Place of Birth
The place of birth to be reported is the town or city and the country of birth of the Account Holder.
The requirement to report place of birth is subject to the condition at Annex I Section I Paragraph E of the DAC. This makes the place of birth a reportable item only where the Reporting Financial Institution is required to obtain and report it either under UK domestic law or a European Union legal instrument in effect or that was in effect on 5 January 2015 being the date that the DAC came into force for automatic exchange of financial account information.
In effect, this will only apply where the Reporting Financial Institution is currently reporting place of birth information to HMRC under the EU Savings Directive (EUSD). Any Reporting Financial Institution that has no obligations under the EUSD is not required to report place of birth.
Where the Reporting Financial Institution is in scope for EUSD reporting, there is a further condition that has to be met before the place of birth is reportable under the DAC. Place of birth only needs reporting if it is available in the electronically searchable data maintained by the Reporting Financial Institution.
The reference to an EU legal instrument ‘that was in effect on 5 January 2015’ is a recognition of the expectation that the EUSD will be repealed as the requirements of that Directive have been overtaken by the DAC. This was settled by the Council of Europe when the DAC was agreed, but the process for repeal has yet to be concluded.
What this means is that where the place of birth information has been captured in the electronic data systems of the reporting Financial Institution for EUSD purposes that information must be retained and reported under the DAC even after the EUSD has been repealed. Our interpretation of the DAC is that the provisions in Annex 1 E do not have the effect of placing a continuing requirement, after the repeal of the EUSD, to collect and report place of birth for new accounts, on those Financial Institutions currently required to do so by the EUSD.
Some Financial Institutions obtain the place of birth information as part of their security protocols, for example, as personal information about the Account Holder that can be used for verifying their identity should they contact the Financial Institution by telephone or on-line.
As this information has not been obtained for any domestic or EU regulatory purposes, the Reporting Financial Institution should not report place of birth from this information. As only Reporting Financial Institutions in scope for EUSD can report place of birth under the DAC, any processes that they currently apply to separate place of birth information collected for EUSD reporting purpose from that collected for other non-regulatory reasons should be maintained for DAC reporting.
Date of Birth
The Date of birth is reportable for all new accounts. It is only reportable for pre-existing accounts to the extent that it is already held in records maintained by the reporting financial institution, or the reporting financial institution is otherwise obliged to collect it. Where the date of birth is not held in respect of pre-existing accounts, the reporting financial institution must use reasonable efforts to obtain it by the end of the second calendar year following the year in which the accounts are identified as Reportable Accounts.