prop · H30329 · 2015-10-13 00:00:00 — c)If a “hold mail” instruction or “in-care-of” address is discovered in the electronic search and no other address and none of the other indicia listed in subparagraph B(2)(a) through (e) are identified for the Account Holder, the must obtain from such Account Holder a self-certification or Documentary Evidence to establish the (s) for tax purposes of the Account Holder. If the cannot obtain such self-certification or Documentary Evidence, it must report the account as an undocumented account. 6.If a Preexisting Individual Account is not a High Value Account as of [xxxx], but becomes a High Value Account as of the last day of a subsequent calendar year, the must complete the enhanced review procedures described in paragraph C with respect to such account within the calendar year following the year in which the account becomes a High Value Account. If based on this review such account is identified as a Reportable Account, the must report the required information about such account with respect to the year in which it is identified as a Reportable Account and subsequent years on an annual basis, unless the Account Holder ceases to be a Reportable Person. 7.Once a applies the enhanced review procedures described in paragraph C to a High Value Account, the is not required to re-apply such procedures, other than the relationship manager inquiry described in subparagraph C(4), to the same High Value Account in any subsequent year unless the account is undocumented where the should re-apply them annually until such account ceases to be undocumented. 8.If there is a change of circumstances with respect to a High Value Account that results in one or more indicia described in subparagraph B(2) being associated with the account, then the must treat the account as a Reportable Account with respect to each Reportable Jurisdiction for which an indicium is identified unless it elects to apply subparagraph B(6) and one of the exceptions in such subparagraph applies with respect to that account. 9.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 a Reportable Jurisdiction, the is required to treat the new address as a change in circumstances and, if it elects to apply subparagraph B(6), is required to obtain the appropriate documentation from the Account Holder. D.Review of Preexisting Individual Accounts must be completed by [xx/xx/xxxx]. E.Any Preexisting Individual Account that has been identified as a Reportable Account under this Section must be treated as a Reportable Account in all subsequent years, unless the Account Holder ceases to be a Reportable Person. Section IV: for New Individual Accounts The following procedures apply for purposes of identifying Reportable Accounts among New Individual Accounts. A.With respect to New Individual Accounts, upon account opening, the must obtain a self-certification, which may be part of the account opening documentation, that allows the to determine the Account Holder’s (s) for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures. B.If the self-certification establishes that the Account Holder is resident for tax purposes in a Reportable Jurisdiction, the must treat the account as a Reportable Account and the self-certification must also include the Account Holder’s with respect to such Reportable Jurisdiction (subject to paragraph D of Section I) and date of birth. C.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 self- certification is incorrect or unreliable, the cannot rely on the original self-certification and must obtain a valid self-certification that establishes the (s) for tax purposes of the Account Holder. Section V: for Preexisting Entity Accounts The following procedures apply for purposes of identifying Reportable Accounts among 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, a Preexisting Entity Account with an account balance or value that does not exceed ,000 as of [xxxx], is not required to be reviewed, identified, or reported as a Reportable Account until the account balance or value exceeds ,000 as of the last day of any subsequent calendar year. B.Entity Accounts Subject to Review. A Preexisting Entity Account that has an account balance or value that exceeds ,000 as of [xxxx], and a Preexisting Entity Account that does not exceed ,000 as of [xxxx] but the account balance or value of which exceeds ,000 as of the last day of any subsequent calendar year, must be reviewed in accordance with the procedures set forth in paragraph D. C.Entity Accounts With Respect to Which Reporting Is Required. With respect to Preexisting Entity Accounts described in paragraph B, only accounts that are held by one or more Entities that are Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons, shall be treated as Reportable Accounts. D.Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For Preexisting Entity Accounts described in paragraph B, a must apply the following review procedures to determine whether the account is held by one or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons: 1.Determine Whether the Entity Is a Reportable Person. 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 resident in a Reportable Jurisdiction. For this purpose, information indicating that the Account Holder is resident in a Reportable Jurisdiction includes a place of incorporation or organisation, or an address in a Reportable Jurisdiction. b)If the information indicates that the Account Holder is resident in a Reportable Jurisdiction, the must treat the account as a Reportable Account unless it obtains a self-certification from the Account Holder, or reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Reportable Person. 2.Determine Whether the Entity is a Passive NFE with One or Who Are Reportable Persons. With respect to an Account Holder of a Preexisting Entity Account (including an Entity that is a Reportable Person), the must determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account must be treated as a Reportable Account. In making these determinations the must follow the guidance in subparagraphs D(2)(a) through (c) in the order most appropriate under the circumstances. a)Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive NFE, the must obtain a self-certification 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 or a other than an Investment Entity described in subparagraph A(6)(b) of Section VIII that is not a . b)Determining the Controlling Persons of an Account Holder. For the purposes of determining the Controlling Persons of an Account Holder, a may rely on information collected and maintained pursuant to AML/KYC Procedures. c)Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For the purposes of determining whether a Controlling Person of a Passive NFE is a Reportable Person, a may rely on: i.Information collected and maintained pursuant to AML/KYC Procedures in the case of a Preexisting Entity Account held by one or more NFEs with an account balance that does not exceed ,000,000; or ii.A self-certification from the Account Holder or such Controlling Person of the jurisdiction(s) in which the Controlling Person is resident for tax purposes. 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 [xxxx] must be completed by [xxxx]. 2.Review of Preexisting Entity Accounts with an account balance or value that does not exceed ,000 as of [xxxx], but exceeds ,000 as of of a subsequent year, must be completed within the calendar year following the year in which the account balance or value exceeds ,000. 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 self-certification or other documentation associated with an account is incorrect or unreliable, the must re-determine the status of the account in accordance with the procedures set forth in paragraph D. Section VI: for New Entity Accounts The following procedures apply for purposes of identifying Reportable Accounts among New Entity Accounts. A.Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For New Entity Accounts, a must apply the following review procedures to determine whether the account is held by one or more Reportable Persons, or by Passive NFEs with one or more Controlling Persons who are Reportable Persons: 1.Determine Whether the Entity Is a Reportable Person. a)Obtain a self-certification, which may be part of the account opening documentation, that allows the to determine the Account Holder’s (s) for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures. If the Entity certifies that it has no for tax purposes, the may rely on the address of the principal office of the Entity to determine the of the Account Holder. b)If the self-certification indicates that the Account Holder is resident in a Reportable Jurisdiction, the must treat the account as a Reportable Account unless it reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Reportable Person with respect to such Reportable Jurisdiction. 2.Determine Whether the Entity is a Passive NFE with One or Who Are Reportable Persons. With respect to an Account Holder of a New Entity Account (including an Entity that is a Reportable Person), the must determine whether the Account Holder is a Passive NFE with one or more Controlling Persons who are Reportable Persons. If any of the Controlling Persons of a Passive NFE is a Reportable Person, then the account must be treated as a Reportable Account. In making these determinations the must follow the guidance in subparagraphs A(2)(a) through (c) in the order most appropriate under the circumstances. a)Determining whether the Account Holder is a Passive NFE. For purposes of determining whether the Account Holder is a Passive NFE, the must rely on a self-certification 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 or a other than an Investment Entity described in subparagraph A(6)(b) of Section VIII that is not a . b)Determining the Controlling Persons of an Account Holder. For purposes of determining the Controlling Persons of an Account Holder, a may rely on information collected and maintained pursuant to AML/KYC Procedures. c)Determining whether a Controlling Person of a Passive NFE is a Reportable Person. For purposes of determining whether a Controlling Person of a Passive NFE is a Reportable Person, a may rely on a self-certification from the Account Holder or such Controlling Person. Section VII: Special The following additional rules apply in implementing the due diligence procedures described above: A.Reliance on Self-Certifications and Documentary Evidence. A may not rely on a self-certification or Documentary Evidence if the knows or has reason to know that the self-certification or Documentary Evidence is incorrect or unreliable. B.Alternative Procedures for Financial Accounts by Individual Beneficiaries of a or an . A may presume that an individual beneficiary (other than the owner) of a or an receiving a death benefit is not a Reportable Person and may treat such Financial Account as other than a Reportable Account unless the has actual knowledge, or reason to know, that the beneficiary is a Reportable Person. A has reason to know that a beneficiary of a or an is a Reportable Person if the information collected by the and associated with the beneficiary contains indicia as described in paragraph B of Section III. If a has actual knowledge, or reason to know, that the beneficiary is a Reportable Person, the must follow the procedures in paragraph B of Section III. C.Account Balance Aggregation and Currency 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 ’s computerized systems link the Financial Accounts by reference to a data element such as client number or , and allow account balances or values to be aggregated. 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 subparagraph. 2.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 ’s computerized systems link the Financial Accounts by reference to a data element such as client number or , 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 subparagraph. 3.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.Amounts to Include Equivalent in Other Currencies. All dollar amounts are in U.S. dollars and shall be read to include equivalent amounts in other currencies, as determined by domestic law. Section VIII: Defined Terms The following terms have the meanings set forth below: 1.The term “” means any that is not a . 2.The term “” means (i) any that is resident in a Participating Jurisdiction, but excludes any branch of that that is located outside such Participating Jurisdiction, and (ii) any branch of a that is not resident in a Participating Jurisdiction, if that branch is located in such Participating Jurisdiction. 3.The term “” means a , a , an Investment Entity, or a . 4.The term “” means any Entity that holds, as a substantial portion of its business, for the account of others. An Entity holds for the account of others as a substantial portion of its business if the Entity’s gross income attributable to the holding of and related financial services equals or exceeds 20 per cent of the Entity’s gross income during the shorter of: (i) the three-year period that ends on (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made; or (ii) the period during which the Entity has been in existence. 5.The term “” means any Entity that accepts deposits in the ordinary course of a banking or similar business. 6.The term “Investment Entity” means any Entity: a)that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer: i.trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodity futures trading; ii.individual and collective portfolio management; or iii.otherwise investing, administering, or managing or money on behalf of other persons; or b)the gross income of which is primarily attributable to investing, reinvesting, or trading in , if the Entity is managed by another Entity that is a , a , a , or an Investment Entity described in subparagraph A(6)(a). An Entity is treated as primarily conducting as a business one or more of the activities described in subparagraph A(6)(a), or an Entity’s gross income is primarily attributable to investing, reinvesting, or trading in for purposes of subparagraph A(6)(b), if the Entity’s gross income attributable to the relevant activities equals or exceeds 50 per cent of the Entity’s gross income during the shorter of: (i) the three-year period ending on of the year preceding the year in which the determination is made; or (ii) the period during which the Entity has been in existence. The term “Investment Entity” does not include an Entity that is an because it meets any of the criteria in subparagraphs D(9)(d) through (g). This paragraph shall be interpreted in a consistent with similar language set forth in the definition of “financial institution” in the Financial Action Task Force Recommendations. 7.The term “” includes a security (for example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps, equity index swaps, and similar agreements), or , or any interest (including a futures or forward contract or option) in a security, partnership interest, commodity, swap, , or . The term “” does not include a non- debt, direct interest in real property. 8.The term “” means any Entity that is an insurance company (or the holding company of an insurance company) that issues, or is obligated to make payments with respect to, a or an . 1.The term “” means any that is: a)a Governmental Entity, or , 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 ; b)a ; a ; a of a Governmental Entity, or ; or a Qualified ; c)any other Entity that presents a low risk of being used to evade tax, has substantially similar characteristics to any of the Entities described in subparagraphs B(1)(a) and (b), and is defined in domestic law as a , provided that the status of such Entity as a Non -does not frustrate the purposes of the Common Reporting Standard; d)an Vehicle; or e)a trust established under the laws of a Reportable Jurisdiction to the extent that the trustee of the trust is a and reports all information required to be reported pursuant to Section I with respect to all Reportable Accounts of the trust. 2.The term “Governmental Entity” means the government of a jurisdiction, any political subdivision of a jurisdiction (which, for the avoidance of doubt, includes a state, province, county, or municipality), or any owned agency or instrumentality of a jurisdiction or of any one or more of the foregoing (each, a “Governmental Entity”). This category is comprised of the integral parts, controlled entities, and political subdivisions of a jurisdiction. a)An “integral part” of a jurisdiction means any person, organization, agency, , fund, instrumentality, or other body, however designated, that constitutes a governing authority of a jurisdiction. The net earnings of the governing authority must be credited to its own account or to other accounts of the jurisdiction, 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. b)A controlled entity means an Entity that is separate in form from the jurisdiction or that otherwise constitutes a separate juridical entity, provided that: i.The Entity is owned and controlled by one or more Governmental Entities directly or through one or more controlled entities; ii.The Entity’s net earnings are credited to its own account or to the accounts of one or more Governmental Entities, with no portion of its income inuring to the benefit of any private person; and iii.The Entity’s assets vest in one or more Governmental Entities upon dissolution. c)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. 3.The term “” means any international organization or owned agency or instrumentality thereof. This category includes any intergovernmental organization (including a supranational organization) (1) that is comprised primarily of governments; (2) that has in effect a headquarters or substantially similar agreement with the jurisdiction; and (3) the income of which does not inure to the benefit of private persons. 4.The term “” means a bank that is by law or government sanction the principal authority, other than the government of the jurisdiction itself, issuing instruments intended to circulate as currency. Such a bank may include an instrumentality that is separate from the government of the jurisdiction, whether or not owned in whole or in part by the jurisdiction. 5.The term “” means a fund established 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: a)Does not have a single beneficiary with a right to more than five per cent of the fund’s assets; b)Is subject to government regulation and provides information reporting to the tax authorities; and c)Satisfies at least one of the following requirements: i.The fund is generally exempt from tax on investment income, or taxation of such income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan;