A. |
The following rules and administrative procedures apply to ensure effective implementation of, and compliance with, the reporting and due diligence procedures set out above. |
(i) |
a person enters into any arrangements; and |
(ii) |
the main purpose, or one of the main purposes, of the person in entering into the arrangements is to avoid any obligation under the Common Reporting Standard, |
these Regulations are to have effect as if the arrangements had not been entered into.
(b) |
If a Non-Reporting Financial Institution is no longer a Non-Reporting Financial Institution as it no longer complies with the requirements for a Non-Reporting Financial Institution under Section VIII(B) or Annex II, it becomes a Reportable Financial Institution from the moment that it no longer complies with such requirements. |
(c) |
If an Excluded Account is no longer an Excluded Account as it no longer complies with the requirements for an Excluded Account under Section VIII(C)(17) or Annex II, it becomes a Reportable Account from the moment that it no longer complies with such requirements. |
(2) |
Sanctions for non-compliance in providing information to a Reporting Financial Institution |
Non-compliance with any obligation under these Regulations includes non-compliance as referred to in section 26(4) of the Act by:
(a) |
a Reportable Person that is an Account Holder, |
(b) |
if the Reportable Person is an entity, any Controlling Person(s) of that entity; or |
from whom a Reporting Financial Institution requires information, a document or thing in order in order to obtain and report the information required under Section I and to comply with any other requirement of these Regulations.
B. |
These Regulations have effect from 1 March 2016. |