14.—(1) A reporting Singaporean financial institution must establish and maintain the following arrangements in relation to all financial accounts that the institution maintains:| (a) | arrangements to establish all the residences for a tax purpose of —| (i) | the account holder of each financial account; and | | (ii) | where the account holder is a passive NFE, the controlling person of the passive NFE; |
| | (b) | arrangements to identify whether a financial account is a reportable account. |
(2) A reporting Singaporean financial institution must establish and maintain the arrangements mentioned in paragraph (1) in relation to a financial account even if —| (a) | the residence for a tax purpose of the account holder of the financial account is not a reportable jurisdiction; or | | (b) | where the account holder of the financial account is a passive NFE, the residence for a tax purpose of any controlling person of the account holder is not a reportable jurisdiction. |
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(3) A reporting Singaporean financial institution is treated as having complied with paragraph (1) only if —| (a) | in establishing and maintaining such arrangements, the institution complies with the due diligence requirements in sections II to VII of the CRS, as modified by regulation 15; and | | (b) | where any provision in sections II to VII of the CRS, as modified by regulation 15, requires anything to be obtained in respect of any transaction in relation to a financial account, the institution keeps all information that is needed to explain the transaction. |
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(4) A reporting Singaporean financial institution may —| (a) | apply the due diligence procedures set out in sections II to VII of the CRS for new accounts to pre‑existing accounts; and | | (b) | apply the due diligence procedure set out in sections II to VII of the CRS for high value accounts to lower value accounts. |
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(5) The reporting Singaporean financial institution must, in relation to any financial account, ensure that all of the following are kept for the period mentioned in paragraph (6):| (a) | all evidence, record or information in relation to the financial account that it has obtained in accordance with paragraph (3); | | (b) | a record of the steps it has taken in accordance with paragraph (3) in relation to the financial account. |
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(6) In paragraph (5), the period is —| (a) | in the case of any evidence, record or information mentioned in paragraph (5)(a) that identifies the account holder of the financial account, is a document establishing a business relation with the account holder or is correspondence with the account holder — 5 years after the closing of the financial account or the end of the business relation (as the case may be); | | (b) | in the case of any evidence, record or information mentioned in paragraph (5)(a) relating to any transaction — 5 years after 31 December of the calendar year in which the reporting Singaporean financial institution is required to provide any information relating to the transaction to the Comptroller under regulation 16(1); and | | (c) | in the case of any record mentioned in paragraph (5)(b) — 5 years after 31 December of the calendar year in which the reporting Singaporean financial institution is required to provide any information relating to the financial account to the Comptroller under regulation 16(1). |
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(7) A reporting Singaporean financial institution must, on or before the day of opening for a person a new account that is not a pre-existing account mentioned in regulation 15(13)(b), obtain —| (a) | a valid self-certification to determine whether the person is a reportable person; and | | (b) | in a case where the person is a passive NFE, one or more valid self-certifications to determine whether each controlling person of the passive NFE is a reportable person. [S 425/2020 wef 01/06/2020] |
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| (8) A requirement under paragraph (1), (5) or (7) is a requirement the failure or neglect to comply with which (if such failure or neglect is without reasonable excuse) is an offence under section 105M(1B) of the Act. [S 871/2021 wef 16/11/2021] |
(9) Where a reporting Singaporean financial institution is charged with an offence under paragraph (8) for a contravention of paragraph (7), it is a defence for the institution to prove, on a balance of probabilities, that —| (a) | it is not possible for the institution to comply with paragraph (7); and | | (b) | the institution obtained, as soon as practicable (but in any case not more than 90 days) after opening for the account holder a new account that is not a pre-existing account mentioned in regulation 15(13)(b) —| (i) | a valid self-certification to determine whether the account holder is a reportable person; and | | (ii) | in a case where the account holder is a passive NFE, one or more valid self-certifications to determine whether each controlling person of the account holder is a reportable person. [S 425/2020 wef 01/06/2020] |
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| (10) For the purpose of paragraphs (1) and (3), the definitions in section VIII of the CRS apply as modified by regulation 15. |
(11) In this regulation —| “high value account”, “lower value account” and “new account” have the same meanings as “High Value Account”, “Lower Value Account” and “New Account”, respectively, in regulation 15(16); |
| “pre‑existing account” has the same meaning as in regulation 15(13); |
“public agency” means —| (a) | any ministry or department of the Government, or any statutory body, or any board, commission, committee or similar body, whether corporate or unincorporate, established under a public Act for a public purpose; and | | (b) | an authority of any foreign country or territory, or any board, commission, committee or similar body, whether corporate or unincorporate, established under the law of any foreign country or territory for a public purpose; [S 158/2017 wef 04/04/2017] |
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| “reportable jurisdiction” has the same meaning as “Reportable Jurisdiction” in regulation 15(16); |
“self-certification”, in relation to a financial account opened with a reporting Singaporean financial institution, means a statement containing information —| (a) | relating to the account; | | (b) | reasonably required by the institution for the purpose of complying with this regulation and regulation 16; and | | (c) | provided by —| (i) | in a case where the account holder is a passive NFE and the statement only contains information of the residences for a tax purpose of a controlling person of the account holder, the account holder or the controlling person; and | | (ii) | in any other case, the account holder; [S 158/2017 wef 04/04/2017] |
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“specified particulars”, in relation to an account holder, means the following particulars:| (a) | if the account holder is an individual —| (i) | the individual’s name; | | (ii) | the individual’s residential address; | | (iii) | all of the individual’s residences for a tax purpose; | | (iv) | if applicable, the individual’s taxpayer identification number (TIN) with respect to each of the residences in sub-paragraph (iii); and | | (v) | the individual’s date of birth; |
| | (b) | if the account holder is an entity that is a passive NFE —| (i) | the NFE’s name; | | (ii) | the NFE’s address that is registered with any public agency or the address at which the NFE is carrying on its business; | | (iii) | all of the NFE’s residences for a tax purpose; | | (iv) | if applicable, the NFE’s taxpayer identification number (TIN) with respect to each of the residences in sub-paragraph (iii); and | | (v) | the following particulars with respect to each controlling person of the NFE:| (A) | the controlling person’s name; | | (B) | the controlling person’s residential address; | | (C) | all of the controlling person’s residences for a tax purpose; | | (D) | if applicable, the controlling person’s taxpayer identification number (TIN) with respect to each of the residences in sub-paragraph (C); | | (E) | the controlling person’s date of birth; |
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| | (c) | if the account holder is an entity that is not a passive NFE —| (i) | the entity’s name; | | (ii) | the entity’s address that is registered with any public agency or the address at which the entity is carrying on its business; | | (iii) | all of the entity’s residences for a tax purpose; | | (iv) | if applicable, the entity’s taxpayer identification number (TIN) with respect to each of the residences in sub-paragraph (iii); and | | (v) | whether the entity is a financial institution or an NFE, and a description of the type of financial institution or NFE (as the case may be); [S 158/2017 wef 04/04/2017] |
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“valid self-certification” means —| (a) | in a case where the account holder is a passive NFE and the self-certification only contains information of the residences for a tax purpose of a controlling person of the account holder, a self-certification that —| (i) | is signed or otherwise positively affirmed by the person making the self-certification or a person with authority to sign for that person; | | (ii) | states the date on which the self-certification is signed or otherwise positively affirmed by the person mentioned in sub-paragraph (i); | | (iii) | contains the following particulars of the controlling person:| (A) | the controlling person’s name; | | (B) | the controlling person’s residential address; | | (C) | all of the controlling person’s residences for a tax purpose; | | (D) | if applicable, the controlling person’s taxpayer identification number (TIN) with respect to each of the residences in sub-paragraph (C); | | (E) | the controlling person’s date of birth; and |
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| | (b) | in any other case, a self-certification that —| (i) | is signed or otherwise positively affirmed by the account holder or a person with authority to sign for the account holder; | | (ii) | states the date on which the self-certification is signed or otherwise positively affirmed by the person mentioned in sub-paragraph (i); and | | (iii) | contains the specified particulars of the account holder. [S 158/2017 wef 04/04/2017] |
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