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F.No. 504/090/2007-FTD-I 19th February, 2016 Clarifications for implementation of FATCA and CRS
Currency
New Fixed Deposit account as Pre-existing Account 2.2 During stakeholders consultations, representatives of financial institutions informed that in such cases, no additional documentation are obtained for these fixed deposits accounts as they are intrinsically related to existing saving bank account and all KYC documents are available for the existing saving bank account. 2.3 In these cases, where no additional documentation are required for certain FD accounts, financial institution may treat the new FD account as pre-existing account subject to the following conditions: a. the saving bank account is opened on or before 30.06.2014 in the case of FATCA and 31.12.2015 in the case of CRS ; b. the due diligence requirements have already been carried out or are in the process of being carried out for the preexisting saving bank account and c. the accounts are treated as linked or as a single account or obligation for the purposes of applying any of the due diligence requirements and reporting. 2.4 The above situation will also be applicable to Auto sweep facility linked to existing saving bank account.
Global Custodian and Local Custodian 3.2 It has been decided that Local Sub-custodian are required to carry out the due diligence on the accounts held by GC end-clients. However, for carrying out due diligence, the Local Sub-custodian may rely on the KYC/FATCA/CRS documentation done by GC for the account holders including the self-certification. Further, it may be clarified that the obligations for due diligence and reporting remain that of the Local Custodian who should also be able to access all documents in relation to an account holder.
HUF 4.2 In this regard, it has been decided that for the purpose of compliance, an HUF account shall be treated as an entity account. The due diligence of HUF accounts will be same as prescribed under PMLA/ KYC procedures.
NBFC 5.2 In this regard, it has been decided that an NBFC which accepts deposit in the course of a banking business or a similar business as mentioned in the definition of depository institution will be considered as Depository Institution and will report accordingly. An NBFC which is working as investment entity, will report accordingly.
Procedure for furnishing the report
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