Acta Francisci Pp. 677

ments policies and procedures to prevent an account balance owed to the

Account Holder that exceeds $50,000.

B. Other New Entity Accounts. With respect to New Entity Accounts not de-

scribed in paragraph A of this section, the Reporting HS/VCS Financial

Institution must determine whether the Account Holder is: (i) a Specified

U.S. Person; (ii) a HS/VCS Financial Institution or other Partner Juris-

diction Financial Institution; (iii) a participating FFI, a deemed-compliant

FFI, or an exempt beneficial owner, as those terms are defined in relevant

U.S. Treasury Regulations; or (iv) an Active NFFE or Passive NFFE.

1. Subject to subparagraph B(2) of this section, a Reporting HS/VCS Fi-

nancial Institution may determine that the Account Holder is an Active

NFFE, a HS/VCS Financial Institution, or other Partner Jurisdiction

Financial Institution if the Reporting HS/VCS Financial Institution rea-

sonably determines that the Account Holder has such status on the basis

of the Account Holder's Global Intermediary Identification Number or

other information that is publicly available or in the possession of the

Reporting HS/VCS Financial Institution, as applicable.

2. If the Account Holder is a HS/VCS Financial Institution or other Part-

ner Jurisdiction Financial Institution treated by the IRS as a Nonpartic-

ipating Financial Institution, then the account is not a U.S. Reportable

Account, but payments to the Account Holder must be reported as con-

templated in subparagraph 1(b) of Article 4 of the Agreement.

3. In all other cases, a Reporting HS/VCS Financial Institution must ob-

tain a self-certification from the Account Holder to establish the Account

Holder's status. Based on the self-certification, the following rules apply:

a) If the Account Holder is a Specified U.S. Person, the Reporting HS/

VCS Financial Institution must treat the account as a U.S. Reporta-

ble Account.

b) If the Account Holder is a Passive NFFE, the Reporting HS/VCS

Financial Institution must identify the Controlling Persons as deter-

mined under AML/KYC Procedures, and must determine whether

any such person is a U.S. citizen or resident on the basis of a self-cer-

tification from the Account Holder or such person. If any such person

is a U.S. citizen or resident, the Reporting HS/VCS Financial Institu-

tion must treat the account as a U.S. Reportable Account.