06.07 – Standing Instructions to transfer funds to an account maintained in the CD or Gibraltar

In the case of the regulations to implement the CD and Gibraltar agreements this indicia check only needs to be undertaken for accounts that are NOT depositary accounts.

This means that there is no requirement to check the destination of any standing instructions from the majority of current or savings bank accounts.

Where the indicia found is a Standing Instruction to transfer funds from a non-depository account to an account maintained in a CD or Gibraltar, the account must be reported unless the UK Financial Institution obtains or currently maintains a record of the following:

  • a self certification that the account holder is not a CD or Gibraltar resident for tax purposes; and
  • a piece of documentary evidence, as defined in paragraph VI.D. of Annex I in the CD and Gibraltar Agreements, establishing the Account Holder’s non-residence status.

Financial Institution with a Local Client Base

As this test applies for accounts that are not Depository Accounts, it will be an additional test for Financial Institutions such as Mutual Insurance and Savings Institutions which fell under the Financial Institution with a Local Client Base category for the US agreement. (See section 2.7 of this guidance).

It is expected that standing instructions out of Investment, Custodial or Insurance accounts will be limited in number.