Guidance Note on FATCA and CRS dated 30.11.2016

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....2015 by inserting Rules 114F to 114H and Form 61B to provide a legal basis for the Reporting Financial Institutions (RFls) for maintaining and reporting information about the Reportable Accounts. The Central Board of Direct Taxes (CBDT) has also issued guidance from time to time to provide clarifications to issues raised by RFls. A comprehensive Guidance Note was issued on 31st August, 2015 to provide guidance to the RFls, Regulators and officers of the Income Tax Department. This was updated on 31.12.2015, 31.05.2016 and 30.11.2016. 3. In addition to the guidance and clarifications already issued in this regard, the CBDT in exercise of its powers u/s 119 of the Income-tax Act, 1961, hereby issues the following clarification as a partial m....

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....rule (3) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. As per sub-rule (3) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, where the client is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with fifteen percent or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. However, Explanation 2 below Explanation (B) to Rule 114F(6) of the Rules provides that in the case of a trust' the controlling person means the settlor. the trustees, the protector (if any). the beneficiaries o....

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....g whether the controlling Person of a Passive Non-Financial Entity is Reportable in cases of new entity accounts 3.4 Rule 114H(6)(a)(ii)(C) of the Rules provides that for the purposes of determining whether a controlling person of a passive non-financial entity holding a new entity account is a reportable person, a reporting financial institution may rely on a self-certification from the account holder or such controlling person' ln this context, it is hereby stated that the relevant portion of section 5.8 of the Guidance Note dated 30.11. 2016 issued by the GBDT on the issue of Due Diligence for new entity accounts - Review of controlling person, draws reference to the commentary to section VI of the CRS under para 5.8.9. The said com....