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Now in effect: Insurance forms and process changes due to CRS and AML

We’ve changed some of our insurance forms and processes to gather additional client information. This is to ensure we’re compliant with the Common Reporting Standard (CRS) and with anti-money laundering (AML) amendments. Read more details in the Repsource article, New business rules and requirements in response to the CRS and AML.

CRS
To reduce tax evasion and improve tax compliance around the world, The Organisation for Economic Co-operation and Development (OECD), with the support of Canada and the other G20 industrialized countries, developed the Common Reporting Standard (CRS) – a global model for the automatic exchange of information on financial accounts. 

To implement the CRS, Canada has passed legislation (Part XIX of the Income Tax Act) requiring Canadian financial institutions to gather tax residency information from account holders to identify reportable accounts.

AML
To strengthen the fight against money laundering and terrorist financing, the Government of Canada has amended the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations and Guidance. Manulife is required by law to obtain additional information about our customers.

Additional information required
The new and updated forms include changes for cash value insurance contracts to:

  • help identify where the client is resident for tax purposes and to gather their applicable taxpayer identification number (TIN),
  • gather information related to politically exposed domestic persons and heads of international organizations, and
  • gather additional information to confirm a person’s identity.
NEW Manulife Insurance form
  • NN1663 – Dual Identification Method Verification – Collects information required by Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. (This new form will be required if your client does not have a valid government issued photo ID.) For information about the legislation, see www.fintrac.gc.ca.
Updated Manulife Insurance forms
  • NN0780 – InnoVision product page
  • NN0902 – Security UL product page
  • NN1547 – Performax Gold product page
  • NN1558 – Identifying owners of Individual Insurance policies
  • NN1560 – Politically exposed person disclosure (formerly named “Request for information about affiliations outside of Canada”)
  • NN1630 – Manulife UL YRT Gold Investment Account product page
  • NN1631 – Manulife UL YRT Client Investment Select product page
  • NN1635 – Manulife UL Level Gold Investment Account product page
  • NN1636 – Manulife UL Level Client Investment Select product page
  • NN1638 – International tax status for individuals who own an Individual Insurance policy
  • NN1639 – International tax classification for an entity that owns an Individual Insurance policy
  • MK3364(Suppl) – Worksheet Supplement for Universal Life and Whole Life

Timing

CRS

  • As of July 1, 2017, Manulife will require customers to declare where they are resident for tax purposes for cash value insurance contracts.

AML

  • As of June 17, 2017, the revised Regulations require the disclosure of Politically Exposed Domestic Persons and Heads of International Organizations
  • As of July 1, 2017, federal and provincial government-issued photo identification will be used to verify the identity of the customer in a face-to-face method. Non-photo government-issued or other reliable records can be used if two records are provided for identification in a new approach called the Dual Method. We will also ask for the date of expiry of the document(s) used, as well as the date the advisor verifies the client’s identification using the methods described above.

The new and updated forms are now available on Repsource through the Search tool as well as in the Forms section. Hard copies can be ordered through your usual forms source. Our Diamond View New Business illustration system has the updated product pages.

The updated forms are required for new insurance policies for cash value products that are issued on or after July 1, 2017.  One exception to this is the NN1560 form “Politically exposed person disclosure” which is required as of June 17, 2017.

Where the application for insurance is being submitted online, through E-Application, the following will apply:

If the E-Application was…
The online application…
Then…
locked for signature before June 3, 2017
can be submitted without answering the updated questions
  • Submit it to Manulife as is and it will be accepted. If the policy is issued after June 30, 2017 we may need to follow up for additional information.

locked for signature before June 3, 2017, but then unlocked after June 3, 2017
requires answers to the new question
  • Gather new information
  • Lock and submit the application
Started but not locked before June 3, 2017
requires answers to the new questions
  • Gather new information
  • Lock and submit the application

The new and updated forms are also needed for certain policy changes such as term conversions or ownership transfers for cash value products. For policy changes, the ‘in good order’ date will determine if additional information is required. If the date we receive the request ‘in good order’ is July 1, 2017 or after, additional information is required.

If you are not able to include the updated versions of the forms when you send in an application or change request, we may require additional follow up for client information and/or verification.

Training and resources

CRS
AML

A self-serve module called Understanding the Common Reporting Standard provides an overview of the CRS including what it is, its rationale and how it impacts advisors and their clients. It is available in the CE Centre (Repsource > Quick Links > CE Centre & Training > CE Centre > Doing Business > Compliance > The Common Reporting Standard)


A new CRS job aid is available in the Insurance Training corner (Repsource > Administration > Insurance > Training corner > Training resources > Job Aids > Compliance)

An updated Anti-Money Laundering job aid is available in the Insurance Training corner (Repsource > Administration > Insurance > Training corner > Training resources > Job Aids > Compliance)

CRS related websites
 
Industry associations:

Learn more about international tax reporting:

CRA website:




AML related websites

Repsource:

Canada Gazette:

Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) Guidance:



Note: Manulife is providing the above external links as a convenience for you, but is not responsible for all of the website content associated with those links.

Manulife cannot provide tax advice

While the financial planning services that advisors provide to their clients often include tax planning, it is inappropriate and illegal for advisors to assist clients in avoiding legal tax obligations. Advisors should direct their clients with questions or issues about complex tax obligations to obtain independent tax advice.


Industry associations:


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