07.03 – Standardised Industry Codes and US Indicia for Pre-existing Entities

A Financial Institution can rely on information previously recorded in its files in addition to standardised industry codes, in determining the status of an entity. For these purposes, a standardised industry code may be any coding system employed by the Financial Institution.

The term standardised industry code means a code that is part of a coding system used by the Financial Institution to classify account holders by business type and was in use by the later of 1 January 2012, or six months after the date the Financial Institution was formed or organised.

Example

A Financial Institution has a coding system that has been in existence since 2010. This can be used to determine the status of account holders for all New and Pre-existing accounts.

Where a standardised industry code alone is used, the Financial Institution is unable to rely on this to determine the entity’s status if there are US indicia, as described below, and these indicia have not been cured.

The term US indicia, when used with respect to an entity, includes any of the following:

  • Classification of an account holder as a US resident in the current customer files.
  • A current US residence address or US mailing address.
  • Standing instructions to pay amounts to a US address or an account maintained in the US.
  • A current telephone number for the entity in the US, but no telephone number for the entity outside of the US.
  • A current telephone number for the entity in the US in addition to a telephone number for the entity outside of the US.
  • A power of attorney or signatory authority granted to a person with a US address.
  • An “in-care-of” address or “hold mail” address that is the sole address provided for the entity.

Documentary evidence required to cure US indicia in relation to Standard Industrial Codes

If there are US indicia as described above, the Financial Institution may treat the entity as non-US only if the Financial Institution obtains a self certification for the entity and one form of acceptable documentary evidence that establishes the entity’s non-US status such as a Certificate of Incorporation.