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HMRC internal manual

International Exchange of Information Manual

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HM Revenue & Customs
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Due Diligence: Pre-Existing Entity Accounts: Reportable Accounts: Account Holder

Due Diligence: Pre-Existing Entity Accounts: Reportable Accounts: Account Holder

Financial Institutions are required to determine whether a pre-existing account is held by one or more entities that are Reportable Persons [see IEIM402340]. If any of the entities is a Reportable Person then the account will be a Reportable Account.

The Financial Institution must review information maintained for regulatory or customer relationship purposes (including information collected as part of any AML/KYC procedure) to determine where the entity is resident, unless residence can be reasonably determined through the use of publicly available information [see IEIM 403320]. The entity will be reportable if the information indicates that the entity is resident in a Reportable Jurisdiction [see IEIM402340]. Such information will include, but is not limited to:

  • A place of incorporation or organisation in a Reportable Jurisdiction;
  • An address in a Reportable Jurisdiction; or
  • Where the entity is a trust, an address of one or more of the trustees in a Reportable Jurisdiction.

 

As the definition of entity goes beyond corporate structures to include fiscally transparent vehicles such as trusts and partnerships, the address of the entity should be interpreted widely so will include the registered office, principal office and/or the place of effective management.

The existence of a permanent establishment (including a branch) in a Reportable Jurisdiction is not, in isolation, an indication of residence for this purpose.

Although there is no exemption from a paper record search for pre-existing entity accounts, such a search is not required in areas where all the information is electronically searchable [see IEIM402920 or IEIM402780].

If the information indicates that the Account Holder is resident in a Reportable Jurisdiction then the account is a Reportable Account unless the Financial Institution obtains a self-certification from the Account Holder [see IEIM402010], or determines based on information in its possession or which is publicly available, that the Account Holder is not a Reportable Person.