definitions For purposes of this subsection— (A) Customer The term customer means, with respect to any controlled foreign corporation, any person which has a customer relationship with such corporation and which is acting in its capacity as such. (B) Home country Except as provided in regulations, the term home country means, with respect to any entity, the country with respect to which the entity is a resident for purposes of the country's income tax laws. (C) Located Except as provided in regulations, for purposes of paragraph (3)(A)— (i) if a customer is a natural person, the customer is considered to be located in the country in which the customer is physically located when entering into the transaction, and (ii) if a customer is not a natural person, the customer is considered to be located in the country from which the customer enters into the transaction. (D) Qualified business unit The term qualified business unit has the meaning given such term by section 989(a). (E) Regulated financial institution Except as provided in regulations, the term regulated financial institution means a controlled foreign corporation which— (i) is engaged in the active conduct of a banking business and is an institution licensed to do business as a bank in the United States (or is any other corporation not so licensed which is specified by the Secretary in regulations), or (ii) satisfies each of the following conditions: (I) The corporation is directly or indirectly wholly owned by a domestic corporation that is a bank (as defined in section 581) or a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(w)(1) )). (II) The corporation is subject to bank regulatory supervision in a jurisdiction the central bank of which (or equivalent thereof) is a member of the Basel Committee on Banking Supervision. (III) The corporation is licensed and regulated in such jurisdiction as a bank. (6) Separate application to qualified business units (A) In general If a