prop · H20341 · 2014-12-19 00:00:00 — may permit Reporting Swedish Financial Institutions to make such election separately for each section of this either with respect to all relevant Financial Accounts or, separately, with respect to any clearly identified group of such accounts (such as by line of business or the location of where the account is maintained). Preexisting Individual Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by individuals (“Preexisting Individual Accounts”). A.Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the elects otherwise, either with respect to all Preexisting Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in provide for such an election, the following Preexisting Individual Accounts are not required to be reviewed, identified, or reported as U.S. 1.Subject to subparagraph E(2) of this section, a Preexisting Individual Account with a balance or value that does not exceed ,000 as of 30, 2014. 2.Subject to subparagraph E(2) of this section, a Preexisting Individual Account that is a or an with a balance or value of ,000 or less as of 30, 2014. 3.A Preexisting Individual Account that is a or an , provided the law or regulations of or the effectively prevent the sale of such a or an to U.S. residents (e.g., if the relevant does not have the required registration under U.S. law, and the law of requires reporting or withholding with respect to insurance products held by residents of ). 4.A Depository Account with a balance of ,000 or less. B. Review Procedures for Preexisting Individual Accounts With a Balance or Value as of 30, 2014, that Exceeds ,000 (,000 for a Cash Value or ), But Does Not Exceed ,000,000 (“Lower Value Accounts”). must review electronically searchable data maintained by the for any of the following U.S. a) Identification of the Account Holder as a U.S. citizen or resident; b) Unambiguous indication of a U.S. place of birth; c) Current U.S. or address (including a U.S. post office box); d) Current U.S. e) Standing instructions to transfer funds to an account maintained in the ; f) Currently effective power of attorney or signatory authority granted to a person with a U.S. g) An “incareof” or “hold mail” address that is the sole address the has on file for the Account Holder. In the case of a Preexisting Individual Account that is a Lower Value Account, an “incareof” address outside the or “hold mail” address shall not be treated as U.S. 2.If none of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, then no further action is required until there is a change in circumstances that results in one or more U.S. indicia being associated with the account, or the account becomes a High Value Account described in paragraph D of this section. 3.If any of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, or if there is a change in circumstances that results in one or more U.S. being associated with the account, then the must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account. Notwithstanding a finding of U.S. indicia under subparagraph B(1) of this section, a is not required to treat an account as a U.S. Reportable Account if: a) Where the Account Holder information unambiguously indicates a U.S. place of birth, the obtains, or has previously reviewed and maintains a record of: (1)A selfcertification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W8 or other similar agreed form); (2)A nonU.S. passport or other governmentissued identification evidencing the Account Holder’s citizenship or nationality in a country other than the ; and (3) A copy of the Account Holder’s Certificate of Loss of Nationality of the or a reasonable explanation of: (a)The reason the Account Holder does not have such a certificate despite relinquishing U.S. (b)The reason the Account Holder did not obtain U.S. citizenship at birth. b)Where the Account Holder information contains a current U.S. or address, or one or more U.S. numbers that are the only telephone numbers associated with the account, the obtains, or has previously reviewed and maintains a record of: (1) A selfcertification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W8 or other similar agreed form); and (2) Documentary evidence, as defined in paragraph D of section VI of this , establishing the Account Holder’s nonU.S. c) Where the Account Holder information contains standing instructions to transfer funds to an account maintained in the , the obtains, or has previously reviewed and maintains a record of: (1) A selfcertification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W8 or other similar agreed form); and (2) Documentary evidence, as defined in paragraph D of section VI of this , establishing the Account Holder’s nonU.S. d) Where the Account Holder information contains a currently effective power of attorney or signatory authority granted to a person with a U.S. address, has an “incare of” address or “hold mail” address that is the sole address identified for the Account Holder, or has one or more U.S. telephone numbers (if a nonU.S. telephone number is also associated with the account), the obtains, or has previously reviewed and maintains a record of: (1)A selfcertification that the Account Holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W8 or other similar agreed form); or (2)Documentary evidence, as defined in paragraph D of section VI of this , establishing the Account Holder’s nonU.S. C.Additional Procedures Applicable to Preexisting Individual Accounts That Are Lower Value Accounts. 1.Review of Preexisting Individual Accounts that are Lower Value Accounts for U.S. indicia must be completed by 30, 2016. 2.If there is a change of circumstances with respect to a Preexisting Individual Account that is a Lower Value Account that results in one or more U.S. indicia described in subparagraph B(1) of this section being associated with the account, then the must treat the account as a U.S. Reportable Account unless subparagraph B(4) of this section applies. 3.Except for Depository Accounts described in subparagraph A(4) of this section, any Preexisting Individual Account that has been identified as a U.S. Reportable Account under this section shall be treated as a U.S. Reportable Account in all subsequent years, unless the Account Holder ceases to be a Specified U.S. Procedures for Preexisting Individual Accounts With a Balance or Value That Exceeds ,000,000 as of 30, 2014, or 31 of 2015 or (“High Value Accounts”). 1.Electronic Record Search. must review electronically searchable data maintained by the for any of the U.S. indicia described in subparagraph B(1) of this section. ’s electronically searchable databases include fields for, and capture all of the information described in, subparagraph D(3) of this section, then no further paper record search is required. If the electronic databases do not capture all of this information, then with respect to a High Value Account, the must also review the current customer file and, to the extent not contained in the current customer file, the following documents associated with the account and obtained by the within the last five years for any of the U.S. indicia described in subparagraph B(1) of this section: a) The most recent documentary evidence collected with respect to the account; b) The most recent account opening contract or documentation; c) The most recent documentation obtained by the pursuant to AML/KYC Procedures or for other regulatory purposes; d) power of attorney or signature authority forms currently in effect; and e) standing instructions to transfer funds currently in effect. Exception Where Databases Contain Sufficient Information. A is not required to perform the paper record search described in subparagraph D(2) of this section if the Reporting Swedish Financial Institution’s electronically searchable information includes the following: a) The Account Holder’s nationality or status; b) The Account Holder’s address and address currently on file with the ; c)The Account Holder’s telephone number(s) currently on file, if any, with the ; d)Whether there are standing instructions to transfer funds in the account to another account (including an account at another branch of the or another ); e)Whether there is a current “incareof” address or “hold mail” address for the Account Holder; and f) Whether there is any power of attorney or signatory authority for the account. Relationship Manager for Actual Knowledge. In addition to the electronic and paper record searches described above, the must treat as a U.S. Reportable Account any High Value Account assigned to a relationship manager (including any Financial Accounts aggregated with such High Value Account) if the relationship manager has actual knowledge that the Account Holder is a Specified U.S. 5.Effect of Finding U.S. a)If none of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the enhanced review of High Value Accounts described above, and the account is not identified as held by a Specified U.S. Person in subparagraph D(4) of this section, then no further action is required until there is a change in circumstances that results in one or more U.S. indicia being associated with the account. b)If any of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the enhanced review of High Value Accounts described above, or if there is a subsequent change in circumstances that results in one or more U.S. indicia being associated with the account, then the must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account. c) Except for Depository Accounts described in subparagraph A(4) of this section, any Preexisting Individual Account that has been identified as a U.S. Reportable Account under this section shall be treated as a U.S. Reportable Account in all subsequent years, unless the Account Holder ceases to be a Specified U.S. E. Additional Procedures Applicable to High 1.If a Preexisting Individual Account is a High Value Account as of 30, 2014, the must complete the enhanced review procedures described in paragraph D of this section with respect to such account by 30, 2015. If based on this review such account is identified as a U.S. Reportable Account on or before , 2014, the must report the required information about such account with respect to 2014 in the first report on the account and on an annual basis thereafter. In the case of an account identified as a U.S. Reportable Account after , 2014 and on or before 30, 2015, the is not required to report information about such account with respect to 2014, but must report information about the account on an annual basis thereafter. 2.If a Preexisting Individual Account is not a High Value Account as of 30, 2014, but becomes a High Value Account as of the last day of 2015 or any subsequent calendar year, the must complete the enhanced review procedures described in paragraph D of this section with respect to such account within six months after the last day of the calendar year in which the account becomes a High Value Account. If based on this review such account is identified as a U.S. Reportable Account, the must report the required information about such account with respect to the year in which it is identified as a U.S. Reportable Account and subsequent years on an annual basis, unless the Account Holder ceases to be a Specified U.S. 3.Once a applies the enhanced review procedures described in paragraph D of this section to a High Value Account, the is not required to reapply such procedures, other than the relationship manager inquiry described in subparagraph D(4) of this section, to the same High Value Account in any subsequent year. 4.If there is a change of circumstances with respect to a High Value Account that results in one or more U.S. indicia described in subparagraph B(1) of this section being associated with the account, then the must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account. 5.A must implement procedures to ensure that a relationship manager identifies any change in circumstances of an account. For example, if a relationship manager is notified that the Account Holder has a new address in the , the is required to treat the new address as a change in circumstances and, if it elects to apply subparagraph B(4) of this section, is required to obtain the appropriate documentation from the Account Holder. F.Preexisting Individual Accounts That for Certain Other Purposes. obtained documentation from an Account Holder to establish the Account Holder’s status as neither a U.S. citizen nor a U.S. resident in order to meet its obligations under a qualified intermediary, withholding foreign partnership, or withholding foreign trust agreement with the IRS, or to fulfill its obligations under chapter 61 of Title 26 of the Code, is not required to perform the procedures described in subparagraph B(1) of this section with respect to Lower Value Accounts or subparagraphs D(1) through D(3) of this section with respect to High Value Accounts. New Individual Accounts. The following rules and procedures apply for purposes of identifying U.S. Accounts among Financial Accounts held by individuals and opened on or after 1, 2014 (“New Individual Accounts”). A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the elects otherwise, either with respect to all New Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in provide for such an election, the following New Individual Accounts are not required to be reviewed, identified, or reported as U.S. 1.A Depository Account unless the account balance exceeds ,000 at the end of any calendar year or other appropriate reporting period. 2.A unless the Cash Value exceeds ,000 at the end of any calendar year or other appropriate reporting period. B.Other New Individual Accounts. With respect to New Individual Accounts not described in paragraph A of this section, upon account opening (or within 90 days after the end of the calendar year in which the account ceases to be described in paragraph A of this section), the must obtain a selfcertification, which may be part of the account opening documentation, that allows the to determine whether the Account Holder is resident in the for tax purposes (for this purpose, a U.S. citizen is considered to be resident in the for tax purposes, even if the Account Holder is also a tax resident of another jurisdiction) and confirm the reasonableness of such selfcertification based on the information obtained by the in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures. 1.If the selfcertification establishes that the Account Holder is resident in the for tax purposes, the must treat the account as a U.S. and obtain a selfcertification that includes the Account Holder’s U.S. (which may be an IRS Form W9 or other similar agreed form). If there is a change of circumstances with respect to a New Individual Account that causes the to know, or have reason to know, that the original selfcertification is incorrect or unreliable, the cannot rely on the original self certification and must obtain a valid selfcertification that establishes whether the Account Holder is a U.S. citizen or resident for U.S. If the is unable to obtain a valid selfcertification, the must treat the account as a U.S. Preexisting Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions among Preexisting Accounts held by Entities (“Preexisting Entity Accounts”). A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. Unless the elects otherwise, either with respect to all Preexisting Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in provide for such an election, a Preexisting Entity Account with an account balance or value that does not exceed ,000 as of 30, 2014, is not required to be reviewed, identified, or reported as a U.S. Reportable Account until the account balance or value exceeds ,000,000. B.Entity Accounts Subject to Review. A Preexisting Entity Account that has an account balance or value that exceeds ,000 as of 30, 2014, and a Preexisting Entity Account that does not exceed ,000 as of 30, 2014 but the account balance or value of which exceeds ,000,000 as of the last day of 2015 or any subsequent calendar year, must be reviewed in accordance with the procedures set forth in paragraph D of this section. C.Entity Accounts With Respect to Which Reporting Is Required. With respect to Preexisting Entity Accounts described in paragraph B of this section, only accounts that are held by one or more Entities that are Specified U.S. Persons, or by Passive NFFEs with one or more Controlling Persons who are U.S. citizens or residents, shall be treated as U.S. In addition, accounts held by Nonparticipating Financial Institutions shall be treated as accounts for which aggregate payments as described in subparagraph 1(b) of Article 4 of the Agreement are reported to the Swedish Competent Authority. Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For Preexisting Entity Accounts described in paragraph B of this section, the must apply the following review procedures to determine whether the account is held by one or more Specified U.S. Persons, by Passive NFFEs with one or more Controlling Persons who are citizens or residents, or by Nonparticipating Financial 1.Determine Whether the Entity Is a Specified U.S. a)Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to AML/KYC Procedures) to determine whether the information indicates that the Account Holder is a U.S. For this purpose, information indicating that the Account Holder is a U.S. Person includes a U.S. place of incorporation or organization, or a U.S. b)If the information indicates that the Account Holder is a U.S. Person, the must treat the account as a U.S. Reportable Account unless it obtains a selfcertification from the Account Holder (which may be on an IRS Form W8 or W9, or a similar agreed form), or reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Specified U.S. 2.Determine Whether a NonU.S. Entity Is a . a)Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to AML/KYC Procedures) to determine whether the information indicates that the Account Holder is a . b)If the information indicates that the Account Holder is a , or the verifies the Account Holder’s Global Intermediary Identification Number on the published IRS FFI list, then the account is not a U.S. Is a Nonparticipating Financial Aggregate Reporting Under Subparagraph 1(b) of Article 4 of the Agreement. a) Subject to subparagraph D(3)(b) of this section, a may determine that the Account Holder is a or other if the reasonably determines that the Account Holder has such status on the basis of the Account Holder’s Global Intermediary Identification Number on the published IRS FFI list or other information that is publicly available or in the possession of the , as applicable. In such case, no further review, identification, or reporting is required with respect to the account. b)If the Account Holder is a or other treated by the IRS as a , then the account is not a U.S. Reportable Account, but payments to the Account Holder must be reported as contemplated in subparagraph 1(b) of Article 4 of the Agreement. c)If the Account Holder is not a or other , then the must treat the Account Holder as a payments to which are reportable under subparagraph 1(b) of Article 4 of the Agreement, unless the : (1)Obtains a self certification (which may be on an IRS Form W8 or similar agreed form) from the Account Holder that it is a certified deemedcompliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or (2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder’s Global Intermediary Identification Number on the published IRS FFI list. Determine Whether an Account by an NFFE Is a U.S. With respect to an Account Holder of a Preexisting Entity Account that is not identified as either a U.S. Person or a , the must identify (i) whether the Account Holder has Controlling Persons, (ii) whether the Account Holder is a Passive NFFE, and (iii) whether any of the Controlling Persons of the Account Holder is a U.S. citizen or resident. In making these determinations the must follow the guidance in subparagraphs D(4)(a) through D(4)(d) of this section in the order most appropriate under the circumstances. a) For purposes of determining the Controlling Persons of an Account Holder, a may rely on information collected and maintained pursuant to AML/KYC Procedures. b) For purposes of determining whether the Account Holder is a Passive NFFE, the must obtain a selfcertification (which may be on an IRS Form W8 or W9, or on a similar agreed form) from the Account Holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the Account Holder is an . c) For purposes of determining whether a Controlling Person of a Passive NFFE is a U.S. citizen or resident for tax purposes, a may rely on: AML/KYC Procedures in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance or value that does not exceed ,000,000; or (2) A selfcertification (which may be on an IRS Form W8 or W9, or on a similar agreed form) from the Account Holder or such Controlling Person in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance or value that exceeds ,000,000. d) If any Controlling Person of a Passive NFFE is a U.S. citizen or resident, the account shall be treated as a U.S. E.Timing of Review and Additional Procedures Applicable to Preexisting Entity Accounts. 1.Review of Preexisting Entity Accounts with an account balance or value that exceeds ,000 as of 30, 2014 must be completed by 30, 2016. 2.Review of Preexisting Entity Accounts with an account balance or value that does not exceed ,000 as of 30, 2014, but exceeds ,000,000 as of of 2015 or any subsequent year, must be completed within six months after the last day of the calendar year in which the account balance or value exceeds ,000,000.