IEIM405116 - Penalties for Failure to Apply Due Diligence Procedures
Penalties for Failure to Apply Due Diligence Procedures
Reporting Financial Institutions are required to carry out due diligence in relation to all Account Holders in order to determine their jurisdiction(s) of tax residence. Reporting Financial Institutions or UK representatives will be charged a penalty of up to £100 for each Account Holder or Controlling Person in respect of which the required due diligence procedures have not been carried out.
Where the failure in question is a failure to obtain a valid self-certification required by the CRS or the FATCA agreement, the penalty is up to £300 for each Account Holder or Controlling Person for which a valid self-certification has not been obtained.