A Reporting Financial Institution is required to identify reportable accounts. A reportable account is a financial account held by one or more reportable persons or by a Passive Non-Financial Entity (PNFE) with one or more reportable controlling persons.
For accounts held by individuals, the individual will only be reportable if they are resident for tax purposes in a reportable jurisdiction. For the purposes of FATCA, the reportable jurisdiction is the United States. For the CRS, reportable jurisdictions are those with which the reporting jurisdiction has an exchange relationship in place. Individual jurisdictions publish lists of reportable jurisdictions for the purposes of CRS reporting and a full list of Activated Exchange Relationships is published by the OECD.
For entities (companies, partnerships, trusts etc) the position is slightly more complicated. An entity, if it is not a Financial Institution, will be classified as a Non-Financial Entity (NFE). Such entities may then either be classified as Active NFEs or Passive NFEs.
Active NFEs are required to be reported where the entity is resident for tax purposes in a reportable jurisdiction.
Passive NFEs - the controlling persons of those entities (for example the controlling shareholders of companies, partners in a partnership or the settlor, trustees or beneficiaries of a trust) are required to be reported if they are resident for tax purposes in a reportable jurisdiction. Details of the Passive NFE are also required in this case.
The following details are reported for each reportable account;
In addition, for each controlling person of a Passive NFE, that controlling person's name, address, TIN, date of birth and, if required, place of birth