Taxes Consolidation Act 1997 section 898F

Obligations of paying agents where contractual relations entered into before 1 January 2004

Section 898F sets out the obligations of paying agents to establish and verify the identity and residence of individuals with whom the agent had contractual relations before 1 January 2004, and prescribes rules for record retention and ongoing monitoring of changes in circumstances.

• A paying agent must establish the name, address and residence of each individual with whom it had a pre-2004 contractual relationship, using information gathered under anti-money laundering procedures.
• Copies of all identification and residence verification materials must be retained for at least 5 years after the relationship ends, and records relating to interest payments must be retained for at least 5 years after the payment was made or secured.
• Once identity and residence have been established, the paying agent may continue to rely on that determination unless it becomes aware of information indicating that the details are incorrect or have changed.
• Where a change of circumstances comes to light, the paying agent must take all reasonable steps to re-establish the individual's correct identity and residence under the procedures in section 898G.