Treasury Regulations in effect on the date of signature of the agreement. (institution financière canadienne non déclarante)
U.S. reportable accountmeans a financial account that, under the agreement, is to be treated as a U.S. reportable account. (compte déclarable américain)
Marginal note:Financial institution
(2)For the purposes of this Part,Canadian financial institutionandreporting Canadian financial institutioneach have the meaning that would be assigned by the agreement, and the definitionnon-reporting Canadian financial institutionin subsection (1) has the meaning that would be assigned by that subsection, if the definitionFinancial Institutionin subparagraph 1(g) of Article 1 of the agreement were read as follows:
g)The termFinancial Institutionmeans any Entity that is a Custodial Institution, a Depository Institution, an Investment Entity or a Specified Insurance Company, and that is a listed financial institution within the meaning of Part XVIII of theIncome Tax Act.
Marginal note:Financial account
(3)For the purposes of this Part, the agreement is to be read as if the definitionFinancial Accountin subparagraph 1(s) of Article 1 of the agreement included the following subparagraph after subparagraph (1):
(1.1)an account that is a client name account maintained by a person or entity that is authorized under provincial legislation to engage in the business of dealing in securities or any other financial instruments, or to provide portfolio management or investment advising services.
Marginal note:Identification number
(4)For the purposes of this Part, a reference in the agreement to “Canadian TIN” or “taxpayer identification number” is to be read as including a reference to Social Insurance Number.
Marginal note:Term defined in agreement
(5)In this Part, a term has the meaning that is defined in, or assigned by, the agreement unless the term is defined in this Part.
Marginal note:Amending instrument
(6)No person shall be liable for a failure to comply with a duty or obligation imposed by this Act that results from an amendment to the agreement unless at the date of the alleged failure,
(a)the text of the instrument that effected the amendment had been published in theCanada Gazette; or
(b)reasonable steps had been taken to bring the purport of the amendment to the notice of those persons likely to be affected by it.
Marginal note:Designation of account
264(1)Subject to subsection (2), a reporting Canadian financial institution may designate a financial account to not be a U.S. reportable account for a calendar year if the account is
(a)a preexisting individual account described in paragraph A of section II of Annex I to the agreement;
(b)a new individual account described in paragraph A of section III of Annex I to the agreement;
(c)a preexisting entity account described in paragraph A of section IV of Annex I to the agreement; or
(d)a new entity account described in paragraph A of section V of Annex I to the agreement.
Marginal note:U.S. reportable account
(2)A reporting Canadian financial institution may not designate a financial account for a calendar year unless the account is part of a clearly identifiable group of accounts all of which are designated for the year.
Marginal note:Applicable rules
(3)The rules in paragraph C of section VI of Annex I to the agreement apply in determining whether a financial account is described in any of paragraphs (1)(a) to (d).
Marginal note:Identification obligation — financial accounts
265(1)Every reporting Canadian financial institution shall establish, maintain and document the due diligence procedures set out in subsections (2) and (3).
Marginal note:Due diligence — general
(2)Every reporting Canadian financial institution shall have the following due diligence procedures:
(a)for preexisting individual accounts that are lower value accounts, other than accounts described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs B and C of that section, subject to paragraph F of that section;
(b)for preexisting individual accounts that are high value accounts, other than accounts described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs D and E of that section, subject to paragraph F of that section;
(c)for new individual accounts, other than accounts described in paragraph A of section III of Annex I to the agreement, the procedures described in paragraph B of section III of Annex I to the agreement;
(d)for preexisting entity accounts, other than accounts described in paragraph A of section IV of Annex I to the agreement, the procedures described in paragraphs D and E of that section; and
(e)for new entity accounts, other than accounts described in paragraph A of section V of Annex I to the agreement, the procedures described in paragraphs B to E of that section.
Marginal note:Due diligence — no designation
(3)If a reporting Canadian financial institution does not designate a financial account under subsection 264(1) for a calendar year, the institution shall have the following due diligence procedures with respect to the account:
(a)if the account is a preexisting individual account described in paragraph A of section II of Annex I to the agreement, the procedures described in paragraphs B and C of that section, subject to paragraph F of that section;
(b)if the account is a new individual account described in paragraph A of section III of Annex I to the agreement, the procedures described in paragraph B of section III of Annex I to the agreement;
(c)if the account is a preexisting entity account described in paragraph A of section IV of Annex I to the agreement, the procedures described in paragraphs D and E of that section; and
(d)if the account is a new entity account described in paragraph A of section V of Annex I to the agreement, the procedures described in paragraphs B to E of that section.
Marginal note:Rules and definitions
(4)For the purposes of subsections (2) and (3), subparagraphs B(1) to (3) of section I, and section VI, of Annex I to the agreement apply except that
(a)in applying paragraph C of that section VI, an account balance that has a negative value is deemed to be nil; and
(b)the definitionNFFEin subparagraph B(2) of that section VI is to be read as follows:
2NFFE
AnNFFEmeans any Non-U.S