The term “Financial Account” referred to in these Regulations means an account maintained by a Financial Institution, including a Depository Account, a Custodial Account, or an account that meets any of the following requirements, other than an Excluded Account described in Article 23:
1. In the case that a Financial Institution is an Investment Entity, the account is any equity or debt interest in the Investment Entity. However, the account does not include an Investment Entity solely rendering investment advice to, or managing portfolios for, or acting on behalf of, a customer for the purpose of investing, administering, or managing Financial Assets deposited in the name of the customer with other Financial Institutions.
2. Any equity or debt interest in a Financial Institution not described in the preceding subparagraph, provided that the class of interests was established with the purpose of avoiding reporting in accordance with these Regulations.
3. Any Cash Value Insurance Contract and any Annuity Insurance Contract issued or maintained by a Financial Institution, other than a non-investment-linked and non-transferable immediate life annuity that is issued to an individual and monetizes a pension or disability benefit provided under an account that is an Excluded Account.

The term “Depository Account” referred to in these Regulations includes the following accounts maintained by a Financial Institution in the ordinary course of a banking or similar business:
1. A commercial, checking, savings, time, or thrift account.
2. A certificate of deposit, a thrift certificate, an investment certificate, a certificate of indebtedness, or other similar instrument.
3. An amount held by an insurance company pursuant to a guaranteed investment contract or a similar agreement to pay or credit interest thereon.

The term “Custodial Account” referred to in these Regulations means an account holds Financial Assets for the benefits of other persons, which does not include an Insurance Contract or an Annuity Insurance Contract.

The term “Equity Interest” referred to in these Regulations means an interest in an Entity. In the case that a partnership is a Financial Institution, the interest is a capital or profit interest in the partnership. In the case that a trust is a Financial Institution, the interest is all or a portion of the interest of a trust held by a settlor or a beneficiary, or any other natural persons exercising ultimate effective control over the trust. A person is treated as the beneficiary of a trust if such person has the right to directly or indirectly receive a mandatory or a discretionary distribution from the trust.

The term “Insurance Contract” referred to in these Regulations means a contract under which the issuer agrees to pay an amount upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk, which does not include an Annuity Insurance Contract.
The term “Annuity Insurance Contract” referred to in these Regulations means a contract under which the issuer agrees to make payments for a period of time determined by reference to the life expectancy of an individual.

The term “Cash Value” referred to in these Regulations means the greater of an amount that the policyholder is entitled to receive upon surrender or termination of the contract, and an amount the policyholder can borrow under or with regard to the contract, which does not include the following amount payables:
1. A payment solely by reason of the death of an individual insured under a life Insurance Contract.
2. A payment as a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the occurrence of the event insured against.
3. A payment as a refund of a previously paid premium under a non-investment-linked life Insurance Contract or an Annuity Insurance Contract, due to cancellation or termination of the contract, decrease in risk exposure during the effective period of the contract, or arising from the correction of a posting or similar error with regard to the premium for the contract.
4. A payment as a policyholder dividend, other than a termination dividend, provided that the dividend relates to an Insurance Contract under which the only benefits payable are described in subparagraph 2 of this Article.
5. A return of an advance premium or premium deposit, which does not exceed the next annual premium payable under the Insurance Contract for which the premium is payable at least annually.

The term “Preexisting Account” referred to in these Regulations including a Preexisting Individual Account or a Preexisting Entity Account, means a Financial Account held by an individual or an Entity, and maintained by a Reporting Financial Institution as of 31 December 2018.
The term “New Account” referred to in these Regulations including a New Individual Account or a New Entity Account, means a Financial Account held by an individual or an Entity, and maintained by a Reporting Financial Institution and opened on or after 1 January 2019. However, such Financial Account is deemed a Preexisting Account, if the following requirements are met:
(1) The Account Holder also holds with the same Reporting Financial Institution (or with its Related Entity located in the territory of the ROC as the Reporting Financial Institution) a Financial Account opened as of 31 December 2018;
(2) The Reporting Financial Insitution (and its Related Entity located in the territory of the ROC as the Reporting Financial Institution) treats the Financial Account described in the preceding subparagraph, and any other Financial Accounts held by the Account Holder described in the preceding subparagraph opened and managed on or after 1 January 2019 as a single Financial Account for purposes of implementing special due diligence provisions pursuant to Article 47, and for purposes of calculating the balance or value of any of the Financial Accounts pursuant to Article 49;
(3) The Reporting Financial Institution is permitted to satisfy AML/KYC Procedures for any Financial Account which is opened and managed on or after 1 January 2019 and is held by the Account Holder described in subparagraph 1 by relying upon the results of AML/KYC Procedures performed for the Financial Account described in subparagraph 1; and
(4) Upon the opening of a Financial Account which is opened and managed by the Reporting Financial Institution on or after 1 January 2019 and is held by the Account Holder described in subparagraph 1, the provision of new, additional, or amended customer information by the Account Holder is not required other than for purposes of the Regulations.
The term “Lower Value Account” referred to in these Regulations means a Preexisting Individual Account with an aggregate balance or value as of 31 December 2018 that does not exceed USD 1,000,000.
The term “High Value Account” referred to in these Regulations means a Preexisting Individual Account with an aggregate balance or value that exceeds USD 1,000,000 as of 31 December 2018 or 31 December of any subsequent year.

The term “Excluded Account” referred to in these Regulations means any of the following accounts:
1. A retirement or pension account that satisfies the following requirements:
(1) The account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits, including disability and death benefits.
(2) The account is tax-favored.
(3) Information reporting is required to the tax authorities with respect to the account.
(4) Withdrawals are conditioned on retirement, disability, or death, or penalties apply to withdrawals made before the occurrence of retirement, disability, or death.
(5) Either annual contributions are limited to USD 50,000 or less, or a maximum lifetime contribution is limited to the account of USD 1,000,000 or less, applying the rules set forth in paragraph 2 of Article 34 and Article 49. The contributions do not include assets or funds transferred from a Financial Account described in this subparagraph or subparagraph 2 of this Article, or from the retirement or pension funds described in subparagraph 2 of Article 3.
2. A non-retirement account that satisfies the following requirements:
(1) The account is subject to regulation as an investment vehicle for purposes other than for retirement and is regularly traded on an established securities market, or the account is subject to regulation as a savings vehicle for purposes other than for retirement.
(2) The account is tax-favored.
(3) Withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account, or penalties apply to withdrawals made before such criteria are met.
(4) Annual contributions are limited to USD 50,000 or less, applying the rules set forth in paragraph 2 of Article 34 and Article 49. The contributions do not include assets or funds transferred from a Financial Account described in the preceding subparagraph or this subparagraph, or from the retirement or pension funds meeting the requirements of subparagraph 2 of Article 3.
3. A life Insurance Contract with a coverage period that will end before the insured individual attains age 90, provided that the contract satisfies the following requirements:
(1) Periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence or until the insured attains age 90, whichever is shorter.
(2) The contract has no Cash Value that any person can access by withdrawal, loan, or otherwise, without terminating the contract.
(3) The amount, other than a death benefit, payable upon cancellation or termination of the contract, cannot exceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges for the periods of the contract’s existence and any amounts paid prior to the cancellation or termination of the contract.
(4) The contract is not held by a transferee for value.
4. An account that is held by an estate accompanied with a copy of the deceased’s will, a death certificate, or other similar documentation.
5. An account held on behalf of a party involved in connection with any of the following:
(1) A court order or judgment.
(2) A sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements:
i. The account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a Financial Asset that is deposited in the account in connection with the sale, exchange, or lease of the property.
ii. The account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease.
iii. The assets of the account and the income earned thereon, will be paid or otherwise distributed, for the benefit of the purchaser, seller, lessor, or lessee, including to satisfy such person’s obligation, when the property is sold, exchanged, or surrendered, or the lease terminates.
iv. The account is not a margin or similar account established in connection with a sale or exchange of a Financial Asset.
v. The account is not associated with an account described in subparagraph 6 of this Article.
(3) An obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a payment solely to facilitate the payment of taxes or insurance related to the real property at a later time.
(4) An obligation of a Financial Institution solely to facilitate the payment of taxes at a later time.
6. A Depository Account exists solely because a customer makes a payment in excess of a balance due with respect to a credit card or other revolving credit facility and the overpayment is not immediately returned to the customer, provided that no later than 31 December 2018, the issuer implements policies and procedures either to prevent a customer from making an overpayment in excess of USD 50,000, or to ensure that any customer overpayment in excess of USD 50,000 is refunded to the customer within 60 days. The customer overpayment in each case shall be calculated based on the facts of actual economic relationships, and apply the rule set forth in paragraph 2 of Article 34, and not refer to credit balances to the extent of disputed charges.
7. When a Reporting Financial Institution performs due diligence, the aggregate balance or value of an account does not exceed USD 1,000 for the year, and the amount calculation shall apply the rule set forth in paragraph 2 of Article 34, provided that the following requirements are met:
(1) The Account Holder has not initiated a transaction with regard to the account or any other account held by the Account Holder with the Reporting Financial Institution in the past 3 years, and the account holder has not communicated with the Reporting Financial Institution that maintains such account regarding the account or any other account held by the Account Holder with the Reporting Financial Institution in the past 6 years.
(2) In the case of a Cash Value Insurance Contract, the account holder has not communicated with the Reporting Financial Institution regarding the account related to the contract or any other account held by the Account Holder with the Reporting Financial Institution in the past 6 years.
8. Any other account that presents a low risk of being used to evade tax, which is announced by the Ministry of Finance.