DGS Data Delivery Manual

Transcription

1 DGS Data Delivery Manual ersion: 3.0 July 2017 This translation is made available by DN. rights can be derived from this document. The policy rules that have been published in Dutch in the Staatscourant are legally binding.

2 Contents Contents 1 Aim and Structure 1.1 Manual 3.0: aim and target group 1.2 Why a new version of the Manual? 1.3 Legal framework 1.4 Structure of this Manual 1.5 Effective date and transitional period 1.6 Future changes to this Manual 1.7 Questions and comments 1.8 ersion management 2 SC File 2.1 Introduction 2.2 Scope of data to be submitted 2.3 SC file construction 2.4 ank 2.5 Party 2.6 ank account ownership and account 2.7 How to submit and validate the SC file 3 DGS Reporting 3.1 Introduction 3.2 Overview of DGS reports 3.3 Submission deadline and method of submission 3.4 Consistency between SC file and DGS reports 4 Data Quality Assurance 4.1 Introduction 4.2 Controls in place at a bank 4.3 Supervision 5 Use of DGS data by DN 5.1 Introduction 5.2 DGS payout in the event of a bank failure 5.3 How the amount covered is calculated in a payout situation 5.4 Selection and use of resolution tools in the event of a resolution 5.5 Calculation of the target size of and levies payable into funds 6 Transitional Period 2 Appendices

3 1 Aim and structure 1.1 Manual 3.0: aim and target group DN is the administrator of the Dutch Deposit Guarantee Scheme (DGS). The DGS protects the account balances of depositors (customers) and with it financial stability. A short payout period is key in this regard. To achieve this, it is essential that banks provide DN in a timely fashion with reliable and accurate information about the deposits entrusted to them (Single Customer iew SC). Regular validation of the data submitted is to ensure that the DGS operates reliably and effectively. This Manual provides practical guidelines to help banks meet the requirements set out in the DGS legislation so as to ensure due filing of accurate and complete data for DGS purposes. How DN intends to exercise supervision is explained below. The overall purpose is to ensure data quality. This Manual provides managers of banks falling within the scope of the Dutch DGS with detailed information about the data format and filing requirements imposed by DN so as to allow them to embed these requirements in the banks processes. ank employees responsible for compiling the SCs will also find practical guidance in this Manual. Finally, this Manual serves as a reference framework for banks internal and/ or external auditors. Which banks are covered by the Dutch DGS? The Dutch DGS protects deposits held with: banks having their registered office in the Netherlands and holding a banking licence from either DN or the European Central ank (EC) (a licence as defined in Section 2:11 of the Dutch Financial Supervision Act 2011 (Wet op het financieel toezicht Wft), with the exception of deposits held with a branch located outside the European Economic Area (EEA); banks having their registered office in a non-eea Member State and conducting their operations from a Dutch-based branch and with regard to which DN has decided that the DGS applies mutatis mutandis as referred to in Section 3:267(2) Wft, but only with regard to deposits held with this Dutch-based branch. 3

4 If a bank has its registered office in another EEA Member State and offers deposit-type products on the Dutch market, whether or not through a branch, those products are not covered by the Dutch DGS. They will be covered by the other Member State s DGS. A full list (Register) of all banks and branches covered by the Dutch DGS is available on the DN website. 1.2 Why a new version of the Manual? Directive 2014/49/EU, also known as the Deposit Guarantee Scheme Directive (DGSD), stipulates that deposit guarantee schemes must be capable of paying out within seven working days by DN is currently working with Dutch banks to achieve its ambition of reducing the maximum timeframe for payout to seven working days by as early as The DGS is now also pre-funded using a Deposit Guarantee Fund, into which banks pay levies on a quarterly basis. so that payouts can also be made to holders of deposits at branches. The new reporting requirement for banks governing the levies payable into the Deposit Guarantee Fund has been adjusted and incorporated into this Manual. The reduced payout period and the set-up of Deposit Guarantee Fund place different demands on banks data delivery. Importantly, banks must be able to create Single Customer iews themselves and submit data to DN on the basis of those SCs. This method of submitting data ties in with the requirement that European deposit guarantee schemes must cooperate 4

5 1.3 Legal framework Figure 1 Legal framework DGS reforms The DGSD forms the basis for the DGS restructuring. The recast DGSD aims to harmonise deposit guarantee schemes across Europe in order to improve the stability of the banking sector and increase depositor protection. The Directive lays down the scope and level of protection to be afforded by the DGS, provides for a reduced, seven-day payout period and ex-ante funding of the schemes, and promotes cooperation at the European level. In the Netherlands, the DGSD has been transposed into the Decree on Special Prudential Measures, Investor Compensation and Deposit Guarantees (esluit bijzondere prudentiële maatregelen, beleggerscompensatie en depositogarantie Wft bpm) and the Decree on Prudential Rules (esluit prudentiële regels Wft pr). DGSD Wft, bpm, pr, Fw Policy Rules DGS Article 5(4): Member States must ensure that credit institutions mark eligible deposits in such a way as to allow immediate identification of those deposits. Manual 3.0 Decree on Prudential Rules: A bank, investment undertaking or financial institution that is subject to supervision under Section 3:110 must have in place procedures and controls ensuring that the information necessary to administer and implement the safety-net schemes is continually kept up to date and is adequately documented. Single Customer iew Policy Rule Policy Rule on the Scope and Execution of the DGS Amendment to the Regulation on the Statements of Financial Institutions under the Financal Supervision Act. The DGS Data Delivery Manual offers practical support to banks in the implementation of the DGS Policy Rules and the SC. Data Delivery Agreement The Data Delivery Agreement defines the technical specifications of the data exchanges that are laid out in the DGS Policy Rules. 5

6 ased on these two Decrees, DN has set out further rules for DGS data reporting in the Single Customer iew Policy Rule, the Policy Rule on the Scope and Execution of the Deposit Guarantee Scheme, and the amendment to the Regulation on Statements of Financial Institutions (Regeling staten financiële ondernemingen Wft). Secondary legislation governing the DGS In the Single Customer iew Policy Rule 2017 (eleidsregel Individueel Klantbeeld Wft 2017, SC Policy Rule), DN sets out the requirements for record-keeping and the procedures and controls that banks need to have in place to create complete, accurate and timely SC files. The SC Policy Rule is one of the key elements underlying this Manual. ased on the SC Policy Rule, the Policy Rule on the Scope and Execution of the DGS sets out rules on DGS protection of escrow (third party) accounts. That information is also necessary to produce SCs. Finally, the amendment to the Regulation on Statements of Financial Institutions works out in more detail a bank s obligation to submit quarterly data based on the SCs for calculating the levies payable into the Deposit Guarantee Fund. Single Customer iew (SC) As part of the DGS reforms, a standard will be introduced for Dutch banks to produce and submit deposit-related data per depositor. For each depositor, the SC must at least contain: a list of all deposits held by the depositor; markings to show whether the deposit and depositor are eligible under the DGS; any additional information necessary to enable a payout. A bank must create an SC for each of its depositors, regardless of whether they are eligible under the DGS. The SC must show for each depositor which of the deposits are eligible under the DGS and which are not. The SCs can then be used to accurately determine the covered deposits¹. These SCs were previously created by DN. Under the new rules, banks must now produce the SCs and submit them to DN to allow reducing the payout period to seven working days. ased on the SCs submitted, DN will calculate the amount payable to each depositor. The SCs will also contribute to an effective use of the resolution toolkit, for instance when covered deposits are transferred to another bank. To do so, banks will have to be able to separate covered deposits from those that are not. 6 1 It is important to make a distinction between eligible deposits and covered deposits. See the glossary in Appendix 2 and the explanation given in Chapter 5.3.

7 7 To illustrate: the DGS covers a maximum of EUR 100,000 per eligible depositor per banking licence. To calculate a depositor s claim, all balances in the depositor s accounts must be added up. If a depositor has EUR 40,000 in their current account and EUR 80,000 in their savings account, proper record-keeping will show that the depositor is entitled to EUR 100,000 instead of EUR 120,000. y requiring banks to use a uniform SC standard, the DGS will be able to pay out quicker. It will also improve the accuracy of banks DGS record-keeping systems and hence the reporting on covered deposits they submit to DN. Figure 2 shows how banks are to submit data on the basis of the SC. The chart introduces the terms SC file and SC system. It is important for the purposes of this Manual to understand the difference between these two terms: SC file: a dataset in the format described in Article 2 of the SC Policy Rule that provides a list of all Single Customer iews; the SC file contains the Single Customer iews of all depositors of a bank. anks use the SC system to create the SC file and the summaries based on that file. Source system A Source system Source system C ank SC system System for creating SCs and submitting SC file SC system: the set of procedures and controls that bank may use to produce an SC file, calculate eligible and covered amounts Figure 2 Data delivery on the basis of the SC (process flow) ank s audit reports and plans Quarterly DGS reports SC file Specific data Feedback on findings (Automatic) submission of data by bank to DN (quarterly reports and SC files) Additional data for resolution purposes (ad hoc data requests) (Automatic) processing of SC system outcomes into bank s core data systems to ensure continued access ank s audit reports and supervision feedback from DN DN DGS system for calculating levies DGS payout system Resolution action

8 (e.g. for use in DGS reporting), and take resolution action in a manner and within a time period specified by DN. The definitions of both terms are given in the SC Policy Rule. 2 Contribution to resolution The SC will contribute to the preparation of resolution plans and the practicability of resolution tools where they concern deposits. This will ensure continuous access to current accounts and other accounts. The SC also allows a distinction to be made between large corporates and small and medium-sized enterprises, which is important in establishing creditor preference (creditor hierarchy) in the event of a resolution or bankruptcy. A bank s SC system may be designed in such a way as to allow accounts to be segregated and frozen, in support of the bank s resolution strategy. The specifications for this type of functionality will depend on the eventual resolution action provided for a bank and are therefore beyond the scope of this Manual. European cooperation EU-wide cooperation means that DN will need to adjust its processes and systems³. As regards deposits held with a branch located in another Member State, DN will need to be able to supply information to the DGS designated authority in that Member State. Using the information provided, the DGS designated authority can then pay compensation to the depositors of that particular branch. That is why the data submitted by banks must be clear in terms of where deposits are actually being held. 8 2 In addition, Appendix 2 offers an extensive glossary. 3 Article 14 of the DGSD.

9 1.4 Structure of this Manual Figure 3 Process flow for data delivery and structure of this Manual This Manual is structured according to the process flow for the submission of data based on the SC (Figure 3). The Manual starts with the specific data to be reported to DN for DGS purposes (the SC file and DGS reports). Each chapter discusses a particular element of this process flow: Chapter 2 describes how the SC file is to Source system A Source system ank SC system System for creating SCs and submitting SC file C.4 C.4 ank s audit reports and plans Quarterly DGS reports SC file C.3 C.2 DN DGS system for calculating levies DGS payout system C.5 be compiled and submitted and looks more closely at the assumptions underlying these requirements (notably, Article 2, 5, 6, 7 and 9 of Source system C Specific data Resolution action the SC Policy Rule and the Policy Rule on the Scope and Execution of the Deposit Guarantee C.4 Scheme)⁴ Chapter 3 addresses the DGS reports (notably Feedback on findings Article 4 of the SC Policy Rule and the amendment to the Regulation on Statements of Financial (Automatic) submission of data by bank to DN (quarterly reports and SC files) Additional data for resolution purposes (ad hoc data requests) (Automatic) processing of SC system outcomes into bank s core data systems to ensure continued access Institutions) ank s audit reports and supervision feedback from DN 9 4 The Formal Logical Data Model (FLDM) and the technical aspects of data/file sharing will be detailed in a Data Delivery Agreement (DDA).

10 Chapter 4 looks at data quality assurance and supervision (notably Article 10 to 15 of the SC Policy Rule) Chapter 5 explains how and for what purposes DN will use the data submitted Chapter 6 discusses the transitional period, which will run until 1 January 2019 (Article 16 of the SC Policy Rule) The appendices provide (technical) details and worked examples. 1.5 Effective date and transitional period 1.6 Future changes to this Manual The Dutch anking Association (N) and bank representatives have been involved in developing this Manual. DN will arrange for a joint review of the Manual at least once every year. If the review leads to any adjustments, the banks will be duly informed so that they can implement the changes in a timely fashion. The implementation period for major changes will be 18 months, unless otherwise agreed. 1.7 Questions and comments Questions or suggestions about any issues covered by this Manual are greatly appreciated. Please contact DN if you have any questions or comments about this Manual or any general questions about the DGS by sending an to dgs@dnb.nl. This Manual comes into effect when the SC Policy Rule is published in the Dutch Government Gazette (Staatscourant). Chapter 6 describes how the Manual on the delivery of data under the deposit guarantee scheme (version 2.0) will be phased out. 1.8 ersion management ersion Date Nature of change Chapter July 2017 Data submission based on SC Entire Manual 10

11 2 SC file 2.1 Introduction This chapter sets out the guiding principles for creating a Single Customer iew (SC), the main information to be included in the SC file, and the markings to be entered in a bank s records. It also addresses how and within what time period banks must submit the SC files to DN and how to deal with any adjustments. The data to be submitted as part of the SC file must be modelled in a formal logical data model (FLDM). The FLDM provides a uniform overview of the information that banks must submit and how this information must be validated. The technical specifications for the data exchanges are set out in the Data Delivery Agreement (DDA)⁵, ranging from information classification, security, the technical file formats to the chain process, method of validation and the way in which DN will communicate with the reporting party about the status of the data delivery and the validation findings. Please note: for ease of reading, there may be differences between the description given below and the detailed specifics in the FLDM and DDA. Please consult the FLDM and DDA if you require detailed information. 2.2 Scope of data to be submitted Which depositors are to be included in the SC file? A bank must include all its depositors in the SC file, regardless of whether they are eligible under the DGS. The SC file must specify for each depositor whether or not the depositor is eligible under the DGS. The guiding principles for recording and marking customers as depositors are as follows: Natural persons and non-natural persons with legal personality are considered to be depositors. Single Customer iews must be created for them and added to the SC file. n-natural persons without legal personality (unincorporated partnerships or collaborative 11 5 For the Data Delivery Agreement (DDA) and the Single Customer iew Policy Rule and this Manual, see the DN website..

12 ventures without legal personality) are not eligible as independent entities under the DGS. When the DGSD was transposed into Dutch law, the choice was made not to treat these partnerships or collaborative ventures as eligible parties in their own right. It is their members, partners or owners who are considered to be the depositors. The accounts of these non-natural persons should preferably be submitted as if they were joint accounts of the beneficiaries. To do so, the beneficiaries of these accounts must be identified as depositors in the bank s systems. If the nonnatural person itself (rather than its underlying beneficiary or beneficiaries) is included in the bank s customer records, its accounts are subject to the policy on escrow accounts. Examples of non-natural persons without legal personality are general partnerships, partnership firms, limited partnerships, and mutual funds. The Policy Rule on the Scope and Execution of the Deposit Guarantee Scheme and the escrow policy section in this chapter explain in greater detail how the accounts of these depositors are to be included in the SC file. If a depositor is a non-natural person with legal personality, one or more representatives must be included in the bank s records. If a depositor is a natural person who is under age or who has been placed under guardianship or has otherwise been declared legally incapacitated, the depositor s legal representative or representatives must be included in the bank s records. A depositor s (legal) representative to be included in the SC file should preferably be a natural person. However, there may be situations in which the bank only has information available on a non-natural person acting as a representative. In those cases, the non-natural person will be recorded as the depositor s representative. The guiding principle is that DN needs access to as much information as possible so as to be able to pay depositors quickly. Which products are to be included in the SC file? Depending on whether a customer is eligible and the level of protection afforded, the DGS covers deposits that meet the following definition⁶: A balance formed by moneys held in an account or arising temporarily as a result of normal banking transactions and which banks are required to repay under the applicable statutory and contractual conditions, including term deposits and savings deposits, with the exception of balances where: the existence of the balance can only be demonstrated using a financial instrument, unless it is a savings product that is embodied in a registered certificate of deposit which existed in a Member State on 2 July 2014; the principal is not repayable at par; the principal is only repayable at par as a result of a guarantee or an agreement issued by the bank or by a third party Section 1:1 of the Wft.

13 A bank s SC file must include all deposits meeting this definition. other products are submitted. ank savings deposits for a private residential property ank savings deposits for a private residential property must be included in the SC file submitted. However, the DGS does not apply to bank savings deposits in respect of a home purchase if the deposit is set off against the home loan pursuant to Section 3:265d Wft. If the balance exceeds the home loan, the depositor will need to prove this using documentary evidence, in which case the residual amount will be eligible for payout. This type of deposit must be included in the SC file for purposes of informing the depositor, but will not qualify as eligible under the DGS. Which products are not to be included in the SC file? The following is a non-exhaustive list of examples of products/deposits which are not to be included in the SC file: Interbank deposits: these are interbank loans in which one bank lends money to another by depositing funds, at a predetermined term and interest rate. Deposits held with the central bank: these may be used by central banks to put a brake on overly rapid lending growth by banks. These funds are not available for banks to lend to their customers. Deposits held with a branch located in a non- EEA Member State: these are not covered by the Dutch DGS. Instruments falling within the definition of own funds within the meaning of the Capital Requirements Directive. Debt instruments issued by banks or debts arising from banks own accepted bills and promissory notes. Electronic money, such as pre-paid cards or 13

14 money stored electronically on other physical devices. irtual money, such as bitcoins. Seal bags that have not yet been processed. Insurance policies. Financial instruments, such as swaps and derivatives. earer bonds. It is important to establish whether the banking product is in fact a deposit as defined here, and that this is also clear from the product s terms and conditions. For example, a subordinated deposit, although called a deposit, is not actually a deposit under the DGS definition. That is, unless the product s terms and condition show that the deposit is not really subordinated. A subordinated deposit is not covered by the DGS and is not to be included in the SC file. With the arrival of fintechs, it has become even more important to test the terms and conditions of (new) products very carefully against the definition given above. It may sometimes be difficult to gauge whether a product is in fact a deposit. If you have any doubts, you may seek advice from DN. 2.3 SC file construction The FLDM describes what data banks must submit and how this data is to be structured. This allows all banks to submit their data in the same way, regardless of how a bank is organised. Most banks will have their customer and product information stored in multiple databases. The FLDM ensures that all banks will be able to submit DGS data uniformly, making a seven-day payout period a feasible goal. Figure 4 shows the conceptual data model, a simplified version of the actual data model. The FLDM is a mathematically precise model that forms the basis of the technical specifications for the data delivery. The FLDM also creates the possibility of automating certain parts of the technical implementation process. Figure 4 Conceptual data model for SC file 7 bank representative has part in party interacts with depositor depositor representation may be subject to bank has part in issues bank account bank account ownership is subject to 14 7 A translation table with the English and Dutch names of the entities and attributes is attached as Appendix 2.

15 The simplified conceptual model shown in this chapter explains two key aspects of the main data blocks (entities): how the entities are to be mutually structured (see Figure 4) and what data (attributes) must, as a minimum, be included for each entity in the SC file. The data submitted must be broken down by type of entity: ank: This entity type contains the bank s details and the banking licence to which the data delivery relates. Party: This entity type contains the identifying details of the depositors and representatives. A distinction is made between natural persons and non-natural persons. The party may have either of two roles: a) Depositor: the holder of the deposit (beneficiary); or b) Representative: a depositor s representative. Depositor representation: For each depositor whose representation is documented in the bank s records, this entity type contains the link to the correct (legal) representative or representatives. ank account ownership: ecause an account may have multiple depositors or a depositor may have multiple accounts, this entity type contains the link between the account and the depositor. ank account: This entity type contains all the details of the deposit. The next sections provide further guidance on the data to be submitted for each of these entities. 2.4 ank The following information will help DN to identify the individual banks. Entity: bank Attribute Licence number ank name 2.5 Party te The (banking) licence number you have received from DN; list of valid values will be enforced. The bank s registered name as linked to the licence. As regards the details of depositors and representatives, the following terms require a more detailed explanation: Depositor: the person who is entitled to all or any part of the funds deposited with a bank. In many cases, the depositor and the account holder will be one and the same person. See Section 1(i) of the SC Policy Rule including the notes. 15

16 eneficiary: a depositor who has been identified as being entitled to claim compensation under the DGS. (Legal) representative: a person who is authorised to act on the depositor s behalf, but who personally has no right to the funds (see Section 1(j) of the SC Policy Rule including the notes). A person representing a natural person is referred to as a legal representative. This may be someone who has been appointed by the courts to represent a legally incapacitated person. The parent of a minor child will usually be the child s legal representative. The representative of a non-natural person is referred to as a representative. This type of representative must be formalised in the organisation s charter or its registration with the Chamber of Commerce. It is important to make a distinction between the role of a representative and that of an authorised agent. An authorised agent may, for example, be a member of staff in the accounting department who is authorised to make payments to suppliers on a company s behalf. Authorised agents cannot claim compensation under the DGS. Natural person: a person (of flesh and blood) who has legal status as an individual. n-natural person: An organisation or collaborative venture with or without legal personality (see Chapter 2.2 for further guidance on data delivery regarding nonnatural persons). A non-natural person must be represented by one or more representatives authorised to act solely or jointly. The main attributes for each entity type in the conceptual data model are shown and explained below, with each entity type being defined as: a depositor or representative; and a natural or non-natural person. The attributes specified in the tables below make clear what specific data must be included for each specific party. 16

17 2.5.1 Depositor Entity type: depositor (natural person) Attribute te SC ID A depositor s unique identification. Reliability indicator Shows whether the SC has been compiled reliably on the basis of the person s (customer s) unique identification: Reliable : the depositor s unique identity has been verified with a high degree of reliability Reliability not guaranteed : the depositor s unique identity has not been established with a high degree of reliability (results in manual handling) Is eligible under the DGS Depositor bank relation number Depositor qualification Citizen service number (SN), foreign national identification number or foreign tax identification number Issuing country for the SN, national identification number or tax identification number Nationality Initials irthname Shows whether the depositor is eligible under the DGS: DGS : is eligible under the DGS DGS : is not eligible under the DGS Doubtful : whether or not the depositor is eligible under the DGS cannot be established with a high degree of reliability The relation number of the depositor as used in the bank administration. Shows whether the depositor is qualified to act. If "not qualified is the result of a court decision or refers to a minor, there must be a legal representative. Qualified t qualified If the depositor has a SN, this number must be entered here. The other identification numbers may be provided additionally. If the depositor has no SN, the bank must supply the national identification number or tax identification number (TIN) of another country if that number is available to the bank. The bank must supply the issuing country for the SN, national identification number or tax identification number entered. As regards the SN, the issuing country will be NL. Please use the ISO Alpha-2 country codes. The depositor s registered nationality. Please use the ISO Alpha-2 country codes. The depositor s initials. The depositor s birthname or family name. For married women, that would be their maiden name. If no birthname is available, please enter the name included in the bank s records. 17

18 Entity type: depositor (natural person) continued Attribute te SC ID A depositor s unique identification. Prefix to birthname Any prefixes to the birthname. The NEN 1888 standard should preferably be used. Last name If a second last name is known to the bank, please enter it here. For example, a married woman s husband s last name. Prefix to last name Date of birth irthplace Country of birth Gender ital status Type of identification document Identification document number Issuing country Telephone number Mobile number address Address details Any prefixes to the last name. The NEN 1888 standard should preferably be used. Enter a valid date from the past in YYYYMMDD format (ISO 8601). Please use zeros if (part of) this date is not available. The place where the depositor was born. The country where the depositor was born. Please use the ISO Alpha-2 country codes. The depositor s gender. Specifies whether the depositor is still alive or has died: Alive Deceased If the bank is unable to supply a SN, foreign national identification number or foreign tax identification number for a natural person, the bank must submit one of the following identification documents: Passport Driving licence Proof of identity Residence permit This must be the document on the basis of which that person was identified. The number of the identification document. The country that issued the identification document. Please use the ISO Alpha-2 country codes. Structured or unstructured (see below). 18

19 Entity: depositor (non-natural person) Attribute te SC ID The depositor s unique identification. Reliability indicator Shows whether the SC has been compiled reliably on the basis of the person s (customer s) unique identification: Reliable : the depositor s unique identity has been established with a high degree of reliability; Reliability not guaranteed : the depositor s unique identity has not been established with a high degree of reliability (= manual handling) Is eligible under the DGS Depositor bank relation number Chamber of Commerce number, RSIN or tax identification number Shows whether the depositor is eligible under the DGS: DGS : is eligible under the DGS; DGS : is not eligible under the DGS; Doubtful : whether or not the depositor is eligible under the DGS cannot be established with a high degree of reliability. The customer number used by the bank. If a non-natural person has offices in the Netherlands, the bank must supply its Chamber of Commerce number or Legal Entities and Partnerships Identification Number (Dutch acronym: RSIN). ecause Chamber of Commerce numbers are being phased out and replaced by RSIN numbers over the next few years, the bank may supply either of these two numbers. Issuing country for the Chamber of Commerce number, RSIN or tax identification number Registered name Registered place Registered country Legal capacity If a non-natural person is based abroad, the bank must supply its foreign tax identification number (TIN) or Chamber of Commerce number. Either of these two numbers is mandatory. The bank must supply the issuing country for the Chamber of Commerce number, RSIN number, or tax identification number entered. For non-natural persons with legal personality: their official name as specified in the Articles of Association. For non-natural persons without legal personality: their trade name. For non-natural persons with legal personality: their registered office as specified in the Articles of Association. For non-natural persons without legal personality: their place of business. The country where the registered office/place of business is located. Please use the ISO Alpha-2 country codes. Specifies whether the legal capacity of the non-natural person. With legal personality ; Without legal personality. 19

20 Entity: depositor (non-natural person) continued Attribute te SC ID The depositor s unique identification. Enterprise size Type of non-natural depositor according to the definition given in the ank Recovery and Resolution Directive (RRD): Micro & SME: small, micro and medium-sized enterprises; Corporate: large companies. Telephone number Mobile number address Address details Structured or unstructured, see below. Further guidance on some of the attributes that may need clarification is given below. Attribute Reliability indicator te Shows whether the SC is compiled reliably on the basis of the person s (customer s) unique identification: Reliable : The depositor s unique identity has been established with a high degree of reliability; Reliability not guaranteed : The depositor s unique identity has not been established with a high degree of reliability (= manual handling) 20

21 If a bank is unable to establish a depositor s identity with sufficient certainty, the SC must be marked as Reliability not guaranteed in the SC file. There are various conceivable combinations of identifying details on the basis of which a customer s identity can be established with certainty for SC purposes. Such combination of details is also known as the golden triangle. The most obvious example is: SN + irthname + Date of birth. See Appendix 6 for possible combinations of identifying details on the basis of which a bank can establish a customer s identity with sufficient certainty. The reliable SC marking must be validated in two steps (see Appendix 7): 1. Does the SC contain a full set of one of the combinations of identifying details as listed in Appendix 6? 2. Is the SN, foreign identification number or depositor bank relation number unique⁸ within the SC file as a whole? However, validating the SC file will not be enough to fully ensure the reliability of the individual SCs included in the SC file. An error may have been made by the SC system when creating the SCs. If two customers (from separate sets of records) are combined incorrectly, this could create what appears to be a "reliable SC. alidating the SC file will not detect this error. The reliability of an SC is therefore ensured primarily by adequate matching/avoiding duplications of customers in the bank s core processes and systems. This makes high demands of a bank s SC system (see Chapter 4). Example of an incorrect combination of SCs in the SC file: Taking the following customers from a bank s range of customer databases: SN Date of birth irthname Peeters Peeters Peeters Peters the bank might combine these customers into a single SC: SN Date of birth irthname Peeters The combined SC in this example would then be based on the most commonly featuring date of birth and birthname. ut even then, there is not enough certainty that this combination is actually correct. Perhaps one of the databases contains 21 8 The requirement that the depositor bank relation number must be unique within the SC file only applies if the depositor bank relation number is used to create an SC. In that case, the bank must ensure that its accounts and records use unique customer numbers.

22 a typing error in the SN. The bank can combine these customers only if their identities have been properly verified and their details properly entered in its databases. Such identification and documentation must be ensured by the bank s customer acceptance and Know Your Customer processes. Attribute Is eligible under the DGS te Shows whether the depositor is eligible under the DGS: DGS : is eligible under the DGS; DGS : is not eligible under the DGS; Doubtful : whether or not the depositor is eligible under the DGS cannot be established with a high degree of reliability. With the recast DGSD, the scope of the DGS has been extended to include large companies, managing directors, and shareholders. This means that most of a bank s customers are now eligible under the DGS. The following depositors are not eligible: anks, if the deposits are held by a bank in its own name and for its own account; Financial institutions; Depositors who have not identified themselves in accordance with Section 4(1) of the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme Wwft). Insurance and reinsurance undertakings as defined in Article 13 (1) to (6) of the Solvency II Directive; Investment firms; Investment funds, managers of investment funds, undertakings for collective investment in transferable securities (UCITS) and UCITS managers; Pension funds; Public authorities. See Appendix 5 for a list of definitions of ineligible parties, including a tool for banks to establish eligibility/ineligibility. Attribute Date of birth te Enter a valid date from the past in YYYYMMDD format (ISO 8601). Please enter zeros if (part of) this date is unavailable. This is a required field. There are of course people whose date of birth is unknown or whose year of birth is the only detail known. This used to be documented in the Municipal Personal Records Database in the following format: <YYYY>0000, for example This is accepted as a valid format. This format may also be used for foreign-based customers with an incomplete date of birth. The date of birth notation for persons whose date of birth is unknown may deviate from this standard. In those cases, these will need to be converted into the format referred to above for SC filing purposes. 22

23 Attribute Type of identification document Identification document number Issuing country te If a bank is unable to supply a SN, foreign national identification number or foreign tax identification number for a natural person, it must submit one of the following identification documents: Passport Driving licence Proof of identity Residence permit This must be the document on the basis of which the person s identity was established. The number of the identification document. The country that issued the identification document. Please use the ISO Alpha-2 country codes. If no SN or TIN is available for a natural person, the person s identity will have been verified by the bank in another way. In order to create a combination of details from which the customer s identity can be established with sufficient certainty for SC purposes, the data model introduces the attributes type of identification document and identification document number. Passport number; ID number: Some Member States also allow other types of valid proof of ID in addition to a passport, such as an identity card; Driving licence number; Residence permit: Some Member States allow a residence permit to be used as a valid proof of ID. For each of the fields that is completed, the bank will also need to supply the country code for the country that issued the document in question. If the SN or TIN is included in the SC file, the bank may add additional identifying information. Attribute Enterprise size te This attribute applies to non-natural persons. The RRD defines non-natural depositors as: Micro & SME : micro, small and medium-sized enterprises; Corporate : large companies. In terms of customer categories, non-natural persons with legal personality may be either: Micro, small and medium-sized enterprises ( SMEs ); or Large companies ( Corporates ). This distinction between SMEs and Corporates is based on the definition given in the ank Recovery and Resolution Directive (RRD), which has been transposed into the Dutch ankruptcy Act (Faillissementswet FW): Micro, small and medium-sized enterprises: enterprises as defined based on the annual turnover criterion referred to in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ EU 2003, L 124/16); (Section 212g(1) (n) Fw). 23

24 Representation and (legal) representative In all cases in which the depositor is a minor or a legally incapacitated person or a non-natural person with legal personality, banks must supply the details of one or more (legal) representatives. As a rule, a (legal) representative is a natural person. In the case of a non-natural person with legal personality, its representative must be shown in the company s registration with the Chamber of Commerce or in its Articles of Association. An authorised agent will specifically not qualify as a representative. Entity: Representation Attribute te Representative s ID The representative s unique identification. Depositor s ID The depositor s unique identification. Type of representation The type of competence conferred on the representative: competence Solely authorised ; Jointly authorised". Entity: (legal) representative (natural person): Attribute te Representative s ID The representative s unique identification. Depositor bank relation number Citizen Service Number (SN), foreign national identification number or foreign tax identification number Issuing country for the SN, national identification number or tax identification number Nationality Initials irthname Prefix to birthname Last name Prefix to last name The customer number used by the bank. If the representative has a SN, this number must be entered here. The other identification numbers may be supplied additionally. If the representative has no SN, the bank must supply the national identification number or tax identification number (TIN) of another country if that number is available to the bank. The bank must supply the issuing country for the SN, national identification number or tax identification number supplied. Please use the ISO Alpha-2 country codes. The representative s registered nationality. Please use the ISO Alpha-2 country codes. The representative s first name initials. The depositor s birthname or family name. For married women, that would be their maiden name. If no birthname is available, please enter the name included in the bank s records. Any prefixes to the birthname. The NEN 1888 standard should preferably be used. If a second last name is known to the bank, please enter it here. For example, the last name of a married woman s husband. Any prefixes to the last name. The NEN 1888 standard should preferably be used.

25 Entity: (legal) representative (natural person): continued Attribute te Representative s ID The representative s unique identification. Date of birth irthplace Country of birth Gender Type of identification document Identification document number Issuing country Telephone number Mobile number address Address details Enter a valid date from the past in YYYYMMDD format (ISO 8601). Please leave blank if no date is available. The place where the representative was born. The country where the representative was born. Please use the ISO Alpha-2 country codes. The representative s gender. If the bank is unable to supply a SN, foreign national identification number or foreign tax identification number for a natural person, the bank must submit one of the following identification documents: Passport Driving licence Proof of identity Residence permit This must be the document on the basis of which that person was identified. The number of the identification document. The country that issued the identification document. Please use the ISO Alpha-2 country codes. Structured or unstructured, see below. 25

26 2.5.3 Address details Address details may be included in the SC file in either of two ways: Structured address details : this is the standard method and may be used for conventional addresses; Unstructured address details : This method may be used for unconventional addresses, such as addresses abroad. Structured address details is intended to be used for address details entered by the bank in the individual fields or which may traced back to those fields. Unstructured address details is intended to be used for address details entered in address lines that can no longer be traced back to the individual fields (such as foreign addresses). Entity: Structured address details Attribute te Street name The street name that is part of the depositor s address; for natural persons,that is their home address, for non-natural persons it is their office address. House number House number suffix Postcode Dutch postcodes in 1111AA format (no spaces). City Country Please use the ISO Alpha-2 country codes. Other information Other address information, such as a flat name or number. Unstructured address details (in the case of a foreign address, for example) Attribute te Address line 1 Address line 2 Address line 3 Address line 4 Address line 5 Address line 6 Country Please use the ISO Alpha-2 country codes. 26

27 2.6 ank account ownership and account Entity: ank account ownership Attribute Account ID SC ID Participation percentage te Unique account identification The depositor s unique identification This field may be left bank if there is a prorated payout. In that case, the account balance will be divided between the number of depositors. If a different division has been agreed and formalised in the bank s records, please supply the percentage to which the depositor is entitled. Entity: account Attribute Account ID Account number Ascription Account label Type of bank account Type of third party account te Unique account identification The account number registered to the depositor. IAN (ISO13616) where appropriate. The name to which the account has been registered. Product description (label by which the bank and/or account is known to the depositors, recognisability for citizens being paramount here). The type of account according to the product categories prescribed by DN: Current account ; Savings account ; Fixed-term deposit ; Investor account (cash account) ; ank savings deposit for a private residential property ; Other tax-efficient savings accounts ; Positive balance on a credit card. Shows whether the deposit is held for the benefit of a third party. If the deposit is held for the benefit of third parties, those third parties may be members of a nonnatural person without legal personality (e.g. a general partnership) or "customers" of a professional escrow account administrator (e.g. the beneficiaries of an escrow account administrated by a civil-law notary). Possible values: Groups without legal personality ; Customers ; escrow account. 27

28 Entity: account Attribute Account ID Is eligible under the DGS Specifies Currency alance Interest lockage reason Country Number of depositors continued te Unique account identification Specifies whether the deposit is eligible under the DGS (regardless of whether the depositor is also eligible): DGS : is eligible under the DGS; DGS : is not eligible under the DGS; Doubtful : whether or not the deposit is eligible under the DGS cannot be established with a high degree of reliability alue in accordance with ISO4217. The currency used by the bank in its communications with the account holder; valid codes will be enforced. The balance in the account denominated in the currency referred to above. Down to two decimal points. Overdrafts/negative balances to be marked with the sign. Use 0 to indicate a zero balance. Accrued interest that has not yet been credited. Down to two decimal points. Negative amounts to be marked with the sign. Use 0 to indicate a zero amount in interest. Also use 0 if the deposit is of a type that earns no interest. If an account is blocked, please enter one or more of the following reasons for the block: Convicted of money laundering ; Legal dispute"; Restrictive measures ; Attachment ; Pledged ; Foreign blocking. If the account is held with a foreign branch of the failed bank, please supply the country code for the country in question. Use the country code of the Netherlands for accounts held with a Dutch branch. Please use the ISO Alpha-2 country codes. The number of depositors for this account. 28

29 Further guidance on some of the attributes is given below. For SC purposes, deposits are classified into standard product categories (as referred to in Section 5(2) of the SC Policy Rule). In order to be able to quickly establish what type of product we are dealing with for DGS purposes, we have defined standard product types. These are: Attribute te Type Code Type of bank account The type of account according to the product categories prescribed by DN: Current account Savings account Fixed-term deposit Investor account (cash account) ank savings deposits for a private residential property Other tax-efficient savings accounts Positive balance on a credit card Definitions of these product types are given in Appendix 4. REK-ETAAL REK-SPAAR REK-TERMIJNDEP REK-ELEG REK-WONING REK-FISCAAL REK-CREDITCARD Attribute Type of third party account te Shows whether the deposit is held for the benefit of a third party. If the deposit is held for the benefit of third parties, these third party may be customers of a professional escrow account administrator (e.g. the beneficiary of an escrow account administrated by a civil-law notary) or members of a non-natural person without legal personality (e.g. a general partnership). Possible values to be supplied: Customers ; Groups without legal personality ; escrow account. A third party is entitled to compensation under the DGS if it meets the following conditions 9 : The account holder holds a deposit for the third party s benefit pursuant to statutory or contractual provisions that already existed before the date of insolvency and which apply to the relationship between the account holder and that third party; the bank knows the third party s identity, unless the account holder has a professional 29 9 See Section 29.02(3) of the bpm: If a depositor holds a deposit in his own name, but does so for the benefit of another party under a contract or statutory requirement, it is the third-party beneficiary that enjoys protection and is treated as the depositor, provided that its identity can be established before the date when it is decided to activate the deposit guarantee scheme.