Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016

These Regulations are the Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016 and come into operation on 1 January 2017.

In these Regulations, “financial institution” means —

In these Regulations, “depository institution” has the same meaning as “Depository Institution” in sub‑paragraph A(5) of section VIII of the CRS, and includes —

In these Regulations, “specified insurance company” has the same meaning as “Specified Insurance Company” in sub‑paragraph A(8) of section VIII of the CRS, and includes a licensed insurer under the Insurance Act 1966 that issues, or is obligated to make payments with respect to, one or more cash value insurance contracts or annuity contracts.

In these Regulations, “reporting Singaporean financial institution” means —

In these Regulations, a person’s residence for a tax purpose is —

THE SCHEDULE

Regulation 2(2)

COMMON REPORTING STANDARD

Section I: General Reporting Requirements

A. Subject to paragraphs C through F, each Reporting Financial Institution

must report the following information with respect to each Reportable

Account of such Reporting Financial Institution:

1. the name, address, jurisdiction(s) of residence, TIN(s) and date and

place of birth (in the case of an individual) of each Reportable Person

that is an Account Holder of the account and, in the case of any Entity

that is an Account Holder and that, after application of the due diligence

procedures consistent with Sections V, VI and VII is identified as

having one or more Controlling Persons that is a Reportable Person, the

name, address, jurisdiction(s) of residence and TIN(s) of the Entity and

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the name, address, jurisdiction(s) of residence, TIN(s) and date and

place of birth of each Reportable Person;

2. the account number (or functional equivalent in the absence of an

account number);

3. the name and identifying number (if any) of the Reporting Financial

Institution;

4. the account balance or value (including, in the case of a Cash Value

Insurance Contract or Annuity Contract, the Cash Value or surrender

value) as of the end of the relevant calendar year or other appropriate

reporting period or, if the account was closed during such year or period,

the closure of the account;

5. in the case of any Custodial Account:

dividends, and the total gross amount of other income generated

with respect to the assets held in the account, in each case paid or

credited to the account (or with respect to the account) during the

calendar year or other appropriate reporting period; and

Assets paid or credited to the account during the calendar year or

other appropriate reporting period with respect to which the

Reporting Financial Institution acted as a custodian, broker,

nominee, or otherwise as an agent for the Account Holder;

6. in the case of any Depository Account, the total gross amount of interest

paid or credited to the account during the calendar year or other

appropriate reporting period; and

7. in the case of any account not described in subparagraph A(5) or A(6),

the total gross amount paid or credited to the Account Holder with

respect to the account during the calendar year or other appropriate

reporting period with respect to which the Reporting Financial

Institution is the obligor or debtor, including the aggregate amount of

any redemption payments made to the Account Holder during the

calendar year or other appropriate reporting period.

B. The information reported must identify the currency in which each amount

is denominated.

C. Notwithstanding subparagraph A(1), with respect to each Reportable

Account that is a Preexisting Account or with respect to each Financial

Account that is opened prior to becoming a Reportable Account, the TIN(s)

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or date of birth is not required to be reported if such TIN(s) or date of birth is

not in the records of the Reporting Financial Institution and is not otherwise

required to be collected by such Reporting Financial Institution under

domestic law. However, a Reporting Financial Institution is required to use

reasonable efforts to obtain the TIN(s) and date of birth with respect to

Preexisting Accounts by the end of the second calendar year following the

year in which such Accounts were identified as Reportable Accounts.

D. Notwithstanding subparagraph A(1), the TIN is not required to be reported if

domestic law of the relevant Reportable Jurisdiction does not require the

collection of the TIN issued by such Reportable Jurisdiction.

E. Notwithstanding subparagraph A(1), the place of birth is not required to be

reported unless the Reporting Financial Institution is otherwise required to

obtain and report it under domestic law and it is available in the

electronically searchable data maintained by the Reporting Financial

Institution.

F. Notwithstanding paragraph A, the information to be reported with respect to

[xxxx] is the information described in such paragraph, except for gross

proceeds described in subparagraph A(5)(b).

Section II: General Due Diligence Requirements

A. An account is treated as a Reportable Account beginning as of the date it is

identified as such pursuant to the due diligence procedures described in

Sections II through VII and, unless otherwise provided, information with

respect to a Reportable Account must be reported annually in the calendar

year following the year to which the information relates.

B. A Reporting Financial Institution, which pursuant to the procedures

described in Sections II through VII, identifies any account as a Foreign

Account that is not a Reportable Account at the time the due diligence is

performed, may rely on the outcome of such procedures to comply with

future reporting obligations.

C. The balance or value of an account is determined as of the last day of the

calendar year or other appropriate reporting period.

D. Where a balance or value threshold is to be determined as of the last day of a

calendar year, the relevant balance or value must be determined as of the last

day of the reporting period that ends with or within that calendar year.

E. Each Jurisdiction may allow Reporting Financial Institutions to use service

providers to fulfil the reporting and due diligence obligations imposed on

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such Reporting Financial Institutions, as contemplated in domestic law, but

these obligations shall remain the responsibility of the Reporting Financial

Institutions.

F. Each Jurisdiction may allow Reporting Financial Institutions to apply the

due diligence procedures for New Accounts to Preexisting Accounts, and

the due diligence procedures for High value Accounts to Lower Value

Accounts. Where a Jurisdiction allows New Account due diligence

procedures to be used for Preexisting Accounts, the rules otherwise

applicable to Preexisting Accounts continue to apply.

Section III: Due Diligence for Preexisting Individual Accounts

The following procedures apply with respect to Preexisting Individual Accounts.

A. Accounts Not Required to be Reviewed, Identified, or Reported. A

Preexisting Individual Account that is a Cash Value Insurance Contract or an

Annuity Contract is not required to be reviewed, identified or reported,

provided the Reporting Financial Institution is effectively prevented by law

from selling such Contract to residents of a Reportable Jurisdiction.

B. Lower Value Accounts. The following procedures apply with respect to

Lower Value Accounts.

1. Residence Address. If the Reporting Financial Institution has in its

records a current residence address for the individual Account Holder

based on Documentary Evidence, the Reporting Financial Institution

may treat the individual Account Holder as being a resident for tax

purposes of the jurisdiction in which the address is located for purposes

of determining whether such individual Account Holder is a Reportable

Person.

2. Electronic Record Search. If the Reporting Financial Institution does

not rely on a current residence address for the individual Account

Holder

based

on

Documentary

Evidence

as

set

forth

in

subparagraph B(1), the Reporting Financial Institution must review

electronically searchable data maintained by the Reporting Financial

Institution

for

any

of

the

following

indicia

and

apply

subparagraphs B(3) through (6):

Jurisdiction;

a Foreign Jurisdiction;

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telephone number in the jurisdiction of the Reporting Financial

Institution;

Account) to transfer funds to an account maintained in a Foreign

Jurisdiction;

to a person with an address in a Foreign Jurisdiction; or

Jurisdiction if the Reporting Financial Institution does not have any

other address on file for the Account Holder.

3. If none of the indicia listed in subparagraph B(2) 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 indicia being

associated with the account, or the account becomes a High Value

Account.

4. If any of the indicia listed in subparagraph B(2)(a) through (e) are

discovered in the electronic search, or if there is a change in

circumstances that results in one or more indicia being associated

with the account, then the Reporting Financial Institution must treat the

Account Holder as a resident for tax purposes of each Foreign

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.

5. 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 Reporting Financial Institution must, in the order must

appropriate to the circumstances, apply the paper record search

described in subparagraph C(2), or seek to obtain from the Account

Holder a self‑certification or Documentary Evidence to establish the

residence(s) for tax purposes of such Account Holder. If the paper

search fails to establish an indicium and the attempt to obtain the

self‑certification or Documentary Evidence is not successful, the

Reporting Financial Institution must report the account as an

undocumented account.

6. Notwithstanding a finding of indicia under subparagraph B(2), a

Reporting Financial Institution is not required to treat an Account

Holder as a resident of a Foreign Jurisdiction if:

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residence address in the Foreign Jurisdiction, one or more

telephone numbers in the Foreign Jurisdiction (and no telephone

number in the jurisdiction of the Reporting Financial Institution) or

standing instructions (with respect to Financial Account other than

Depository Accounts) to transfer funds to an account maintained in

a Foreign Jurisdiction, the Reporting Financial Institution obtains,

or has previously reviewed and maintains a record of:

self‑certification

from

the

Account

Holder

of

the

jurisdiction(s) of residence of such Account Holder that

does not include such Foreign Jurisdiction; and

residence

for

tax

purposes

other

than

such

Foreign

Jurisdiction.

power of attorney or signatory authority granted to a person with an

address in a Foreign Jurisdiction, the Reporting Financial

Institution obtains, or has previously reviewed and maintains a

record of:

self‑certification

from

the

Account

Holder

of

the

jurisdiction(s) of residence of such Account Holder that

does not include such Foreign Jurisdiction; or

residence for tax purposes other than Foreign Jurisdiction.

C. Enhanced Review Procedures for High Value Accounts. The following

enhanced review procedures apply with respect to High Value Accounts.

1. Electronic Record Search. With respect to High Value Accounts, the

Reporting Financial Institution must review electronically searchable

data maintained by the Reporting Financial Institution for any of the

indicia described in subparagraph B(2).

2. Paper Record Search. If the Reporting Financial Institution’s

electronically searchable databases include fields for, and capture all

of the information described in, subparagraph C(3), then a further paper

record search is no required. If the electronic databases do not capture

all of this information, then with respect to a High Value Account, the

Reporting 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

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obtained by the Reporting Financial Institution within the last five years

for any of the indicia described in subparagraph B(2):

the account;

Institution pursuant to AML/KYC Procedures or for other

regulatory purposes;

effect; and

Account) to transfer funds currently in effect.

3. Exception

To

The

Extent

Databases

Contain

Sufficient

Information. A Reporting Financial Institution is not required to

perform the paper record search described in subparagraph C(2) to the

extent the Reporting Financial Institution’s electronically searchable

information includes the following:

currently on file with the Reporting Financial Institution;

with the Reporting Financial Institution;

whether there are standing instructions to transfer funds in the

account to another account (including an account at another branch

of the Reporting Financial Institution or another Financial

Institution);

instruction for the Account Holder; and

account.

4. Relationship Manager Inquiry for Actual Knowledge. In addition to

the electronic and paper record searches described above, the Reporting

Financial Institution must treat as a Reportable Account any High Value

Account assigned to a relationship manager (including any Financial

Accounts aggregated with that High Value Account) if the relationship

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manager has actual knowledge that the Account Holder is a Reportable

Person.

5. Effect of Finding Indicia.

the enhanced review of High Value Accounts described above, and

the account is not identified as held by a resident for tax purposes in

a Foreign Jurisdiction in subparagraph C(4), then further action is

not required until there is a change in circumstances that results in

one or more indicia being associated with the account.

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

indicia

being

associated with the account, then the Reporting Financial

Institution must treat the Account Holder as a resident for tax

purposes of each Foreign 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.

the enhanced review of High Value Account described above, 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 Reporting Financial Institution must obtain from such

Account Holder a self‑certification or Documentary Evidence to

establish the residence(s) for tax purposes of the Account Holder. If

the Reporting Financial Institution 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

31 December [xxxx], but becomes a High Value Account as of the last

day of a subsequent calendar year, the Reporting Financial Institution

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 Reporting Financial Institution 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.

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7. Once a Reporting Financial Institution applies the enhanced review

procedures described in paragraph C to a High Value Account, the

Reporting Financial Institution 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 Reporting Financial

Institution 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

Reporting Financial Institution must treat the account as a Reportable

Account with respect to each Foreign 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 Reporting Financial Institution 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 mailing address in a Foreign Jurisdiction, the

Reporting Financial Institution 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].

Section IV: Due Diligence for New Individual Accounts

The following procedures apply with respect to New Individual Accounts.

A. With respect to New Individual Accounts, upon account opening, a

Reporting Financial Institution must obtain a self‑certification, which

may be part of the account opening documentation, that allows the

Reporting Financial Institution to determine the Account Holder’s

residence(s) for tax purposes and confirm the reasonableness of such self-

certification based on the information obtained by the Reporting Financial

Institution 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 Reporting Financial Institution

must treat the account as a Reportable Account and the self-certification

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must also include the Account Holder’s TIN 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 Reporting Financial Institution to know, or have

reason to know, that the original self‑certification is incorrect or unreliable,

the

Reporting

Financial

Institution

cannot

rely

on

the

original

self‑certification and must obtain a valid self‑certification that establishes

the residence(s) for tax purposes of the Account Holder.

Section V: Due Diligence for Preexisting Entity Accounts

The following procedures apply with respect to Preexisting Entity Accounts.

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported.

Unless the Reporting Financial Institution 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 aggregate account balance or value that does not exceed USD 250 000 as

of 31 December [xxxx], is not required to be reviewed, identified, or

reported as a Reportable Account until the aggregate account balance or

value exceeds USD 250 000 as of the last day of any subsequent calendar

year.

B. Entity Accounts Subject to Review. A Preexisting Entity Account that has

an aggregate account balance or value that exceeds USD 250 000 as of

31 December [xxxx], and a Preexisting Entity Account that does not exceed

USD 250 000 as of 31 December [xxxx] but the aggregate account balance

or value of which exceeds USD 250 000 as of the last day of any subsequent

calendar year, must be reviewed in accordance with the procedures set forth

in paragraph D.

C. Review Procedures for Identifying Entity Accounts With Respect to

Which Reporting may be Required. For Preexisting Entity Accounts

described in paragraph B, a Reporting Financial Institution must apply the

following review procedures:

1. Determine the Residence of the Entity.

relationship purposes (including information collected pursuant

to AML/KYC Procedures) to determine the Account Holder’s

residence. For this purpose, information indicating the Account

Holder’s

residence

includes

a

place

of

incorporation

or

organisation, or an address in a Foreign Jurisdiction.

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Person, the Reporting Financial Institution 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 the Residence of the Controlling Persons of a Passive

NFE. With respect to an Account Holder of a Preexisting Entity

Account (including an Entity that is a Reportable Person), the Reporting

Financial Institution must identify whether the Account Holder is a

Passive NFE with one or more Controlling Persons and determine the

residence of such Controlling Persons. If any of the Controlling Persons

of a Passive NFE is a Reportable Person, then the account is treated as a

Reportable Account. In making these determinations the Reporting

Financial Institution must follow the guidance in subparagraphs C(2)(a)

through (c) in the order most appropriate under the circumstances.

purposes of determining whether the Account Holder is a Passive

NFE,

the

Reporting

Financial

Institution

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 Active NFE or a Financial Institution other

than an Investment Entity described in subparagraph A(6)(b) of

Section VIII that is not a Participating Jurisdiction Financial

Institution.

the purposes of determining the Controlling Persons of an Account

Holder, a Reporting Financial Institution may rely on information

collected and maintained pursuant to AML/KYC Procedures.

NFE. For the purposes of determining the residence of a

Controlling Person of a Passive NFE, a Reporting Financial

Institution may rely on:

Procedures in the case of a Preexisting Entity Account held by

one or more Passive NFEs with an aggregate account balance

or value that does not exceed USD 1 000 000; or

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self‑certification

from

the

Account

Holder

or

such

Controlling Person of the jurisdiction(s) in which the

Controlling Person is resident for tax purposes. If a

self‑certification is not provided, the Reporting Financial

Institution will establish such residence(s) by applying the

procedures described in paragraph C of Section III.

D. Timing of Review and Additional Procedures Applicable to Preexisting

Entity Accounts.

1. Review of Preexisting Entity Accounts with an aggregate account

balance or value that exceeds USD 250 000 as of 31 December [xxxx]

must be completed by 31 December [xxxx].

2. Review of Preexisting Entity Accounts with an aggregate account

balance or value that does not exceed USD 250 000 as of 31 December

[xxxx], but exceeds USD 250 000 as of 31 December of a subsequent

year, must be completed within the calendar year following the year in

which the aggregate account balance or value exceeds USD 250 000.

3. If there is a change of circumstances with respect to a Preexisting Entity

Account that causes the Reporting Financial Institution to know, or have

reason to know, that the self‑certification or other documentation

associated with an account is incorrect or unreliable, the Reporting

Financial Institution must re‑determine the status of the account in

accordance with the procedures set forth in paragraph C.

Section VI: Due Diligence for New Entity Accounts

The following procedures apply with respect to New Entity Accounts.

A. Review Procedures for Identifying Entity Accounts With Respect to

Which Reporting may be Required. For New Entity Accounts, a

Reporting Financial Institution must apply the following review procedures:

1. Determine the Residence of the Entity.

opening documentation, that allows the Reporting Financial

Institution to determine the Account Holder’s residence(s) for tax

purposes and confirm the reasonableness of such self‑certification

based on the information obtained by the Reporting Financial

Institution 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 residence for tax purposes, the

Reporting Financial Institution may rely on the address of the

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principal office of the Entity to determine the residence of the

Account Holder.

in a Reportable Jurisdiction, the Reporting Financial Institution

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 the Residence of the Controlling Persons of a Passive

NFE. With respect to an Account Holder of a New Entity Account

(including an Entity that is a Reportable Person), the Reporting

Financial Institution must identify whether the Account Holder is a

Passive NFE with one or more Controlling Persons and determine the

residence of such 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

Reporting

Financial

Institution

must

follow

the

guidance

in

subparagraphs A(2)(a) through (c) in the order most appropriate

under the circumstances.

purposes of determining whether the Account Holder is a Passive

NFE,

the

Reporting

Financial

Institution

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 Active NFE or a Financial Institution other

than an Investment Entity described in subparagraph A(6)(b) of

Section VIII that is not a Participating Jurisdiction Financial

Institution.

purposes of determining the Controlling Persons of an Account

Holder, a Reporting Financial Institution may rely on information

collected and maintained pursuant to AML/KYC Procedures.

NFE. For purposes of determining the residence of a Controlling

Person of a Passive NFE, a Reporting Financial Institution may rely

on a self‑certification from the Account Holder or such Controlling

Person.

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Section VII: Special Due Diligence Rules

The following additional rules apply in implementing the due diligence

procedures described above.

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting

Financial Institution may not rely on a self‑certification or Documentary

Evidence if the Reporting Financial Institution knows or has reason to know

that the self‑certification or Documentary Evidence is incorrect or

unreliable.

B. Alternative Procedures for Financial Accounts Held by Individual

Beneficiaries of a Cash Value Insurance Contract or an Annuity

Contract. A Reporting Financial Institution may presume that an individual

beneficiary (other than the owner) of a Cash Value Insurance Contract or an

Annuity Contract receiving a death benefit is not a Reportable Person and

may treat such Financial Account as other than a Reportable Account unless

the Reporting Financial Institution has actual knowledge, or reason to know,

that the beneficiary is a Reportable Person. A Reporting Financial

Institution has reason to know that a beneficiary of a Cash Value

Insurance Contract or an Annuity Contract is a Reportable Person if the

information collected by the Reporting Financial Institution and associated

with the beneficiary contains indicia of residence in a Foreign Jurisdiction as

described in paragraph B of Section III. If a Reporting Financial Institution

has actual knowledge, or reason to know, that the beneficiary is a Reportable

Person, the Reporting Financial Institution 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 Reporting Financial Institution is required to aggregate all Financial

Accounts maintained by the Reporting Financial Institution, or by a

Related Entity, but only to the extent that the Reporting Financial

Institution’s computerised systems link the Financial Accounts by

reference to a data element such as client number or TIN, 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.

2. Aggregation of Entity Accounts. For purposes of determining the

aggregate balance or value of Financial Accounts held by an Entity, a

Reporting Financial Institution is required to take into account all

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Financial Accounts that are maintained by the Reporting Financial

Institution, or by a Related Entity, but only to the extent that the

Reporting Financial Institution’s computerised systems link the

Financial Accounts by reference to a data element such as client

number or TIN, 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 Reporting Financial Institution 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 Read to Include Equivalent in Other Currencies. All

dollar amounts are in US 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:

A. Reporting Financial Institution

1. The term “Reporting Financial Institution” means any Participating

Jurisdiction Financial Institution that is not a Non-Reporting Financial

Institution.

2. The term “Participating Jurisdiction Financial Institution” means

Jurisdiction, but excludes any branch of that Financial Institution

that is located outside such Participating Jurisdiction, and (ii) any

branch of a Financial Institution that is not resident in a Participating

Jurisdiction, if that branch is located in such Participating Jurisdiction.

3. The term “Financial Institution” means a Custodial Institution, a

Depository Institution, an Investment Entity, or a Specified Insurance

Company.

4. The term “Custodial Institution” means any Entity that holds, as a

substantial portion of its business, Financial Assets for the account of

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others. An Entity holds Financial Assets for the account of others as a

substantial portion of its business if the Entity’s gross income

attributable to the holding of Financial Assets and related financial

services equals or exceeds 20% of the Entity’s gross income during the

shorter of: (i) the three‑year period that ends on 31 December (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 “Depository Institution” means any Entity that accepts

deposits in the ordinary course of a banking or similar business.

6. The term “Investment Entity” means any Entity:

activities or operations for or on behalf of a customer:

certificates of deposit, derivatives, etc.); foreign exchange;

exchange, interest rate and index instruments; transferable

securities; or commodity futures trading;

Assets or money on behalf of other persons; or

reinvesting, or trading in Financial Assets, if the Entity is

managed by another Entity that is a Depository Institution, a

Custodial Institution, a Specified Insurance Company, 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

Financial Assets for purposes of subparagraph A(6)(b), if the Entity’s

gross income attributable to the relevant activities equals or exceeds

50% of the Entity’s gross income during the shorter of: (i) the

three‑year period ending on 31 December 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 Active NFE because it meets any

of the criteria in subparagraphs D(9)(d) through (g).

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This paragraph shall be interpreted in a manner consistent with similar

language set forth in the definition of “financial institution” in the

Financial Action Task Force Recommendations.

7. The term “Financial Asset” 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), Insurance

Contract or Annuity Contract, or any interest (including a futures or

forward contract or option) in a security, partnership interest,

commodity, swap, Insurance Contract, or Annuity Contract. The

term “Financial Asset” does not include a non‑debt, direct interest in

real property.

8. The term “Specified Insurance Company” 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 Cash Value Insurance Contract or an Annuity Contract.

B. Non-Reporting Financial Institution

1. The term “Non‑Reporting Financial Institution” means any

Financial Institution that is:

Bank, 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 Specified Insurance Company, Custodial

Institution, or Depository Institution;

Retirement Fund; a Pension Fund of a Governmental Entity,

International Organisation or Central Bank; or a Qualified Credit

Card Issuer;

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 Non-Reporting Financial Institution, provided

that the status of such Entity as a Non‑Reporting Financial

Institution does not frustrate the purposes of the Common

Reporting Standard;

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Financial Institution 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 wholly 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.

“integral

part”

of

a

jurisdiction

means

any

person,

organisation, agency, bureau, 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.

the jurisdiction or that otherwise constitutes a separate juridical

entity, provided that:

Governmental Entities directly or through one or more

controlled entities;

the accounts of one or more Governmental Entities, with no

portion of its income inuring to the benefit of any private

person; and

upon dissolution.

persons are the intended beneficiaries of a governmental

programme, and the programme activities are performed for the

general public with respect to the common welfare or relate to the

administration of some phase of government. Notwithstanding

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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 “International Organisation” means any international

organisation or wholly owned agency or instrumentality thereof. This

category includes any intergovernmental organisation (including a

supranational organisation) (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 “Central Bank” means an institution 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

an

institution

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 “Broad Participation Retirement Fund” 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:

per cent of the fund’s assets;

reporting to the tax authorities; and

or taxation of such income is deferred or taxed at a reduced

rate, due to its status as a retirement or pension plan;

than transfers of assets from other plans described in

subparagraphs B(5) through (7) or from retirement and

pension accounts described in subparagraph C(17)(a)) from

the sponsoring employers;

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upon

the

occurrence

of

specified

events

related

to

retirement,

disability,

or

death

(except

rollover

distributions

to

other

retirement

funds

described

in

subparagraphs B(5) through (7) or retirement and pension

accounts described in subparagraph C(17)(a)), or penalties

apply to distributions or withdrawals made before such

specified events; or

(other

than

certain

permitted

make-up

contributions) by employees to the fund are limited by

reference to earned income of the employee or may not

exceed USD 50 000 annually, applying the rules set forth in

paragraph C of Section VII for account aggregation and

currency translation.

6. The term “Narrow Participation Retirement Fund” means a fund

established to provide retirement, disability, or death benefits 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:

Investment Entities or Passive NFEs;

transfers of assets from retirement and pension accounts described

in subparagraph C(17)(a)) are limited by reference to earned

income and compensation of the employee, respectively;

fund is established are not entitled to more than 20% of the fund’s

assets; and

information reporting to the tax authorities.

7. The term “Pension Fund of a Governmental Entity, International

Organisation or Central Bank” means a fund established by a

Governmental Entity, International Organisation or Central Bank to

provide retirement, disability, or death benefits to beneficiaries or

participants that are current or former employees (or persons

designated by such employees), or that are not current or former

employees, if the benefits provided to such beneficiaries or

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participants are in consideration of personal services performed for the

Governmental Entity, International Organisation or Central Bank.

8. The term “Qualified Credit Card Issuer” means a Financial

Institution satisfying the following requirements:

is an issuer of credit cards that accepts deposits only when a

customer makes a payment in excess of a balance due with respect

to the card and the overpayment is not immediately returned to the

customer; and

implements policies and procedures either to prevent a customer

from making an overpayment in excess of USD 50 000, or to

ensure that any customer overpayment in excess of USD 50 000 is

refunded to the customer within 60 days, in each case applying the

rules set forth in paragraph C of Section VII for account

aggregation and currency translation. For this purpose, a

customer overpayment does not refer to credit balances to the

extent of disputed charges but does include credit balances

resulting from merchandise returns.

9. The term “Exempt Collective Investment Vehicle” means an

Investment Entity that is regulated as a collective investment

vehicle, provided that all of the interests in the collective investment

vehicle are held by or through individuals or Entities that are not

Reportable Persons, except a Passive NFE with Controlling Persons

who are Reportable Persons.

An Investment Entity that is regulated as a collective investment

vehicle does not fail to qualify under subparagraph B(9) as an Exempt

Collective

Investment

Vehicle,

solely

because

the

collective

investment vehicle has issued physical shares in bearer form,

provided that:

issue, any physical shares in bearer form after [xx/xx/xxxx];

surrender;

procedures set forth in Sections II through VII and reports any

information required to be reported with respect to any such

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shares when such shares are presented for redemption or other

payment; and

procedures

to

ensure

that

such

shares

are

redeemed

or

immobilised as soon as possible, and in any event prior to

[xx/xx/xxxx].

C. Financial Account

1. The term “Financial Account” means an account maintained by a

Financial Institution, and includes a Depository Account, a Custodial

Account and:

the Financial Institution. Notwithstanding the foregoing, the term

“Financial Account” does not include any equity or debt interest

in an Entity that is an Investment Entity solely because it (i)

renders investment advice to, and acts on behalf of, or (ii)

manages portfolios for, and acts on behalf of, a customer for the

purpose of investing, managing, or administering Financial

Assets deposited in the name of the customer with a Financial

Institution other than such Entity;

the

case

of

a

Financial

Institution

not

described

in

subparagraph C(1)(a), any equity or debt interest in the

Financial Institution, if the class of interests was established

with a purpose of avoiding reporting in accordance with Section I;

and

issued or maintained by a Financial Institution, other than a

noninvestment‑linked, non‑transferable immediate life annuity

that is issued to an individual and monetises a pension or

disability benefit provided under an account that is an Excluded

Account.

The term “Financial Account” does not include any account that is an

Excluded Account.

2. The term “Depository Account” includes any commercial, checking,

savings, time, or thrift account, or an account that is evidenced by a

certificate

of

deposit,

thrift

certificate,

investment

certificate,

certificate of indebtedness, or other similar instrument maintained

by a Financial Institution in the ordinary course of a banking or similar

business. A Depository Account also includes an amount held by an

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insurance company pursuant to a guaranteed investment contract or

similar agreement to pay or credit interest thereon.

3. The term “Custodial Account” means an account (other than an

Insurance Contract or Annuity Contract) that holds one or more

Financial Assets for the benefit of another person.

4. The term “Equity Interest” means, in the case of a partnership that is

a Financial Institution, either a capital or profits interest in the

partnership. In the case of a trust that is a Financial Institution, an

Equity Interest is considered to be held by any person treated as a

settlor or beneficiary of all or a portion of the trust, or any other natural

person exercising ultimate effective control over the trust. A

Reportable Person will be treated as being a beneficiary of a trust if

such Reportable Person has the right to receive directly or indirectly

(for example, through a nominee) a mandatory distribution or may

receive, directly or indirectly, a discretionary distribution from the

trust.

5. The term “Insurance Contract” means a contract (other than an

Annuity Contract) under which the issuer agrees to pay an amount

upon the occurrence of a specified contingency involving mortality,

morbidity, accident, liability, or property risk.

6. The term “Annuity Contract” means a contract under which the

issuer agrees to make payments for a period of time determined in

whole or in part by reference to the life expectancy of one or more

individuals. The term also includes a contract that is considered to be

an Annuity Contract in accordance with the law, regulation, or practice

of the jurisdiction in which the contract was issued, and under which

the issuer agrees to make payments for a term of years.

7. The term “Cash Value Insurance Contract” means an Insurance

Contract (other than an indemnity reinsurance contract between two

insurance companies) that has a Cash Value.

8. The term “Cash Value” means the greater of (i) the amount that the

policyholder is entitled to receive upon surrender or termination of the

contract (determined without reduction for any surrender charge or

policy loan), and (ii) the amount the policyholder can borrow under or

with regard to the contract. Notwithstanding the foregoing, the term

“Cash Value” does not include an amount payable under an Insurance

Contract:

insurance contract;

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indemnification of an economic loss incurred upon the occurrence

of the event insured against;

charges whether or not actually imposed) under an Insurance

Contract (other than an investment-linked life insurance or

annuity contract) due to cancellation or termination of the

contract, decrease in risk exposure during the effective period

of the contract, or arising from the correction of a posting or

similar error with regard to the premium for the contract;

provided that the dividend relates to an Insurance Contract under

which

the

only

benefits

payable

are

described

in

subparagraph C(8)(b); or

Insurance Contract for which the premium is payable at least

annually if the amount of the advance premium or premium

deposit does not exceed the next annual premium that will be

payable under the contract.

9. The term “Preexisting Account” means a Financial Account

maintained by a Reporting Financial Institution as of [xx/xx/xxxx].

10. The term “New Account” means a Financial Account maintained by a

Reporting Financial Institution opened on or after [xx/xx/xxxx].

11. The term “Preexisting Individual Account” means a Preexisting

Account held by one or more individuals.

12. The term “New Individual Account” means a New Account held by

one or more individuals.

13. The term “Preexisting Entity Account” means a Preexisting Account

held by one or more Entities.

14. The term “Lower Value Account” means a Preexisting Individual

Account with an aggregate balance or value as of 31 December [xxxx]

that does not exceed USD 1 000 000.

15. The term “High Value Account” means a Preexisting Individual

Account

with

an

aggregate

balance

or

value

that

exceeds

USD 1 000 000 as of 31 December [xxxx] or 31 December of any

subsequent year.

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16. The term “New Entity Account” means a New Account held by one

or more Entities.

17. The term “Excluded Account” means any of the following accounts:

requirements:

account or is part of a registered or regulated retirement or

pension plan for the provision of retirement or pension

benefits (including disability or death benefits);

that would otherwise be subject to tax are deductible or

excluded from the gross income of the account holder or

taxed at a reduced rate, or taxation of investment income

from the account is deferred or taxed at a reduced rate);

respect to the account;

retirement age, disability, or death, or penalties apply to

withdrawals made before such specified events; and

less, or (ii) there is a maximum lifetime contribution limit to

the account of USD 1 000 000 or less, in each case applying

the rules set forth in paragraph C of Section VII for account

aggregation and currency translation.

A Financial Account that otherwise satisfies the requirement

of subparagraph C(17)(a)(v) will not fail to satisfy such

requirement solely because such Financial Account may

receive assets or funds transferred from one or more

Financial

Accounts

that

meet

the

requirements

of

subparagraph C(17)(a) or (b) or from one or more

retirement or pension funds that meet the requirements of

any of subparagraphs B(5) through (7).

for purposes other than for retirement and is regularly traded

on an established securities market, or the account is subject

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to regulation as a savings vehicle for purposes other than for

retirement;

that would otherwise be subject to tax are deductible or

excluded from the gross income of the account holder or

taxed at a reduced rate, or taxation of investment income

from the account is deferred or taxed at a reduced rate);

related to the purpose of the investment or savings account

(for example, the provision of educational or medical

benefits), or penalties apply to withdrawals made before

such criteria are met; and

applying the rules set forth in paragraph C of Section VII for

account aggregation and currency translation.

A Financial Account that otherwise satisfies the requirement

of subparagraph C(17)(b)(iv) will not fail to satisfy such

requirement solely because such Financial Account may

receive assets or funds transferred from one or more

Financial

Accounts

that

meet

the

requirements

of

subparagraph C(17)(a) or (b) or from one or more

retirement or pension funds that meet the requirements of

any of subparagraphs B(5) through (7).

before the insured individual attains age 90, provided that the

contract satisfies the following requirements:

payable at least annually during the period the contract is in

existence or until the insured attains age 90, whichever is

shorter;

(by withdrawal, loan, or otherwise) without terminating the

contract;

cancellation or termination of the contract cannot exceed the

aggregate premiums paid for the contract, less the sum of

mortality, morbidity, and expense charges (whether or not

actually imposed) for the period or periods of the contract’s

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existence and any amounts paid prior to the cancellation or

termination of the contract; and

such account includes a copy of the deceased’s will or death

certificate.

provided

that

the

account

satisfies

the

following

requirements:

earnest money, deposit in an amount appropriate to

secure an obligation directly related to the transaction,

or a similar payment, or is funded with a Financial

Asset that is deposited in the account in connection

with the sale, exchange, or lease of the property;

obligation of the purchaser to pay the purchase price

for the property, the seller to pay any contingent

liability, or the lessor or lessee to pay for any damages

relating to the leased property as agreed under the

lease;

thereon, will be paid or otherwise distributed for the

benefit of the purchaser, seller, lessor, or lessee

(including to satisfy such person’s obligation) when

the property is sold, exchanged, or surrendered, or the

lease terminates;

established in connection with a sale or exchange of

a Financial Asset; and

in subparagraph C(17)(f).

secured by real property to set aside a portion of a payment

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solely to facilitate the payment of taxes or insurance related

to the real property at a later time.

payment of taxes at a later time.

payment in excess of a balance due with respect to a credit

card or other revolving credit facility and the overpayment is

not immediately returned to the customer; and

on

or

before

[xx/xx/xxxx],

the

Financial

Institution implements policies and procedures either to

prevent a customer from making an overpayment in excess

of USD 50 000, or to ensure that any customer overpayment

in excess of USD 50 000 is refunded to the customer within

60 days, in each case applying the rules set forth in

paragraph C of Section VII for currency translation. For this

purpose, a customer overpayment does not refer to credit

balances to the extent of disputed charges but does include

credit balances resulting from merchandise returns.

tax, has substantially similar characteristics to any of the accounts

described in subparagraphs C(17)(a) through (f), and is defined in

domestic law as an Excluded Account, provided that the status of

such account as an Excluded Account does not frustrate the

purposes of the Common Reporting Standard.

D. Reportable Account

1. The term “Reportable Account” means an account held by one or

more Reportable Persons or by a Passive NFE with one or more

Controlling Persons that is a Reportable Person, provided it has been

identified as such pursuant to the due diligence procedures described

in Sections II through VII.

2. The term “Reportable Person” means a Reportable Jurisdiction

Person other than: (i) a corporation the stock of which is regularly

traded on one or more established securities markets; (ii) any

corporation that is a Related Entity of a corporation described in

clause (i); (iii) a Governmental Entity; (iv) an International

Organisation; (v) a Central Bank; or (vi) a Financial Institution.

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3. The term “Reportable Jurisdiction Person” means an individual or

Entity that is resident in a Reportable Jurisdiction under the tax laws of

such jurisdiction, or an estate of a decedent that was a resident of a

Reportable Jurisdiction. For this purpose, an Entity such as a

partnership, limited liability partnership or similar legal arrangement

that has no residence for tax purposes shall be treated as resident in the

jurisdiction in which its place of effective management is situated.

4. The term “Reportable Jurisdiction” means a jurisdiction (i) with

which an agreement is in place pursuant to which there is an obligation

in place to provide the information specified in Section I and (ii) which

is identified in a published list.

5. The term “Participating Jurisdiction” means a jurisdiction (i) with

which an agreement is in place pursuant to which it will provide the

information specified in Section I, and (ii) which is identified in a

published list.

6. The term “Controlling Persons” means the natural persons who

exercise control over an Entity. In the case of a trust, such term means

the

settlor(s),

the

trustee(s),

the

protector(s)

(if

any),

the

beneficiary(ies) or class(es) of beneficiaries, and any other natural

person(s) exercising ultimate effective control over the trust, and in the

case of a legal arrangement other than a trust, such term means persons

in equivalent or similar positions. The term “Controlling Persons”

must be interpreted in a manner consistent with the Financial Action

Task Force Recommendations.

7. The term “NFE” means any Entity that is not a Financial Institution.

8. The term “Passive NFE” means any: (i) NFE that is not an Active

NFE; or (ii) an Investment Entity described in subparagraph A(6)(b)

that is not a Participating Jurisdiction Financial Institution.

9. The term “Active NFE” means any NFE that meets any of the

following criteria:

calendar year or other appropriate reporting period is passive

income and less than 50% of the assets held by the NFE during the

preceding calendar year or other appropriate reporting period are

assets that produce or are held for the production of passive

income;

securities market or the NFE is a Related Entity of an Entity the

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stock of which is regularly traded on an established securities

market;

a Central Bank, or an Entity wholly owned by one or more of the

foregoing;

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 Financial Institution,

except that an Entity does not qualify for this 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;

history, but is investing capital into assets with the intent to

operate a business other than that of a Financial Institution,

provided that the NFE does not qualify for this exception after the

date that is 24 months after the date of the initial organisation of

the NFE;

is in the process of liquidating its assets or is reorganising with the

intent to continue or recommence operations in a business other

than that of a Financial Institution;

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 Financial Institution; or

exclusively for religious, charitable, scientific, artistic,

cultural,

athletic,

or

educational

purposes;

or

it

is

established and operated in its jurisdiction of residence

and it is a professional organisation, business league,

chamber of commerce, labour organisation, agricultural or

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horticultural organisation, civic league or an organisation

operated exclusively for the promotion of social welfare;

beneficial interest in its income or assets;

the NFE’s formation documents do not permit any income or

assets of the NFE to be distributed to, or applied for the

benefit of, a private person or non‑charitable Entity other

than pursuant to the conduct of the NFE’s charitable

activities, or as payment of reasonable compensation for

services rendered, or as payment representing the fair

market value of property which the NFE has purchased; and

the NFE’s formation documents require that, upon the

NFE’s liquidation or dissolution, all of its assets be

distributed to a Governmental Entity or other non‑profit

organisation, or escheat to the government of the NFE’s

jurisdiction of residence or any political subdivision thereof.

E. Miscellaneous

1. The term “Account Holder” means the person listed or identified as

the holder of a Financial Account by the Financial Institution that

maintains the account. A person, other than a Financial Institution,

holding a Financial Account for the benefit or account of another

person as agent, custodian, nominee, signatory, investment advisor, or

intermediary, is not treated as holding the account for purposes of the

Common Reporting Standard, and such other person is treated as

holding the account. In the case of a Cash Value Insurance Contract or

an Annuity Contract, the Account Holder is any person entitled to

access the Cash Value or change the beneficiary of the contract. If no

person can access the Cash Value or change the beneficiary, the

Account Holder is any person named as the owner in the contract and

any person with a vested entitlement to payment under the terms of the

contract. Upon the maturity of a Cash Value Insurance Contract or an

Annuity Contract, each person entitled to receive a payment under the

contract is treated as an Account Holder.

2. The term “AML/KYC Procedures” means the customer due

diligence procedures of a Reporting Financial Institution pursuant to

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the anti‑money laundering or similar requirements to which such

Reporting Financial Institution is subject.

3. The term “Entity” means a legal person or a legal arrangement, such

as a corporation, partnership, trust, or foundation.

4. An Entity is a “Related Entity” of another Entity if either Entity

controls the other Entity, or the two Entities are under common

control. For this purpose control includes direct or indirect ownership

of more than 50% of the vote and value in an Entity.

5. The term “TIN” means Taxpayer Identification Number (or functional

equivalent in the absence of a Taxpayer Identification Number).

6. The term “Documentary Evidence” includes any of the following:

body (for example, a government or agency thereof, or a

municipality) of the jurisdiction in which the payee claims to

be a resident.

authorised 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.

authorised 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 in which it claims to be a resident or the

jurisdiction in which the Entity was incorporated or organised.

audited

financial

statement,

third‑party

credit

report,

bankruptcy filing, or securities regulator’s report.

Section IX: Effective Implementation

A. A jurisdiction must have rules and administrative procedures in place to

ensure effective implementation of, and compliance with, the reporting and

due diligence procedures set out above including:

1. rules to prevent any Financial Institutions, persons or intermediaries

from adopting practices intended to circumvent the reporting and due

diligence procedures;

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2. rules requiring Reporting Financial Institutions to keep records of the

steps undertaken and any evidence relied upon for the performance of

the above procedures and adequate measures to obtain those records;

3. administrative procedures to verify Reporting Financial Institutions’

compliance

with

the

reporting

and

due

diligence

procedures;

administrative procedures to follow up with a Reporting Financial

Institution when undocumented accounts are reported;

4. administrative procedures to ensure that the Entities and accounts

defined in domestic law as Non‑Reporting Financial Institutions and

Excluded Accounts continue to have a low risk of being used to evade

tax; and

5. effective enforcement provisions to address non‑compliance.

Made on 2 December 2016.

LIM SOO HOON

Permanent Secretary

(Finance) (Performance),

Ministry of Finance,

Singapore.

[MOF R045.003.0012.V23; AG/LEGIS/SL/134/2015/22 Vol. 1]

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