Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act — C-10.58 D
D Enhanced Review Procedures for Preexisting Individual Accounts with a Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or December 31, of 2015 or Any Subsequent Year (“High Value Accounts”) 1 Electronic Record Search The Reporting Canadian Financial Institution must review electronically searchable data maintained by the Reporting Canadian Financial Institution for any of the U.S. indicia described in subparagraph B(1) of this section. 2 Paper Record Search If the Reporting Canadian Financial Institution’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 Reporting Canadian Financial Institution must also review the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with the account and obtained by the Reporting Canadian Financial Institution 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 Reporting Canadian Financial Institution pursuant to AML/KYC Procedures or for other regulatory purposes; d) Any power of attorney or signature authority forms currently in effect; and e) Any standing instructions to transfer funds currently in effect. 3 Exception Where Databases Contain Sufficient Information A Reporting Canadian Financial Institution is not required to perform the paper record search described in subparagraph D(2) of this section if the Reporting Canadian Financial Institution’s electronically searchable information includes the following: a) The Account Holder’s nationality or residence status; b) The Account Holder’s residence address and mailing address currently on file with the Reporting Canadian Financial Institution; c) The Account Holder’s telephone number(s) currently on file, if any, with the Reporting Canadian Financial Institution; d) Whether there are standing instructions to transfer funds in the account to another account (including an account at another branch of the Reporting Canadian Financial Institution or another Financial Institution); e) Whether there is a current “in-care-of” address or “hold mail” address for the Account Holder; and f) Whether there is any power of attorney or signatory authority for the account. 4 Relationship Manager Inquiry for Actual Knowledge In addition to the electronic and paper record searches described above, the Reporting Canadian Financial Institution 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. Person. 5 Effect of Finding U.S. Indicia 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 Reporting Canadian Financial Institution must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this se