The on inactive accounts, inactive safe-deposit boxes and unclaimed insurance contracts defines inactivity, measures to prevent inactivity of accounts and the processing of inactive accounts.
What’s new in the inland revenue’s announcement?
The Luxembourg Inland Revenue (Administration des contributions directes) on 7 February that the country’s financial regulator, the Commission de surveillance du secteur financier (CSSF) will act as a single point of contact to collect information related to inactive accounts and safe-deposit boxes.
In a similar way, Luxembourg’s insurance regulator, the Commissariat aux Assurances (CAA) will act as a single point of contact to collect information related to unclaimed insurance contracts.
By transmitting this information to the CSSF and the CAA, institutions and insurance companies are authorising the CSSF and CAA to collect and transmit this information to Luxembourg’s Inland Revenue. Institutions and insurance companies are therefore not required to send information directly to the Inland Revenue.
Law of 30 March 2022
The amends the law of 23 December 1998 establishing a financial sector supervisory commission and the law of 7 December 2015 on the insurance sector.
Last year’s law says that once an account has been inactive for three years, the institution holding the account must inform the holder of the consequences of their account’s inactivity. This needs to be done via a registered letter. If the account holder has died or been dissolved, the institution has to communicate this information to the “right holders” of the account.
The account holder then has three months to initiate a transaction or contact. If there is still no activity, the institution then has to carry out additional research to contact the account holder or potential rights holders.
Accounts considered to be “inactive” after six years
Once an account has been inactive for six years, the account is then considered to be an “inactive account.”
After nine years of inactivity, the institution has to inform the account holder, once again, via registered letter.
And after 10 years of account inactivity, the institution holding the account has to request the consignment of the assets--registered on the inactive account and not claimed by the holder or right holder--to the consignment office.
Instructions for inactive safe-deposit boxes
Institutions that hold safe-deposit boxes that have been inactive for five years must contact the holder via registered letter, as with inactive accounts.
A safe-deposit boxes that has seen no activity for six years is considered to be an “inactive safe-deposit box,” and after nine years of inactivity, the institution must again inform the holder or rights holders via registered letter.
After 10 years of inactivity, the institution holding the inactive safe-deposit box shall open the inactive box in the presence of a bailiff (huissier de justice) or a notary, who lists the box’s contents, before consigning the assets to the consignment office. Depending on the contents--cash, precious metals, dangerous goods or other items--there are different processes to follow.
Unclaimed insurance contracts
Under this law, when an insurance contract has been inactive for two years, the insurance contract is considered as an “unclaimed insurance contract.”
The law also covers rules for situations where, for example, an insurance company has not had contact with the insured party for two years, and the insured party is 90 years old.