the financial institution is unable to credit the payment to the account”)

• 31 CFR 210.2(b), 31 CFR 210.10(b) (“Actual or constructive knowledge [of death] . . . means that the RDFI or agency received information, by whatever means, of the death or incapacity and has had a reasonable opportunity to act on such information or that the RDFI or agency would have learned of the death or incapacity if it had followed commercially reasonable business practices.”)

• Illinois RUUPA, 765 ILCS 1026/15-201 (“When property presumed abandoned. Subject to Section 15-210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (6) a demand, savings, or time deposit, 3 years after the later of maturity or the date of the last indication of interest in the property by the apparent owner, except for a deposit that is automatically renewable, 3 years after its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal . . . ”)

• Illinois RUUPA, 765 ILCS 1026/15-210(b) (“Under this Act, an indication of an apparent owner’s interest in property includes: . . . (5) a deposit into or withdrawal from an account at a financial organization, except for a recurring Automated Clearing House (ACH) debit or credit previously authorized by the apparent owner or an automatic reinvestment of dividends or interest . . .”)