Reportable Account unless one of the exceptions in subparagraph B(4) applies with respect to that account.
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.
(a)property recorded in the account is also recorded in a financial account (in this subsection and subsection (8) referred to as the “related account”) maintained by a financial institution (in this subsection and subsection (8) referred to as the “dealer”) that is authorized under provincial legislation to engage in the business of dealing in securities or any other financial instrument, or to provide portfolio management or investment advising services; and(b)the dealer has advised the institution whether the related account is a U.S. reportable account.
(a)subsections (1) to (4) do not apply to the institution in respect of the account; and(b)the institution shall rely on the determination of the dealer in respect of the related account in determining whether the account is a U.S. reportable account.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2014, c. 20, s. 1012016, c. 12, s. 70
266(1)Every reporting Canadian financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to each U.S. reportable account maintained by the institution at any time during the immediately preceding calendar year and after June 29, 2014.Marginal note:Reporting  — nonparticipating financial institutions(2)Every reporting Canadian financial institution shall file with the Minister, before May 2 of each calendar year, an information return in prescribed form relating to payments, to a nonparticipating financial institution that is the holder of a financial account maintained by the reporting Canadian financial institution, during the immediately preceding calendar year if the immediately preceding year is 2015 or 2016.Marginal note:Filing of return(3)An information return required under subsection (1) or (2) shall be filed by way of electronic filing.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2014, c. 20, s. 101
267(1)Every reporting Canadian financial institution shall keep, at the institution’s place of business or at such other place as may be designated by the Minister, records that the institution obtains or creates for the purpose of complying with this Part, including self-certifications and records of documentary evidence.Marginal note:Form of records(2)Every reporting Canadian financial institution required by this Part to keep records that does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (3).Marginal note:Retention of records(3)Every reporting Canadian financial institution that is required to keep, obtain, or create records under this Part shall retain those records for a period of at least six years following(a)in the case of a self-certification, the last day on which a related financial account is open; and(b)in any other case, the end of the last calendar year in respect of which the record is relevant.
(a)in the case of a self-certification, the last day on which a related financial account is open; and(b)in any other case, the end of the last calendar year in respect of which the record is relevant.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2014, c. 20, s. 101
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2014, c. 20, s. 101
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2014, c. 20, s. 101
270(1)The following definitions apply in this Part.account holderaccount holdermeans(a)the person listed or identified as the holder of a financial account by the financial institution that maintains the account, other than a person (other than a financial institution) holding a financial account for the benefit of, or on behalf of, another person as agent, custodian, nominee, signatory, investment advisor or intermediary; and(b)in the case of a cash value insurance contract or an annuity contract,(i)any person entitled to access the cash value or change the beneficiary,(ii)if no person can access the cash value or change the beneficiary,(A)any person named as the owner in the contract, and(B)any person with a vested entitlement to payment under the terms of the contract, and(iii)upon maturity of the cash value insurance contract or annuity contract, each person entitled to receive a payment under the contract. (titulaire de compte)active NFEactive NFEmeans, at any time, a non-financial entity that meets any of the following criteria:(a)less than 50% of the NFE’s gross income for the preceding fiscal period is passive income and less than 50% of the assets held by the NFE during the preceding fiscal period are assets that produce or are held for the production of passive income;(b)either(i)interests in the NFE are regularly traded on an established securities market, or(ii)the NFE is a related entity of an entity interests in which are regularly traded on an established securities market;(c)the NFE is(i)a governmental entity,(ii)an international organization,(iii)a central bank, or(iv)an entity wholly owned by one or more entities described in subparagraphs (i) to (iii);(d)both(i)all or substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more of its subsidiaries that engage in trades or businesses other than the business of a financial institution, and(ii)the NFE does not function as (and is not represented or promoted to the public as) an investment fund, including(A)a private equity fund,(B)a venture capital fund,(C)a leveraged buyout fund, and(D)an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;(e)the NFE(i)is not yet operating a business,(ii)has no prior operating history,(iii)is investing capital into assets with the intent to operate a business other than that of a financial institution, and(iv)was initially organized no more than 24 months prior to that time;(f)the NFE has not been a financial institution in any of the past five years and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a financial institution;(g)the NFE primarily engages in financing and hedging transactions with, or for, related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of those related entities is primarily engaged in a business other than that of a financial institution; and(h)the NFE meets all of the following requirements:(i)it(A)is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or(B)is established and operated in its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare,(ii)it is exempt from income tax in its jurisdiction of residence,(iii)it has no shareholders or members who have a proprietary or beneficial interest in its income or assets,(iv)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased, and(v)the applicable laws of the NFE’s jurisdiction of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the NFE’s jurisdiction of residence or any political subdivision thereof. (ENF active)annuity contractannuity contractmeans a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals and includes a contract(a)that is considered to be an annuity contract in accordance with the law, regulation or practice of the jurisdiction in which the contract was issued; and(b)under which the issuer agrees to make payments for a term of years. (contrat de rente)anti-money laundering and know your customer proceduresanti-money laundering and know your customer proceduresorAML/KYC proceduresmeans the record keeping, verification of identity, reporting of suspicious transactions and registration requirements required of a reporting financial institution under theProceeds of Crime (Money Laundering) and Terrorist Financing Act. (procédures de connaissance de la clientèle et de lutte contre le blanchiment d’argentouprocédures AML/KYC)broad participation retirement fundbroad participation retirement fundmeans a fund that is established to provide retirement, disability or death benefits to beneficiaries that are current or former employees (or persons designated by those employees) of one or more employers in consideration for services rendered, if the fund(a)does not have a single beneficiary with a right to more than 5% of the fund’s assets;(b)is subject to government regulation and provides information reporting to the Minister; and(c)satisfies at least one of the following requirements:(i)the fund is generally exempt from tax on investment income, or taxation of investment income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan,(ii)the fund receives at least 50% of its total contributions (other than transfers of assets from broad participation retirement funds, narrow participation retirement funds or from retirement and pension accounts described in paragraph (a) of the definitionexcluded account) from the sponsoring employers,(iii)distributions or withdrawals from the fund are(A)allowed only upon the occurrence of specified events related to retirement, disability or death (except rollover distributions to broad participation retirement funds, narrow participation retirement funds and pension funds of a governmental entity, international organization or central bank or retirement and pension accounts described in paragraph (a) of the definitionexcluded account), or(B)subject to penalties if they are made before such specified events, and(iv)contributions (other than permitted make-up contributions) by an employee to the fund(A)are limited by reference to the employee’s remuneration, or(B)must not exceed 50,000 USD annually, applying the rules set forth in subsection 277(3). (fonds de retraite à large participation)Canadian financial institutionCanadian financial institutionmeans a financial institution that is(a)either(i)resident in Canada, but excluding any branch of the financial institution that is located outside Canada, or(ii)a branch of a financial institution that is not resident in Canada, if the branch is located in Canada; and(b)alisted financial institutionas defined in subsection 263(1). (institution financière canadienne)cash valuecash value, in respect of a contract held by a policyholder, means the greater of the amount that the policyholder is entitled to receive upon surrender or termination of the contract (determined without reduction for any surrender charge or policy loan) and the amount the policyholder can borrow under or with regard to the contract, but does not include an amount payable under an insurance contract(a)solely by reason of the death of an individual insured under a life insurance contract;(b)as a personal injury or sickness benefit, or other benefit, providing indemnification of an economic loss incurred upon the occurrence of an event insured against;(c)as a refund of a previously paid premium (less any cost of insurance charges whether or not actually imposed) under an insurance contract (other than an investment-linked life insurance or annuity contract) due to the cancellation or termination of the contract, a 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;(d)as a policyholder dividend (other than a termination dividend) if the dividend relates to an insurance contract under which the only benefits payable are described in paragraph (b); or(e)as a return of an advance premium or premium deposit for an insurance contract for which the premium is payable at least annually, if the amount of the advance premium or premium deposit does not exceed the next annual premium that will be payable under the contract. (valeur de rachat)cash value insurance contractcash value insurance contractmeans an insurance contract (other than an indemnity reinsurance contract between two insurance companies) that has a cash value. (contrat d’assurance avec valeur de rachat)central bankcentral bankmeans an institution that is, by law or government sanction, the principal authority, other than the government of the jurisdiction itself, issuing instruments intended to circulate as currency and may include an instrumentality that is separate from the government of the jurisdiction, whether or not owned in whole or in part by the jurisdiction. (banque centrale)controlling personscontrolling persons, in respect of an entity, means the natural persons who exercise control over the entity (interpreted in a manner consistent with theFinancial Action Task Force Recommendations — International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, adopted in February 2012 and as amended from time to time) and includes(a)in the case of a trust,(i)its settlors,(ii)its trustees,(iii)its protectors (if any),(iv)its beneficiaries (for this purpose, a discretionary beneficiary of a trust will only be considered a beneficiary of the trust in a calendar year if a distribution has been paid or made payable to the discretionary beneficiary in the calendar year), and(v)any other natural persons exercising ultimate effective control over the trust; and(b)in the case of a legal arrangement other than a trust, persons in equivalent or similar positions to those described in paragraph (a). (personnes détenant le contrôle)custodial accountcustodial accountmeans an account (other than an insurance contract or annuity contract) that holds one or more financial assets for the benefit of another person. (compte de dépositaire)custodial institutioncustodial institutionmeans an entity, if the entity’s gross income attributable to the holding of financial assets for the account of others and related financial services equals or exceeds 20% of the entity’s gross income during the shorter of(a)the three-year period that ends at the end of the entity’s last fiscal period, and(b)the period during which the entity has been in existence. (établissement de garde de valeurs)depository accountdepository accountincludes(a)any commercial, chequing, savings, time or thrift account, or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness or other similar instrument maintained by a financial institution in the ordinary course of a banking or similar business; and(b)an amount held by an insurance company under a guaranteed investment contract or similar agreement to pay or credit interest on the contract. (compte de dépôt)depository institutiondepository institutionmeans any entity that accepts deposits in the ordinary course of a banking or similar business. (établissement de dépôt)documentary evidencedocumentary evidenceincludes(a)a certificate of residence issued by an authorized government body (such as a government or agency thereof, or a municipality) of the jurisdiction in which the payee claims to be a resident;(b)with respect to an individual (other than a trust), any valid identification issued by an authorized government body that includes the individual’s name and is typically used for identification purposes;(c)with respect to an entity, any official documentation issued by an authorized government body that includes the name of the entity and either the address of its principal office in the jurisdiction in which it claims to be resident or the jurisdiction in which the entity was incorporated or organized; and(d)any audited financial statement, third-party credit report, bankruptcy filing or securities regulator’s report. (preuve documentaire)entityentitymeans a person (other than a natural person) or a legal arrangement, such as a corporation, partnership, trust or foundation. (entité)equity or debt interestequity or debt interestincludes, in the case of a partnership that is a financial institution, either a capital or profits interest in the partnership. (titre de participation ou d’intérêt)established securities marketestablished securities marketmeans an exchange that(a)is officially recognized and supervised by a governmental authority in which the market is located; and(b)has an annual value of shares traded on the exchange (or a predecessor exchange) exceeding one billion USD during each of the three calendar years immediately preceding the calendar year in which the determination is being made