The following additional rules apply in implementing the due diligence procedures described above:
| A. | Reliance on Self-Certifications and Documentary Evidence. A Reporting Financial Institution may not rely on a self-certification or Documentary Evidence if the Reporting Financial Institution knows or has reason to know that the self-certification or Documentary Evidence is incorrect or unreliable. |
| B. | Alternative Procedures for Financial Accounts Held by Individual Beneficiaries of a Cash Value Insurance Contract or an Annuity Contract and for a Group Cash Value Insurance Contract or Group Annuity Contract. |
| (1) | A Reporting Financial Institution may presume that an individual beneficiary (other than the owner) of a Cash Value Insurance Contract or an Annuity Contract receiving a death benefit is not a Reportable Person and may treat such Financial Account as other than a Reportable Account unless the Reporting Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Reportable Person. A Reporting Financial Institution has reason to know that a beneficiary of a Cash Value Insurance Contract or an Annuity Contract is a Reportable Person if the information collected by the Reporting Financial Institution and associated with the beneficiary contains indicia as described in paragraph B of Section III. If a Reporting Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Reportable Person, the Reporting Financial Institution must follow the procedures in paragraph B of Section III. |
| (2) | With respect to a Group Cash Value Insurance Contract or Group Annuity Contract that is issued to an employer and individual employees, a Reporting Financial Institution may treat such contract as a Financial Account that is not a Reportable Account until the date on which an amount is payable to an employee, certificate holder or beneficiary, if the Financial Account that is a member's interest in a Group Cash Value Insurance Contract or Group Annuity Contract meets the following conditions: |
| (a) | the Group Cash Value Insurance Contract or Group Annuity Contract is issued to an employer and covers twenty-five or more employees or certificate holders; |
| (b) | the employees or certificate holders are entitled to receive any contract value related to their interest and to name beneficiaries for the benefit payable upon the employee's or certificate holder’s death; and |
| (c) | the aggregate amount payable to any employee or certificate holder or beneficiary does not exceed an amount denominated in South African Rand that corresponds to U.S. $1,000,000. |
| C. | Account Balance Aggregation and Currency Rules. |
| (1) | Aggregation of Individual Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an individual, a Reporting Financial Institution is required to aggregate all Financial Accounts maintained by the Reporting Financial Institution, or by a Related Entity, but only to the extent that the Reporting Financial Institution’s computerised systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph. |
| (2) | Aggregation of Entity Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an Entity, a Reporting Financial Institution is required to take into account all Financial Accounts that are maintained by the Reporting Financial Institution, or by a Related Entity, but only to the extent that the Reporting Financial Institution’s computerised systems link the Financial Accounts by reference to a data element such as client number or TIN, and allow account balances or values to be aggregated. Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this subparagraph. |
| (3) | Special Aggregation Rule Applicable to Relationship Managers. For purposes of determining the aggregate balance or value of Financial Accounts held by a person to determine whether a Financial Account is a High Value Account, a Reporting Financial Institution is also required, in the case of any Financial Accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled, or established (other than in a fiduciary capacity) by the same person, to aggregate all such accounts. |
| (4) | Amounts Read to Include Equivalent in Other Currencies. |
| (a) | All dollar amounts are in U.S. dollars and, in determining an amount, account balance or value of an account denominated in a currency other than U.S. dollars for the purposes of these Regulations, the Financial Institution must translate the relevant U.S. dollar amount into the other currency by reference to the spot rate of exchange on the date for which the Reporting Financial Institution is determining the amount in the other currency. |
| (b) | For purposes of determining if an account is a High Value Account or a Lower Value Account, a Reporting Financial Institution may apply the translated U.S. dollar amount or, if the account is denominated in South African Rand, the equivalent amount in Rand translated at an exchange rate of 15 Rand to one U.S. dollar. |
| (c) | For other purposes in these Regulations, a Reporting Financial Institution may apply the U.S. dollars amount or, if the account is denominated in South African Rand, the equivalent amount in Rand translated at an exchange rate of 15 Rand to one U.S. dollar or such other rate as the Minister of Finance may prescribe by notice in the Gazette. |
