AML / CTF - Riyad Bank

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AML / CTF - Riyad Bank

Responsible bank officers in Riyad bank ensure that their organization complies with FATCA and CRS regulatory requirements.

They are responsible for monitoring how the regulation are implemented and identifying accounts that need to be reported to the regulatory authorities.

What is CRS?

The OECD Council approved the Common Reporting Standard (CRS) on July 15, 2014, in response to a request from the G20. Calls on jurisdictions to automatically exchange information with other jurisdictions on an annual basis and obtain information from their financial institutions. It specifies the financial account information that must be exchanged and the reporting requirements for financial institutions. the various kinds of accounts and taxpayers that are covered, as well as standard procedures that financial institutions must follow for due diligence.

Who is impacted by CRS?

Individuals, corporations, and other entities that hold asset products which are in scope for the CRS and are tax residents in any country other than the bank's country are affected by the CRS regulations.

What are the CRS indicators?

Individuals

All accounts with non Suadi Arabian residency indicators

Physical presence

Clients must decide depending on a set of standards defined by the reporting country should consider as a place of residence that is either owned or rented.

Tax residency

Tax residency is the country in which an individual is considered resident for tax purposes. It is important to note that the specific rules and criteria for tax residency can differ between countries.

Standing instructions to transfer money to an account outside KSA

For example, if the client has standing instructions from a bank in one jurisdiction to another bank on different jurisdiction.
Power of attorney assigned to a person whose account is outside KSA

A legal document that authorized someone else to act on the account holders’ behalf including financial transactions “reportable person based on the tax residency”.

Hold mail / care of mail

Based on customer’s instructions, all mail communications are retained at the Bank for physical collection by a representative of the customer.

One or more telephone numbers outside Saudi Arabia

it’s important for account holders that their contact information’s is accurate and up to date.

Entities

Countries and jurisdictions of tax residence

Place of registration/incorporation

In general, an entity is considered to be a tax resident of the country where its incorporated or established.

Controlling Person Type for certain Entity Types (for Controlling Persons)

Riyad Bank is required to identify the information of any controlling person in passive entity*

*Entities with no trading activities and receive income or dividend with greater than 50% generated from its assets including properties and shares etc.

For further reference on Common Reporting Standards (CRS), please access the link below:

https://www.oecd.org/tax/automatic-exchange/common-reporting-standard/

What is FATCA?

According to the Foreign Account Tax Compliance Act (FATCA), which was enacted as part of the HIRE Act on June 30, 2014, certain other non-financial foreign entities and foreign financial institutions are generally required to report on the foreign assets held by their U.S account holders in order to avoid having withholding taxes on withdrawable funds imposed on them.

Who’s is impacted by FATCA?

Us person
Citizen or resident of the US
A partnership or cooperation organized in USA

Foreign financial institution (FFI).

FFI can be a bank, investment fund, insurance company or any other entity that holds financial assets or funds on behalf of others.

Passive non-financial foreign entities (NFFE)

This classification is also known as a Passive Non-Financial Foreign Entity or Passive NFFE.
This classification covers an entity that meets the following criteria:
(i) it is not a US entity;
(ii) it is not a financial institution; and
(iii) it does not meet the criteria to be either an Excepted NFFE or an Active NFFE.

In case of I am not aware of my tax residence can the bank advise me?

Riyad Bank is not permitted to provide tax advise as a financial institution. You might be able to get detailed answers to questions on this form from your tax advisor.

What are the FATCA indicators ’s?

Individual

Citizenship of the US

US person under FATCA is a Us citizen or resident individual holding green cards

Born in the USA

If individual is born in USA, they are considered as US person under FATCA and may be subject to reporting requirement, even if they are no longer resident of USA.

Registered power of attorney in favor of a person of US Citizen or US or a tax resident in USA

To ensure the best practice of FATCA regulations in Riyad bank we ensure that Joint filers must execute their own separate power of attorney

Standing instruction to transfer funds to an account with US Address

US telephone number and hold mail address or care address as the only address

Entities

Registered in the USA
Primary address is USA
Registered power of attorney in favor of a person with a US address
US Telephone number
Hold mail address or care of address as the only address.
An entity where 5% or more of the ownership rights or shares are held by US Person.

For further reference on Foreign Account Tax Compliance Act (FATCA), please access the link below:

https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca

What information is Riyad bank expected to provide for the regulator?
Name, full address, Tax Identification Number (‘TIN’) or equivalent or Social Security Number (‘SSN’) or its equivalent and jurisdiction(s) of residence for tax purposes, account balance, total of balance of gross interest / dividend and date of birth in case of individual etc.

FATCA and CRS Self-Certification Form
Foreign Account Tax Compliance Act (“FATCA”) and Common Reporting Standard (“CRS”) regulations require financial institutions like us to collect and report information about where our customers are tax resident. The self-certification form is a mandatory form that is used by Customers to self-declare information on their tax residency.