Glossary of Terms
A glossary of terms can be found below:
Account Holder
In broad terms is the person listed or identified as the holder or owner of the account with the FI that maintains the account. For ‘Reportable Account Holders’ for the UK, see also HMRC’s International Exchange of Information Manual IEIM402010.
Controlling Person
Broadly, any natural person who has control over an entity, or who is able to use their influence to make decisions on behalf of an entity. The CRS provides that the term "Controlling Person" must be interpreted in a manner consistent with Recommendation 10 and the Interpretative Note on Recommendation 10 of the Financial Action Task Force (FATF) Recommendations. For the UK, to identify the Controlling Persons, an FI must follow the procedures required by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
CRS Participating Jurisdiction (CRS only)
In relation to the UK the list of CRS Participating Jurisdictions can be found at HMRC’s International Exchange of Information Manual IEIM400090.
Financial Account
Is an account maintained by an FI. But only certain categories of Financial Account need to be reviewed. For the UK see further HMRC’s International Exchange of Information Manual IEIM401505.
Financial Assets
Includes a security (for example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note, bond, debenture or other evidence of indebtedness), partnership interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps, equity index swaps and similar agreements), insurance contract or annuity contract, or any interest (including a futures or forward contract or option) in a security, partnership interest, commodity, swap, insurance contract or annuity contract BUT NOT:
- a non-debt, direct interest in real property and
- CRS only: cash is not a Financial Asset in most (but not all) CRS Participating Jurisdictions
For the UK see further HMRC’s International Exchange of Information Manual IEIM404715.
Financial Institution
The full description of an FI is complex but very broadly includes (i) a depositary FI that accepts deposits in the ordinary course of a banking or similar business (ii) a custodial institution which holds, as a substantial proportion of its business, Financial Assets for the account of others (iii) an investment entity i.e. an entity which primarily conducts as a business for or on behalf of a customer activities of investing, administering or managing funds or money or an investment entity (or certain other specified activities) or an entity which is managed by an FI and satisfies certain “financial assets” tests or (iv) certain kinds of insurance companies (or their holding companies). For the UK see further HMRC’s International Exchange of Information Manual IEIM400600 onwards.
GIIN (FATCA only)
The Global Intermediary Identification Number issued by the IRS to Financial Institutions via the “FATCA Portal” to prove compliance with the FATCA registration requirement. See also.
Non-Financial Foreign Entity (FATCA) / Non-Financial Entities (CRS)
Broadly, an entity that does not meet any of the definitions for being an FI. Non-Financial Foreign Entities can be active of passive. For the UK see further HMRC’s International Exchange of Information Manual IEIM404040.
US Person (FATCA only)
Broadly (i) US citizen (ii) tax resident in the US (iii) Green Card holder or (iv) an entity established in the US. See also.