Law (2015:911) If Identification Of Reportable Accounts For Automatic Exchange Of Information About Financial Accounts

Original Language Title: Lag (2015:911) om identifiering av rapporteringspliktiga konton vid automatiskt utbyte av upplysningar om finansiella konton

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2015:911

/Entry into force: 01/01/2016/Chapter 1. The law's scope of application, etc.



section 1 of this Act apply to such identification of the accounts as financial institutions shall make and referred to in Council directive/107 of 9 december 2014 amending directive with regard to mandatory automatic exchange of information in the field of taxation and in the multilateral agreement between the competent authorities of the automatic exchange of information about financial accounts, signed on 29 October 2014.



Provisions for such identification of the accounts as financial institutions to do and provided for in the agreement between the Swedish Government and the Government of the United States to improve international tax compliance and for implementing FATCA Act (2015:62) for identification of reportable accounts because of FATCA.



section 2 of the Act – definitions and explanations (Chapter 2, Chapter 3, section 3 – 10 sections and 8 chap., § 5)



— provisions on excepted financial institutions and accounts (Chapter 3, section 1 and 2 sections),



— provisions on review of existing financial accounts held by natural persons (Chapter 4),



— provisions on review of new financial accounts held by natural persons (Chapter 5.)



— provisions on review of existing financial accounts held by entities (Chapter 6),



— provisions on review of new financial accounts held by units (Chapter 7), and



– other provisions (Chapter 8).



Chapter 2. Definitions and explanations



Where are the definitions and explanations?



section 1 of this chapter provides definitions of certain concepts, as well as explanations of how some terms and expressions used in the Act. There are also definitions and explanations in Chapter 3 and 8.



Provisions concerning the importance of the following concepts, terms and expressions and explanations, see the following sections:



active non-financial entity in 2 – 4 sections



share in equity in section 22



other State or jurisdiction of section 22



existing account in section 22



broad pension fund in Chapter 3. paragraph 5 of the



holding account in section 11



subsidiaries of section 22



device in section 22



established securities market in section 13



financial asset in



financial institution in 6-10 sections



financial account in section 11



subject to section 12 of the regular trading



insurance contracts in section 22



contracts of insurance with cash value in section 22



group insurance policies with cash value in Chapter 8. paragraph 5 of the



Group annuity contracts in Chapter 8. paragraph 5 of the



habitual residence in another State or jurisdiction, in paragraph 14 of the



high-value account in section 22



deposit account in section 11



international organisation in Sweden in Chapter 3. 4 §



investment unit in section 9



cash value in section 15



account holder in paragraph 16 of the



account held by the estate in Chapter 3. section 8



qualified issuers of credit cards in Chapter 3. 6 §



qualified credit card account in Chapter 3. 10 §



life income agreements in section 22



low value account in section 22



new account in section 22



related device in section 17



undocumented account in section 22



passive non-financial entity in section 22



passive income in § 19



person with a controlling interest in 18 §



reportable account in section 20



reporting required financial institution in section 21



tax registration number of section 22



escrow account in Chapter 3. § 9



Swedish Government Unit in Chapter 3. paragraph 3 of the



certain temporary assurance in Chapter 3. 7 §



Active non-financial entity



2 § With active non-financial entity "means an entity that is not a financial institution and



1. whose income during the previous calendar year, or other appropriate reporting period to less than 50 per cent consists of passive income and whose assets held during the previous calendar year, or other appropriate reporting period to less than 50 percent comprised of assets that generate or held for the purpose of generating such income,



2. the units of which are subject to regular trading on an established securities market,



3. related to an entity whose shares are the object of regularly traded on an established securities market,



4. who is



(a)) a governmental entity, b) an international organization,



c) such central bank referred to in paragraph 20 of the third subparagraph, or



d) an entity that is owned exclusively by someone referred to in (a) to (c),



5. whose activities exclusively or almost exclusively consists of



(a)) owning all or part of the outstanding ownership in one or several subsidiaries which engaged in trade or business which does not constitute the business of a financial institution, or



(b)) to provide funding and services to one or several of such subsidiary undertakings referred to in (a),



6. not engaged in or have engaged in any business activities and investing capital in assets in order to pursue an economic activity other than the business of a financial institution and have been established within the past 24 months,



7. who was not a financial institution during the last five years and that is in the process of liquidating its assets or undergoing a reorganization in order to continue or resume business activities which do not constitute the business of a financial institution, or



8. which are mainly engaged in funding or hedgingtransaktioner with or to related entities that are not financial institutions, and not providing financing or hedgingtjänster to any entity that is not related, provided that the group to which the related entities in engaging in business activities that do not constitute the business of a financial institution.



A device shall not, however, be considered an active non-financial entity pursuant to the first paragraph 5 if it acts as or pretending to be some sort of investment entity whose purpose is to acquire or finance companies and then hold shares in these companies as fixed assets for investment purposes.



3 § With active non-financial entity shall include a device 1. that has been established and is operating in the jurisdiction of residence and



(a)) which has been established and operates exclusively for purposes relating to religion, charity, science, art, culture, sport or education, or



(b)) which is a professional body, professional association, chambers of Commerce, employers ' organization, agricultural or horticultural utility organization, civic organization or an organization that exclusively works to promote social welfare, 2. who is exempt from income tax in the jurisdiction in which it is domiciled,



3. not have any owners or members with ownership or profit in the case of the unit's income or assets,



4. whose domicile or jurisdiction's laws whose memorandum does not allow some of the unit's income or assets be distributed to or used for the benefit of a private person or entity that is not a charitable entity, in addition to if this occurs as a result of the unit's pursuit of the purposes referred to in 1 or as payment of reasonable compensation for services rendered or that payment corresponding to the fair market value of the property that the device has acquired , and



5. whose domicile or jurisdiction's laws whose memorandum provides that all assets at its liquidation or dissolution belongs to an authority or other non-profit organization, or State, Government, or a political subdivision under the Government in the unit's resident jurisdiction.



4 section With active non-financial entity shall include such foundations, non-profit organizations, registered religious communities and other legal entities that are exempt from tax under Chapter 7. 3-17 of the income tax Act (1999:1229).



Financial asset



5 § With financial asset shall mean securities, participations, swaps, insurance policies and annuity contracts. With financial asset shall mean a stake in or other right in such assets. For the purposes of financial asset not an unmortgaged direct real estate holdings.



Financial institution



section 6 With financial institution "means a device as defined in 7, 8, 9 or 10. With the financial institution, however, is not an entity whose activities are exclusively or almost exclusively consists



1. directly or indirectly owning part or all of the outstanding shares in one or more subsidiary companies engaged in trade or business which does not constitute the business of a financial institution or to provide funding and services to one or several of such subsidiaries, or



2. by funding or hedgingtransaktioner with or to related entities that are not financial institutions but not the provision of financing or hedgingtjänster to any entity that is not related, if the group to which the related entities in engaging in business activities that do not constitute the business of a financial institution.



A device referred to in the first subparagraph 1 shall, however, be deemed to be a financial institution if it acts as or pretending to be some sort of investment entity whose purpose is to acquire or finance companies and then hold shares in these companies as fixed assets for investment purposes.



paragraph 7 of a device is a financial institution if the storage of financial assets on behalf of someone else represents a substantial part of the business of the entity's revenue derived from such storage and associated financial


services equal to or greater than 20 percent of the unit's total revenue in the shortest period of



1. the three-year period that ends at the end of the fiscal year preceding the date on which the assessment is made, or 2. the period for which the unit has existed.



section 8 a device is a financial institution if it receives deposits within the framework of the regular activities of credit institutions, or similar activities.



section 9, an entity is a financial institution, for 1. most of his trade mainly engaged in one or more of the following activities on behalf of a client:



a) trade in money market instruments, foreign exchange, currency, interest rate or index instruments, transferable securities or råvarufutures,



b) individual and collective portfolio management, or



c) other activities which means that financial assets are invested, administered or managed, or



2. its gross income mainly comes from investment, reinvestment of or trade in financial assets and managed by another entity is an entity described in 1 or in section 7, 8 or 10.



Such financial institutions as referred to in the first paragraph are referred to in this law, the investment units.



section 10 of An entity is a financial institution if it is such an insurance company or insurance holding company, the company that signs a contract of insurance with cash value or life annuity contract or is obliged to effect payment in accordance with such agreement.



Financial account



11 §/expires U: 2016-03-01/

With financial account "means an account with a financial institution that is



1. a business, salary, social security, savings, asset-or giro account or account that is documented by certificate of deposit, savings certificates, investment certificates, certificates of deposit, or other similar instruments provided by a financial institution within the framework of its regular activities of credit institutions, or similar activities, as well as the amount managed by an insurance company pursuant to an agreement on guaranteed investment or agreement to pay or the crediting of interest (deposit account) ,



2. an account other than an insurance or annuity contract and taken to the benefit of any other person and includes financial assets (custodian account),



3. a share in equity or debt in an investment Center, 4. a stake in the equity or debt in a device that is another financial institution than such as referred to in (3), if the type of the share has been chosen in order to avoid that the share is deemed to be a reportable account under this Act, or 5. a contract of insurance with cash value or life income agreements signed or managed by a financial institution.



A stake in the equity or debt in an investment entity shall, nevertheless, referred to in the first subparagraph, 3, is not considered to be a financial account if the investment unit is a financial institution only because it is



1. offer investment advice to customers and acting on behalf of the customer, or



2. manages portfolios for customers and acting on behalf of the customer in order to invest, manage or administer financial assets in customer's name is inserted at a different financial institution.



An account referred to in the first subparagraph shall, nevertheless, referred to therein, is not considered to be a financial account if it is exempted from the reporting obligation under the provisions of Chapter 3.



11 §/entry into force: 03/01/2016

With financial account "means an account with a financial institution that is



1. a business, salary, social security, savings, asset-or giro account or account that is documented by certificate of deposit, savings certificates, investment certificates, certificates of deposit, or other similar instruments provided by a financial institution within the framework of its regular activities of credit institutions, or similar activities, as well as the amount managed by an insurance company pursuant to an agreement on guaranteed investment or agreement to pay or the crediting of interest (deposit account) ,



2. an account other than an insurance or annuity contract and taken to the benefit of any other person and includes financial assets (custodian account),



3. a share in equity or debt in an investment Center, 4. a stake in the equity or debt in a device that is another financial institution than such as referred to in (3), if the type of the share has been chosen in order to avoid that the share is deemed to be a reportable account under this Act, or 5. a contract of insurance with cash value or life income agreements signed or managed by a financial institution.



A stake in the equity or debt in an investment entity shall, nevertheless, referred to in the first subparagraph, 3, is not considered to be a financial account if the investment unit is a financial institution only because it is



1. offer investment advice to customers and acting on behalf of the customer, or



2. manages portfolios for customers and acting on behalf of the customer in order to invest, manage or administer financial assets in customer's name is inserted at a different financial institution.



An account referred to in the first subparagraph shall, nevertheless, referred to therein, is not considered to be a financial account if it is exempted from the reporting obligation under the provisions of Chapter 3.



For the purposes of the first subparagraph, an account that is set up in such a central securities depository, as referred to in Chapter 1. paragraph 3 of the law (1998:1479) on CSDs and the accounting of financial instruments, and that belongs in another State within the European economic area other than Sweden, of a Swedish financial institution or a foreign financial institution's permanent establishment in Sweden, considered to be among the Swedish financial institution or the foreign financial institution's permanent establishment in Sweden. The same applies to an account set up with such central securities depository from third countries as referred to in the Act.

Law (2016:67).



Subject to regular trading



section 12 With the subject of regular trade refers to trade with a share of ongoing have a scope that is not insignificant.



Established securities market



section 13 With an established securities market, a trading post which is officially recognised and supervised by a public authority where the venue is located and who has a not insignificant yearly value of the shares traded on the market place.



Habitual residence in another State or jurisdiction



section 14 of the resident in another State or jurisdiction provided that a natural person or an entity



1. have their residence for tax purposes in the other State or jurisdiction in accordance with the laws of the State or jurisdiction, or



2. the decedent is a natural person who had their residence for tax purposes in the other State or jurisdiction.



For the purposes of the first subparagraph, a device that does not have a resident for tax purposes is treated as if it is their tax residence in the State or other jurisdiction of the place of its actual business management are located. However, this does not apply to trusts that are passive non-financial entities.



Cash value



section 15 With cash value refers to the amount that is the greater of



1. the amount that a policyholder is entitled to receive upon surrender or termination of an insurance contract, without deduction of contributions for repurchase or pledge, or



2. the amount which the policyholder may borrow in accordance with or by means of the agreement.



In the cash value shall not include amounts paid pursuant to an insurance contract and that



1. paid following an assurance and solely as a result of the insured's death,



2. is a personskade or illness benefit or other insurance benefit is compensation for the financial loss incurred in connection with such an event covered by the insurance,



3. is a refund to the policyholder the insurance premium, excluding insurance charges, which in the past has been paid in accordance with a contract of insurance, other than a life annuity contract or an assurance, due to the contract terminated or has been terminated, the risk has been reduced during the term of the contract or premium changed as a result of a correction of a clerical error or other error in respect of the premium,



4. is a refund to the policyholder, except in the event of termination, if repayment concerns an insurance contract under which the only benefits to be paid are those set out in 2, or



5. is the return on an upfront insurance premium or a premium payment for a contract of insurance for which the premium must be paid at least once a year, if the amount of the prepayment premium or premium payment does not exceed next year's premiums to be paid under the agreement.



Account executives



16 § With account holder "means the person who is registered or identified as holders of a financial account.



On the financial account is a contract of insurance with a cash value or an annuity contract, account holder any person who may be entitled to cash value or has the right to change the contract's beneficiaries. If there is no person who may be entitled to cash value or have


the right to change the beneficiary, each person that the agreement stipulated that policyholders and any person with vested rights to payment under the contract is considered to be an account holder. When payments begin to be made from a contract of insurance with cash value or an annuity contract, each person entitled to payment as account executives.



When a person who is not a financial institution managing a financial account, acting as agent, guardian, custodian, authorized signatory, investment advisor or intermediary for the benefit of another person or on behalf of another person, the other person is considered to be the holder of the account. However, this does not apply when a lawyer managing a financial account for the benefit of a client.



Related device



section 17 with related device means a device that



1. make sure the other device, 2. controlled by the other device, 3. under common control with the other device, or

4. is an investment Center and is under joint management with another investment unit, if the manager conducting the review provided for in Chapter 4 – 8. for both investment units.



With scrutiny referred to in the first subparagraph the direct or indirect holding of more than 50 percent of the voting power and value of an entity.



Person with a non-controlling interest



section 18 With person with control means a natural person who exercises control over a device. In the case of a trust, its founder, trustee, the protector, beneficiary or beneficiary, and any other natural person exercising real control over the trust shall be deemed to be persons with a controlling interest. In the case of a legal arrangement which is not a trust, referred to people of the same or equivalent position that persons with control of a trust. The term must be interpreted in accordance with the recommendations of the financial action task force (FATF) in their wording adopted in February 2012.



Passive income



19 § With passive income means the proportion of the income which is made up of



1. dividends,



2. interest,



3. income equivalent to interest,



4. rent and royalties derived from activities which do not constitute the movement and which is wholly or partly carried out by the employees of the unit,



5. annuities,



6. the capital gain from the sale, redemption or exchange of financial assets or currency,



7. net income from swaps,



8. amounts received under a contract of insurance with cash value, or



9. similar income.



With passive income does not include income derived from a non-financial entity securities operations.



Reportable account



section 20 With reportable account referred to a financial account that has been identified as such in accordance with the provisions of Chapter 4 – 8.



An account should not, however, be considered a reportable account if all account holders are



1. other financial institutions than such investment entities referred to in the first paragraph, section 9 2 in a State or jurisdiction that is not a participating jurisdiction,



2. companies whose shares are regularly traded on an established securities market,



3. companies which are related entities to such companies as referred to in 2, 4. Government entities,



5. international organizations, or



6. central banks.



For the purposes of paragraph 1, a financial institution's permanent establishment in another State or jurisdiction shall be deemed to be a financial institution within the State or jurisdiction.



For the purposes of subparagraph 6, ' the central bank a bank that by law or Government decision is the central authority, in addition to government jurisdiction, issuing instruments intended to be used as circulating currency. Such a bank could include a body that is separate from the Government of the jurisdiction, whether it is wholly or partly owned by the jurisdiction.



Reporting required financial institution



section 21 of the reporting required financial institution means a Swedish financial institution that is not exempt from the reporting requirements in accordance with Chapter 3.



It is the management company which manages a mutual fund and Manager of alternative investment funds (aifm) which manages a special fund which is reporting financial institutions instead of the unit trust/common fund or Rd, if it otherwise for the purposes of the first subparagraph would have been the common fund or RD that are reporting required financial institution. (B) for the purposes of Chapter 22. paragraph 8 of the tax Procedure Act (2011:1244), which manages an investment fund is deemed to be a debtor or guarantor for reportable accounts with investment fund and the aifm managing a special fund shall be deemed to be a debtor or guarantor for reportable accounts with Rd.



For the purposes of the first or second paragraph, a foreign financial institution's permanent establishment in Sweden is considered to be a Swedish financial institution. A Swedish financial institution's permanent establishment in another State or jurisdiction shall, however, not considered to be a Swedish financial institution.



Other definitions and explanations



section 22 for the purposes of this law



share in equity: in the case of a Swedish trading company or an overseas delägarbeskattad legal person that is a financial institution, a share of the commercial company or the legal entity's capital or in its yield,



other State or jurisdiction: If other is not specified, any other State or jurisdiction than Sweden or the United States, existing account: a financial account opened on december 31, 2015 or earlier,



subsidiaries: subsidiaries in accordance with the importance of the concept in accordance with the Swedish companies Act (2005:551),



device: a legal entity or other legal arrangement, such as a company, a delägarbeskattad legal person, trust or Foundation,



insurance contracts: a different agreement than a life income agreements, which means that the issuer agrees to pay an amount on one or more occasions as a result of a specified uncertain event associated with death, illness, accidents, claims for damages or property damage,



contracts of insurance with cash value: an insurance policy that has a cash value and are not a liability reinsurance agreement between two insurance companies,



high-value account: an existing account held by one or more natural persons and whose aggregate balance or value amounts to more than 1 000 000 u.s. dollars on december 31, 2015 or later at the end of a calendar year,



life income agreements: an agreement 1. According to which the issuer agrees to make payments over a specific period of time, in whole or in part is determined with regard to the life expectancy of a person or persons, or 2. considered as life income agreements in accordance with the State's or jurisdiction's laws, rules or practices in which the agreement was concluded and in accordance with which the issuer agrees to make payments over a certain number of years,



low value account: an existing account held by one or more natural persons and whose aggregate balance or value does not amount to more than 1 000 000 u.s. dollars on december 31, 2015,



new account: a financial account opened on 1 January 2016 or later,



undocumented account: an account that shall be considered an undocumented account pursuant to Chapter 4. 3 or section 11,



passive non-financial device: a device that 1. is not a financial institution or an active non-financial entity, or 2. is an investment entity under section 9, item 2 of the first paragraph in a State or jurisdiction that is not a participating jurisdiction,



tax identification number: an identification number for taxpayers or a functional equivalent of it if such a number is missing.



The meaning of certain terms and expressions



section 23 of the terms and expressions used in this Act have the same meaning as in the income tax Act (1999:1229), unless stated otherwise.



Chapter 3. Exempted financial institutions and accounts



Exceptions to reporting requirements and accountability § 1 the following devices, even if they are financial institutions, exempt from the reporting requirements:



1. Sveriges riksbank,



2. the Swedish Government units,



3. international organisations in Sweden,



4. wide pension funds,



5. retirement benefit plans under the Act (1967:531) if securing the pension commitment, etc.,



6. qualified issuers of credit cards,



7. profit sharing trusts,



8. investment advisors, and



9. Investment Manager.



Entities referred to in the first subparagraph 1 to 3 shall not be exempt from the reporting requirements to the extent their activities are such commercial activities which are normally carried out by such financial institutions as set out in Chapter 2. 7, 8 or 10.



section 2 of the following accounts are exempt from reporting:



1. pension insurance which meets the requirements of the income tax Act (1999:1229) and subscribed and administered in Sweden,



2. retirement savings plans that meet the requirements of the income tax Act,



3. certain temporary assurance,



4. account held by the estate,



5. the escrow account, and



6. qualified credit card account.



Definitions and explanations



paragraph 3 of the Swedish governmental entity "means the State of Sweden, the Swedish Parliament, the Swedish Government, the Swedish county councils, Swedish


municipalities and to any of these related bodies, work, integrated parts or controlled devices.



With integral means a person, organisation, management, work, Fund, institution or other body, regardless of its composition, which is a Swedish Government agency. However, this applies only if the Authority's net income during the Authority's own account or another Swedish account held by a governmental entity and no part of the net proceeds are distributed to the benefit of any private individual. The concept of integral does not include a natural person who is the head of State or official or administrator within public administration and acts in private, or private purpose.



With controlled device "means a device which by its shape is distinct from the Swedish State or otherwise constitutes a separate legal entity and



1. wholly owned and controlled by one or more Swedish authority units, either directly or through one or more controlled entities, 2. whose net income during the unit's own account or accounts with one or more Swedish authority units, and no part of the unit's revenue is allocated to the benefit of any private person, and 3. whose assets accrue to one or several Swedish Government units by dissolution.



Income is not considered to be distributed to the benefit of private individuals, if these people are the intended beneficiaries of a public programme, and the activities of the programme carried out for the benefit of the public and for the public interest or concern administration within any phase of public powers.



4 section With international organisation in Sweden referred to an intergovernmental or supranational organisation 1. formed under an agreement between States or jurisdictions, mainly



2. which has an applicable agreement on privileges and immunities with Sweden, and 3. whose income does not benefit private individuals.



With the international organisation shall also be an institution or a body which is owned entirely by an international organisation as referred to in the first subparagraph.



5 § with extensive pension fund is a fund established in Sweden to provide old-age pensions or compensation in the event of incapacity or death benefits to beneficiaries who are current or former employees, or persons designated by such employees, with one or more employers on the basis of services rendered, whether the Fund



1. do not have a single beneficiary who is entitled to more than five percent of the Fund's assets,



2. is regulated by the public authority and reports information on beneficiaries of the tax agency, and



3. meet at least one of the following requirements:



(a)) is generally exempt from taxation in Sweden by investment income, or its investment income are deductible or taxed at a lower rate, according to the Swedish legislation on the basis of the Fund's status as a pension scheme or arrangement for other pension benefits.



b) at least 50% of the deposits to the Fund, aside from the transfer of assets from the pension funds or other exempt from such pension insurance referred to in paragraph 2 1, comes from the sponsoring employer.



c) Payments or withdrawals from the Fund which are not linked to costs, aside from the transfers of assets to other exempted pension funds or to such pension insurance referred to in paragraph 2 1, are allowed only at specified events associated with retirement, incapacity, or death.



d) Provisions, with the exception of permitted compensatory payments, which workers make to the Fund be limited with regard to the employee's earned income may not exceed 50 000 US-dollars per year.



6 § qualified issuers of credit cards means a Swedish financial institution that meets the following requirements:



1. It is a financial institution only because it is issuing credit cards where the deposits are only accepted when a customer makes a payment exceeding the outstanding balance in respect of the card and the amount overpaid will not be immediately refunded to the customer.



2. It has with effect from 1 January 2016 implemented policies and procedures to either prevent customer deposits in excess of 50 000 US dollars or ensure that customer deposits in excess of 50,000 US dollars will be paid back to the customer within 60 days.



For the purposes of the first subparagraph of paragraph 2, the customer deposit related credit balance arising from disputed charges are not covered. Customer deposit related credit balance arising from returned goods should be covered.



7 section with some temporary assurance means a death insurance contracts, if



1. the insurance expires before the insured person has reached the age of 90 years,



2. premiums paid at least once a year, by an amount that does not decrease over time during the period up to the first of the following events: (a)) contract ends, or (b)) the beneficiary reaches age 90,



3. the agreement does not have any contractual value that a person may have access to through withdrawals, loans or otherwise without termination,



4. other than a death benefit is payable at the contract's cancellation or output does not exceed the total of the premiums paid during the period declined by death, sickness and recovery of compensation, whether such actually occurred or not, for the periods during which termination and reduced by any amount paid before the contract is cancelled or terminated, and

5. the agreement is not held by the person who acquired the contract value creation objective.



section 8 with the account held by the estate refers to an account in Sweden held exclusively by one person if a copy of the deceased's will or death certificate is listed in the documentation for the account, or if the indication of the death has been obtained from the State's person and address register.



section 9 With blocked account "means an account that was created in connection with the 1. court order or judgment,



2. the sale, Exchange or rental of real or personal property, if



a) account funds consists exclusively of prepayment, deposit, deposit as security for performance with direct link to the entry or similar payment or financial assets deposited on the account in connection with the sale, Exchange or rental of property, b) account has been opened and used exclusively to ensure that



– the buyer meets its obligations to pay the purchase price for the property,-the seller fulfils its obligations when it comes to bear any responsibilities, or – the lessor or the lessee fulfills its obligations to pay any compensation for damages to the rented property in accordance with what was agreed in the rental agreement,



(c)) the assets in the account, including the revenue they generate, will be paid out or otherwise distributed for the benefit of the buyer, the seller or the lessor or to any of these should be able to meet its obligations, when the property is sold, exchanged or transferred or when the agreement expires,



(d)) the account is not a margin account or similar account opened when a financial asset is sold or exchanged, and



e) account is not linked to a credit card account, 3. the obligation of a financial institution that offers a loan with real property as security to put the part of the payment for the exclusive purpose of facilitating that taxes or insurance fees related to the real property may be paid at a later date, or



4. a financial institution's duty to facilitate that taxes may be paid at a later date.



10 § With qualified credit card account "means an account that is linked to a credit card, if the



1. deposits on account only be accepted when the account holder makes a payment exceeding the outstanding balance in respect of the card and the amount overpaid will not be immediately refunded to the customer, and



2. the credit card provider from 1 January 2016 has implemented policies and procedures to either prevent customer deposits in excess of 50 000 US dollars or ensures that customer deposits in excess of 50,000 US dollars will be paid back to the customer within 60 days.



For the purposes of the first subparagraph of paragraph 2, the customer deposit related credit balance arising from disputed charges are not covered. Customer deposit related credit balance arising from returned goods should be covered.



Chapter 4. Review of existing financial accounts held by physical persons accounts whose total balance or value amounts to USD 1 000 000 or less (low-value accounts)



1 § in the case of existing low-value accounts held by individuals, the reporting required financial institution, if it has a current residential address registered based on documentary evidence, consider the account holder as a resident of the State or other jurisdiction in which the address is located. The account is then, if otherwise not specified in Chapter 2. section 20, reportable if the address is in another State or jurisdiction.



If appropriate, after the application of the first subparagraph, the change in such a way that there is reason to believe that


the supporting documentation provided by the residential address is based on is inaccurate or unreliable, the reporting required financial institution by the end of the calendar year, or other appropriate reporting period or, if that date is later, within 90 days from the date that the changed circumstances was detected, seek a declaration from the account holder and new supporting documentation to determine which States or jurisdictions, the account holder is resident. If the reporting required financial institution cannot obtain statements and new evidence, the institution shall review the account in accordance with section 2.



2 § with regard to other existing low value accounts held by natural persons, other than those in which the account holder is regarded as a resident of a particular State or other jurisdiction, pursuant to article 1, first paragraph, shall be a reporting required financial institution review the information available in its electronic searchable databases.

Such an account is, subject to section 7 or Chapter 2. section 20, a reportable account in relation to each such other State or jurisdiction in which the review shows



1. that the account holder has his habitual residence,



2. that the account holder has a current postal or residential address,



3. that the account holder has a phone number at the same time as he or she does not have such a number in the reporting required financial institution's home State or jurisdiction of residence,



4. that, in the case of an account other than a deposit account, there is a standing instruction to transfer funds from the account to an account in that State or jurisdiction;



5. to any person with a valid power of attorney or the signature law in relation to the account has an address, or



6. that the account holder has a c/o or poste restante-address is the only address that the financial institution has registered for the account holder.



A reporting required financial institution shall have processes and procedures in place to detect if and when such circumstances referred to in the first subparagraph shall apply in the electronic searchable databases. If such circumstances apply in respect of an account after the examination referred to in the first subparagraph have been completed, your account, subject to the provisions of section 7 or Chapter 2. section 20, be considered a reportable account starting from the calendar year when this occurs.



A reportable account according to the provisions in the first or second paragraph and section 7 shall be deemed to be such until the account holder or account holders no longer domiciled in another State or jurisdiction.



3 § If a c/o or poste restante-address to the account holder is found during the examination referred to in paragraph 2 and any other circumstances where it appears in the course of the audit, the reporting required financial institution to apply the review referred to in paragraph 6 concerning the account or obtain a certification from the account holder or documentary evidence which establishes his or her residence for tax purposes. If, after the examination referred to in paragraph 6 are not revealed any such circumstance as mentioned in section 2, first paragraph 1 – 6 and the reporting financial institution within 90 days of the Institute, contact the account holder manages to obtain such a declaration, or such other documentation, the account is considered to be an undocumented account.



section 4 of an existing low-value account held by a natural person shall be examined in accordance with paragraphs 5 to 11 if its balance or value exceeds 1 000 000 u.s. dollars at the end of 2016 or later calendar year. Such review shall be completed no later than during the calendar year following the calendar year, at the end of the account balance or value the first time exceeded 1 000 000 US dollars.



Accounts whose total balance or value amounts to more than 1 000 000 US dollars (high value accounts)



§ 5 in the case of existing high-value accounts held by individuals, a reporting required financial institution undertake the review pursuant to article 2 of the first paragraph.



section 6, If the reporting required financial institution's electronic searchable databases typically are not sufficient to assess whether such circumstances as listed in section 2 of the first paragraph 1 – 6 exist, such data also look for in current main customer database, with regard to the review of high-value accounts held by natural persons.



If such information is not in the main customer table, the data shall also be sought among the following documents relating to the account as the reporting required financial institution has obtained in the course of the last five years and that are not electronically searchable: 1. the last sought documentary evidence referred to in Chapter 8. section 7 with respect to the account,



2. the recent agreement or the last of the other documentation relating to the opening of the account,



3. the latest documentation obtained under the law (2009:62) on measures against money laundering and the financing of terrorism or to comply with other legislation,



4. valid proxies or documents relating to the signing and



5. the existing standing instructions to transfer funds on other accounts than deposit accounts.



section 7 If the circumstances referred to in section 2 of the first paragraph 1-6 have emerged at the review in accordance with paragraphs 2 to 6, to an account, however, is considered a reportable account only if something else not listed in Chapter 2. section 20 and



1. the circumstance that emerged is a valid postal or residential address in another State or jurisdiction, one or more phone numbers in another State or jurisdiction, which is the only phone number associated with your account or, in the case of non-deposit accounts, a standing instruction to transfer funds to an account in another State or jurisdiction and the reporting required financial institution does not have access to, and not within 90 days of that fact was revealed, obtain



a) an attestation from the account holder if he or she is resident only in Sweden or the United States, and



b) supporting documentation showing that the account holder is not domiciled in that State or jurisdiction,



2. the circumstance that has emerged is that there is a valid power of attorney or signing rights for a person who has an address in another State or jurisdiction and the reporting required financial institution does not have access to, and not within 90 days of that fact was revealed may obtain



a) an attestation from the account holder if he or she is resident only in Sweden or the United States, or b) supporting documentation showing that the account holder is not domiciled in that State or jurisdiction.



§ 8 examination under paragraphs 5 to 7, need be done only once for each account. When it comes to undocumented accounts to scrutiny, however, repeated once a year until the account is no longer an undocumented account.



§ 9 Notwithstanding sections 5 to 7, a high-value account held by a natural person, if otherwise not specified in Chapter 2. section 20, be considered a reportable account if there is an official who has particular responsibility for contacts with the account holder, and the officer is or becomes aware that the account holder is a resident of another State or jurisdiction.



section 10 If an account after the examination referred to in §§ 5-8 have been carried out will be a reportable account according to the same rules and Chapter 2. section 20, shall be considered as such from the calendar year when this occurs.



section 11 If a c/o or poste restante-address to the account holder is found during the examination referred to in paragraphs 5 to 8 and no other circumstances set out in section 2, first paragraph 1 – 6 is found during the examination, the reporting required financial institution to obtain a certification from the account holder or documentary evidence which establishes his or her residence for tax purposes. If the reporting financial institution within 90 days of the Institute, contact the account holder has been able to obtain such a declaration, or such other documentation, the account is considered to be an undocumented account.



section 12 of A reportable account shall be deemed to be such until the account holder or account holders no longer domiciled in another State or jurisdiction.



Chapter 5. Review of new financial accounts held by natural persons § 1 when an individual opens a new account at a financial institution reporting obligation shall obtain a declaration from the individual where he or she say what States and jurisdictions he or she is resident in.



If the certification shows that the natural person domiciled in another State or jurisdiction, the reporting required financial institution to obtain a certification from the natural person which contains his or her tax identification number in that State or jurisdiction and date of birth, if these are not specified in the certification obtained pursuant to the first subparagraph.



section 2 of the reporting Of the financial institution has, or has access to additional information in which there is reason to believe that a declaration from the account holder obtained are not reliable,


the Institute will obtain a new certification from him or her and assess its reliability.



3 § If otherwise not specified in Chapter 2. section 20 is an account a reportable account if a certification requested pursuant to paragraph 1 or 2, showing that the account holder is resident in one or more other States or jurisdictions.



section 4 If an account becomes reportable after a certification obtained in accordance with article 1, first paragraph, to the reporting required financial institution to obtain a certification from the account holder that contains his or her tax identification number and date of birth.



New accounts that get reviewed as if they are existing accounts



section 5 of The reporting required financial institution shall apply the provisions of Chapter 4. When reviewing a new account held by a natural person in lieu of the provisions of this chapter, if the account holder of the reporting required financial institution or of a related to this device also has one or more existing accounts.



If a reporting required financial institution in accordance with the first subparagraph applies the provisions of Chapter 4. during the examination of a new account and one of the accounts referred to in the first subparagraph is a reportable account, all such accounts as referred to in the first subparagraph shall be considered to be reportable, if otherwise not specified in Chapter 2. section 20.



Declarations and other documentation that the reporting required financial institution collect or have access to according to Chapter 4. with respect to such an account referred to in the first subparagraph may be used in the examination of the accounts referred to in the first subparagraph.



Chapter 6. Review of existing financial accounts held by units Reporting taxable accounts



§ 1 If something else not listed in Chapter 2. section 20 is an existing account a reportable account 1. If it is held by one or more entities that are domiciled in another State or jurisdiction, or



2. If it is held by one or more other devices are passive non-financial entities and over which one or more natural persons who have habitual residence in another State or jurisdiction has control.



Procedure for the identification of reportable accounts

2 § to investigate whether an entity is domiciled in another State or jurisdiction, the reporting required financial institution review the data gathered to be able to liaise with the account holder or because of provisions in the Act (2009:62) on measures against money laundering and the financing of terrorism or in other statutes. If there is reason to believe that the account holder is a resident of another State or jurisdiction, should the account holder is considered to be resident in that State or jurisdiction if the reporting required financial institution



1. obtain an attestation from the account holder if the account holder is not domiciled in that State or jurisdiction, or



2. on the basis of other information, that the reporting required financial institution has access to, or information that is commonly available can determine that the account holder is not domiciled in that State or jurisdiction.



section 3 to determine if a device is a passive, non-financial entity, the reporting required financial institution obtain a declaration made by the account holder. Such a declaration may not be obtained, if it based on the information which the reporting required financial institution has access to, or information that is publicly available, it is assumed that the account holder is 1. an active non-financial entity, or 2. another financial institution than such an investment entity described in Chapter 2. 9 section 2 in a State or jurisdiction that is not a participating jurisdiction.



4 section to determine which persons are persons with control of an entity, the reporting required financial institution relying on the information obtained on the basis of the provisions of the law (2009:62) on measures against money laundering and terrorist financing.



To determine whether a person with a non-controlling interest is resident in another State or jurisdiction, the reporting required financial institution



1. in the case of accounts whose balance or value amounts to USD 1 000 000 or less, review the information obtained on the basis of the provisions of the law on measures against money laundering and terrorist financing, and



2. in the case of other accounts than referred to in 1, to obtain a certification from the account holder or persons with a controlling interest.



§ 5 If the reporting required financial institution after the examination under paragraphs 1 to 4 have been implemented will have access to additional information in which there is reason to believe that a certification or other documentation in respect of the account is incorrect or is not reliable, the Institute again carry out the review in accordance with paragraphs 1 to 4. If something else not listed in Chapter 2. section 20 is the account a reportable account about it then there is still reason to believe that certification or other documentation is inaccurate or unreliable.



If the information in the first paragraph, first sentence relates to information to determine if a device is a passive non-financial entity, it shall be deemed to be such an entity, if the reporting required financial institution does not receive a certification or other documentation which indicates that this is not the case.



Accounts that do not need to be audited



section 6 of the examination under paragraphs 1 to 4 do not need to include accounts whose balances or values amounted to 250, 000 u.s. dollars or less as of december 31, 2015.



Accounts for the purposes of the first subparagraph is not subject to review, shall not be considered as reportable accounts. If such an account still has been examined in accordance with paragraphs 1 to 4 and then identified as reportable, the reporting required financial institution, if otherwise not specified in Chapter 2. 20 section, choose whether it wants to treat the account as reportable or not.



If the balance or the value of an account referred to in the first subparagraph is more than 250, 000 u.s. dollars by the end of 2015 or later at the end of a calendar year, it shall, however, be examined in accordance with paragraphs 1 to 4 before the end of the calendar year following the calendar year to be treated as a reportable account if it is identified as such.



Chapter 7. Review of new financial accounts held by entities



Reportable accounts



§ 1 If something else not listed in Chapter 2. section 20 is a new account a reportable account 1. If it is held by one or more entities that are domiciled in another State or jurisdiction, 2. If it is held by one or more devices that are passive non-financial entities and over which one or more natural persons who have habitual residence in another State or jurisdiction has controlling interest, or



3. If such a declaration from the account holder or persons with a controlling interest as required by section 3 or 4 do not enter.



Procedure for the identification of reportable accounts

2 section to determine whether an entity is domiciled in another State or jurisdiction, to the reporting required financial institution in connection with an account opened to obtain a certification from the account holder.



A declaration as referred to in the first paragraph need not be obtained if the information the reporting required financial institution has access to, or information that is publicly available, it is assumed that the account holder is not domiciled in another State or jurisdiction.



section 3 to determine if a device is a passive, non-financial entity, the reporting required financial institution obtain a declaration made by the account holder. Such a declaration may not be obtained, if it based on the information which the reporting required financial institution has access to, or information that is publicly available, it is assumed that the account holder is 1. an active non-financial entity, or



2. another financial institution than such an investment entity described in Chapter 2. 9 section 2 in a State or jurisdiction that is not a participating jurisdiction.



4 section to determine which persons are persons with control of an entity, the reporting required financial institution relying on the information obtained on the basis of the provisions of the law (2009:62) on measures against money laundering and terrorist financing.



To determine whether a person with a non-controlling interest is resident in another State or jurisdiction, the reporting required financial institution in connection with an account opened to obtain a certification from the account holder or from persons with a controlling interest.



If the certification indicates that one or more people with a non-controlling interest is resident in another State or jurisdiction, the reporting required financial institution to obtain a certification from the account holder or persons with a controlling interest, containing his or their tax registration number, if these are not specified in the certification obtained in accordance with the second subparagraph.



§ 5 If the reporting required financial institution after


the examination under paragraphs 1 to 4 have been implemented will have access to additional information in which there is reason to believe that a certification or other documentation in respect of the account is incorrect or is not reliable, the unit carrying out the examination under paragraphs 1 to 4. If something else not listed in Chapter 2. section 20 is the account a reportable account about it then there is still reason to believe that certification or other documentation is inaccurate or unreliable.



If the information in the first paragraph concerns the information to determine if a device is a passive non-financial entity, it shall be deemed to be such an entity, if the reporting required financial institution does not receive a certification or other documentation which indicates that this is not the case.



New accounts that get reviewed as if they are existing accounts



6 § a reporting required financial institution shall apply the provisions of Chapter 6. When viewing an account held by an entity, rather than the provisions of this chapter, if the account holder of the reporting required financial institution or of a related to this device also has one or more existing accounts.



If a reporting required financial institution in accordance with the first subparagraph applies the provisions of Chapter 6. during the examination of a new account and one of the accounts referred to in the first subparagraph is a reportable account, all such accounts as referred to in the first subparagraph shall be considered to be reportable, if otherwise not specified in Chapter 2. section 20.



Declarations and other documentation that the reporting required financial institution collect or have access to according to Chapter 6. 2-5 sections with respect to such an account referred to in the first subparagraph may be used in the examination of the accounts referred to in the first subparagraph.



Chapter 8. Other provisions



/Rubriken expires U: 2016-03-01/

The obligations of the account-holding institution a central securities depository is a reporting required financial institution



/Rubriken entry into force: 03/01/2016

The obligations of the account-holding institution a Swedish central securities depository is a reporting required financial institution



1 §/expires U: 2016-03-01/

If the reporting required financial institution is one such central securities depository referred to in Chapter 1. paragraph 3 of the law (1998:1479) on the accounting of financial instruments, which have been adopted as an account operator and perform registration actions instead of the central securities depository, apply 4-8. with respect to accounts that are subject to such registration. The central securities depository shall compile and provide to the account-holding institution the information that the account-holding institution need to apply 4-8.



1 section/entry into force: 03/01/2016

If the reporting required financial institution is such a Swedish central securities depository referred to in the law (1998:1479) on CSDs and the accounting of financial instruments, which have been adopted as an account operator and perform registration actions instead of the central securities depository, apply 4-8. with respect to accounts that are subject to such registration. Central securities depository shall compile and provide to the account-holding institution the information that the account-holding institution need to apply 4-8. Law (2016:67).



Notification to the tax office



section 2 If a financial institution meets the criteria to be a reporting required financial institution pursuant to Chapter 2. section 21, shall as soon as possible but at the latest within two months, report this to the tax office.



A device that no longer meet the criteria to be a reporting required financial institution pursuant to Chapter 2.

section 21, shall, as soon as possible but at the latest within two months, report this to the tax office.



Calculation of balance or value



section 3, unless otherwise specified, an account balance or value in the application of 4-8. determined as of the last day of a calendar year, or another appropriate reporting period.



When an account balance or value at the end of a calendar year is significant for the review in accordance with Chapter 4-8, will be a reporting required financial institution count on account balance or value as of the last day of the reporting period which expires at the same time to the calendar year or during the calendar year.



Beneficiaries of the death benefit



4 section a reporting required financial institutions may assume that a natural person who is a beneficiary but not insured in an insurance policy with a cash value or an annuity contract and which receives a death benefit in accordance with the contract or life annuity contract not domiciled in another State or jurisdiction. However, this does not apply if the reporting required financial institution has reason to believe that the beneficiary is a resident of another State or jurisdiction. If there are reasons to assume that the beneficiary is a resident of another State or jurisdiction, Chapter 4. 1 – 4 and 7 § § apply with respect to the insurance contract or annuity contract.



Share in a group insurance contract with cash value or a group annuity contract



section 5 of The reporting required financial institution may consider a financial account is a share in a group insurance contract with cash value or a group annuity contract as an account that is not reportable until an amount shall be paid to the policyholder or the beneficiary of the share meets all of the following requirements:



1. The share is in a group insurance contract with cash value or a group annuity contract that is set to an employer to cover at least 25 insured persons employed by the employer.



2. staff certificate holders are entitled to receive the cash value attached to their share and specifying the beneficiary for the benefit to be paid at the employee's death.



3. the total amount to be paid to the employees the policyholder or the beneficiary in respect of the share does not exceed 1 000 000 US dollars.



For the purposes of the first subparagraph, ' group insurance contracts with the cash value of an insurance contract with cash value 1. that covers natural persons who are connected by an employer, trade association, trade union or other association or group, and



2. in respect of which it is for each Member of the group or category of members within the Group paid a premium as determined without regard to the members ' personal health conditions other than age, sex and smoking habits.



For the purposes of the first subparagraph, ' group annuity contracts a life annuity contract to which rights holders are natural persons who are connected by an employer, trade association, trade union or other association or group.



Existing accounts are reviewed as if they are new accounts and low-value accounts are reviewed as if they are high value accounts



6 § when viewing an existing account held by a natural person, a reporting required financial institution to apply the provisions of Chapter 5. in place of the provisions in Chapter 4. to determine if the account is reportable. When viewing an existing account held by an entity, a reporting required financial institution to apply the provisions of Chapter 7. in place of the provisions in Chapter 6. to determine if the account is reportable. Representations from the account holder or persons with control of the account holder must be obtained when the review is made instead of when the account is opened. The time limit for examination under the provisions of Chapter 4. and Chapter 6.

should, however, also apply in these cases.



Upon review of an existing low-value account held by a natural person, a reporting required financial institution to apply the provisions of Chapter 4. 5-12 sections in place of the provisions in Chapter 4. 1 – 4 and 7 sections to determine if the account is reportable. The time limit for examination under the provisions of Chapter 4. 1 – 4 and 7 shall also apply paragraphs, however, in these cases.



Supporting documentation



7 for the purposes of section 4 – Chapter 7, that documentary evidence counts



1. a certificate of residence issued by the competent authorities of the State or jurisdiction where the payee claims to be a resident,



2. in the case of a natural person, a valid identification document issued by a competent governmental body that provides an indication of the person's name and are typically used for identification,



3. in the case of an entity, the official documentation issued by the competent government body that contains the identity of the legal entity's name and the address of its head office in the State or jurisdiction where the purporting to be resident, or in the State or jurisdiction under whose law it has been drawn up,



4. annual accounting documents, credit checks, bankruptcy or report from the FSA.



In the case of existing accounts held by entities to which documentary evidence also considered ratings


in the reporting required financial institution's archive with respect to the account holder. The ratings shall be determined on the basis of a standardised system for industry codes in accordance with the normal procedures of reporting financial institution to review the information collected to maintain contacts with the account holder or because of provisions in the Act (2009:62) on measures against money laundering and the financing of terrorism or in other statutes. However, this applies only if the standardized system for the industry codes were implemented by the reporting financial institution before 1 January 2016.



Documentation reliability



section 8 a reporting required financial institution may not, despite the otherwise provided in Chapter 4 – 8, rely on the information in the certificates and other documentation of the Institute have access to additional information that enables the accuracy or reliability may reasonably be called into question.



Storage of documentation



§ 9 documents and information about the measures taken to identify whether an account is reportable or not shall be preserved for at least five years from the time the account is terminated.



Notification in cases of violation of the protection of information



section 10 of The reporting required financial institution for violations or deficiencies in the protection of data under the right of natural persons to which the data relate to an infringement of the protection of data has taken place, if the infringement is likely to affect the protection of their personal data or privacy negatively.



Intentional circumvention



11 § regardless of what is otherwise provided for in this Act to a financial account is considered a reportable credit and financial institution shall be deemed to be a reporting required financial institution, if



1. a resident of another State or jurisdiction, or a financial institution takes measures that are part of a process that leads to an account is not a reportable accounts referred to in Chapter 2. section 20 or a financial institution is not a reporting required financial institution pursuant to Chapter 2. section 21 and that, having regard to the circumstances, may be assumed to have been the predominant reason for the procedure, and



2. it would be contrary to the purpose of this Act, if the account is not a reportable account or the financial institution is not a reporting required financial institution.



Additional regulations



section 12 of the Government or the authority the Government should announce regulations regarding what States and jurisdictions that shall be considered to be participating jurisdictions each reportable jurisdictions.



Transitional provisions



2015:911



1. this law shall enter into force on the 1 January 2016.



2. by 31 december 2016, the reviews have been carried out in accordance with the provisions of Chapter 4. 5-11 sections of existing high-value accounts held by natural persons.



3. by 31 december 2017 to the review have been implemented in accordance with subparagraph (a)) the provisions of Chapter 4. 1 – 4 and 7 sections of existing low-value accounts held by individuals, and



(b)) the provisions of Chapter 6. 1 to 6 sections of existing accounts held by entities.



4. by 31 december 2016, a financial institution, as before 1 January 2016 become reporting required, submit a notification to the tax authority in accordance with Chapter 8. 2 section if it meets the criteria to be a reporting required financial institution pursuant to Chapter 2. section 21.



2016:67



1. this law shall enter into force on 1 March.



2. the provisions of Chapter 2. the third paragraph of section 11 apply for the first time in respect of the calendar year 2016.