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.

A Preexisting Individual Account that is a Cash Value Insurance Contract or an Annuity Insurance Contract is not required to be reviewed, identified, or reported, provided that such Contract is prevented by law from being sold to residents of a Reportable Jurisdiction.

A Lower Value Account shall be reviewed by applying any of the following procedures:
1. Residence address test: a Reporting Financial Institution shall review a current residence address for the Account Holder based on Documentary Evidence in its records.
2. Electronic record search: a Reporting Financial Institution shall review electronic records maintained by the Reporting Financial Institution for any of the following indicia associated with the Account Holder:
(1) Identification as a resident of a Foreign Jurisdiction.
(2) Current residence or mailing address in a Foreign Jurisdiction.
(3) Telephone numbers in a Foreign Jurisdiction and no telephone number in the ROC.
(4) Standing instructions with respect to a Financial Account other than a Depository Account to transfer funds to an account maintained in a Foreign Jurisdiction.
(5) Power of attorney or signatory authority granted to a person with an address in a Foreign Jurisdiction.
(6) Only an “in-care-of” address or “hold mail” instruction in a Foreign Jurisdiction.
If a current residence address of the Account Holder is determined to be located in a Reportable Jurisdiction in accordance with subparagraph 1 of the preceding paragraph, such Account Holder is treated as a resident of such jurisdiction, and such account is a Reportable Account.
If a current residence address of the Account Holder is not able to be determined in accordance with subparagraph 1 of paragraph 1, the electronic record search shall be applied in accordance with subparagraph 2 of the same paragraph.

When searching the electronic record of an Account Holder in accordance with subparagraph 2 of paragraph 1 of the preceding article, or if there is a change in circumstances of an account, that results in one or more indicia described in items 1 through 5 of such subparagraph being associated with the account, the Account Holder shall be treated as the resident of the Foreign Jurisdiction. However, an Account Holder shall not be treated as a resident of a Foreign Jurisdiction under any of the following circumstances:
1. The electronic record contains any of the indicia described in items 2 through 4 of subparagraph 2 of paragraph 1 of the preceding article, and the Reporting Financial Institution maintains a self-certification specifying the jurisdictions of residences of the Account Holder other than such Foreign Jurisdiction, and Documentary Evidence establishing that the Account Holder is not a resident of such Foreign Jurisdiction.
2. The electronic record contains an indicium described in item 5 of subparagraph 2 of paragraph 1 of the preceding article, and the Reporting Financial Institution maintains a self-certification specifying the jurisdiction of residence of the Account Holder other than such Foreign Jurisdiction, or Documentary Evidence establishing that the Account Holder is not a resident of such Foreign Jurisdiction.
When searching electronic record of an Account Holder in accordance with subparagraph 2 of paragraph 1 of the preceding article only an indicium described in item 6 of such subparagraph is identified, the Reporting Financial Institution may apply paragraph 3 of Article 38 to review the paper record, or obtain a self-certification or Documentary Evidence from the Account Holder to identify his or her countries or jurisdictions of residences. If such paper record search fails to establish any of the indicia described in items 1 through 5 of subparagraph 2 of paragraph 1 of the preceding article, and the attempt to obtain the self-certification and Documentary Evidence from the Account Holder is not successful, the Reporting Financial Institution shall report such account as an undocumented account.
If the Account Holder is determined to be a resident of a Reportable Jurisdiction in accordance with the preceding two paragraphs, such account is a Reportable Account.

A High Value Account shall be subject to the electronic record search. The Reporting Financial Institution shall review the electronic record maintained by itself for any of the indicia described in subparagraph 2 of paragraph 1 of Article 36 associated with the Account Holder.
If the Reporting Financial Institution’s electronic record does not include any of the information in the following items, a paper record search is required to be performed for any uncontained information in such item in accordance with paragraph 3:
1. The Account Holder’s residence status.
2. The Account Holder’s current residence address and mailing address.
3. The Account Holder’s telephone numbers.
4. In the case of Financial Accounts other than Depository Accounts, whether there are standing instructions to transfer funds.
5. Whether there is any power of attorney or signatory authority.
6. Whether there is an “in-care-of” address or “hold mail” instruction.
When a High Value Account is undergone the paper record search, the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with such account within the last 5 years shall be reviewed:
1. The most recent Documentary Evidence collected.
2. The most recent account opening contract or documentation.
3. The most recent documentation obtained pursuant to AML/KYC Procedures or for other regulatory purposes.
4. Any power of attorney or signature authority forms.
5. Any standing instructions other than with respect to a Depository Account to transfer funds.
The preceding article shall apply to the results of the electronic record search and the paper record search of a High Value Account.
If a relationship manager has actual knowledge that a High Value Account Holder is a resident of a Reportable Jurisdiction, such account shall be treated as a Reportable Account.
A Reporting Financial Institution shall implement relevant procedures to ensure that a relationship manager identifies any change in circumstances of an account.
A High Value Account reviewed in accordance with the procedures provided in the preceding six paragraphs shall be subject to the review procedures in accordance with paragraph 5 in subsequent years. However, an undocumented account shall be reviewed annually in accordance with the preceding six paragraphs.

A Reporting Financial Institution shall complete the reviewing procedures for High Value Accounts by 31 December 2019, and complete the reviewing procedures for Lower Value Accounts by 31 December 2020.
If a Lower Value Account becomes a High Value Account as of the last day of any subsequent calendar year, the Reporting Financial Institution shall complete its review in accordance with the preceding article within the calendar year following the year in which the account becomes a High Value Account.

Upon a New Individual Account opening, a Reporting Financial Institution shall obtain and keep a self-certification of the Account Holder which allows the Reporting Financial Institution to determine such individual’s resident countries or jurisdictions, and confirm the reasonableness of such self-certification based on other information obtained in connection with such account.
The “other information” mentioned in the preceding paragraph includes documentation collected pursuant to AML/KYC Procedures.
If the self-certification described in the first paragraph establishes that the Account Holder is a resident in a Reportable Jurisdiction, such account shall be treated as a Reportable Account, and such self-certification shall specify the Account Holder’s TIN with respect to such Reportable Jurisdiction and date of birth. Notwithstanding, if any of the circumstances described in subparagraph 3 of paragraph 2 of Article 50 occurs in such Reportable Jurisdiction, the TIN is not required to be specified.
If there is a change of circumstances with respect to an account that causes a Reporting Financial Institution to know, or have reason to know, that a self-certification is incorrect or unreliable, the Reporting Financial Institution shall otherwise obtain a valid self-certification to identify the residences of the Account Holder.

A Preexisting Entity Account with an aggregate account balance or value that does not exceed USD 250,000 as of 31 December 2018, is not required to be reviewed, identified, or reported.
A Preexisting Entity Account that has an aggregate account balance or value that exceeds USD 250,000 as of 31 December 2018, or as of the last day of any subsequent calendar year, shall be reviewed in accordance with the procedures set forth in Article 42 and Article 43.

A Reporting Financial Institution shall review information maintained for regulatory or customer relationship purposes, including information collected pursuant to AML/KYC Procedures, to identify a Preexisting Entity Account Holder’s resident countries or jurisdictions.
If a Preexisting Entity Account Holder is identified to be a resident in a Reportable Jurisdiction in accordance with the preceding paragraph, such account shall be treated as a Reportable Account, unless the Reporting Financial Institution reasonably determines, based on a self-certification provided by the Account Holder, information in its possession or that is publicly available, that such Account Holder is not a resident in such Reportable Jurisdiction.

A Reporting Financial Institution shall review whether a Preexisting Entity Account Holder is a Passive NFE, and determine the resident countries or jurisdictions of Controlling Persons of a Passive NFE in accordance with the following provisions:
1. Obtaining a self-certification from the Account Holder to determine whether the Account Holder is a Passive NFE, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that such Account Holder is not a Passive NFE.
2. Relying on information collected and maintained pursuant to AML/KYC Procedures or other information, to determine the Controlling Persons of such Passive NFE.
3. Relying on a self-certification provided by a Passive NFE or the Controlling Persons of such Passive NEF to specify the resident countries or jurisdictions of such Controlling Persons. However, in the case of a Preexisting Entity Account with an aggregate account balance or value that does not exceed USD 1,000,000, the Reporting Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures.
4. If a self-certification is not able to be obtained in accordance with the procedures in the preceding subparagraph, Article 38 is applicable to determine the resident countries or jurisdictions of such Controlling Persons.
If the Preexisting Entity Account Holder is determined to be a Passive NFE, and any of the Controlling persons of such Passive NFE is a resident of a Reportable Jurisdiction in accordance with the preceding paragraph, such account shall be treated as a Reportable account.

A Reporting Financial Institution shall complete the review procedures for Preexisting Entity Accounts by 31 December 2020.
A Preexisting Entity Account with an aggregate account balance or value that does not exceed USD 250,000 as of 31 December 2018 but exceeds USD 250,000 as of the last day of any subsequent calendar year, a Reporting Financial Institution shall complete its review within the calendar year following the year in which the amount exceeds USD 250,000 in accordance with the preceding two articles.
If there is a change of circumstances with respect to a Preexisting Entity Account that causes a Reporting Financial Institution to know, or have reason to know, that the self-certification or other documentation associated with such account is incorrect or unreliable, the Reporting Financial Institution shall re-determine the status of the account in accordance with the preceding two articles.

Upon a New Entity Account opening, a Reporting Financial Institution shall obtain and keep an Account Holder’s self-certification that allows the Reporting Financial Institution to determine such Entity’s resident countries or jurisdictions and to confirm the reasonableness of such self-certification based on other information obtained by the Reporting Financial Institution in connection with such account.
The “other information” mentioned in the preceding paragraph includes documentation collected pursuant to AML/KYC Procedures.
If a self-certification described in the first paragraph indicates that the Account Holder is a resident of a Reportable Jurisdiction, such account shall be treated as a Reportable Account unless the Reporting Financial Institution reasonably determines, based on information in its possession or that is publicly available, that such Account Holder is not a resident with respect to such Reportable Jurisdiction.
If a New Entity Account Holder certifies that it has no residence and the residence of the Account Holder cannot be determined in accordance with the second half of paragraph 1 of Article 25 and the second half of paragraph 2 of Article 26, the address of the principal office of the Entity may be relied on to determine the residence.

A Reporting Financial Institution shall review whether a New Entity Account Holder is a Passive NFE and determine the resident countries or jurisdictions of Controlling Persons of a Passive NFE in accordance with subparagraphs 1, 2, and the first sentence of subparagraph 3 of paragraph 1 of Article 43.
If a New Entity Account Holder is determined to be a Passive NFE, and any of the Controlling Persons of such Passive NFE is a resident of a Reportable Jurisdiction in accordance with the preceding paragraph, such account shall be treated as a Reportable Account.

If a Reporting Financial Institution knows or has reason to know that a self-certification or Documentary Evidence is incorrect or unreliable, the Reporting Financial Institution shall not rely on such documentation to implement the review.

In the case of a beneficiary and a policyholder of a Cash Value Insurance Contract or an Annuity Insurance Contract being not the same person, an individual beneficiary specified in such contracts receiving a death benefit shall be presumed not to be a resident of a Reportable Jurisdiction, and such account shall not be treated as a Reportable Account. However, if the Reporting Financial Institution collects information associated with the beneficiary containing any of the indicia described in subparagraph 2 of paragraph 1 of Article 36, or has actual knowledge, or reason to know, that such beneficiary is a resident of a Reportable Jurisdiction, Article 36 and Article 37 shall be applied.

A Reporting Financial Institution is required to aggregate the balance or value of all Financial Accounts of a customer maintained by such Reporting Financial Institution and by its Related Entity if its computerized systems contain the customer number or TIN which links Financial Accounts of a customer and allow account balances or values to be aggregated.
For purposes of calculating the aggregate balance or value of a jointly held Financial Account of an Account Holder, the entire balance or value of such jointly held account shall be attributed to each holder of such account.
When determining the aggregate balance or value of a Preexisting Individual Account to determine whether a Financial Account is a High Value Account, a Reporting Financial Institution is required to aggregate the balance or value of all Financial Accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled, or established by the same person, except for the Financial Accounts held, controlled, or established in a fiduciary capacity by such person.