Knowing and identifying the customer – why are we asking?
As a financial institution Mandatum Life has a legal obligation to identify and know its customers. In addition to up-to-date personal information we need to know the customer’s financial position and the origin of their assets. Insurance companies must also have sufficient information on their customers’ operations, financially and politically influential positions, what services they use and for what purpose. In addition, Mandatum Life needs to know to which country the customer is paying taxes.
These obligations are based on legislation intended to, among other things, prevent money laundering, the terrorism financing and financial crimes. By identifying and knowing our customers, we can be a reliable partner to our customers.
We ask our customers for information at the beginning of the customer relationship and regularly throughout it. All of the information provided will be kept confidential according to the insurance secret. Read more about how customer information is handled at Mandatum Life here.
Why are you asking for my personal information such as my place of birth or nationality?
Insurance companies are always obligated to know their customers. We ask many kinds of questions in order to be able to serve you better, but by practicing customer due diligence, we are also fulfilling our legal obligations. We are obligated to ask, for example, the customer’s name, place of birth, national identity number, address and other contact details.
What significance does political influence have?
Mandatum Life is also under obligation to determine whether its customer is a politically exposed person. A person is considered a politically exposed person if he/she is another country’s:
- head of state
- member of parliament
- an officer who is at least a general in the military
The person is politically exposed if he/she holds or has held a significant public position in another state within one year. Such a person’s inner circle (e.g. spouse, children, parents, business partners) are also considered politically exposed. This does not, however, mean that we ask for our customers’ political opinions.
What identification cards are acceptable?
The customer’s identity is confirmed through an official identity card. We accept the following identity documents:
- Identification card granted by the Finnish Police
- Driving licence granted after 1 October 1990
The identification card must be intact and in force.
I received a letter concerning customer information and taxation (FATCA and CRS), what do I need to do?
If you received a letter from Mandatum Life or Kaleva concerning customer information and your country of taxation, please fill in the attached form (or alternatively one of the forms below) and return it to us. If we do not receive the requested information or if we cannot rule out your tax obligation abroad based on other information, we are obligated to report on this to the Finnish Tax Administration.
Persons who are not US taxpayers
Organisations which are not US taxpayers
Persons and Institutions that are taxpayers in the US
Why do I need to give my country of taxation (FATCA and CRS)?
It is Mandatum Life’s obligation to determine the customer’s tax domicile. This obligation is based on the Foreign Account Tax Compliance Act (FATCA) and the OECD’s Common Reporting Standard (CRS). The objective of FATCA is to prevent the tax evasion of persons who are liable to pay tax in the United States. The objective of CRS is to implement the automatic exchange of tax information worldwide.
FATCA – tax obligation in the United States
Finland and the United States have agreed on an exchange of information related to United States FATCA legislation. According to the agreement, financial institutions such as banks, mutual fund companies, investment service companies and life insurance companies must identify their US customers and report on their US customers’ investments to the United States’ Internal Revenue Service (IRS). The reporting takes place through the Finnish Tax Administration. FATCA was included in Finland’s legislation in 2015.
US persons mean, among other things, persons living in the US, US citizens (also those with dual citizenship), persons with a permanent residence permit and companies registered in the United States. In addition a US person may be a company that is owned by a US person.
Common Reporting Standard (CRS) and DAC II
The Common Reporting Standard (CRS) is an exchange of information model developed by the OECD, stemming from the need to create an international exchange of information standard based on FATCA, and related instructions. In October 2014, Finland signed an agreement concerning the exchange of information according to CRS, together with 50 other states. Altogether some 100 countries are committed to initiating CRS information exchange.
DAC II is a European Union directive through which the exchange of information according to CRS is implemented between EU member states. Reporting under CRS will be carried out for the first time in 2017 on information for 2016.
Where can I find more information?
If you have any questions concerning FATCA, read the Q&A or contact Mandatum Life’s customer services.
Mandatum Life cannot provide tax advice relating to FATCA and CRS. If you have any questions concerning taxation, please contact a tax advisor or look for information on the Tax Administration’s website at www.vero.fi (use FATCA as the search term) or on the IRS’s website at www.irs.gov.
What is FATCA?
Who are considered to be US persons?
What impact does FATCA have?
Is Mandatum Life the only financial sector institution that does this?
Another financial institution contacted me. Why is it asking for different documents than Mandatum Life?
What does Mandatum Life need to do to fulfil its obligations concerning FATCA?
Does FATCA take the place of other US tax laws?
What information does Mandatum Life report to tax authorities?
What impact does FATCA have on individual persons?
I am not a US person. How does this affect me?
What impact does FATCA have on companies and institutions?
What documents do I need to submit?
Will Mandatum Life supply all of the necessary forms?
What will Mandatum Life do if I do not supply the information required by FATCA?
Why do Mandatum Life’s forms contain non-FATCA-related questions, for example the origin of the assets?
What is the tax identification number and do I have to provide it?
I own a flat in the United States, am I thus liable to pay tax in the US?
Which form should I submit, Mandatum Life’s form or a W-form?
Our Customer Service number
Our Customer Service number for Corporate Customers