08.01 – Identification of an entity as a CD or Gibraltar Specified Person

To identify if an entity is a Specified CD or Gibraltar Person, information maintained for regulatory or customer relationship purposes (including information collected as part of any AML/KYC procedure) can be relied upon.

Under the CD & Gibraltar Regulations, the Financial Institution will also have to report any Entity Account Holders that are themselves Specified CD or Gibraltar Persons. These would be entities that are resident in a CD or Gibraltar.

The list of exceptions from being Specified CD or Gibraltar Persons at Article 1.1(gg) of the CD & Gibraltar Agreements differs from the list of exceptions for Specified US Persons in the UK-US Agreement (see section 7.4 of the US guidance). This is because the Specified Persons looking to be excepted will be those resident in a CD or Gibraltar, and not those resident in the US, meaning the US references could not be applied. However, the type of persons/institutions excepted from the definition should be substantially the same.

As is the case for the US Agreement (but there by reference to the US), a place of incorporation or organisation, a CD or Gibraltar address, or the CD or Gibraltar indicia would be examples of information indicating that an entity is a Specified CD or Gibraltar Person.

Under the due diligence procedures in Annex 1 of the CD and Gibraltar Agreement, any account held by an entity that is a Foreign Financial Institution shall NOT be held to be a reportable account, regardless of the identity of the controlling persons.

Financial Institution with a Local Client Base

Under the requirements for the CD and Gibraltar Agreements, the Financial Institution will also have to report any Entity Account Holders that are themselves Specified CD or Gibraltar Persons. These would be entities that are resident in a CD or Gibraltar (and would, therefore, have been previously identified as not resident in the UK). As detailed above for pre-existing individual accounts, indicia for a Specified CD or Gibraltar Person would be evidenced by either a record of their tax residence, or a non-UK address.

The Financial Institution will already be undertaking due diligence to determine whether any Entity Accounts that it maintains are held by Passive NFFEs for the US as well as CD and Gibraltar purposes.