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

We’ve changed some of our investments 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 non-registered 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 Investments 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 Investments forms
  • NN0486 – Application for Annuity
  • NN0978 – Manulife Investments Guaranteed Interest Contract
  • NN1601 – Manulife PensionBuilder Application
  • NN1602 – Manulife PensionBuilder Additional and/or Successor Owner Supplement
  • NN1603 – Manulife PensionBuilder Application for an External Contract
  • NN1606 – Manulife PensionBuilder Application - Non-registered
  • NN1650 – Client and Third Party Identity Verification
  • CS3876 – Manulife Ideal Signature Select – Contract application (Former Standard Life)
  • CS3896 – Manulife Ideal Signature Select – Application for nominee contracts (Former Standard Life)

The forms above and below are being updated to address the CRS and AML changes. Note, however, that the forms below will be updated again in October to help align the administrative process when the segregated fund contracts of the former Standard Life are moved to the Manulife administration platform. Our ordering systems will remind you to order limited amounts of the following forms between now and October.

  • NN0821 – Non-registered / RSP / LIRA / LRSP / RLSP Application
  • NN0825 – Deposits for contracts containing Manulife segregated funds
  • NN0907 – External Contract Application
  • NN0908 – Segregated Funds Transfers-in-Kind
  • NN0958 – Segregated Funds Transfers-in-Kind Guide
  • NN0975 – Client and Third Party Identity Verification
  • NN1555 – Corporate and Non-Individual Identity Verification
  • NN1583 – Non-financial changes For Guaranteed Interest Contracts and contracts containing Manulife segregated funds

Additional information for former Standard Life contracts

These former Standard Life forms will no longer be used:

  • 5097 – Third party verification
  • 6330 – Client identification supplementary information
  • 7697 – Ownership Change
  • 7769 – Canada - United States Enhanced Tax Information Exchange Agreement - Self Certification form for individuals
  • GE12701 – Power of attorney identification
  • Administrative guidelines:
    • Transfer of ownership and appointment of contingent owner
    • Client Identification

Instead, these Manulife forms will be used on a go-forward basis:

  • NN0975 – Client and Third Party Identity Verification
  • NN1555 – Corporate and Non-Individual Identity Verification
  • NN1583 – Non-Financial changes For Guaranteed Interest Contracts and contracts containing Manulife segregated funds (form to be used for ownership changes only - section 5)
  • NN1663 (New form) – Dual Identification Method Verification – Collects information required by Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act. For information about the legislation, see www.fintrac.gc.ca.

Timing

CRS

  • As of July 1, 2017, Manulife will require customers to declare where they are resident for tax purposes for new contract deposits.

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 updated version of the forms are available electronically through Online Transactions. Starting June 9, if you ordered hard copies of these forms through DATA Communications, we will fill your order with the updated versions which will be shipped starting June 16. If we receive old forms after the updated forms are released, we may require additional follow-up for further client information and verification, including Politically Exposed Person disclosure which is required as of June 17, 2017.

Resources and training information

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.

Available now 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 Investments Training corner (Repsource > Administration > Investments > Training corner > Training resources > Job Aids > Compliance)

A new Anti-Money Laundering job aid is available in the Investments Training corner (Repsource > Administration > Investments > Training corner > Training resources > Job Aids > Compliance)

CRS related websites
 
Industry associations:

Learn more about international tax reporting:

CRA website:




AML related websites

Repsource:

Government of Canada websites:

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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