Account Terms
The following terms contain important details you need to know about your Westminster Bank Account. Please take a few minutes to review this document. Since it covers more products than you may currently be using, some sections may not apply to you at this time. If you enrol in additional products in the future, your use of those products shall be your acceptance and agreement to the applicable terms and conditions. If any of the General Terms conflict with a provision in the product-specific terms, the product-specific terms shall apply.
By opening an Account at Westminster Bank, you agree to and accept the following terms and conditions as applicable to you:
- General Terms – applicable to all Accounts
- Our definitions
The words “you”, “your”, “Account holder” and “Client” mean each person, corporation or Client that opens an Account with Westminster Bank. “Account” means any and all Accounts you have with Westminster Bank in any currency. The “primary Account holder” is the person whose name appears first on the Westminster Bank statement. The words “we”, “us”, and “our” refer to Westminster Bank, the name under which Westminster Bank Limited operates. “External Account” means an account that you hold with another financial institution.
- External Account link
We may require you to provide us with an encoded personal or business deposit cheque or similar information from your other financial institution, or you may choose to provide us with such a link voluntarily. This will allow us to protect the security of your Account and to link your Westminster Bank Account with your External Account. The information that you provide must clear to establish this link.
We reserve the right not to open an Account if our Account opening requirements are not met.
- Anti-Money Laundering identity verification
Pursuant to Anti-Money Laundering and Counter-Terrorism legislation, you agree and consent to our verifying your identity as required and/or permitted by law and agree to provide any documentation necessary in furtherance of same. You acknowledge that your Account cannot be opened until satisfaction of these requirements and you agree to forego any payment of interest or any other benefit derived from the Account until these requirements are satisfied. You agree and consent to our verifying information provided by you through any credit bureaus, credit reporting agencies or similar third parties used for these purposes. You agree to provide any records that may be required for the opening of your Account and its continued operation under Vanuatu law, including but not limited to, your current occupation, your employer’s name and any other information necessary under the Anti-Money Laundering and Counter-Terrorism Financing Act (AMLCTFA) or such other similar legislation as the case may be.
- Account statement
Although we may not be required to provide you an Account Statement, we may still do so either by mail or by electronic means. If we provide you with an Account statement, it will only be sent to the primary Account holder’s last address in our records or by any other means including electronically. It is your obligation to update your address with us.
- Verification of transactions
You are required to review the Account activities and transactions (including fees charged) (“Account Activities”) at least once every 30 days and verify that all Account Activities were properly recorded and authorized and that there are no omissions. Account Activities may be reviewed online on our website or through Mobile Banking, or by reviewing your Account statements if applicable.
Account Activities for the prior calendar month are deemed to have been reviewed on the earlier of (i) the day that you actually reviewed your Account Activities; or (ii) the 15th day of the calendar month following the month in which those Account Activities occurred (the “Review Date”).
You must immediately notify us if you suspect or know that:
- there are any errors, omissions, unauthorized transactions, irregularities, fraud, forgeries or other discrepancies of any kind (“Discrepancies”) with any of your Account Activities; or
- your Account was compromised or has been accessed by an unauthorized person.
When you notify us, you must provide us with relevant information to assist in preventing loss on your Account.
Within 30 days of the Review Date, you must give us notice of any Discrepancies. This 30-day period is known as the “verification period”. If we don’t receive notice from you during the verification period, after the verification period:
- we are then entitled to treat the Account Activities that were to be reviewed during the verification period (“Verified Transactions”) to be accurate and authorized by you;
- you will have no claim against us relating to any Verified Transactions, even if you didn’t actually authorize the signature, instruction or authorization, or the transaction was induced or affected by fraud, forgery, was unauthorized, incorrect or was improperly made for any other reason whatsoever (unless such loss was caused solely by our intentional misconduct or gross negligence); and
- you release us from all claims whatsoever for Verified Transactions, whether such claims arise from negligence or other non-intentional fault, breach of contract, statutory claim or otherwise, save and except for direct losses to you caused solely by our intentional misconduct or gross negligence.
- Interest
We may change interest rates and our method of calculating interest at any time without prior notice. Notice of changes in the rate of interest and method of calculating interest will be displayed on our website or through Mobile Banking.
- Confidentiality and accessing your Account with your PIN
To protect your privacy and money, when you open an Account with us you must set up a secure password or Personal Identification Number (together “PIN”). The PIN allows you access to your Account and you must always provide it to us before we will follow any instructions regarding your Account. If you forget your PIN, we may accept a combination of alternate pieces of personal identification information, as described in the section of these terms called “Deposit and Withdrawal Transactions”, or any other method we may authorize at our sole discretion. Another separate PIN may be mailed to you or sent to you electronically. You are responsible for and give us your authorization to carry out all instructions given using your Account Numbers and PIN. We will not be liable to you for any loss or claim arising out of our relying on verbal or electronic instructions provided to us using your PIN. Your PIN must be kept confidential, and you alone are responsible for your PIN security. Providing your PIN to any third party could result in fraud or financial loss on your Account. It is therefore critical that you keep your PIN safe and only provide it only to us through a secure method we establish with you.
- Deposit and withdrawal transactions
You may request and/or authorize withdrawal transactions by telephone, through our website or any other means provided by us. We will make electronic funds transfers upon your request, to or from linked accounts at other financial institutions. Before we make an electronic funds transfer for you we will ask you to provide instructions and any, all, or some of the following pieces of identification information:
- your Client Number;
- your Account Number(s);
- your password; and/or
- your Personal Identification Number (PIN); and/or
- any other identifying information that we deem necessary in order to confirm your identity.
Funds usually arrive in your Westminster Bank Account or your external linked account within one to two business days after a request for an electronic funds transfer. We are unable to guarantee the date your funds will arrive in your Westminster Bank or External Account.
Deposits or withdrawals from your Account may be reversed if the deposit or withdrawal request cannot be delivered to your other financial institution or is returned for any reason. We will not accept traveller’s cheques for deposit. If you send cash to us we will not be responsible for any loss that you may incur as a result. Transactions and/or balances may be limited in dollar amounts, or otherwise as may be determined by us, and such limits may be changed in our sole discretion without notice to you. If we allow your Account to accumulate a negative balance, you must repay the negative balance in full immediately. We may also charge interest at the Overdraft Interest rate without notifying you until the total negative balance and applicable interest are repaid. If you fail to repay the negative balance, we may close your Account and forward the overdrawn balance to a debt collection agency. Defaults are reported to credit bureaus, which can adversely affect your credit history and/or rating. We may change the requirements for and manner of transferring funds into and out of your Account at any time.
- Holds on your Account
When you make a deposit by cheque, electronic funds transfer, or other negotiable item in any currency, for funds drawn from a financial institution’s located overseas, we may hold the funds for up to five (5) business days after the day you make the deposit. For all other negotiable items, the hold may be up to thirty (30) business days. During this hold period, we may limit your right to withdraw funds deposited by these means, and we may refuse to accept any deposit to an Account.
While there is a hold on your Account, and where permitted or required under applicable legislation:
- amounts may be released to your Account as indicated above, or at our sole discretion; and
- the hold period may also be extended in order to safeguard the security of your Account, or where an Account has been open for a period of less than 90 days.
When we receive new or updated personal information concerning your Account, we may put a hold on your Account in order to verify this information. We may also request supporting documentation so that we can confirm updated or new information. We may maintain the hold on your Account until your updated or new personal information can be confirmed. We may extend the maximum hold period if we have reasonable grounds to believe there may be illegal or fraudulent activity in relation to an Account.
- Joint Accounts
If an eligible Account is opened as a joint Account, each Account holder chooses his/her own PIN. Any joint Account holder may conduct transactions with any of your Accounts that have been designated as joint Accounts with us. If one joint Account holder requests a transaction we will execute it without express authorization of any other joint Account holder. You are responsible, both individually and jointly, for all obligations arising from these Account Terms. If any joint Account holder dies, any positive balance may be withdrawn or made payable to the surviving joint Account holder(s) and you hereby assign the balance of any jointly held bank Account to the surviving holder(s) in the event of your death. If both accounts holder die, any positive balance shall be settled in accordance with the estate of the deceased joint Account holders.
Neither joint Account holder may request the opening of a subsequent joint Account with the same Account holder(s) without the explicit consent of the other Account holder(s) thereto. Such consent may be provided to us either in writing or via electronic means specified by us at our discretion.
We may disclose your Account information to a joint Account holder, including information about the Account prior to it becoming a joint Account.
- Accounts for the benefit of others – “In Trust”, etc.
We are not required to recognize anyone other than you as having any interest in your Account, except joint Account holders when an Account is a joint Account. For example, if you request that we open an Account in your name, but you use “In Trust” or “As Nominee” or some similar designation, whether or not it is for a specified third party, we will only accept instructions for that Account from you. We are under no obligation to obtain permission from any other person.
- Foreign Currency Accounts
All interest payments and statements that relate to your Foreign Currency (such as US Dollar, AU Dollar, or EUR) Accounts shall be in the currency of the respective country or region. We are not responsible to you for any losses that you may experience due to taxes, duties, or depreciation in the value of foreign currency funds credited to or debited from your Account. We are not responsible for the unavailability of foreign currency funds in your foreign currency Accounts due to the laws, rules, orders or regulations of any government or for other causes beyond our control.
All deposits or withdrawals to or from a Westminster Bank foreign currency Account will be made at the prevailing currency exchange rate on the date of the deposit or withdrawal as determined by us. Our currency exchange rates are subject to change without prior notice.
- Electronic communication
We will consider any electronic communication received from you or in your name to be duly authorized by you. A copy of any electronic communication will be admissible in any legal, administrative or other proceedings in the same manner as an original document in writing. You agree to waive any right to object to the introduction of any copy of electronic communications in evidence.
- Clearing, settlement and payment
We may present and deliver instruments for payment, clearing, collection, acceptance or otherwise through any bank or other party as we deem appropriate. The bank or other party shall be considered to be your agent and we will not, in any circumstances, be responsible or liable to you for the acts or omissions of this bank or other parties, however caused, in the performance of this service. We are also not liable for the loss, theft, destruction or delayed delivery of any instrument while in transit to or from, or in the possession of, any bank or other party. If we or our agent presents an instrument to another financial institution for payment on your behalf and the other financial institution refuses to recognize or provide payment on that instrument for whatever reason, you will remain responsible for the amount of that instrument deposited with us.
- Limitation of liability
We are not responsible for any losses, costs, damages or any failure to obtain any profit in connection with your use of your Account or with any other of our products or services, without limitation and however caused, unless we were grossly negligent. If we were grossly negligent, you will not hold us liable for any indirect, special or consequential damages (including lost profits). You will be responsible for any loss, cost or liability (including reasonable legal charges) incurred by us as a result of your failure to comply with these Account Terms.
- Indemnity
You agree to indemnify us against any claims, costs or liabilities incurred by Westminster Bank in connection with any services provided by us to you or any other dealings between you and Westminster Bank, including any claim or liability resulting from our endorsement on any instrument, arising out of a forged or unauthorized signature on that instrument or otherwise.
- Privacy principles
By applying to open an Account with us, you consent to the collection, use and disclosure of your personal information in accordance with the Westminster Bank Privacy Code. The Privacy Code forms part of these Personal Account Terms and Conditions, and your agreement to these terms indicates that you accept the terms of the Westminster Bank Privacy Code.
We are committed to keeping individuals’ personal information accurate, confidential, secure and private. The Westminster Bank Privacy Code reflects that commitment.
You agree that in order to establish your identification and to protect both you and Westminster Bank from fraud, we may collect and use your personal information that has been obtained from credit bureaus, credit reporting agencies, and credit insurers.
We reserve the right to comply with any third party demand such as Requirements to Pay and Requests for Information which have been issued under Vanuatu legislation, or any court order we receive in respect of your Account. You agree that we will not be liable to you in any way for complying with any such third party demands or court orders issued on or against your Account.
By maintaining an Account with us, you provide your consent for Westminster Bank to share personal information with its partners, affiliates and third parties in order to better identify promotions, products or services which may be offered to you. You also acknowledge and agree that Westminster Bank may provide your personal information to its partners, affiliates and third parties for the purposes of delivering any of its products or services to you.
- Right of Set Off
We reserve the right to use all of the money in your Account(s) to pay any debts or other obligations (including any contingent obligations) you owe us whether in the same or other currency. (That is what’s known as a “Set-Off”). You agree to allow us to use some or all of the money in your Account to buy any currencies that may be necessary to pay debts that you owe us. In the case of a joint Account, all Account holders consent to our using all money, up to the full amount on deposit, as payment for any debt or obligations you owe us, regardless of each individual joint Account holder’s contribution to the Account.
- Communication by regular mail
Communications from us to you (including notices that deposits into or withdrawals out of your Account could not be accepted or items have been returned) may be sent electronically or by regular mail unless otherwise stipulated by us. In the event of a postal disruption, you agree that we may send you communications only electronically – either by email or by posting such messages to your online Inbox – including Account statements. Statements will be considered to have been delivered to you on the day these are posted to your online Inbox, or on the date they are made available for you to pick up at a Westminster Bank location, regardless of whether you do so.
- Electronic notices to Client
Westminster Bank may send you the following notifications, alerts and other communications by email, through your online Inbox and/or our Mobile Banking app, or through any other electronic method established by us, including:
- Alerts and requests for information in relation to card suspension, identity theft and other fraud or security-related activities;
- Requests for information that may be required in connection with Westminster Bank’s obligations under Anti-Money Laundering rules, know your Client rules or other legal obligations;
- Notifications containing legal disclosures applicable to the financial industry;
- Communications that deliver information on collections;
- Communications arising from all manner of legal actions, causes of action, complaints, claims, applications to administrative tribunals, legal demands or otherwise;
- Notifications of corporate actions that require your attention;
- Alerts providing you with reminders or Account-related instructions;
- Alerts advising you that your Account statement has been posted to the online message board;
- Notification of changes to these Terms and Conditions, including our Privacy Code and any other changes for which Notice is required;
- And other Account-related alerts requested by you.
You agree that receipt of these notifications, alerts and other communications by email as determined by Westminster Bank is a mandatory and integral part of your Account.
- Closing of Accounts
You can close your Account with us at any time. We also have the right to close your Account for any reason, and pay you the balance, if any, according to our rights of Set-Off described above. Where there is no money in your Account and there has been no transaction for six (6) months, your Account may be closed at our discretion, where applicable. Upon your death or incapacity, we are authorized to take such steps and/or require such documentation (including but not limited to a certified copy of the death certificate, a letter of direction and notarized copy of the Certificate of Appointment of Estate Trustee or Executor [or the jurisdictional equivalents of these documents]) or restrict transactions in the Account as we deem prudent or advisable. Upon receipt of the proper legal documentation following your death or incapacity, we will transfer the balance of your funds to your legal representative and close your Account. In all cases, you (or your estate) will continue to remain responsible for any transaction on your Account. Your estate representative will have the same rights, responsibilities and obligations under these Account Terms as you, the Account holder, unless we, in our sole discretion, determine otherwise.
- Changes to this Agreement
We may change these Account Terms at any time, and any changes communicated to you at least 30 days before they take effect. Notice of changes to the Account Terms may be distributed through our statements, letters and/or posted on the Westminster Bank website. If you access or have funds on deposit in any Account at Westminster Bank after the effective date of the change, you automatically accept the change.
- Language
You have expressly requested that this document and all other documents related to your Account be written in English.
- Complaints or concerns about these Terms
These Account Terms are governed by the laws of Vanuatu. If you have any questions regarding these Account Terms or you have complaints in connection with your Account, please contact us.
- Other Complaints
When a Client has an issue or problem with one of our services or products, they may raise these issues or problems by following our complaints resolution process. If a Client is unable to resolve their issue or problem through our internal complaints resolution process, they can then address their complaint to the Reserve Bank of Vanuatu (RBV) by writing to:
Reserve Bank of Vanuatu
PMB 9062 ,Pierre Brunet Street
Port Vila ,Vanuatu
Telephone: (+678) 23333
Fax: (+678) 24231
Email: rbvinfo@rbv.gov.vu
The RBV supervises regulated financial institutions to make sure that they comply with banking laws and prudential guidance designed to protect the interests of consumers. We must comply with many laws that protect you in a number of ways. For information about these laws, you may contact the RBV (see contact information above) or seek independent legal advice.
- Payments and Clearing Association
By opening an Account, you agree that your authorization is provided for the benefit of your other financial institution(s) and you authorize us to process Funds Transfer requests against your Account according to the rules of interbank payment systems, payments and clearings association, and financial messaging providers such as SWIFT. You authorize and assure us that all individuals who have agreed to these Terms are all those who are required to sign on your chequing Account(s) at your other financial institution(s).
You agree that this authorization is provided for our benefit and for the benefit of the other designated financial institution(s). You also agree that this authorization is provided in consideration of us agreeing to process debits against your designated Account(s) in accordance with these Account Terms as agreed to with us. Cancelling this authorization does not terminate any other agreement that exists between you and Westminster Bank. Your authorization applies only to the method of payment and does not otherwise have any bearing on any agreement for services with us. The financial institution(s) at which you maintain your designated external chequing account(s) is (are) not required to verify that the debits are drawn in accordance with this authorization.
You further agree that your Client Number and assigned PIN or other security code or other signature equivalents may be used and will constitute valid authorization for Westminster Bank to process the debits from your Account(s) that you have requested.
- Funds Transfer Pre-Authorized Debits
Your initial request and all such subsequent requests to have money transferred to and/or from your Westminster Bank Account to that of another financial institution constitutes a Funds Transfer Pre-Authorized Debit (“PAD”). All Funds Transfers are customer-initiated Pre-Authorized Debits where money is moved by the same customer from the account of one financial institution to the account of another financial institution. Westminster Bank will process a Funds Transfer and move funds only at the customer’s initiation and request and as per the customer’s instructions, including amount, frequency, etc. The timing and amount of Funds Transfers will vary according to the instructions received from you. To arrange a Funds Transfer, you may contact Westminster and provide your instructions and authorization to an Associate or you may log onto Westminster Bank’s banking website to initiate and authorize an electronic funds transfer online. It is your responsibility to either provide us with, or enter online, the correct information in order to process your Funds Transfer. Westminster Bank will process such transactions in accordance with the Rules of the Payments Association and these Account Terms.
The account(s) at your other financial institution(s) which we are authorized to draw funds from upon your request has been specified by you by providing an initial deposit cheque from that account. You agree to inform us by telephone or other means provided by us from time to time of any change in the account information provided before any request for the transfer of funds. You may cancel a PAD or revoke your authorization at any time by providing Westminster Bank with at least 30 days notice before your next scheduled PAD. You agree that your cancellation of this authorization will take effect upon its receipt and confirmation by us. You acknowledge that you have the ability to instruct us to make changes to any PAD arrangements you make with us at any time.
Westminster Bank Limited
Tana Russet Plaza,
Kumul Highway, Port Vila
Vanuatu
Telephone: +678 29656
Email: contact@westminsterbank.vu
You waive your right to receive pre-notification of the amount of the PAD and agree that you do not require advance notice of the amount of PADs before the debit is processed. You acknowledge that you will not receive written notice from Westminster Bank of the amount to be debited or the due dates of the debiting.
You confirm that the information you have provided is correct and accurate and that you have authorized Westminster Bank to act on your instructions and process your requested Funds Transfer PAD(s).
You have certain recourse rights if any debit does not comply with this agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement.
EXCEPTION: Please note that for a Funds Transfer PAD, being a debit authorized by the customer wherein funds are moved among the customer’s accounts held at different financial institutions, the recourse rights noted above may not be applicable. However, if a discrepancy occurs in a Funds Transfer PAD that you initiated through Westminster Bank, please contact us and we may assist you in clarifying the matter.
- Third party Pre-Authorized Debits
You are responsible for establishing any PAD Agreement with third parties and providing them with all necessary and correct information to establish and enter into such an arrangement.
You assure us that all PAD Agreements you enter into with third parties are in accordance with the PAD Rules established by the Payments Association. You are responsible for informing the third party of any changes to your account details as well as if you wish to cancel a PAD.
You acknowledge and agree that you are responsible for any charges incurred if the debits cannot be processed due to insufficient funds or any other reason for which you may be held accountable.
We are not responsible for the failure of any third parties to act upon PAD instructions provided by you.
It is your responsibility to promptly examine your account transaction information regularly and address any concerns or discrepancies regarding any PAD in accordance with the PAD Rules established by Payments Associations within the stipulated time periods.
- Savings Accounts
You may open your Westminster Bank Savings Account in any currency offered by Westminster Bank. Interest is calculated daily on the closing balance and paid monthly. In exchange for opening and operating an Account with us you agree and consent to receiving Account statements by way of one or more electronic delivery methods which may be determined by us. Moreover, you agree that all telephone calls and other electronic correspondence may be recorded and kept as a record of your instructions.
- Term Deposits Accounts
- We guarantee repayment at maturity of the principal sum and the interest earned on your Term Deposits Accounts. Unless otherwise instructed by you, at maturity the principal and accrued interest on your investment will automatically be reinvested for the same term at the then prevailing interest rate.
- Except where otherwise specifically stated, terms of one year or longer have interest calculated and compounded and/or paid annually. Except where otherwise specifically stated, where we offer terms of less than one year, interest is calculated on the annual prorated basis and paid at maturity. The principal amount will not become payable until the maturity date.
- Early withdrawals may be permitted if you give us at least 60 days’ notice. The rate of interest paid on a term deposit that is cashed prior to maturity, when permitted, will be adjusted to equal the cashable interest rate agreed to on the original purchase of the term deposit. Where no cashable interest rate is stated, the interest rate payable on a term deposit redeemed prior to maturity, when permitted, is zero and only the principal amount will be payable.
- Business Accounts
All Business Clients will appoint up to three individuals, referred to as “Authorized Individuals”, who will be the only individuals permitted to transact on the Account(s). As a means of identity confirmation, each Authorized Individual must submit acceptable personal information and identification. PINs belonging to Authorized Individuals must be kept confidential between the Authorized Individual and Westminster Bank. The Authorized Individual is solely responsible for his or her PIN security. We cannot ensure confidentiality when cellular phones, email or other non-secure methods of conveying instructions are used, as these may be intercepted by third parties. If an Authorized Individual’s PIN becomes known for any reason, by any other person, the Authorized Individual must immediately notify us. The Business and/or the Authorized Individual will remain liable for all transactions occurring before we are notified.
All Business Clients will comply with security procedures prescribed by us for electronic communication with us and will take any other steps reasonably necessary to prevent unauthorized access to and use of means of electronic communication with us, including, without limitation, preventing unauthorized access to your PIN. All Business Clients will, at all times, have in place and maintain commercially reasonable procedures designed to prevent, detect or avoid losses due to forged or unauthorized signatures, fraud or theft in relation to the operation of any Account, including, without limitation, instructions and instruments relating to any Account.
The Westminster Bank Business Savings Account is intended to be the secondary bank account for your business. The Westminster Bank Business Savings Account is not intended to be used as an operating account and is not intended to provide general cheque clearing or currency trading services for your Business. The Business agrees by maintaining an Account with us that we reserve the right to close the Account should there be any misuse by the Business.
The Business agrees to provide all records that are required for the opening of the Account and continuing Account operation under Vanuatu law, including but not limited to AMLCTFA. The Business agrees that an Account cannot be opened until the Bank has received all of the documentation necessary to complete its know your Client obligations contained in the AMLCTFA, which includes a fully completed application form, and personal identifiation from each Authorized Individual. The Business Account requires these financial records on its own as of the date of the Account opening, and previously cleared cheques may not be sufficient. The Business agrees to forego any interest payments or other benefits from the Westminster Bank Business Savings Account until it has provided all of the items requested from us in order to open an Account.
In the case of partnership Accounts, Authorized Individuals who are not partners will be required to submit documentation that is satisfactory to us indicating that the partnership has authorized the operation of the Westminster Bank Business Savings Account by an individual who is not a partner of the partnership.
We will only process fund transfers that are destined to and from external accounts with identical ownership details. In the case of the Westminster Bank Business Savings Account, funds transfers cannot be set up with non-business accounts, or to the external account of an Authorized Individual.
- Interest rate information
Interest rate information section applicable effective 1 January 2022:
Interest is calculated daily and based upon your daily Westminster Bank Business Savings Account balance and corresponding interest rate tier, as set out in the Business Savings Account Interest Rate Table. We reserve the right to modify the Business Savings Account interest rate tiers at our sole discretion with notice to the Business Savings Account holder as described in these Account Terms. The applicable interest rate is applied to the entire balance held in the Business Savings Account. Interest is accrued daily and paid monthly.
- Common Reporting Standard (CRS)
In an effort to combat cross-border tax evasion, the Organization for Economic Cooperation and Development (OECD) created the Common Reporting Standard (CRS) for over 100 participating jurisdictions. CRS is being implemented in Vanuatu. In accordance with CRS and in line with existing obligations under Know Your Customer (KYC) regulations, Westminster Bank must collect foreign tax residency information, including Tax Information Number (TIN), if applicable, from all new Clients and existing Clients.
Financial Institutions are required to:
- Identify Clients with “Reportable Accounts” and get their foreign Tax Information Number (TIN).
- Annually report information regarding those Clients and their Accounts and/or transactions. This information will be reported to the local tax authority, which will forward it to the applicable national tax authority.
An Account is subject to reporting if both the Account and the Account holder are reportable. Reportable Clients (and certain existing Clients) must complete a tax residency certification. This involves indicating whether the Client is required to file taxes in any countries other than Vanuatu and providing any applicable TINs.
Westminster Bank will review the information provided to determine if the Client’s Accounts are reportable. We’ll also be asking certain existing business Clients to provide tax residency certification of their controlling persons. Existing Clients will be asked this question if the information we have on file indicates that reporting may be required for their Accounts. We’ll then review the information provided to determine if the Client’s Accounts are reportable.
Clients will be asked to provide the following information:
- Name and residence address
- Jurisdiction(s) of residence for tax purposes
- Tax Information Number (TIN) issued by each jurisdiction of tax residence
- Date of birth
Business Clients will be asked to provide the following information related to the entity:
- Jurisdiction(s) of residence for tax purposes
- TIN issued by each jurisdiction of tax residence
- Name(s) of controlling person(s) for certain entity types
- TIN issued by each jurisdiction of tax residence for controlling persons for certain entity types
Your information will be reported to the Vanuatu Competent Authority and will include the following:
- Name and address
- Tax Information Number (TIN)
- Account Balance
- Account earnings over the year including dividends, interest, gross proceeds and other income
Westminster Bank can only provide general information about CRS (such as the information in this section of our website). We can’t provide you with tax advice and would encourage you to speak with a professional tax advisor.
- Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act was signed into United States law in March 2010 as a way to prevent American taxpayers from using financial accounts outside of the Unites States to evade taxes.
Foreign Financial Institutions must report on the foreign assets held by their U.S. account holders or be subject to a 30% withholding tax. Westminster Bank must ensure that when accounts are opened by new clients, information needed to identify reportable accounts is received.
The requirement to report applies to accounts held by “U.S. Persons” (as defined by U.S. tax law) and certain entities in which one U.S. Person or more has a controlling interest.
Under U.S. tax law, you are considered a U.S. Persons if you are:
- A citizen of the S. (including an individual born in the U.S. but living in another country without renouncing U.S. citizenship)
- A lawful resident of the S.(including a U.S. green card holder)
- A person residing in the S.
- A S.corporation, estate, or trust
You also may be considered a U.S. Person for tax purposes if you spend a considerable amount of time in the U.S. annually. The IRS provides information on the rules applicable to non-U.S. citizens here:
irs.gov/individuals/international-taxpayers/alien-taxation-certain-essential-concepts
If you’re unsure about your U.S. tax status, or about how Vanuatu Tax Regulations related to FATCA might affect you, contact your tax advisor.
Vanuatu financial institutions (including Westminster Bank) must collect and report information about accounts that are identified as “reportable accounts.” This annual reporting will be provided to the U.S. Internal Revenue Service (IRS).
If you have an existing Westminster Bank Account or are opening one, and there is an indication that you may be a U.S. Person based on the U.S. tax law definition, then we may ask you to provide additional information or complete a form to confirm your tax status.