The due diligence procedures are for the purpose of identifying whether or not an Account Holder is a Reportable Person. If an Account Holder is identified as a Reportable Person, the financial institution will then have to collate reportable information for the purpose of reporting to HMRC.
In determining whether an Account Holder of a Lower Value Account is a Reportable Person for DAC/CRS or CDOT purposes financial institutions may apply the residence address test.
Where the financial institution has policies and procedures in place to verify the residence address of an Account Holder based on Documentary Evidence, a person will be regarded as resident for tax purposes in the jurisdiction in which an address is located if:
a) The financial institution has in its records a residence address for the Account Holder;
b) The residence address held is current; and
c) The residence address is based on Documentary Evidence.