Where a reporting financial institution fails to establish the residence of an individual with a Lower Value Account from the residence test, or chooses not to apply the residence address test, it must review it’s electronically searchable data for indicia of the individual’s residence (and citizenship for US reporting under FATCA). For FATCA reporting, an electronic search may not be necessary if the financial institution has already established an Account Holder’s status to meet its obligations as a qualified intermediary.
The Account Holder will be regarded as a resident of a Reportable Jurisdiction if any if the indicia below apply:
a) The Account Holder is identified as a resident of a Reportable Jurisdiction or as a US citizen.
b) For FATCA only, there is an unambiguous indication of a US place of birth.
c) The current mailing or residence address (including a post office box) of the Account Holder is in a Reportable Jurisdiction.
d) There are one or more current telephone numbers in a Reportable Jurisdiction (and, for DAC/CRS, no telephone number in the jurisdiction of the reporting FI).
e) Standing instructions to transfer funds to an account maintained in a Reportable Jurisdiction (other than a Depository Account in the case of the DAC/CRS)
f) A current effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction.
g) A “hold mail” instruction or an “in-care-of” address or in a Reportable Jurisdiction if the reporting financial institution does not have any other address on file for the Account Holder.
If none of the above indicia are discovered through an electronic search, no further action is required in respect of Lower Value Accounts unless and until there is a subsequent change of circumstance that results in one or more of the above indicia being associated with the account or the Account Holder. Where such indicia arises, the account becomes a Reportable Account unless the financial institution takes steps to cure or repair the indicia. Only where the indicia remain in place after the cure or repair is completed will the account become a Reportable Account.
Also, where some the above indicia are present but provide contradictory evidence, the financial institution may take steps to cure or repair the indicia. For example, if the indicia, with the exception of a current telephone number in France, all point to the individual being resident in the UK, the financial institution can seek information from the individual to confirm where he or she is resident for tax purposes before treating the account as belonging to a French Reportable Person.
A financial institution will not be treated as having reason to know that that an Account Holder’s status is incorrect because it retains information or documentation that may conflict with its review of the Account Holder’s status if it was not necessary to review them under the procedures for the electronic record search.