Financial Crime World

Independent Review Guide for Financial Institutions (RFIs) in Bermuda: Common Reporting Standard (CRS) Compliance

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Pre-Existing Entity Accounts Requirements

Account Holder Identification

  • The RFI must have processes in place to determine whether the account holder is a “Reportable Person” (e.g., resident in a Reportable Jurisdiction).
  • This includes reviewing information maintained for regulatory or customer relationship purposes.

Passive NFE Determination

  • If the account holder is determined to be a Passive Non-Financial Entity (NFE), the RFI must obtain self-certification from each controlling person, including:
    • Name
    • Address
    • Jurisdiction(s) of residence
    • Taxpayer Identification Number (TIN)
    • Date of birth (if resident in one or more Reportable Jurisdictions)

Reliance on Publicly Available Information

  • The RFI must record details of any determination made based on publicly available information.

Data Points to be Included in the Report

The independent reviewer must verify that the RFI has met these requirements and document the following:

  • Explanation of checks performed and results
  • Confirmation that listed requirements have been met (or description of gaps or deficiencies)
  • Findings from a review of pre-existing entity accounts, including correct classification as reportable or not reportable based on available information
  • Findings from a review of passive NFE accounts with an aggregated balance of USD $1M or greater, to verify that self-certifications are on file for each controlling person.

New Entity Account Due Diligence

The independent reviewer must also review the RFI’s systems, procedures, processes, and documentation to verify the following:

  • Collection of Self-Certification Forms:
    • The RFI must have processes in place to obtain and validate self-certification forms for all new entity accounts, unless it can be determined that the entity is not a Reportable Person.

Note: This guide provides general information on how to conduct an independent review of an RFI’s due diligence procedures. Specific requirements and details may need to be adapted or modified based on the actual policies and procedures in place at the RFI being reviewed.