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Post by resistk on Jul 15, 2013 0:58:37 GMT 4
Anybody ever heard of the so called 10 year rule? Supposedly bank records are not retained after 10 years. Yet I know this in fact not to be true - for example the Swiss were caught with 50 year old records regarding WWII era assets after declaring they had none.
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Post by Sapphire Capital on Jul 15, 2013 6:10:43 GMT 4
In the US the rule is: 31 C.F.R. ยง 103.121(b)(3)(ii) : "bank retain the identifying information obtained about the customer at the time of account opening for five years after the date the acc ount is closed or, in the case of credit card accounts, five years after the account is closed or becomes dormant." The local rules of the US state are a little different, see the attachement. The rule you are refering to is a tax rule mostly in Europe. In banking the 10 year rule sometimes refers to the grandfathering of the elimination of trust preferred securities (TPS) as a form of tier 1 capital. Attachments:
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Post by resistk on Jul 15, 2013 6:19:04 GMT 4
There is a law in Switzerland (as elsewhere) that dormant accounts must be reported to the government or Swiss Banking Authority. But if they code an account "closed," I wonder if they really shred the records?
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Post by Sapphire Capital on Jul 15, 2013 6:25:29 GMT 4
no they are not shredded, they are transferred into a different office and are not part of the bank anymore but belong to the government, its a sort of interoffice handling agency, which goes into the document retention obligation.
However most of these accounts never went dormant, they got moved into a different facility which is legally separate but funds have been retained in the banks in Switzerland, just the account name is different and ou have to have that name in the same detailed form of its spelling to identify it.
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