Help & Support
CRS and FATCA requirements for Client Fund Service account holders
All New Zealand banks and financial institutions are now required (as at 31 March 2017 for FATCA and 30 June 2017 for CRS) to collect information about customers’ foreign tax residency and pass that and other personal and account information onto Inland Revenue.
Called the Common Reporting Standard (CRS), it has been initiated by the Organisation for Economic Co-Operation and Development (OECD) under the Automatic Exchange of Information (AEOI) regime. The obligations to provide information also extend to the Foreign Account Tax Compliance Act (FATCA) as well as the CRS.
Under FATCA, New Zealand banks and financial institutions are currently required to identify and report annually on any accounts held by US Persons or foreign entities that have US Persons as beneficial owners.
The requirement to capture this information impacts you if you have deposited funds on your client’s behalf into an interest-bearing deposit account through the Client Fund Service (CFS) product. You or your client may also be subject to Inland Revenue penalties if there is a failure to provide this information, or provide false or misleading information.
Process for opening a new Client Account
From 1 July 2017, we require you to:
- Obtain a completed and signed FATCA Certificate and CRS Self-Certification for any client (including any Controlling Persons if your client is a Passive NFE) that wishes to open a new Client Account prior to depositing your client’s funds into the account (unless the Client Account is an Excluded Account).
- Complete the box on the bottom right of the forms “CFS Customer to Complete”. For reconciliation purposes, please provide details of your clients CFS Account Number for the designated Call and/or Term Deposit Account. For instructions on how to determine your client’s CFS Account Number, please refer to the Frequently Asked Questions PDF 85KB.
- Complete a Reasonableness Test for any CRS Self-Certification obtained before opening and depositing funds into the Client Account through the CFS product. Read a guide on how to complete this pdf 44kb.
- Follow the instructions outlined in the Client Tax Residency Data Capture process pdf 1.49mb. This spreadsheet needs to be provided back to BNZ monthly on the last business day for any relevant new or closed accounts.
If a Client has previously provided a completed and signed FATCA Certificate and the CRS Self-Certification (that has passed the Reasonableness Test), and opens subsequent accounts, they are not required to provide a new FATCA Certificate or CRS Self-Certification unless there has been a change in circumstances or BNZ advises you otherwise.
Process for existing Client Accounts
From 31 March 2017 (FATCA) and 30 June 2017 (CRS), we require you to:
- Obtain a completed and signed FATCA Certificate and CRS Self-Certification for any client (including any Controlling Persons if your client is a Passive NFE) that has an existing Client Account (unless the Client Account is an Excluded Account as detailed below).
- We require you to complete the box on the bottom right of the form “CFS Customer to Complete”. For reconciliation purposes, please provide details of your clients CFS Account Number for the designated Call and/or Term Deposit Account. For instructions on how to determine your client’s CFS Account Number, please refer to the Frequently Asked Questions PDF 85KB.
- Complete a Reasonableness Test for the CRS Self-Certification. Read a guide on how to complete this.
- Follow the instructions outlined in the Client Tax Residency Data Capture process Pdf 1.49 mb
A FATCA Certificate and/or CRS Self-Certification are not required if a Client Account meets the FATCA and/or CRS excluded accounts criteria. To determine whether the Client Account meets the exclusion criteria, please refer to the following documents:
If you determine with your Client that a Client Account is an Excluded Account, please record this as per the Client Tax Residency Data Capture process. No further due diligence is required unless you establish that a change of circumstances has taken place which invalidates the assessment of the Client Account being an Excluded Account. You should be able to support and provide evidence of the exclusion decision if requested to do so by BNZ or the regulator.
Change in circumstances
If there is a change in circumstances which affects the FATCA Certificate and/or CRS Self-Certification provided by your client, or you have reason to believe that the Self-Certification can no longer be relied on, you must:
- re-validate the original FATCA Certificate and/or CRS Self-Certification or;
- obtain a new valid FATCA Certificate and/or CRS Self-Certification.
Sending the information to BNZ
For new, existing and closed Client Accounts:
- Follow the instructions in the Client Tax Residency Data Capture process pdf 1.49mb.
- For file naming convention, please refer to the ‘File Naming Convention’ in the Client Tax Residency Data Capture process document
- For monthly submissions, email the Client Tax Residency Data Capture spreadsheet to email@example.com with the email subject ‘CFS Client – CRS Info’.
- FATCA Certificate of Non-US Tax Status for Individuals PDF 35KB (if your client is a Non-US citizen or a Non-US resident for tax purposes)
- FATCA Certificate of US Tax Status for Individuals PDF 38KB (if your client is a US citizen or a US resident for tax purposes)
- FATCA Certificate of FATCA Status for Entities PDF 84KB (if your client is an entity)
- CRS Individual Tax Residency Self-Certification PDF 47KB (if your client is an Individual)
- CRS Entity Tax Residency Self-Certification PDF 58KB (if your client is an entity)
- CRS Controlling Person Tax Residency Self-Certification PDF 68KB (if your client is a Passive NFE and has controlling Person(s). The form should be completed by each Controlling Person).
In accordance with BNZ’s requirements, you are required to keep copies of all your clients’ FATCA and CRS self-certifications and relevant supporting documents for a period of seven years after your client’s account is closed, and provide us with copies if requested.
By opening a Client Account, you acknowledge that you have collected the required self-certification information, or evidence that supports your decision for an excluded account, for FATCA and CRS in accordance with the requirements above.
If your clients are unsure about their foreign tax residency, or have any specific questions regarding foreign tax residency, we recommend they talk to a tax adviser, as BNZ is unable to provide tax advice.
For more information regarding CRS and FATCA, visit Inland Revenue’s website.