|Under the UK legislation, a Financial Institution is required to identify and report all Reportable Accounts. The Agreement is written to provide for exemptions to apply to certain accounts based on thresholds subject to an election to remove them. The UK legislation reverses this requirement meaning that no thresholds apply unless a Financial Institution elects to apply the appropriate threshold exemptions set out in the Agreement when reviewing and identifying Pre-existingIndividual Accounts.
The election can apply to all Financial Accounts or to a clearly identifiable group of accounts, such as by a line of business or by reference to the location where the account is maintained.
If an election is made by the Financial Institution, then the following accounts do not need to be reviewed, identified or reported to HMRC.
If a Financial Institution does not make an election to apply the threshold exemptions, then it will need to review all Pre-existing Individual Accounts.