09.00 – New Entity Accounts

A Financial Institution that maintains a New Entity Account must determine whether the Account Holder is in one of the following categories as defined in the CD and Gibraltar Agreements:

  • a Specified Person;
  • a Non-Resident Entity that is a Financial Institution;
  • a Non-Reporting Financial Institution;
  • an exempt beneficial owner;
  • an Active NFFE or Passive NFFE.

If the New Entity Account Holder is found to be a Specified CD or Gibraltar Person or a Passive NFFE with controlling persons who are Specified CD or Gibraltar Persons, then they are subject to reporting.

Other than this it is not necessary for the financial institution to establish which one of the above five categories the Entity Account Holder falls into.

Example

A Financial Institution opens a depository account for a not for profit NFFE resident in Ireland. As the Controlling Persons of a not for profit NFFE are not treated as Specified Persons (see section 3.2.3) the Financial Institution can positively identify the NFFE as either being an Active NFFE, or a Passive NFFE without controlling persons who are Specified CD or Gibraltar Persons. The Financial Institution may classify the account as not reportable and further analysis is not required.