Does anyone know where it states that a customer must review their statement at least annually?

What statement?

demand deposit statement

I know of no such requirement, but it may have an impact on certain liabilities if they don't do it in a timely manner.

I agree with Randy.

There are federal and state requirements for the bank to produce and send statements to the customer. I am not aware of any laws which force a customer to read them. But going along with Randy, if there is a mistake, and the customers do not notify the bank in accordance with the requirements, they may be giving up their recourse to the bank.

It is my understanding that it is basically our responsibility to make sure the customer recieves their statement. For instance if the bank holds statements at the bank for customer pick-up, we need to be sure that these statements are not accumulating & mail any statement that hasn't been retrieved after x # of days. Other than that, I know that the back of our statements has a section on Error Resolution and talks about a specific timeline they must follow(this is speaking specifically about EFT items). It also states below the balancing table on the back of the statement "Please examine immediatly and report if incorrect. If no reply is recieved within 10 days, the account will be considered correct."