prop · H20341 · 2014-12-19 00:00:00 — 3.If there is a change of circumstances with respect to a Preexisting Entity Account that causes the to know, or have reason to know, that the selfcertification or other documentation associated with an account is incorrect or unreliable, the must redetermine the status of the account in accordance with the procedures set forth in paragraph D of this section. V.New Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions among Financial Accounts held by Entities and opened on or after 1, 2014 (“New Entity Accounts”). A.Entity Accounts Not Required to Be Reviewed, Identified or Reported. elects otherwise, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in provide for such election, a credit card account or a revolving credit facility treated as a New Entity Account is not required to be reviewed, identified, or reported, provided that the maintaining such account implements policies and procedures to prevent an account balance owed to the Account Holder that exceeds ,000. Other New Entity Accounts. With respect to New Entity Accounts not described in paragraph A of this section, the must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a or other ; (iii) a participating FFI, a deemedcompliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or (iv) an or Passive NFFE. Subject to subparagraph B(2) of this section, a may determine that the Account Holder is an , 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 or other information that is publicly available or in the possession of the , as applicable. 2.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. 3.In all other cases, a must obtain a selfcertification from the Account Holder to establish the Account Holder’s status. Based on the selfcertification, the following rules apply: a) If the Account Holder is a Specified U.S. Person, the must treat the account as a U.S. b)If the Account Holder is a Passive NFFE, the must identify the Controlling Persons as determined under AML/KYC Procedures, and must determine whether any such person is a U.S. citizen or resident on the basis of a selfcertification from the Account Holder or such person. If any such person is a U.S. citizen or resident, the must treat the account as a U.S. c)If the Account Holder is: (i) a U.S. Person that is not a Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this section, a or other ; (iii) a participating FFI, a deemed compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; (iv) an NFFE; or (v) a Passive NFFE none of the Controlling Persons of which is a U.S. citizen or resident, then the account is not a U.S. Reportable Account, and no reporting is required with respect to the account. d)If the Account Holder is a (including 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. Special Rules and Definitions. The following additional rules and definitions apply in implementing the due diligence procedures described above: A. Reliance on SelfCertifications and Documentary Evidence. A may not rely on a selfcertification or documentary evidence if the knows or has reason to know that the selfcertification or documentary evidence is incorrect or unreliable. B. Definitions. The following definitions apply for purposes of this . 1.AML/KYC Procedures. “AML/KYC Procedures” means the customer due diligence procedures of a pursuant to the antimoney laundering or similar requirements of to which such is subject. An “NFFE” means any NonU.S. Entity that is not an FFI as defined in relevant U.S. Treasury Regulations or is an Entity described in subparagraph B(4)(j) of this section, and also includes any NonU.S. Entity that is established in or another Partner Jurisdiction and that is not a . A “Passive NFFE” means any NFFE that is not (i)an , or (ii) a withholding foreign partnership or withholding foreign trust pursuant to relevant U.S. An “NFFE” means any NFFE that meets any of the following criteria: a)Less than 50 percent of the NFFE’s gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50 percent of the assets held by the NFFE during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income; b)The stock of the NFFE is regularly traded on an established securities market or the NFFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market; c)The NFFE is organized in a U.S. Territory and all of the owners of the payee are bona fide residents of that U.S. d)The NFFE is a government (other than the U.S. government), a political subdivision of such government (which, for the avoidance of doubt, includes a state, province, county, or municipality), or a public body performing a function of such government or a political subdivision thereof, a government of a U.S. Territory, an international organization, a nonU.S. central bank of issue, or an Entity owned by one or more of the foregoing; e)Substantially all of the activities of the NFFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a , except that an entity shall not qualify for NFFE status if the entity functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes; f)The NFFE is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a , provided that the NFFE shall not qualify for this exception after the date that is 24 months after the date of the initial organization of the NFFE; g)The NFFE was not a in the past five years, and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a ; h)The NFFE primarily engages in financing and hedging transactions with, or for, Related Entities that are not Financial Institutions, and does not provide financing or hedging services to any Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of a ; i)The NFFE is an “excepted NFFE” as described in relevant U.S. Treasury Regulations; or j)The NFFE meets all of the following requirements: i.It is established and operated in its jurisdiction of exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its jurisdiction of and it is a professional organization, business league, chamber of commerce, labor organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare; ii.It is exempt from income tax in its jurisdiction of ; iii.It has no shareholders or members who have a proprietary or beneficial interest in its income or assets; iv.The applicable laws of the NFFE’s jurisdiction of or the NFFE’s formation documents do not permit any income or assets of the NFFE to be distributed to, or applied for the benefit of, a private person or noncharitable Entity other than pursuant to the conduct of the NFFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFFE has purchased; and v.The applicable laws of the NFFE’s jurisdiction of or the NFFE’s formation documents require that, upon the NFFE’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other nonprofit organization, or escheat to the government of the NFFE’s jurisdiction of or any political subdivision thereof. A “Preexisting Account” means a Financial Account maintained by a as of 30, 2014. C. Account Balance Aggregation and Currency Translation Rules. 1.Aggregation of Individual Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an individual, a is required to aggregate all Financial Accounts maintained by the , or by a Related Entity, but only to the extent that the Reporting ’s computerized systems link the Financial Accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this paragraph 1. Aggregation of Entity Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an Entity, a is required to take into account all Financial Accounts that are maintained by the , or by a Related Entity, but only to the extent that the Reporting ’s computerized systems link the Financial Accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be aggregated. Special Aggregation Rule Applicable to Relationship Managers. For purposes of determining the aggregate balance or value of Financial Accounts held by a person to determine whether a Financial Account is a High Value Account, a is also required, in the case of any Financial Accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled, or established (other than in a fiduciary capacity) by the same person, to aggregate all such accounts. 4.Currency Translation Rule. For purposes of determining the balance or value of Financial Accounts denominated in a currency other than the U.S. dollar, a must convert the U.S. dollar threshold amounts described in this into such currency using a published spot rate determined as of the last day of the calendar year preceding the year in which the is determining the balance or value. For purposes of this , acceptable documentary evidence includes any of the following: 1.A certificate of issued by an authorized government body (for example, a government or agency thereof, or a municipality) of the jurisdiction in which the payee claims to be a resident. 2.With respect to an individual, any valid identification issued by an authorized government body (for example, a government or agency thereof, or a municipality), that includes the individual’s name and is typically used for identification purposes. With respect to an Entity, any official documentation issued by an authorized government body (for example, a government or agency thereof, or a municipality) that includes the name of the Entity and either the address of its principal office in the jurisdiction (or U.S. Territory) in which it claims to be a resident or the jurisdiction (or U.S. Territory) in which the Entity was incorporated or organized. With respect to a Financial Account maintained in a jurisdiction with antimoney laundering rules that have been approved by the IRS in connection with a QI agreement (as described in relevant U.S. Treasury Regulations), any of the documents, other than a Form W8 or W9, referenced in the jurisdiction’s attachment to the QI agreement for identifying individuals or Entities. financial statement, thirdparty credit report, bankruptcy filing, or U.S. Securities and Exchange Commission report. E. Alternative Procedures for Financial Accounts by Individual Beneficiaries of a . A may presume that an individual beneficiary (other than the owner) of a receiving a death benefit is not a Specified U.S. Person and may treat such Financial Account as other than a U.S. Reportable Account unless the has actual knowledge, or reason to know, that the beneficiary is a Specified U.S. A has reason to know that a beneficiary of a is a Specified U.S. Person if the information collected by the and associated with the beneficiary contains U.S. indicia as described in subparagraph B(1) of section II of this . If a has actual knowledge, or reason to know, that the beneficiary is a Specified U.S. Person, the must follow the procedures in subparagraph B(3) of section II of this . F. Reliance on Third Parties. Regardless of whether an election is made under paragraph C of section I of this , may permit Reporting Swedish Financial Institutions to rely on due diligence procedures performed by third parties, to the extent provided in relevant U.S. G. Alternative Procedures for New Accounts Opened Prior to Entry Into Force of this Agreement. If has provided a written notice to the prior to entry into force of this Agreement that, as of 1, 2014, lacked the legal authority to require Swedish Financial Institutions either: (i) to require Account Holders of New Individual Accounts to provide the selfcertification specified in section III of this , or (ii) to perform all the due diligence actions related to New Entity Accounts specified in section V of this , then the Reporting Swedish Financial Institutions may apply the alternative procedures described in subparagraph G(2) of this section, as applicable, to such New Accounts, in lieu of the procedures otherwise required under this . The alternative procedures described in subparagraph G(2) of this section shall be available only for those New Accounts opened prior to the earlier of (i) the date has the ability to compel Reporting Swedish Financial Institutions to comply with the due diligence requirements described in section III and section V of this , as applicable, which date inform the of in writing by the date of entry into force of this Agreement, or (ii) the date of entry into force of this Agreement. For all other New Accounts, a must apply the due diligence procedures described in section III or section V of this , as applicable, to determine if the account is a U.S. Reportable Account or an account held by a Nonparticipating FFI. a)By the date that is one year after the date of entry into force of this Agreement, Reporting Swedish Financial Institutions must (i) with respect to a New Individual Account described in subparagraph G(1) of this section, request the self certification specified in section III of this and, if provided, confirm the reasonableness of such selfcertification consistent with the procedures described in section III of this , and (ii) with respect to a New Entity Account described in subparagraph G(1) of this section, perform the due diligence specified in section V of this and request information as necessary to document the account, including any self certification, required by section V of this . b)must report on any New Account that is identified pursuant to subparagraph G(2)(a) of this section as a U.S. Reportable Account or as an account held by a Nonparticipating FFI, by the date that is the later of (i) next following the date that the account is identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI or (ii) 90 days after the account is identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI. The information required to be reported with respect to such a New Account is any information that would have been reportable under this Agreement if the New Account had been identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI as of the date the account was opened. c)By the date that is one year after the date of entry into force of this Agreement, Reporting Swedish Financial Institutions must close any New Account described in subparagraph G(1) of this section for which it was unable to collect the required self certification or other documentation pursuant to the procedures described in subparagraph G(2)(a) of this section. In addition, by the date that is one year after the date of entry into force of this Agreement, the must (i) with respect to such closed accounts that prior to such closure were New Individual Accounts (without regard to whether such accounts were High Value Accounts), perform the due diligence procedures specified in paragraph D of section II of this or (ii) with respect to such closed accounts that prior to such closure were New Entity Accounts, perform the due diligence procedures specified in section IV of this . d)must report on any closed account that is identified pursuant to subparagraph G(2)(c) of this section as a U.S. Reportable Account or as an account held by a Nonparticipating FFI, by the date that is the later of (i) next following the date that the account is identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI or (ii) 90 days after the account is identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI. The information required to be reported for such a closed account is any information that would have been reportable under this Agreement if the account had been identified as a U.S. Reportable Account or as an account held by a Nonparticipating FFI as of the date the account was opened. The following Entities shall be treated as exempt beneficial owners or deemedcompliant FFIs, as the case may be, and the following accounts are excluded from the definition of Financial Accounts. This may be modified by a mutual written decision entered into between the and the : (1) to include additional Entities and accounts that present a low risk of being used by U.S. Persons to evade U.S. tax and that have similar characteristics to the Entities and accounts described in this as of the date of signature of the Agreement; or (2) to remove Entities and accounts that, due to changes in circumstances, no longer present a low risk of being used by U.S. Persons to evade U.S. such addition or removal shall be effective on the date of signature of the mutual decision, unless otherwise provided therein. Procedures for reaching such a mutual decision may be included in the mutual agreement or arrangement described in paragraph 6 of Article 3 of the Agreement. I.Exempt Beneficial Owners other than Funds. The following Entities shall be treated as NonReporting Swedish Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a , , or . The government of , any political subdivision of (which, for the avoidance of doubt, includes a county or municipality), or any owned agency or instrumentality of or any one or more of the foregoing (each, a “Swedish Governmental Entity”). This category is comprised of the integral parts, controlled entities, and political subdivisions of . 1.An integral part of means any person, organization, agency, , fund, instrumentality, or other body, however designated, that constitutes a governing authority of . The net earnings of the governing authority must be credited to its own account or to other accounts of , with no portion inuring to the benefit of any private person. An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity. 2.A controlled entity means an Entity that is separate in form from or that otherwise constitutes a separate juridical entity, provided that: a)The Entity is owned and controlled by one or more Swedish Governmental Entities directly or through one or more controlled entities; b)The Entity’s net earnings are credited to its own account or to the accounts of one or more Swedish Governmental Entities, with no portion of its income inuring to the benefit of any private person; and c)The Entity’s assets vest in one or more Swedish Governmental Entities upon dissolution. 3.Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental program, and the program activities are performed for the general public with respect to the common welfare or relate to the administration of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business, such as a commercial banking business, that provides financial services to private persons. international organization or owned agency or instrumentality thereof. This category includes any intergovernmental organization (including a supranational organization) (1) that is comprised primarily of nonU.S. governments; (2) that has in effect a headquarters agreement with ; and (3) the income of which does not inure to the benefit of private persons. An institution that is by law or government sanction the principal authority, other than the government of itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government of , whether or not owned in whole or in part by . II.Funds that Qualify as Exempt Beneficial Owners. The following Entities shall be treated as NonReporting Swedish Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code. A fund established in , provided that the fund is entitled to benefits under an income tax treaty between and the on income that it derives from sources within the (or would be entitled to such benefits if it derived any such income) as a resident of that satisfies any applicable limitation on benefits requirement, and is operated principally to administer or provide pension or retirement benefits. A fund established in to provide retirement, disability, or death benefits, or any combination thereof, to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that the fund: 1.Does not have a single beneficiary with a right to more than five percent of the fund’s assets; 2.Is subject to government regulation and provides information reporting about its beneficiaries to the relevant tax authorities in ; and 3.Satisfies at least one of the following requirements: a)The fund is generally exempt from tax in on investment income under the laws of due to its status as a retirement or pension plan; b)The fund receives at least 50 percent of its total contributions (other than transfers of assets from other plans described in paragraphs A through D of this section or from retirement and pension accounts described in subparagraph A(1) of section V of this ) from the sponsoring employers;