Consignment of dormant accounts or unclaimed insurance policies
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The law of 30 March 2022 on inactive accounts, inactive safe deposit boxes and unclaimed insurance policies (loi du 30 mars 2022 relative aux comptes inactifs, aux coffres-forts inactifs et aux contrats d'assurance en déshérence) sets out the legal framework governing:
- accounts and safe deposit boxes said to be 'dormant' or 'inactive'; and
- unclaimed life insurance policies.
This law sets out the principles whereby banks must turn over assets held in accounts and safe deposit boxes to the Consignment Office after a prolonged period of inactivity. Insurance companies must do likewise for life assurance policies which have remained unclaimed for a prolonged period.
An consignment request must be filed with the Consignment Office electronically, through MyGuichet.lu.
Once assets have been consigned, anyone who can prove entitlement to them may apply for their return.
Who is concerned
Any credit institution or insurance company.
Prerequisites
Dormancy of an account/safe deposit box/policy
An account or safe deposit box is considered dormant when:
- for an account:
- there are no transactions by the account holder or any other account or safe deposit box held by the account holder with the same establishment; and
- the account holder has made no contact with the establishment holding the account;
- for a safe deposit box: the holder has made no contact with the establishment holding the box. Note that a transaction on an account made by the holder is considered to be a contact with the establishment;
- for a life assurance policy: no beneficiaries have come forward to claim their right to the entitlements due under the terms of the life assurance policy.
Start date of inactivity
The start date of inactivity is:
- for an account: the day from which:
- the holder ceased conducting transactions on any of their accounts or safe deposit boxes held with the same establishment; and
- the holder ceased contact with the establishment where the account is held;
- for a safe deposit box: the day from which the holder of the safe deposit box ceased contact with the establishment where the box is held;
- for a life assurance policy: the day from which the insurance company learned that the entitlements under the terms of the policy are due, and for which entitlements no beneficiaries have claimed their rights.
Note:
In the absence of proof to the contrary:
- the last manifestation of the holder is considered as being the last one shown in the establishment's records;
- the date on which the insurance company learns that the insurance entitlements are due is that recorded in the company's files.
Duration of inactivity
Accounts and safe deposit boxes
When, from the start date of inactivity, there continues to be no activity for a period of:
- 3 years for an account or 5 years for a safe deposit box, the establishment holding the account or safe deposit box must notify the holder or known beneficiary of the consequences of inactivity on the account/box;
- 6 years, the account/box is deemed to be dormant;
- 9 years, the establishment holding the account or safe deposit box must notify the holder or known beneficiary of the consequences of inactivity on the account/box again;
- 10 years, the establishment must file an application with the Consignment Office for the consignment of the assets.
Where there is more than one holder on the same account, a transaction or contact made by any one of those holders is sufficient to keep the account active.
Sealed envelopes (documents under seal)
If a safe deposit box has been inactive for 50 years from the date on which it became inactive, the establishment must, within 2 months, request that any sealed envelopes (documents under seal) be consigned (in kind) with the Consignment Office.
Life assurance policy
When, from the start date of inactivity, there continues to be no activity for a period of:
- 1 year, the insurance company holding the policy must notify the known beneficiary of the consequences of failing to claim the entitlements under the policy;
- 2 years, the policy is deemed unclaimed;
- 5 years, the insurance company holding the policy must notify the known beneficiary again of the consequences of failing to claim the entitlements under the policy;
- 6 years, the establishment must file an application with the Consignment Office for the consignment of the assets.
If there is more than one beneficiary, the insurance policy is considered to be partially escheated to the extent of the rights of the beneficiaries who have not come forward. Insurance companies shall set out in their internal procedures the rules to be followed in the event of payment of part of the insurance benefit to beneficiaries who have made themselves known.
Certified business eSpace
Consignment requests must be sent via a business eSpace certified by the State Treasury in MyGuichet.lu.
Deadlines
Consignment requests must be submitted, in principle and unless otherwise agreed, within:
- 3 months after the expiry of the 10-year period from the starting point of inactivity for an account;
- 6 months after the expiry of the 10-year period from the starting point of inactivity for a safe deposit box. Where a holder has both an account and a safe deposit box, the consignment request in relation to the account may be submitted within the same period;
- 2 months after the expiry of the 50-year period from the starting point of inactivity for a sealed envelope;
- 3 months after the expiry of the 6-year period from the starting point of inactivity for an insurance contract;
Costs
The processing fee in connection with the filing and assessment of a consignment request must be borne by the establishment in question.
The processing fees are set by Grand Ducal regulation and may not be less than EUR 50 or more than EUR 250 per request.
How to proceed
Filing a consignment request
Consignment requests must be filed with the Consignment Office electronically, through MyGuichet.lu. This is a procedure with authentication that requires:
- a LuxTrust product; or
- an electronic identity card (eID).
The filing must be carried out through MyGuichet.lu (business eSpace):
- either by submitting a structured file in XML format with a maximum size of 7MB;
- or by using the online data input assistant.
Supporting documents
You must submit all information and documents mentioned in Annex 1 (for banks) or in Annex 2 (for insurance companies) of the law, including:
- the amounts to be consigned;
- the details of the account holder/policyholder;
- the details of any beneficiaries.
Processing the consignment request
The Consignment Office will examine the request and, if necessary, request any additional information and documents needed in order to process the consignment request.
Such information and documents must be submitted promptly, in electronic format, through MyGuichet.lu.
Application processing time
The Consignment Office will make a reasoned decision and notify the establishment in question:
- within 6 months of receiving the consignment request; or
- if the application is incomplete, within 6 months of receiving all information and documents needed to make the decision.
If no decision is received within 6 months of submitting a consignment request, which must include all the information required for a decision, the request is refused.
If the request is accepted, the Consignment Office will inform the establishment in question by way of an electronic response through MyGuichet.lu.
The Consignment Office may refuse the consignment:
- when the legal requirements are not fulfilled; or
- when the submitted information proves to be incomplete, inaccurate or false.
Decisions of refusal are sent to you via MyGuichet.lu.
Transfer of assets
Once the Consignment Office has been notified that the ‘Consignment’ procedure has been accepted, the business concerned must complete the consignment:
- within one month for accounts and insurance contracts;
- within 2 months for safe deposit boxes. Where a holder has both an account and a safe deposit box, the consignment in relation to the account can be executed within the same period.
Once the assets have been received, the Consignment Office will issue an consignment receipt, which confirms that the consignment has effectively occurred. The receipt specifies:
- the nature of the assets consigned;
- the amounts in question.
The financial establishment or insurance company must provide the reasons:
- if there is a difference between the amount indicated in the consignment request and the amount actually consigned; or
- when any other information provided at the time of the consignment request is no longer valid at the time of the consignment.
In the absence of sufficient justification, the Consignment Office may:
- refuse to issue the receipt; and
- return the deposited assets to the establishment or insurance company that filed the consignment request.
The Consignment Office maintains an electronic register of consigned assets.
Transfers of goods consigned in kind
After notification of acceptance of the 'Consignment' procedure by the Consignment Office, the establishment concerned must consign the sealed envelopes to a secure storage location, which is communicated by the Consignment Office. These deposits are organised on a regular basis by the Consignment Office in order to rationalise the secure transport of the sealed envelopes to the secure storage site.
Once the sealed envelopes have been received, the Consignment Office will issue a consignment receipt, which confirms that the consignment has effectively occurred.
In the case of consigned sealed envelopes, there is no transfer of funds as such, with the exception of payment of the processing fee (see 'Costs').
Cancelling a consignment request
You can cancel consignment procedures transmitted by:
- filing a cancellation request in XML format; or
- using the online cancellation wizard on MyGuichet.lu.
Requirement to keep information
The establishments are required to keep the information and documents specified in Annexe 3 of the law, including such information and documents pertaining to:
- the opening of the bank account, the leasing of the safe deposit box, or the taking out of the insurance policy;
- the last transaction made by the holder and the last contact from the holder;
- the identity of the account holders/policyholders;
- the balance of the accounts prior to the consignment;
- the contents of the safe deposit box;
- a detailed breakdown of the consigned insurance entitlements due under escheated life assurance policies.
The information and documents must be kept for:
- as long as the duration of the consignment;
- 5 years from the date on which the consignment ends.
Effects of consignment
Consignment entails:
- the closure of the holder's accounts and safe deposit boxes held with the establishment;
- the termination of the contractual relationship between the insurance companies and the policyholders.
Penalties
Should they fail to fulfil the legal requirements, credit establishments and insurance companies, as well as their managers and any other person responsible for a violation, risk:
- sanctions and other administrative measures:
- fines up to a maximum of:
- EUR 250,000, for natural persons; or
- EUR 1,000,000, for legal persons;
- public declarations;
- temporary prohibitions from holding managerial roles;
- fines up to a maximum of:
- criminal sanctions: fines of between EUR 12,500 and EUR 1,000,000.
Appeal
A negative decision in response to a consignment request is an administrative decision against which the usual means of appeal (non-contentious appeal, judicial appeal) may be pursued, provided the legal deadlines are complied with.
Online services and forms
Who to contact
-
Caisse de consignation
- Address:
- 3, rue du St Esprit L-1475 Luxembourg Luxembourg
- Email address:
- caco@ts.etat.lu
- Website:
- https://mfin.gouvernement.lu/fr.html
Related procedures and links
Procedures
Links
Legal references
-
Loi du 30 mars 2022
relative aux comptes inactifs, aux coffres-forts inactifs et aux contrats d’assurance en déshérence
-
Règlement grand-ducal du 6 avril 2022
relatif aux frais de traitement de dossier liés à l’introduction et l’examen d’une demande de consignation
