FAQs
Skip information indexAccounts subject to reporting obligation
In the aforementioned case, the information related to the specific US person who exercises control over the entity that owns the US account subject to communication of information, in addition to the information related to said entity that holds the account, must be included in Form 290. However, the balance or declared value of the financial account held by the non-US entity will be the total corresponding to it, without being subject to any type of distribution or proration.
In the indicated case, the US entity must be identified as the account holder, since it is said specific US person that holds ownership of the account in accordance with letter ee) of Article 1 of the Agreement.
The scheme that presents the question is the following:
Form 290 will include the information related to each US account subject to communication of information and, based on said element, the information related to the account holders and, where applicable, the persons who exercise control will be recorded. about said owners and that determine that said account must be declared.
Therefore, in the indicated case, along with the information related to the account, which will appear with its balance or total value, both the two specific US persons and the non-US entity that is not a IF and is passive in nature. Furthermore, with respect to the non-US entity, its nature must be indicated as indicated in number 17 of Annex I of the Order, identifying the specific US person as the person who exercises control over said owner.
In relation to this type of group life insurance, the Spanish financial institution obliged to communicate information may treat it as an account not subject to communication of information, until the date on which the corresponding benefit must be paid to the employee or beneficiary, as long as receive a certificate from the company that proves that none of the employees covered by the insurance is a US person (not being obliged to review all the documentation that the company has in order to determine whether the status of the account holder is incorrect or not reliable) and the following requirements are met:
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The policyholder is the company and said insurance covers at least 25 employees.
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Covered employees have the right to receive the corresponding benefit and to designate beneficiaries in the event of a death contingency.
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The total amount payable to the employee or beneficiary does not exceed one million dollars.