101880 – Financial Accounts: Excluded Accounts: Depository Accounts with Unreturned Overpayments

A financial institution that does not satisfy the requirements to be a qualified credit card issuer but which accepts deposits when a customer makes a payment in excess of a balance due with respect to a credit card or other revolving credit facility may treat such Depository Accounts as Excluded Accounts if the following criteria are met:

  1. The account exists solely because a customer makes a payment in excess of the outstanding balance due on the card and does not immediately return the overpayment to the customer; and
  2. The credit card issuer has implemented policies and procedures either to prevent a customer deposit in excess of an amount equivalent to US$50,000 or to ensure that any customer deposit in excess of an amount equivalent to US$50,000 is refunded to the customer within 60 days.

The policies and procedures have to be implemented on or before the following dates:

  • For FATCA – 30 June 2014
  • For CDOT – 30 June 2014
  • For DAC – 31 December 2015.