CRS / FATCA

The Department of Finance Canada has introduced legislation adopting the CRS framework effective July 1, 2017, which requires financial institutions in Canada to automatically report financial information on accounts held by non-resident individuals and entities as well as non-resident controlling persons of Passive Non-Financial Entities ("Passive NFEs" such as trusts and foundations) to the Canada Revenue Agency beginning in May 2018. The Canada Revenue Agency will then exchange financial account information, on an annual basis, with the tax authorities of those countries with which Canada has an agreement ("CRS Participating Jurisdictions"). All relevant financial centers are committed to implementing the CRS and many CRS Participating Jurisdictions have already translated the CRS requirements into their domestic law. The first exchange of information required in Canada will be made in 2018 in relation to calendar year 2017.

When you apply for, or provide a guarantee in respect of, or use any Service and while you are our customer, you agree that: We collect personal information depending on various factors such as the type of products or services you request or use and any applicable legal and regulatory obligations. This information includes:

• Your name, address, occupation and date of birth, which is required by law; information that allows us to identify you or to meet tax, anti-money laundering and other “Know Your Client” legal and regulatory obligations
• Social Insurance Number (SIN) for income tax reporting purposes, and other identification, such as a valid driver's license or passport. We may also ask for documents such as a recent utility bill to verify your name, address and contact information;
• Your annual income, assets and liabilities and credit history;
• Information about your transactions, including payment history and account activity;
• Information from other sources such as credit bureaus, references you have provided, government or financial institutions or from public sources such as telephone directories, newspapers, Internet sites, commercially available marketing lists or government agencies and registries or public records.

Financial institutions situated in Canada are required to identify the tax residency status of their clients and of the controlling persons of Passive NFEs based on a prescribed methodology under the CRS regulations. For each client and controlling person identified as "reportable", the financial institution is required to report information such as: * Clients/controlling persons identification information including, name, address, tax residence, date and place of birth, tax identification number; and * General financial account information including all types of investment income (total gross amount of interest, dividends or other similar income and gross proceeds from the sale or redemption of financial assets).

HCB is firmly committed to implementing this new global standard on tax transparency. The self-certification form is issued by the Canada Revenue Agency and used by HCB. Other financial institutions are also required to fill out this or a similar form. We would request you to take this opportunity to review the CRA’s Self-Certification Forms covering the data fields necessary under the Common Reporting Standard (CRS) and complete, sign and return this form to us as soon as possible if you have not already done so. In this regard, all information provided by you must be, to the best of your knowledge and belief, true, correct and complete. By completing the relevant section of the CRA’s Self-Certification Form, you may also be confirming that you are the beneficial owner according to the U.S. tax principles of the assets and income related to your Account, or, if there is another beneficial owner, that such beneficial owner is not a U.S. person under U.S. tax principles For the duration of the contractual relationship with HCB, you should advise the Bank of any changes in circumstances that affect your tax residency status within 30 days of such changes in circumstances. It is important to note that as per the requirements if we do not receive a valid SelfCertification Form from you, we may need to treat your account as "reportable" (a "reportable" account means an account subject to automatic exchange of information under the CRS) to your country of residence based on information already available on file. Where necessary, we may contact you to request additional information and documentation to confirm your tax residency status. If you have any reason to believe that you may not be in full compliance with your tax obligations or if you have any questions about how to complete the attached SelfCertification Form, please contact your tax advisor.

By completing the relevant section of the CRA’s Self-Certification Form, you confirm that you are the beneficial owner according to the U.S. tax principles of the assets and income related to your Account, or, if there is another beneficial owner, that such beneficial owner is not a U.S. person under U.S. tax principles; and (ii) You undertake to notify us within 30 business days, if there is any change to your status (or that of another beneficial owner) as a non U.S. person under U.S. tax principles.

Should you have any questions regarding this letter, please do not hesitate to contact us. From Within Canada : 1 855 82 HABIB (1 855 824 2242) Ext 243 and 250 From Outside Canada : 905 276 5300 Ext 243 and 250

The self-certification forms are issued by the Canada Revenue Agency and used by HCB. Other financial institutions are also required to fill out this or a similar form. Please click on the relevant form link below.