07.02 Reportable Accounts

An Entity Account is only reportable where the account is held by one or more entities that are Specified US Persons or Passive NFFEs with one or more Controlling Persons who are US citizens or residents.

Where a Pre-existing Entity Account closes before the Financial Institution carrying out its due diligence procedures, then the account is still required to be reviewed. Where following the due diligence procedures the account is found to be reportable, the Financial Institution must report the information as required under Section 9. This will not apply to accounts that are closed before 30 June 2014.

If the account holder is a Non-Participating Financial Institution (NPFI), payments made to the NPFI will be reportable (See Section 9.4).
Controlling Persons are defined as natural persons who exercise control over an entity. In the case of a Trust this means:

  • the settlor,
  • the trustees,
  • the protector (if any),
  • the beneficiaries or class of beneficiaries, and
  • any other natural person exercising ultimate effective control over the Trust.

In the case of a legal arrangement other than a Trust, it means persons in equivalent or similar positions. The term “Controlling Persons” must be interpreted in a manner consistent with the Recommendations of the Financial Action Task Force.

An entity account will also be reportable where a self certification is not provided, or the entity’s status cannot be determined from information held, or that is publically available. In this situation, the account should continue to be reported until such time that the entity’s status is correctly identified.