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HMRC internal manual

International Exchange of Information Manual

From
HM Revenue & Customs
Updated
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Due Diligence: Pre-Existing Individual Accounts: Lower Value Accounts: Dormant Accounts

Due Diligence: Pre-Existing Individual Accounts: Lower Value Accounts: Dormant Accounts

CRS and DAC Only

A residence address associated with an account (other than an Annuity Contract) may be considered current even though mail has been returned undeliverable-as-addressed if the account is dormant.

An account is considered to be dormant if:

  1. The Account Holder has not initiated a transaction in the past three years on that account or any other account he or she holds with the Financial Institution; and
  2. The Account Holder has not communicated in the past six years with the Financial Institution that maintains the account regarding that account or any other account he or she holds with the Financial Institution; or
  3. The account is considered to be dormant under the normal operating procedures of the Financial Institution that are applied  for all accounts maintained by it provided these procedures are substantially similar to the requirements in 1 and 2 above.

 

There is an additional requirement for Cash Value Insurance Contracts to be regarded as dormant. As well as the tests above, the Financial Institution has not communicated with the Account Holder in the past six years regarding the account or any other account he or she holds with the Financial Institution.

An account ceases to be dormant on the earliest of any of the following events occurring:

  1. The Account Holder initiates a transaction on the dormant account or any other account he or she holds with the Financial Institution;
  2. The Account Holder communicates with the Financial Institution about the dormant account or any other account he or she holds with it; or
  3. The account ceases to be a dormant account under the normal operating procedures of the Financial Institution.