A Reporting Financial Institution shall perform the due diligence on Preexisting Individual Accounts, New Individual Accounts, Preexisting Entity Accounts, and New Entity Accounts in accordance with the procedures and time limits in this Chapter to identify Foreign Accounts and Reportable Accounts. A Reporting Financial Institution may apply the due diligence procedures for High Value Accounts to Lower Value Accounts. Where a Reporting Financial Institution applies the due diligence procedures for Preexisting Accounts to such Accounts, the procedures may be supplemented with the due diligence procedures for New Accounts.
A Reporting Financial Institution, which pursuant to the provisions in this Chapter, reviews and identifies any Foreign Account not a Reportable Account at the time the due diligence is performed, may rely on the outcome of the first review after the implementation of these Regulations and report the information pursuant to the provisions in Chapter 4, if such a Foreign Account becomes a Reportable Account in subsequent years.

The balance or value of an account and its threshold shall be determined as of the last day of the calendar year. In the case of a Cash Value Insurance Contract or an Annuity Insurance Contract, the balance or value of an account and its threshold may be determined as of the contract anniversary date that ends with or within that calendar year.
If the amount of an account is denominated in a currency other than US dollars, its threshold shall be calculated by the closing foreign exchange rate posted by a Reporting Financial Institution’s designated major correspondent bank of the date in the preceding paragraph.