IEIM402880 - Due Diligence: Pre-Existing Individual Accounts: Lower Value Accounts: Curing Indicia

Due Diligence: Pre-Existing Individual Accounts: Lower Value Accounts: Curing Indicia

There may be occasions when the electronic record search gives indications of residence in a Reportable Jurisdiction [see IEIM402780] that the Financial Institution considers may be incorrect. In such circumstances the Financial Institution may take steps to ‘cure’ the information before treating the Account Holder as a Reportable Person.

Where the Financial Institution holds information about the Account Holder that includes any of

  1. a current mailing address in a Reportable Jurisdiction,
  2. one or more telephone numbers in a Reportable Jurisdiction (and no telephone number in the UK),
  3. standing instructions [see IEIM402847], other than with respect to Depository Accounts , to transfer funds to an account maintained in a Reportable Jurisdiction, or
  4. a currently effective power of attorney or signatory authority granted to a person with an address in a Reportable Jurisdiction, then

the Financial Institution may obtain a self-certification from the Account Holder to ‘cure’ the information by establishing the jurisdiction of residence. The Financial Institution can rely on self-certifications it has previously reviewed and maintained a record of, but in either case the self-certification must be supported by documentary evidence [see IEIM403180]. If the self-certification supported by documentary evidence establishes that the Account Holder is not a Reportable Person then the Financial Institution is not required to treat the Account Holder as resident in a Reportable Jurisdiction.

The self-certification obtained as part of the curing procedure does not need to contain an express confirmation that an Account Holder is not resident in a particular jurisdiction. Provided the self-certification positively identifies the jurisdictions where the Account Holder is resident it can be taken that the Account Holder is not resident in any other jurisdiction.

Where a Financial Institution has contacted an Account Holder for a self-certification but the Account Holder has not responded, the account should be treated as reportable 90 days after initiating contact. The 90 day period is to allow the Account Holder sufficient time to respond to the request for information.

The information in 4. above may arise in circumstances where the Account Holder cannot provide a self-certification. In such a case the Financial Institution may rely on documentary evidence that establishes the Account Holder’s non-reportable status.