(1) A Reporting Saint Lucia Financial Institution shall apply the due diligence procedures set out in Annex I of the Agreement to identify U.S. Reportable Accounts and accounts held by Non-participating Financial Institutions.
(2) Without prejudice to the generality of subsection (1), a Reporting Saint Lucia Financial Institution shall establish and maintain —
(a) arrangements that are designed to identify reportable accounts;
(b) arrangements that are designed to establish the territory in which any account holder is resident for income tax or corporation tax purposes or for the purposes of any tax imposed by the laws of Saint Lucia that is of a similar character to income tax or corporation tax; and
(c) arrangements to obtain the US TIN for pre-existing accounts as of 1st January, 2017 and subsequent years.
(3) Notwithstanding subsection (1), the due diligence requirements do not apply to a Financial Account if the Reporting Saint Lucia Financial Institution maintains the account as a result of a merger with, or acquisition of, a qualifying financial institution which had established the U.S. status of the account holder and any controlling person.
(4) For the purposes of subsection (3), “qualifying financial institution”, in relation to a Reporting Saint Lucia Financial Institution, means another Reporting Saint Lucia Financial Institution —
(a) which has not previously been a related entity of the Reporting Saint Lucia Financial Institution;
(b) which immediately before the merger or acquisition was a partner jurisdiction financial institution but was not a registered deemed-compliant financial institution or a non-participating financial institution.
(5) For the purpose of applying paragraph VI.C of Annex I of the Agreement, an account balance that has a negative value is treated as having a nil value.