103120 – Due Diligence: New Individual Accounts

New accounts are those opened on or after the date that the various automatic exchange of information regimes ‘switch on’ under the timelines for due diligence and reporting purposes. New Individual Accounts are accounts where the Reportable Person is an individual. 

The due diligence procedures for New Individual Accounts require that a self-certification is obtained from the Account Holder. 

If the self-certification establishes that the Account Holder is resident for tax purposes in a Reportable Jurisdiction or is a US citizen, then the Reporting Financial Institution must treat the account as a Reportable Account. 

The wider approach that requires Financial Institutions to identify the territory in which a person is a tax resident, irrespective of whether or not that territory is a Reportable Jurisdiction, apply to new accounts as well as pre-existing accounts. The self-certification process can be used for this purpose. This information must be maintained by the Reporting Financial Institution for six years from the end of the period in which the territory is identified.

The procedures applying for identifying Reportable Accounts among New Individual Accounts are described in the following pages.