04.18 – Change of Circumstance

A change in circumstances includes any change to or addition of information in relation to the account holder’s account (including the addition, substitution, or other change of an account holder) or any change to or addition of information to any account associated with such account.

A change of circumstance will only have relevance if the change to, or addition of information affects the status of the account holder for the purposes of the Agreement.

Associated accounts are those accounts that are associated through the aggregation rules or where a New Account is treated as being a pre-existing obligation. See Section 4.14 for aggregation and 6 for pre-existing obligation rules.

Example 1

Where an account holder with a Pre-existing Account opens a New Account that is linked to the Pre-existing Account in the Financial Institution’s computer systems and, as part of the account opening process, a US telephone number is provided, then this is a change in circumstance to the Pre-existing Account.

The change will only be relevant if it indicates that an account holder’s status has changed, that is, it either indicates that they are a US Person or that they are no longer a US Person.

If there is a change of circumstances that causes the Financial Institution to know or have reason to know that the original self certification (such as one obtained on the opening of a New Individual Account) is incorrect or unreliable, the Financial Institution can no longer rely on the original self certification.

The Financial Institution should then obtain a new self certification that establishes whether the account holder is a US citizen or US tax resident.

In the event that there is a change in circumstance that indicates a change in the account holder’s status, the Financial Institution should verify the account holder’s actual status in sufficient time to allow it to report the account, if required, in the next reportable period.

If an account holder fails to respond to a Financial Institution’s requests for a self certification or other documentation to verify the account holder’s status, then the Financial Institution should treat the account as a US Reportable Account until such time as the Financial Institution is given the necessary information to be able to correctly verify the status.