1. QI is subject to the following laws and regulations of Uruguay governing the requirements of QI to obtain documentation confirming the identity of QI’s account holders.
- Law No. 16.749 of May 2, 1996
- Decree No. 344/96 of August 28, 1996
- Reconciliation of control norms of the Central Bank of Uruguay (Book II part II)
- Law No. 16.696 of March 30, 1995
- Law No. 17.016 of October 22, 1998
- Circular No. 1712 of October 13, 2000
- Circular No. 1920 of November 25, 2004
- Circular No. 1715 of October 27, 2000
- Circular No. 1722 of December 21, 2000
- Communication No. 2004/275 of October 15, 2004
2. QI represents that the laws and regulations identified in item 1 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 function as a qualified intermediary.
- The Central Bank of Uruguay
- The Financial Information and Analysis Unit
3. QI represents that the following penalties apply for failure to obtain, maintain, and evaluate documentation obtained under the laws and regulations identified in item 1.
- Fines up to UR 60.000 (Approximately US$ 600,000)
- Suspension of activities for a period of time
- Revocation of authorization to operate
The penalty for money laundering crimes is imprisonment for a term of twelve months to fifteen years. Law No. 17.016, Articles 54, 55, 56 and 57.
4. QI shall use the following specific documentary evidence (and also any specific documentary evidence 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 documentary evidence satisfies the requirements of the laws and regulations identified in item 1 above. In the case of any foreign person, the 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 Uruguay, may request an amendment of this item 4.
(i) For natural persons, one of the following valid documents:
a) Passport; or
b) National identity card.
(ii) For legal entities, the following documentary evidence:
a) Copies of the certificate of incorporation or registry certification,
memorandum and articles of association, trust deed or other organizational
b) Copies of extracts from public registers.
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 any foreign person, the QI may, instead, use a Form W-8 in accordance with section 5 of this Agreement. Either QI, or a brokerage or securities association in Uruguay, may request an amendment of 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 the laws and
regulations listed in item 1 permit QI to rely on the other person to identify the
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 the QI to rely on the certified photocopy to identify the account
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 under the know-your-customer
rules was actually examined by an employee of the QI, or an employee of an
affiliate 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 the
QI to treat the documentation as invalid under the rules of section 5.10(B) of this