Curing US indicia (under a Inter Governmental Agreement)

Warning: these cures are written from the standpoint of the UK IGA. Rules vary by IGA. Further, if your jurisdiction has no IGA then US Treasury rules apply. Further, this table does not address the CRS.

Indicia Cures for US indicia
a) Identification of the account holder as a U.S. citizen or resident; Not applicable. Treat as US Reportable.
b) Unambiguous indication of a U. S. place of birth; [Unambiguous PoB is not indicium under the CRS. PoB, is however, Reportable, under the CRS.] Cure A
c) Current U.S. mailing or residence address (including a U.S. post office box or U.S. “in-care-of’ address); Cure B
d) Current U.S. telephone number; If the only telephone numbers are US numbers then Cure B. If, among the US numbers, there are non US numbers then Cure D.
e)  Standing instructions to transfer funds to an account maintained in the United States; Cure C
f)  Currently effective power of attorney or signatory authority granted to a person with a U.S. address; or Cure D
g)  An “in-care-of or “hold mail” address that is the sole address the Reporting United Kingdom Financial Institution has on file for the account holder. In the case of a Pre-existing Individual Account that is a Lower Value Account, an “in-care-of address outside the United States shall not be treated as U.S. indicia. Cure D

 

Cure Requirement
Cure A Where account holder information unambiguously indicates a U.S. place of birth, the Reporting United Kingdom Financial Institution obtains or has previously reviewed and maintains a record of:
(1) a self-certification that the account holder is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form);
(2) a non-U. S. passport or other government-issued identification evidencing the account holder’s citizenship or nationality in a country other than the United States; and
(3) a copy of the account holder’s Certificate of Loss of Nationality of the United States or a reasonable explanation of:
(a) the reason the account holder does not have such a certificate despite renouncing U.S. citizenship; or
(b) the reason the     account holder did   not obtain U.S. citizenship at birth.
Cure B Where account holder information contains a current U.S. mailing or residence address, or one or more U.S. telephone numbers that are the only   telephone numbers associated with the account, the Reporting United   Kingdom Financial Institution   obtains or has previously reviewed and maintains a record of:
(1) a self-certification that the account holder is not a U.S. citizen or resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); and
(2) a non-U. S. passport or other government-issued identification evidencing the account holder’s citizenship or nationality in a country other than the United States.
Cure C Where account holder information contains standing instructions to transfer funds to an account maintained in the United States, the Reporting United   Kingdom Financial Institution   obtains or has previously reviewed and maintains a record of:
(1) a self-certification that the account holder is not a U.S. citizen or resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); and
(2) documentary evidence, as defined in paragraph VI.D of this Annex I [below], establishing the account holder’s non-U.S. status.
Cure D Where account holder information contains a currently effective power of attorney or signatory authority granted to a person with a U.S. address, has an “in-care-of” address or “hold mail” address that is the sole address identified for the account holder, or has one or more U.S. telephone numbers (if a non-US. telephone number is also associated with the account), the Reporting United Kingdom Financial Institution obtains or has previously reviewed and maintains a record of:
(1) a self-certification that the account holder is not a U.S. citizen or resident for tax purposes (which may be on an IRS Form W-8 or other similar agreed form); or
(2) documentary evidence as defined in paragraph VI.D of this Annex I [below], establishing the account holder’s non-U.S. status.

Annex 1 paragraph VI. D (mentioned as part of Cure C and Cure D).

Review Procedures for Identifying Entity Accounts With Respect to Which Reporting is Required.

For Pre-existing Entity Accounts described in paragraph B of this section, the Reporting United Kingdom Financial Institution must apply the following review procedures to determine whether the account is held by one or more Specified U.S. Persons, by Passive NFFEs with one or more Controlling Persons who are U.S. citizens or residents, or by a Non-participating Financial Institution:

1. Determine Whether the Entity is a Specified U.S. Person.

a) Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to AML/KYC Procedures) to determine whether the information indicates that the entity account holder is a U.S. Person. For this purpose, information indicating that the entity is a U.S. Person includes a U.S. place of incorporation or organization, or a U.S. address.

b) If the information indicates that the entity account holder is a U.S. Person, the Reporting United Kingdom Financial Institution must treat the account as a U.S. Reportable Account unless it obtains a self-certification from the account holder (which may be on an IRS Form W-8 or W-9, or a similar agreed form), or reasonably determines based on information in its possession or that is publicly available, that the account holder is not a Specified U.S. Person.

2. Determine Whether a Non-U.S. Entity is a Financial Institution.

(a) Review information maintained for regulatory or customer relationship purposes (including information collected pursuant to AML/KYC Procedures) to determine whether the information indicates that the entity account holder is a Financial Institution.

(b) If the information indicates that the entity account holder is a Financial Institution, then the account is not a U.S. Reportable Account.

3. Determine Whether a Financial Institution is a Non-participating Financial Institution Payments to Which Are Subject to Aggregate Reporting Under Paragraph) 1(b) of Article 4 of the Agreement.

a) Subject to subparagraph (b) of this paragraph, if the account holder is a United Kingdom Financial Institution or other Partner Jurisdiction Financial Institution, then no further review, identification, or reporting is required with respect to the account.

b) A United Kingdom Financial Institution or other Partner Jurisdiction Financial Institution shall be treated as a Non-participating Financial Institution if it is identified as such by the IRS pursuant to paragraph 2 of Article 5 of the Agreement.

c) If the account holder is not a United Kingdom Financial Institution or other Partner Jurisdiction Financial Institution, then the Reporting United Kingdom Financial Institution must treat the entity as a Non-participating Financial Institution payments to which are reportable under paragraph 1(b) of Article 4 of the Agreement, unless the Reporting United Kingdom Financial Institution:

(1) Obtains a self-certification (which may be on an IRS Form W-8 or similar agreed form) from the entity that it is a certified deemed-compliant FFI, an exempt beneficial owner, or an excepted FFI, as those terms are defined in relevant U.S. Treasury Regulations; or

(2) In the case of a participating FFI or registered deemed-compliant FFI, verifies the entity’s FATCA identifying number on a published IRS FFI list.

4. Determine Whether an Account Held by an NFFE is a U.S. Reportable Account.

With respect to an account holder of a Pre-existing Entity Account that is not identified as either a U.S. Person or a Financial Institution, the Reporting United Kingdom Financial Institution must identify (i) whether the entity has Controlling Persons, (ii) whether the entity is a Passive NFFE, and (iii) whether any of the Controlling Persons of the entity is a citizen or resident of the United States. In making these determinations the Reporting United Kingdom Financial Institution should follow the guidance in sub-paragraphs (a) through (d) of this paragraph in the order most appropriate under the circumstances.

a) For purposes of determining the Controlling Persons of an entity, a Reporting United Kingdom Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures.

b) For purposes of determining whether the entity is a Passive NFFE, the Reporting United Kingdom Financial Institution must obtain a self-certification (which may be on an IRS Form W-8 or W-9, or on a similar agreed form) from the account holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the entity is an Active NFFE.

c) For purposes of determining whether a Controlling Person of a Passive NFFE is a citizen or resident of the United States for tax purposes, a Reporting United Kingdom Financial Institution may rely on:

(1) Information collected and maintained pursuant to AML/KYC Procedures in the case of a Pre-existing Entity Account held by one or more NFFEs with an account balance that does not exceed $1,000,000; or
(2) A self-certification (which may be on an IRS Form W-8 or W-9, or on a similar agreed form) from the account holder or such Controlling Person in the case of a Pre-existing Entity Account held by one or more NFFEs (page 92) with an account balance that exceeds $1,000,000.

d) If any Controlling Person of a Passive Non Financial Foreign Entity is a citizen or resident of the United States, the account shall be treated as a U.S. Reportable Account.

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