Types of accounts - Non-Qualified Intermediaries and Flow-Through Entities

08.05.2018

Non-Qualified Intermediaries (NQIs) and Flow-Through Entities (FTEs)

There are different types of accounts available in Clearstream Banking to NQIs and FTEs depending on the status of the underlying recipients / beneficial owners for whom the securities are held on the account.

The customer will have to

  • indicate whether FATCA withholding must be applied and provide necessary FATCA recipient code, exemption codes and recipient documentation whenever relevant;
  • provide the relevant documentation for all underlying recipients/ beneficial owners and potential additional intermediary for Chapter 3 purposes; and
  • separate the U.S. specified persons for whom 1099 reporting is due from the other type of recipients as indicated below.

For each account with Clearstream Banking for which the customer is acting in this capacity,

the customer must provide:

  • A form W-8IMY confirming the customer is FATCA compliant, NQI and, whenever applicable, eligible to pool report U.S. payees ; and

In addition exclusively for FATCA non-compliant recipients and/or FATCA compliant recipients being non-U.S. beneficial owners/recipients, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool

The NQI must provide

  • A one-time certificate indicating

    • the relationship between the final recipients / beneficial owners and the customer (assets held directly in the customer’s book or held via an additional intermediary), and
    • the necessary FATCA recipient information (Chapter 4 recipient codes, exemption codes and documentation when relevant), and
    • the rate(s) of withholding tax under Chapter 3 are to be applied to payments,

Whenever NQIs wish to apply for an omnibus structure (requiring a per payment allocation breakdown ) and hold securities on behalf of more than 100 underlying recipients, we kindly ask them to contact their Relationship Manager.

In addition U.S. specified persons for whom a 1099 reporting is due,

the NQI must provide

  • A one-time certificate (One-Time Certificate - FFI - NQI: Segregated account for FATCA compliant recipients being U.S. specified persons for which payee specific 1099 reporting is requested) associating payments with valid documentation and undertaking to communicate allocation information (per payment and per recipient) for reporting purposes to Clearstream Banking, for those accounts holding assets for multiple underlying recipients; and
  • A form W-9 from each recipient; and
  • An Allocation Information per payment and by recipient, if applicable


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