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Attachment for Cyprus

1.  QI is subject to the following laws and regulations of Cyprus governing the requirements of QI to obtain documentation confirming the identity of QI’s account holders.

(i) The Prevention and Suppression of Money Laundering Activities Laws of 1996-2000 (hereinafter to be referred to as “the Law”).
(ii) Guidance Notes issued by the Central Bank of Cyprus under Section 60(3) of the Prevention and Suppression of Money Laundering Activities Laws of 1996-2000, in its capacity as the regulatory authority of the banking sector.
(iii) Guidance Notes issued by the Cyprus Capital Markets Commission, under Section 60(3) of the Prevention and Suppression of Money Laundering Activities Laws of 1996-2000, in its capacity as the regulatory authority of the capital markets sector.
(iv) Guidance Notes issued by the Department of the Superintendent of Insurance, under Section 60(3) of the Prevention and Suppression of Money Laundering Activities Laws of 1996-2000, in its capacity as the regulatory authority of the insurance sector.

2.  QI represents that the laws identified above are enforced by the following enforcement bodies and QI shall provide the IRS with an English translation of any reports or other documentation issued by these enforcement bodies that are relevant to QI’s functions as a qualified intermediary.

(i) Central Bank of Cyprus – supervisory authority, for anti-money laundering purposes, of the banking sector.
(ii) Cyprus Capital Markets Commission – supervisory authority, for anti-money laundering purposes, of the capital markets sector.
(iii) Department of Superintendent of Insurance – supervisory authority, for anti-money laundering purposes, of the insurance sector.
(iv) The Unit for Combating Money Laundering – law enforcement authority under the provisions of the Prevention and Suppression of Money Laundering Activities Laws of 1996-2000.

3.  QI represents that the following penalties apply to failure to obtain, maintain, and evaluate documentation obtained under the law and regulations identified in Item 1 above.

The Director, Manager, Secretary or other officer of a body corporate engaged in relevant financial business as defined by the Law or any person purporting to act in any such capacity, as well as the body corporate are liable to imprisonment of two years or to a pecuniary penalty of Cyprus pounds 2.000 or both of these penalties.

4.  QI shall use the following specific documentary evidence (and also any specific documentation added by an amendment to this Item 4 as agreed to by the IRS) to comply with section 5 of this Agreement, provided that the following specific  
documentary evidence satisfies the requirements of the law and regulations identified in Item 1 above.  In the case of a foreign person, QI may, instead, use a Form W-8 in accordance with section 5 of this Agreement.  Either QI, or a banking or securities association in Cyprus, may request an amendment of this Item 4.

(i) For natural persons:

(a) Passport,
(b) National identify card that bears a photograph.

(ii) For legal persons:

Certificate of incorporation or Memorandum and Articles of Association.

5.  QI shall follow the procedures set forth below (and also any procedures added by an amendment to this Item 5 as agreed to by the IRS) to confirm the identity of account holders that do not open accounts in person or who provide new documentation for existing accounts other than in person.  In the case of a foreign person, QI may, instead, use a Form W-8 in accordance with section 5 of this Agreement.  Either QI, or a banking or securities association in Cyprus, may request an amendment to this Item 5.

(i) QI shall not open an account by any means other than by establishing in person the identity of a customer through the account holder’s own identity documents, except as permitted in (ii), (iii) and (iv) below.

(ii) QI may obtain by mail or otherwise a copy that is an exact reproduction of the specific documentary evidence listed in Item 4 above from another person that is subject to know-your-customer rules that have been approved by the IRS for purposes of qualified intermediary agreements, provided that the laws and regulations listed in Item 1 permit QI to rely on the other person to identify the account holder.

(iii) QI may obtain a photocopy of the specific documentary evidence listed in Item 4 by mail or otherwise remotely from the account holder or a person acting on behalf of the account holder, provided that the photocopy has been certified as a true and correct copy by a person whose authority to make such certification appears on the photocopy, and provided that the laws and regulations listed in Item 1 permit QI to rely on the certified photocopy to identify the account holder.

(iv) (a)  QI may obtain by mail or otherwise a copy that is an exact reproduction of the specific documentary evidence listed in Item 4 from an affiliate of QI or a correspondent bank of QI, provided that the affiliate or correspondent bank has established in person the identity of
the account holder and the laws and regulations listed in Item 1 permit
 
QI to rely on documentation provided by that affiliate or correspondent bank to identify the account holder.

(b)  For accounts opened prior to January 1, 2001, if QI was not required under its know-your-customer rules to maintain originals or copies of documentation, QI may rely on its account information if it has complied with all other aspects of its know-your-customer rules regarding establishment of an account holder’s identity, it has a record that the documentation required under the know-your-customer rules was actually examined by an employee of QI, or an employee of an affiliate of QI or a correspondent bank of QI, in accordance with the know-your-customer rules, and it has no information in its possession that would require QI to treat the documentation as invalid under the rules of section 5.10(B) of this Agreement.

Page Last Reviewed or Updated: 02-May-2013