Common use of Review Procedures for Identifying Entity Accounts Clause in Contracts

Review Procedures for Identifying Entity Accounts. With Respect to Which Reporting is Required. For Preexisting Entity Accounts described in paragraph B of this section, the Reporting Bermuda Financial Institution must apply the following review procedures to determine whether the account is held by one or more Specified United Kingdom Persons or by Passive NFFEs with one or more Controlling Persons who is a Specified United Kingdom Person: 1. Determine Whether the Entity is a Specified United Kingdom 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 Specified United Kingdom Person. For this purpose, information indicating that the Entity is a Specified United Kingdom Person includes the place of incorporation or organisation, or an address in the United Kingdom. b) If the information indicates that the Entity Account Holder is a Specified United Kingdom Person, the Reporting Bermuda Financial Institution must treat the account as a United Kingdom Reportable Account unless it obtains a self- certification from the Account Holder, or reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Specified United Kingdom Person. 2. Determine Whether a Non-United Kingdom Resident 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 Non-United Kingdom Resident Entity Account Holder is a Financial Institution. b) If the information indicates that the Non-United Kingdom Resident Entity Account Holder is a Financial Institution, then the account is not a United Kingdom Reportable Account. 3. Determine Whether an Account Held by an NFFE is a United Kingdom Reportable Account. With respect to an Entity Account Holder of a Preexisting Entity Account that is not identified as either a Specified United Kingdom Person or a Non-United Kingdom Resident Entity which is a Financial Institution, the Reporting Bermuda Financial Institution must identify (i) whether the Entity Account Holder has Controlling Persons, (ii) whether the Entity Account Holder is a Passive NFFE, and (iii) whether any of the Controlling Persons of the Entity is a Specified United Kingdom Person. In making these determinations the Reporting Bermuda Financial Institution should follow the guidance in a) to d) of this subparagraph in the order most appropriate under the circumstances. a) For purposes of determining the Controlling Persons of an Entity, a Reporting Bermuda 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 Bermuda Financial Institution must obtain a self-certification from the Entity 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 Specified United Kingdom Person, a Reporting Bermuda Financial Institution may rely on: (1) Information collected and maintained pursuant to AML/KYC Procedures in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance that does not exceed $1,000,000; or (2) A self-certification from the Entity Account Holder or such Controlling Person in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance that exceeds $1,000,000. d) If any Controlling Person of a Passive NFFE is a Specified United Kingdom Person, the account shall be treated as a United Kingdom Reportable Account.