The term Account Holder means the person listed or identified as the holder of an account. A person, other than a Financial Institution, holding an account for the benefit or account of another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding the account, and such other person is treated as the Account Holder for FATCA/ AEoI purposes. Please note that for FATCA/ AEoI purposes in the case of trusts not the trustee is treated as holding the account, but the trust itself.
FATCA is an abbreviation of Foreign Account Tax Compliance Act. This US tax legislation is aimed at identifying US Persons that have an account or financial assets outside of the United States.
Intergovernmental Agreement (IGA)
The term Intergovernmental Agreement, or short IGA, means an agreement or arrangement between the US and a foreign government governing the implementation of FATCA in such non-US jurisdiction.
“CRS” stands for Common Reporting Standard. It is an internationally agreed standard for Automatic Exchange of Information on financial account information, endorsed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as the customer due diligence procedures to be followed by financial institutions.
A natural person who exercises control over an entity. It generally includes all natural persons identified on designated forms for AML/KYC purposes (Forms A, K, S)
Participating (Partner) Jurisdiction
The term Reportable Account means an account held by one or more Reportable Persons or by a Passive NFE (or a Professionally Managed Investment Entity in a Non-Participating Jurisdiction) with one or more Controlling Persons that is a Reportable Person, provided it has been identified as such pursuant to the applicable AEOI/CRS due diligence procedures.
The term Reportable Person means a person that is resident for tax purposes in a Reportable Jurisdiction under the tax laws of such jurisdiction other than: (i) a corporation the stock of which is regularly traded on one or more established securities markets; (ii) any corporation that is a Related Entity of a corporation described in clause (i); (iii) a Governmental Entity; (iv) an International Organisation; (v) a Central Bank; or (vi) a Financial Institution.
(Foreign) Financial Institution (FFI/ FI)
An entity that qualifies as a Custodial Institution, a Depository Institution, an Investment Entity or a Specified Insurance Company.
Non-Financial (Foreign) Entity (NFFE/ NFE)
An entity that is not an FFI/ FI.
Active NFE by reason of income and assets:
less than 50% of the gross income for the preceding calendar year or other appropriate reporting period is passive income, and
less than 50% of the assets held by the NFE during the preceding calendar year or other appropriate reporting period are assets that produce or areheld for the production of passive income.
Qualified listed stock cooperation and their related entities
Governmental entities, international organizations, central banks and entities under the sole ownership of such NFEs.
Holding NFEs that are member of a non-financial group
substantially all (i.e. 80% or more measured against an entity’s gross income) the activities of the NFE consist of holding (in whole or in part) the issued stock of one or more subsidiaries that engage in businesses other than the business of a FI, or
providing financing and services to such subsidiaries.
has not had any operations in the past
invests equity in assets with the intention of operating a business other than a FI, and
has been established for no more than 24 months.
NFEs that are liquidating or under reorganization
Treasury centers that are part of a non-financial group
A NFE which is not an Active NFE; or
A professionally-managed investment entity resident in a Non-Participating jurisdiction.
income equivalent to interest,
rents and royalties, other than rents and royalties derived in the active conduct of a business conducted, at least in part by the employees of the NFE
The term TIN means Taxpayer Identification Number or a functional equivalent in the absence of a TIN. A TIN is a unique combination of letters or numbers assigned by a jurisdiction to an individual or an entity and used to identify the individual or entity for the purposes of administering the tax laws of such jurisdiction. Further details of acceptable TINs can be found on the OECD AEOI Portal (http://www.oecd.org/tax/automatic-exchange/).
An entity that holds, as a substantial portion of its business, Financial Assets for the account of others. This is the case if the gross income of the entity attributable to the holding of Financial Assets and related financial services equals or exceeds 20 percent of the entity’s gross income during the shorter of the three-year period ending as of 31 December (or the final day of a non-calendar year accounting period) prior to the year in which the determination is being made, or the period during which the entity has been in existence.
An entity that accepts deposits in the ordinary course of a banking or similar business. An entity conducts banking or similar activities if it accepts deposits or similar investments of funds (on the liabilities side of the balance sheet) while regularly engaging in at least one of the following activities (on the assets side of the balance sheet):
makes personal, mortgage, industrial, or other loans or provides other extensions of credit;
purchases, sells, discounts or negotiates accounts receivable, installment obligations, notes, bills of exchange, drafts, checks, acceptances or other evidence of indebtedness;
issues letters of credit and negotiates drafts drawn thereunder;
provides trust or fiduciary services;
finances foreign exchange transactions; or
enters into, purchases, or disposes of finance leases or leased assets.
Under the CRS, an entity is not considered engaged in a banking or similar business if the entity solely accepts deposits from persons as a collateral or security payment pursuant to a sale or lease of property or pursuant to a similar financing arrangement between such entity and not the person from whom the entity received the deposit.
Legal entities and legal structures (e.g. stock corporations, partnerships, collective capital investment schemes, trusts or foundations)
Includes securities (e.g. shares in the share capital of a corporation, interests or beneficial ownership of the interests in a free float or listed partnership or trust, as well as bonds, notes, debentures, other debt instruments or interests in collective investment schemes), partnership interests, commodity transactions, swaps, insurance or annuity contracts or interests in securities (including exchange traded and non-exchange traded futures and options).
The term Financial Assets does not include non-trading assets.
An entity that meets at least one of the conditions a) or b) below:
a. an entity that primarily conducts one or more of the following business activities for a customer:
i. trading in money market instruments; foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodities futures trading;
ii. individual and collective portfolio management; or
iii. otherwise investing, administering, or managing Financial Assets or money on behalf of other persons;
b. an entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets, if the entity is managed by another entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company or an Investment Entity.
An entity is treated as primarily conducting as a business one or more of the activities described in a) above or an entities gross income is primarily attributable to investing, reinvesting or trading in Financial Assets for the purpose of b) above, if the entity’s gross income attributable to the relevant activities equals or exceeds 50 percent of the entity’s gross income during the shorter of (i) the three-year period ending as of 31 December of the year preceding the year in which the determination is made, or (ii) the period during which the entity has been in existence. The term “Investment Entity” does not include an entity that is an Active NFE.
Another financial institution (e.g. bank, asset manager) performs with discretionary decision-making authority services on the entity’s behalf, such as:
Trading in financial instruments
Otherwise investing, administering or managing funds, money or financial assets
It is sufficient if only parts of the entities’ assets are professionally managed as per above.
Specified Insurance Company
An entity that is an insurance company (or the holding company of an insurance company) that issues, or is obliged to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.