1010.605—Definitions.
Except as otherwise provided, the following definitions apply for purposes of §§ 1010.610 through 1010.630 and § 1010.670 :
(a)
Beneficial owner of an account means an individual who has a level of control over, or entitlement to, the funds or assets in the account that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the account. The ability to fund the account or the entitlement to the funds of the account alone, however, without any corresponding authority to control, manage or direct the account (such as in the case of a minor child beneficiary), does not cause the individual to be a beneficial owner.
(b)
Certification and recertification mean the certification and recertification forms regarding correspondent accounts for foreign banks located on FinCEN's Internet Web site, http://www.fincen.gov.
(i)
For purposes of § 1010.610(a), (d) and (e), an account established for a foreign financial institution to receive deposits from, or to make payments or other disbursements on behalf of, the foreign financial institution, or to handle other financial transactions related to such foreign financial institution; and
(ii)
For purposes of §§ 1010.610(b) and (c), 1010.630 and 1010.670, an account established for a foreign bank to receive deposits from, or to make payments or other disbursements on behalf of, the foreign bank, or to handle other financial transactions related to such foreign bank.
(A)
Means any formal banking or business relationship established by a bank to provide regular services, dealings, and other financial transactions; and
(B)
Includes a demand deposit, savings deposit, or other transaction or asset account and a credit account or other extension of credit;
(ii)
As applied to brokers or dealers in securities (as set forth in paragraph (e)(1)(viii) of this section) means any formal relationship established with a broker or dealer in securities to provide regular services to effect transactions in securities, including, but not limited to, the purchase or sale of securities and securities loaned and borrowed activity, and to hold securities or other assets for safekeeping or as collateral;
(iii)
As applied to futures commission merchants and introducing brokers (as set forth in paragraph (e)(1)(ix) of this section) means any formal relationship established by a futures commission merchant to provide regular services, including, but not limited to, those established to effect transactions in contracts of sale of a commodity for future delivery, options on any contract of sale of a commodity for future delivery, or options on a commodity; and
(iv)
As applied to mutual funds (as set forth in paragraph (e)(1)(x) of this section) means any contractual or other business relationship established between a person and a mutual fund to provide regular services to effect transactions in securities issued by the mutual fund, including the purchase or sale of securities.
(d)
Correspondent relationship has the same meaning as correspondent account for purposes of §§ 1010.630 and 1010.670.
(i)
An insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h) ));
(vii)
A trust bank or trust company that is federally regulated and is subject to an anti-money laundering program requirement;
(viii)
A broker or dealer in securities registered, or required to be registered, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq. ), except persons who register pursuant to section 15(b)(11) of the Securities Exchange Act of 1934;
(ix)
A futures commission merchant or an introducing broker registered, or required to be registered, with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1
et seq. ), except persons who register pursuant to section 4(f)(a)(2) of the Commodity Exchange Act; and
(i)
An insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h) ));
(vii)
A corporation acting under section 25A of the Federal Reserve Act (12 U.S.C. 611
et seq. ); and
(viii)
A broker or dealer in securities registered, or required to be registered, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq. ), except persons who register pursuant to section 15(b)(11) of the Securities Exchange Act of 1934.
(ii)
Any branch or office located outside the United States of any covered financial institution described in paragraphs (e)(1)(viii) through (x) of this section;
(iii)
Any other person organized under foreign law (other than a branch or office of such person in the United States) that, if it were located in the United States, would be a covered financial institution described in paragraphs (e)(1)(viii) through (x) of this section; and
(iv)
Any person organized under foreign law (other than a branch or office of such person in the United States) that is engaged in the business of, and is readily identifiable as:
(2)
For purposes of paragraph (f)(1)(iv) of this section, a person is not “engaged in the business” of a currency dealer, a currency exchanger or a money transmitter if such transactions are merely incidental to the person's business.
(h)
Non-United States person or non-U.S. person means a natural person who is neither a United States citizen nor is accorded the privilege of residing permanently in the United States pursuant to title 8 of the United States Code. For purposes of this paragraph (h), the definition of person in § 1010.100(mm) does not apply, notwithstanding paragraph (k) of this section.
(i)
Offshore banking license means a license to conduct banking activities that prohibits the licensed entity from conducting banking activities with the citizens of, or in the local currency of, the jurisdiction that issued the license.
(i)
Owns, controls, or has the power to vote 25 percent or more of any class of voting securities or other voting interests of a foreign bank; or
(ii)
Controls in any manner the election of a majority of the directors (or individuals exercising similar functions) of a foreign bank.
(ii)
The term same family means parents, spouses, children, siblings, uncles, aunts, grandparents, grandchildren, first cousins, stepchildren, stepsiblings, parents-in-law, and spouses of any of the foregoing.
(iii)
Each member of the same family who has an ownership interest in a foreign bank must be identified if the family is an owner as a result of aggregating the ownership interests of the members of the family. In determining the ownership interests of the same family, any voting interest of any family member shall be taken into account.
(iv)
Voting securities or other voting interests means securities or other interests that entitle the holder to vote for or to select directors (or individuals exercising similar functions).
(2)
Is located at a fixed address (other than solely an electronic address or a post-office box) in a country in which the foreign bank is authorized to conduct banking activities, at which location the foreign bank:
(3)
Is subject to inspection by the banking authority that licensed the foreign bank to conduct banking activities.
(m)
Private banking account means an account (or any combination of accounts) maintained at a covered financial institution that:
(2)
Is established on behalf of or for the benefit of one or more non-U.S. persons who are direct or beneficial owners of the account; and
(3)
Is assigned to, or is administered or managed by, in whole or in part, an officer, employee, or agent of a covered financial institution acting as a liaison between the covered financial institution and the direct or beneficial owner of the account.
(i)
Is an affiliate of a depository institution, credit union, or foreign bank that maintains a physical presence in the United States or a foreign country, as applicable; and
(ii)
Is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or foreign bank.
(i)
Affiliate means a foreign bank that is controlled by, or is under common control with, a depository institution, credit union, or foreign bank.
(A)
Ownership, control, or power to vote 50 percent or more of any class of voting securities or other voting interests of another company; or
(B)
Control in any manner the election of a majority of the directors (or individuals exercising similar functions) of another company.
(A)
Senior official in the executive, legislative, administrative, military, or judicial branches of a foreign government (whether elected or not);
(ii)
A corporation, business, or other entity that has been formed by, or for the benefit of, any such individual;
(iv)
A person who is widely and publicly known (or is actually known by the relevant covered financial institution) to be a close associate of such individual.
(i)
Senior official or executive means an individual with substantial authority over policy, operations, or the use of government-owned resources; and
(ii)
Immediate family member means spouses, parents, siblings, children and a spouse's parents and siblings.