102520 – Due Diligence: General Requirements: Identifying Reportable Accounts

An account is treated as a Reportable Account from the date it is identified as such under the due diligence procedures that the financial institution is required to follow. Information must be reported annually to HMRC on that account in the calendar year following the year to which the reportable information relates.

Once an account has been identified as a Reportable Account, it remains so until there is a change that takes the account out of the definition of Reportable Account. This can happen in a number of ways:

  • The Account Holder ceases to be a Reportable Person.
  • The account is closed or transferred to another financial institution in its entirety (where it may become a Reportable Account by that business).
  • The account becomes an Excluded Account.
  • The reporting financial institution becomes a Non-reporting Financial Institution.

While the account remains a Reportable Account, it must be reported even where the balance or value of the account is zero or negative (the latter are treated as ‘zero’ balances).

It also remains reportable where nothing has been credited to or in respect of the account during the appropriate reportable period. When an account ceases to be a Reportable Account it no longer needs to be reported, but where the account is closed information on that account must be reported until the date of closure per the rules of each regime (see AEIM102170).