We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
15 April 2016
The Luxembourg financial sector regulator (CSSF) has issued Circular 15/631, which provides guidance on the definition and treatment of dormant accounts. The circular entered into force on December 28 2015.
The circular applies to credit institutions and all other financial sector professionals subject to the prudential supervision of the CSSF that keep or manage third-party assets on accounts opened for that purpose. All types of account are covered by the circular (eg, cash accounts, securities accounts and e-money accounts). Safe deposit boxes are assimilated with accounts for the purpose of the circular.
Professionals should maintain regular contact (at least annually) with their clients and monitor client relationships with vigilance. They must also set out rules to determine clearly when a relationship has become inactive and when an account has become dormant, in order to meet quickly their restitution obligations – in particular, where the deposited assets are claimed by heirs.
According to the CSSF, a relationship with a client should be considered inactive – and the client's account should be considered dormant – if:
Once an account has been declared dormant, the professional should:
The circular expressly provides that the professional is not authorised to appropriate the assets in its custody (regardless of the amount held) or to use the assets for purposes other than their restitution to the entitled beneficiaries.
For further information on this topic please contact Josée Weydert or Diana Konrad at NautaDutilh Avocats Luxembourg Sàrl by telephone (+352 26 12 29 1) or email (email@example.com or firstname.lastname@example.org). The NautaDutilh Avocats Luxembourg Sàrl website can be accessed at www.nautadutilh.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.