Concepts of the Know-Your-Customer Questionnaire for legal persons

A spouse, a person with whom a partnership is registered (i.e. common-law partner), parents, siblings, grandparents, grandchildren, children, children’s spouses, and children’s common-law partners.

A natural person who is a member in the same legal person or unincorporated organisation as the person who is or has been performing prominent public functions or maintains other business relationship; a natural person who is the sole beneficiary of a legal person or unincorporated organisation established or operating de facto and seeking material or other personal benefits for a person who is or has been performing prominent public functions.

A person authorised by a power of attorney from the Client, or by law, contract, statute/regulations, court decision or administrative act, who acts on behalf of the Client and in their interests and for their account. Representatives can be natural or legal persons with legal capacity. Representatives are guardians, custodians, parents of minors, proxies, managers of legal entities and other persons who can represent the Client.

A natural person who is or has been holding a prominent public function in the Republic of Lithuania, the European Union, international or foreign institutions within the last 18 months, and close family members or close associates of that person.

Position in the Republic of Lithuania, the European Union, international or foreign institutions:

1. Head of state, head of government, minister, vice-minister or deputy minister, secretary of state, chancellor of parliament, government or ministry;
2. Member of parliament;
3. Member of supreme court, constitutional court or other supreme judicial bodies whose decisions cannot be appealed;
4. Mayor of a municipality, director of the municipal administration;
5. Member of the governing body of the supreme state audit and control authority or the chairperson, deputy chairperson or member of the board of directors of a central bank;
6. Ambassador, chargé d’affaires, Commander-in-Chief of the Lithuanian Armed Forces, commanders of forces and formations, Chief of the Defence Staff, or a high-ranking officer in the armed forces of a foreign country;
7. Member of a governing or supervisory body of a public enterprise, public limited liability company, private limited liability company whose shares or part thereof granting more than 1/2 of all votes in the general meeting of shareholders are owned by the state;
8. Member of a governing or supervisory body of a municipal enterprise, public limited liability company, private limited liability company whose shares or part thereof granting more than 1/2 of all votes in the general meeting of shareholders are owned by the municipal government, where such companies are deemed large enterprises within the meaning of the Law on Financial Reporting by Undertakings of the Republic of Lithuania;
9. Head of an international intergovernmental organization, its deputy head, member of its governing or supervisory body;
10. Leader of a political party, its deputy leader, member of its governing body.

Dividends, interest, rental income, royalties, life insurance benefits, certain other insurance income, gains on the sale of assets from which passive income is derived, gains on the sale of goods, foreign exchange gains and gains on derivative financial instruments. Rental income derived from active employee activities, i.e. when the enterprise has employees, is generally not treated as passive income.

This is the abbreviation for the tax compliance act for foreign accounts. This tax legislation enacted in the United States is designed to identify US persons who have account(s) or financial assets outside the United States.

The Common Reporting Standard (CRS), developed by the Organisation for Economic Co-operation and Development (OECD), is a framework for countries that have signed an international agreement to exchange taxpayer information with other jurisdictions.

Custodial Institution, Deposit Institution, Investment Company or Specified Insurance Company. Other legal entities that are considered financial institutions under local law must be considered non-financial institutions under FATCA/CRS.

Any legal entity that carries out for or on behalf of a client one or more of the following activities:

1. Trading in money market instruments (cheques, bills of exchange, deposit certificates, derivative instruments, etc.);
2. Individual and collective portfolio management;
3. Other types of investment, administration or management of funds or money on behalf of other persons.

Any legal person whose business consists essentially of managing financial assets for the account of others.

Any legal entity that accepts deposits in the ordinary course of banking or similar activities.

A legal entity that is an insurance company that issues or is obliged to make payments under a unit-linked insurance contract or annuity contract.

Dividends, interest, rental income, royalties, life insurance benefits, certain other insurance income, gains on the sale of assets from which passive income is derived, gains on the sale of goods, foreign exchange gains and gains on derivative financial instruments. Rental income derived from active employee activities, i.e. when the enterprise has employees, is generally not treated as passive income.