TREATIES AND OTHER INTERNATIONAL ACTS SERIES 16-513

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and SAINT VINCENT AND THE GRENADINES

Signed at Kingstown August 18, 2015 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 SAINT VINCENT AND THE GRENADINES 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at Kingstown August 18, 2015;

 Entered into force May 13, 2016.

 With annexes.
Agreement between the Government of the United States of America and the 

Government of St. Vincent and the Grenadines to Improve International Tax 

Compliance and to Implement FATCA 

Whereas, the Government of the United States of America and the Government of St. Vincent 

and the Grenadines (each, a "Party," and together, the "Parties") desire to conclude an 

agreement to improve international tax compliance; 

Whereas, the United States of America enacted provisions commonly known as the Foreign 

Account Tax Compliance Act ("FATCA"), which introduce a reporting regime for financial 

institutions with respect to certain accounts; 

Whereas, the Government of St. Vincent and the Grenadines is supportive of the underlying 

policy goal ofFATCA to improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that St. Vincent and the 

Grenadines financial institutions may not be able to comply with certain aspects ofFATCA 

due to domestic legal impediments; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for St. Vincent and the Grenadines financial institutions; 

Whereas, the Parties desire to conclude an agreement to improve international tax compliance 

and provide for the implementation ofFATCA based on domestic reporting and automatic 

exchange, subject to the confidentiality and other protections provided for herein, including 

the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 

Article 1 

Definitions 

1. For purposes of this agreement and any annexes thereto ("Agreement"), the following 

terms shall have the meanings set forth below: 

a) The term "United States" means the United States of America, including the 

States thereof, but does not include the U.S. Territories. Any reference to a 

"State" of the United States includes the District of Columbia. 

b) The term "U.S. Territory" means American Samoa, the Commonwealth of 

the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or 

the U.S. Virgin Islands. 

c) The term "IRS" means the U.S. Internal Revenue Service. 

d) The term "St. Vincent and the Grenadines" means St. Vincent and the 

Grenadines. 
e) The term "Partner Jurisdiction" means a jurisdiction that has in effect an 

agreement with the United States to facilitate the implementation ofFATCA. 

The IRS shall publish a list identifying all Partner Jurisdictions. 

f) The term "Competent Authority" means: 

(1) in the case ofthe United States, the Secretary of the Treasury or his 

delegate; and 

(2) in the case of St. Vincent and the Grenadines, the Comptroller of 

Inland Revenue or his delegate. 

g) The term "Financial Institution" means a Custodial Institution, a Depository 

Institution, an Investment Entity, or a Specified Insurance Company. 

h) The term "Custodial Institution" means any Entity that holds, as a 

substantial portion of its business, financial assets for the account of others. 

An entity holds financial assets for the account of others as a substantial 

portion of its business if the entity's gross income attributable to the holding of 

financial assets and related financial services equals or exceeds 20 percent of 

the entity's gross income during the shorter of: (i) the three-year period that 

ends on December 31 (or the final day of a non-calendar year accounting 

period) prior to the year in which the determination is being made; or (ii) the 

period during which the entity has been in existence. 

i) The term "Depository Institution" means any Entity that accepts deposits in 

the ordinary course of a banking or similar business. 

j) The term "Investment Entity" means any Entity that conducts as a business 

(or is managed by an entity that conducts as a business) one or more of the 

following activities or operations for or on behalf of a customer: 

(1) trading in money market instruments (cheques, bills, certificates of 

deposit, derivatives, etc.); foreign exchange; exchange, interest rate 

and index instruments; transferable securities; or commodity futures 

trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or money on 

behalf of other persons. 

This subparagraph 1 G) shall be interpreted in a manner consistent with similar 

language set forth in the definition of "financial institution" in the Financial 

Action Task Force Recommendations. 

k) The term "Specified Insurance Company" means any Entity that is an 

insurance company (or the holding company of an insurance company) that 

issues, or is obligated to make payments with respect to, a Cash Value 

Insurance Contract or an Annuity Contract. 

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1) The term "St. Vincent and the Grenadines Financial Institution" means (i) 

any Financial Institution organized under the laws of St. Vincent and the 

Grenadines, but excluding any branch of such Financial Institution that is 

located outside St. Vincent and the Grenadines, and (ii) any branch of a 

Financial Institution not organized under the laws of St. Vincent and the 

Grenadines, if such branch is located in St. Vincent and the Grenadines. 

m) The term "Partner Jurisdiction Financial Institution" means (i) any 

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

Jurisdiction, and (ii) any branch of a Financial Institution not established in the 

Partner Jurisdiction, if such branch is located in the Partner Jurisdiction. 

n) The term "Reporting St. Vincent and the Grenadines Financial 

Institution" means any St. Vincent and the Grenadines Financial Institution 

that is not a Non-Reporting St. Vincent and the Grenadines Financial 

Institution. 

o) The term "Non-Reporting St. Vincent and the Grenadines Financial 

Institution" means any St. Vincent and the Grenadines Financial Institution, 

or other Entity resident in St. Vincent and the Grenadines, that is described in 

Annex II as a Non-Reporting St. Vincent and the Grenadines Financial 

Institution or that otherwise qualifies as a deemed-compliant FFI or an exempt 

beneficial owner under relevant U.S. Treasury Regulations. 

p) The term "Nonparticipating Financial Institution" means a nonparticipating 

FFI, as that term is defmed in relevant U.S. Treasury Regulations, but does not 

include a St. Vincent and the Grenadines Financial Institution or other Partner 

Jurisdiction Financial Institution other than a Financial Institution treated as a 

Nonparticipating Financial Institution pursuant to subparagraph 3(b) of Article 

5 of this Agreement or the corresponding provision in an agreement between 

the United States and a Partner Jurisdiction. 

q) The term "Financial Account" means an account maintained by a Financial 

Institution, and includes: 

(1) in the case of an Entity that is a Financial Institution solely because it 

is an Investment Entity, any equity or debt interest (other than interests 

that are regularly traded on an established securities market) in the 

Financial Institution; 

(2) in the case of a Financial Institution not described in subparagraph 

l(q)(l) of this Article, any equity or debt interest in the Financial 

Institution (other than interests that are regularly traded on an 

established securities market), if (i) the value of the debt or equity 

interest is determined, directly or indirectly, primarily by reference to 

assets that give rise to U.S. Source Withholdable Payments, and (ii) the 

class of interests was established with a purpose of avoiding reporting 

in accordance with this Agreement; and 

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(3) any Cash Value Insurance Contract and any Annuity Contract issued or 

maintained by a Financial Institution, other than a noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

an account that is excluded from the definition of Financial Account in 

Annex II. 

Notwithstanding the foregoing, the term "Financial Account" does not include 

any account that is excluded from the definition of Financial Account in 

Annex II. For purposes of this Agreement, interests are "regularly traded" if 

there is a meaningful volume of trading with respect to the interests on an 

ongoing basis, and an "established securities market" means an exchange that 

is officially recognized and supervised by a governmental authority in which 

the market is located and that has a meaningful annual value of shares traded 

on the exchange. For purposes ofthis subparagraph l(q), an interest in a 

Financial Institution is not "regularly traded" and shall be treated as a 

Financial Account if the holder of the interest (other than a Financial 

Institution acting as an intermediary) is registered on the books of such 

Financial Institution. The preceding sentence will not apply to interests first 

registered on the books of such Financial Institution prior to July 1, 2014, and 

with respect to interests first registered on the books of such Financial 

Institution on or after July 1, 2014, a Financial Institution is not required to 

apply the preceding sentence prior to January 1, 2016. 

r) The term "Depository Account" includes any commercial, checking, savings, 

time, or thrift account, or an account that is evidenced by a certificate of 

deposit, thrift certificate, investment certificate, certificate of indebtedness, or 

other similar instrument maintained by a Financial Institution in the ordinary 

course of a banking or similar business. A Depository Account also includes 

an amount held by an insurance company pursuant to a guaranteed investment 

contract or similar agreement to pay or credit interest thereon. 

s) The term "Custodial Account" means an account (other than an Insurance 

Contract or Annuity Contract) for the benefit of another person that holds any 

financial instrument or contract held for investment (including, but not limited 

to, a share or stock in a corporation, a note, bond, debenture, or other evidence 

of indebtedness, a currency or commodity transaction, a credit default swap, a 

swap based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other derivative 

instrument). 

t) The term "Equity Interest" means, in the case of a partnership that is a 

Financial Institution, either a capital or profits interest in the partnership. In 

the case of a trust that is a Financial Institution, an Equity Interest is 

considered to be held by any person treated as a settlor or beneficiary of all or 

a portion of the trust, or any other natural person exercising ultimate effective 

control over the trust. A Specified U.S. Person shall be treated as being a 

beneficiary of a foreign trust if such Specified U.S. Person has the right to 

receive directly or indirectly (for example, through a nominee) a mandatory 

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distribution or may receive, directly or indirectly, a discretionary distribution 

from the trust. 

u) The term "Insurance Contract" means a contract (other than an Annuity 

Contract) under which the issuer agrees to pay an amount upon the occurrence 

of a specified contingency involving mortality, morbidity, accident, liability, or 

property risk. 

v) The term "Annuity Contract" means a contract under which the issuer agrees 

to make payments for a period oftime determined in whole or in part by 

reference to the life expectancy of one or more individuals. The term also 

includes a contract that is considered to be an Annuity Contract in accordance 

with the law, regulation, or practice of the jurisdiction in which the contract 

was issued, and under which the issuer agrees to make payments for a term of 

years. 

w) The term "Cash Value Insurance Contract" means an Insurance Contract 

(other than an indemnity reinsurance contract between two insurance 

companies) that has a Cash Value greater than $50,000. 

x) The term "Cash Value" means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or policy 

loan), and (ii) the amount the policyholder can borrow under or with regard to 

the contract. Notwithstanding the foregoing, the term "Cash Value" does not 

include an amount payable under an Insurance Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the occurrence of 

the event insured against; 

(2) a refund to the policyholder of a previously paid premium under an 

Insurance Contract (other than under a life insurance contract) due to 

policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination ofthe premium due to correction of posting or other 

similar error; or 

(3) a policyholder dividend based upon the underwriting experience of the 

contract or group involved. 

y) The term "U.S. Reportable Account" means a Financial Account maintained 

by a Reporting St. Vincent and the Grenadines Financial Institution and held 

by one or more Specified U.S. Persons or by a Non-U.S. Entity with one or 

more Controlling Persons that is a Specified U.S. Person. Notwithstanding the 

foregoing, an account shall not be treated as a U.S. Reportable Account if such 

account is not identified as a U.S. Reportable Account after application of the 

due diligence procedures in Annex I. 

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z) The term "Account Holder" means the person listed or identified as the 

holder of a Financial Account by the Financial Institution that maintains the 

account. A person, other than a Financial Institution, holding a Financial 

Account for the benefit or account of another person as agent, custodian, 

nominee, signatory, investment advisor, or intermediary, is not treated as 

holding the account for purposes of this Agreement, and such other person is 

treated as holding the account. For purposes of the immediately preceding 

sentence, the term "Financial Institution" does not include a Financial 

Institution organized or incorporated in a U.S. Territory. In the case of a Cash 

Value Insurance Contract or an Annuity Contract, the Account Holder is any 

person entitled to access the Cash Value or change the beneficiary of the 

contract. If no person can access the Cash Value or change the beneficiary, the 

Account Holder is any person named as the owner in the contract and any 

person with a vested entitlement to payment under the terms of the contract. 

Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, 

each person entitled to receive a payment under the contract is treated as an 

Account Holder. 

aa) The term "U.S. Person" means a U.S. citizen or resident individual, a 

partnership or corporation organized in the United States or under the laws of 

the United States or any State thereof, a trust if (i) a court within the United 

States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of the 

trust, and (ii) one or more U.S. persons have the authority to control all 

substantial decisions of the trust, or an estate of a decedent that is a citizen or 

resident ofthe United States. This subparagraph l(aa) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

bb) The term "Specified U.S. Person" means a U.S. Person, other than: (i) a 

corporation the stock of which is regularly traded on one or more established 

securities markets; (ii) any corporation that is a member of the same expanded 

affiliated group, as defined in section 1471(e)(2) ofthe U.S. Internal Revenue 

Code, as a corporation described in clause (i); (iii) the United States or any 

wholly owned agency or instrumentality thereof; (iv) any State of the United 

States, any U.S. Territory, any political subdivision of any of the foregoing, or 

any wholly owned agency or instrumentality of any one or more of the 

foregoing; (v) any organization exempt from taxation under section 501(a) of 

the U.S. Internal Revenue Code or an individual retirement plan as defined in 

section 7701(a)(37) of the U.S. Internal Revenue Code; (vi) any bank as 

defined in section 581 ofthe U.S. Internal Revenue Code; (vii) any real estate 

investment trust as defined in section 856 of the U.S. Internal Revenue Code; 

(viii) any regulated investment company as defined in section 851 of the U.S. 

Internal Revenue Code or any entity registered with the U.S. Securities and 

Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 

80a-64); (ix) any common trust fund as defined in section 584(a) of the U.S. 

Internal Revenue Code; (x) any trust that is exempt from tax under section 

664(c) of the U.S. Internal Revenue Code or that is described in section 

4947(a)(l) ofthe U.S. Internal Revenue Code; (xi) a dealer in securities, 

commodities, or derivative financial instruments (including notional principal 

contracts, futures, forwards, and options) that is registered as such under the 

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laws of the United States or any State; (xii) a broker as defined in section 

6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust 

under a plan that is described in section 403(b) or section 457(g) of the U.S. 

Internal Revenue Code. 

cc) The term "Entity" means a legal person or a legal arrangement such as a trust. 

dd) The term "Non-U.S. Entity" means an Entity that is not a U.S. Person. 

ee) The term "U.S. Source Withholdable Payment" means any payment of 

interest (including any original issue discount), dividends, rents, salaries, 

wages, premiums, annuities, compensations, remunerations, emoluments, and 

other fixed or determinable annual or periodical gains, profits, and income, if 

such payment is from sources within the United States. Notwithstanding the 

foregoing, a U.S. Source Withholdable Payment does not include any payment 

that is not treated as a withholdable payment in relevant U.S. Treasury 

Regulations. 

ff) An Entity is a "Related Entity" of another Entity if either Entity controls the 

other Entity, or the two Entities are under common control. For this purpose 

control includes direct or indirect ownership of more than 50 percent of the 

vote or value in an Entity. Notwithstanding the foregoing, St. Vincent and the 

Grenadines may treat an Entity as not a Related Entity of another Entity if the 

two Entities are not members of the same expanded affiliated group as defined 

in section 1471(e)(2) of the U.S. Internal Revenue Code. 

gg) The term "U.S. TIN" means a U.S. federal taxpayer identifying number. 

hh) The term "Controlling Persons" means the natural persons who exercise 

control over an Entity. In the case of a trust, such term means the settlor, the 

trustees, the protector (if any), the beneficiaries or class of beneficiaries, and 

any other natural person exercising ultimate effective control over the trust, 

and in the case of a legal arrangement other than a trust, such term means 

persons in equivalent or similar positions. The term "Controlling Persons" 

shall be interpreted in a manner consistent with the Financial Action Task 

Force Recommendations. 

2. Any term not otherwise defined in this Agreement shall, unless the context otherwise 

requires or the Competent Authorities agree to a common meaning (as permitted by domestic 

law), have the meaning that it has at that time under the law of the Party applying this 

Agreement, any meaning under the applicable tax laws of that Party prevailing over a 

meaning given to the term under other laws of that Party. 

Article 2 

Obligations to Obtain and Exchange Information with Respect to U.S. Reportable 

Accounts 

1. Subject to the provisions of Article 3 of this Agreement, St. Vincent and the 

Grenadines shall obtain the information specified in paragraph 2 of this Article with respect 

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to all U.S. Reportable Accounts and shall annually exchange this information with the United 

States on an automatic basis. 

2. The information to be obtained and exchanged with respect to each U.S. Reportable 

Account of each Reporting St. Vincent and the Grenadines Financial Institution is: 

a) the name, address, and U.S. TIN of each Specified U.S. Person that is an 

Account Holder of such account and, in the case of a Non-U.S. Entity that, 

after application of the due diligence procedures set forth in Annex I, is 

identified as having one or more Controlling Persons that is a Specified U.S. 

Person, the name, address, and U.S. TIN (if any) of such entity and each such 

Specified U.S. Person; 

b) the account number (or functional equivalent in the absence of an account 

number); 

c) the name and identifying number of the Reporting St. Vincent and the 

Grenadines Financial Institution; 

d) the account balance or value (including, in the case of a Cash Value Insurance 

Contract or Annuity Contract, the Cash Value or surrender value) as of the end 

of the relevant calendar year or other appropriate reporting period or, if the 

account was closed during such year, immediately before closure; 

e) in the case of any Custodial Account: 

( 1) the total gross amount of interest, the total gross amount of dividends, 

and the total gross amount of other income generated with respect to 

the assets held in the account, in each case paid or credited to the 

account (or with respect to the account) during the calendar year or 

other appropriate reporting period; and 

(2) the total gross proceeds from the sale or redemption of property paid or 

credited to the account during the calendar year or other appropriate 

reporting period with respect to which the Reporting St. Vincent and 

the Grenadines Financial Institution acted as a custodian, broker, 

nominee, or otherwise as an agent for the Account Holder; 

f) in the case of any Depository Account, the total gross amount of interest paid 

or credited to the account during the calendar year or other appropriate 

reporting period; and 

g) in the case of any account not described in subparagraph 2( e) or 2( f) of this 

Article, the total gross amount paid or credited to the Account Holder with 

respect to the account during the calendar year or other appropriate reporting 

period with respect to which the Reporting St. Vincent and the Grenadines 

Financial Institution is the obligor or debtor, including the aggregate amount 

of any redemption payments made to the Account Holder during the calendar 

year or other appropriate reporting period. 

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Article 3 

Time and Manner of Exchange of Information 

1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount 

and characterization of payments made with respect to a U.S. Reportable Account may be 

determined in accordance with the principles of the tax laws of St. Vincent and the 

Grenadines. 

2. For purposes of the exchange obligation in Article 2 of this Agreement, the 

information exchanged shall identify the currency in which each relevant amount is 

denominated. 

3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be 

obtained and exchanged with respect to 2014 and all subsequent years, except that: 

a) the information to be obtained and exchanged with respect to 2014 is only the 

information described in subparagraphs 2(a) through 2(d) of Article 2 of this 

Agreement; 

b) the information to be obtained and exchanged with respect to 2015 is the 

information described in subparagraphs 2(a) through 2(g) of Article 2 of this 

Agreement, except for gross proceeds described in subparagraph 2(e)(2) of 

Article 2 of this Agreement; and 

c) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2(a) through 

2(g) of Article 2 of this Agreement; 

4. Notwithstanding paragraph 3 of this Article, with respect to each U.S. Reportable 

Account maintained by a Reporting St. Vincent and the Grenadines Financial Institution as of 

June 30, 2014, and subject to paragraph 2 of Article 6 of this Agreement, St. Vincent and the 

Grenadines is not required to obtain and include in the exchanged information the U.S. TIN 

of any relevant person if such U.S. TIN is not in the records ofthe Reporting St. Vincent and 

the Grenadines Financial Institution. In such a case, St. Vincent and the Grenadines shall 

obtain and include in the exchanged information the date of birth ofthe relevant person, if the 

Reporting St. Vincent and the Grenadines Financial Institution has such date ofbirth in its 

records. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of 

this Agreement shall be exchanged within nine months after the end of the calendar year to 

which the information relates. 

6. The Competent Authorities of St. Vincent and the Grenadines and the United States 

shall enter into an agreement or arrangement under the mutual agreement procedure provided 

for in Article 8 of this Agreement, which shall: 

a) establish the procedures for the automatic exchange obligations described in 

Article 2 of this Agreement; 

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b) prescribe rules and procedures as may be necessary to implement Article 5 of 

this Agreement; and 

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1(b) of Article 4 of this Agreement. 

7. All information exchanged shall be subject to the confidentiality and other protections 

provided for in Article 9 of this Agreement, including the provisions limiting the use of the 

information exchanged. 

Article 4 

Application of FATCA to St. Vincent and the Grenadines Financial Institutions 

1. Treatment of Reporting St. Vincent and the Grenadines Financial Institutions. 

Each Reporting St. Vincent and the Grenadines Financial Institution shall be treated as 

complying with, and not subject to withholding under, section 1471 ofthe U.S. Internal 

Revenue Code if St. Vincent and the Grenadines complies with its obligations under Articles 

2 and 3 of this Agreement with respect to such Reporting St. Vincent and the Grenadines 

Financial Institution, and the Reporting St. Vincent and the Grenadines Financial Institution: 

a) identifies U.S. Reportable Accounts and reports annually to the St. Vincent 

and the Grenadines Competent Authority the information required to be 

reported in paragraph 2 of Article 2 of this Agreement in the time and manner 

described in Article 3 of this Agreement; 

b) for each of 20 15 and 2016, reports annually to the St. Vincent and the 

Grenadines Competent Authority the name of each Nonparticipating Financial 

Institution to which it has made payments and the aggregate amount of such 

payments; 

c) complies with the applicable registration requirements on the IRS FATCA 

registration website; 

d) to the extent that a Reporting St. Vincent and the Grenadines Financial 

Institution is (i) acting as a qualified intermediary (for purposes of section 

1441 ofthe U.S. Internal Revenue Code) that has elected to assume primary 

withholding responsibility under chapter 3 of subtitle A of the U.S. Internal 

Revenue Code, (ii) a foreign partnership that has elected to act as a 

withholding foreign partnership (for purposes ofboth sections 1441 and 1471 

ofthe U.S. Internal Revenue Code), or (iii) a foreign trust that has elected to 

act as a withholding foreign trust (for purposes ofboth sections 1441 and 1471 

ofthe U.S. Internal Revenue Code), withholds 30 percent of any U.S. Source 

Withholdable Payment to any Nonparticipating Financial Institution; and 

e) in the case of a Reporting St. Vincent and the Grenadines Financial Institution 

that is not described in subparagraph 1 (d) of this Article and that makes a 

payment of, or acts as an intermediary with respect to, a U.S. Source 

Withholdable Payment to any Nonparticipating Financial Institution, the 

Reporting St. Vincent and the Grenadines Financial Institution provides to any 

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immediate payor of such U.S. Source Withholdable Payment the information 

required for withholding and reporting to occur with respect to such payment. 

Notwithstanding the foregoing, a Reporting St. Vincent and the Grenadines Financial 

Institution with respect to which the conditions of this paragraph 1 are not satisfied shall not 

be subject to withholding under section 1471 of the U.S. Internal Revenue Code unless such 

Reporting St. Vincent and the Grenadines Financial Institution is treated by the IRS as a 

Nonparticipating Financial Institution pursuant to subparagraph 3(b) of Article 5 of this 

Agreement. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall 

not require a Reporting St. Vincent and the Grenadines Financial Institution to withhold tax 

under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an account 

held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S. Internal 

Revenue Code), or to close such account, if the U.S. Competent Authority receives the 

information set forth in paragraph 2 of Article 2 of this Agreement, subject to the provisions 

of Article 3 of this Agreement, with respect to such account. 

3. Specific Treatment of St. Vincent and the Grenadines Retirement Plans. The 

United States shall treat as deemed-compliant FFis or exempt beneficial owners, as 

appropriate, for purposes of sections 14 71 and 14 72 of the U.S. Internal Revenue Code, St. 

Vincent and the Grenadines retirement plans described in Annex II. For this purpose, a St. 

Vincent and the Grenadines retirement plan includes an Entity established or located in, and 

regulated by, St. Vincent and the Grenadines, or a predetermined contractual or legal 

arrangement, operated to provide pension or retirement benefits or earn income for providing 

such benefits under the laws of St. Vincent and the Grenadines and regulated with respect to 

contributions, distributions, reporting, sponsorship, and taxation. 

4. Identification and Treatment of Other Deemed-Compliant FFis and Exempt 

Beneficial Owners. The United States shall treat each Non-Reporting St. Vincent and the 

Grenadines Financial Institution as a deemed-compliant FFI or as an exempt beneficial 

owner, as appropriate, for purposes of section 1471 ofthe U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a St. Vincent and the Grenadines Financial 

Institution, that otherwise meets the requirements described in paragraph 1 of this Article or 

is described in paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in 

a jurisdiction that prevents such Related Entity or branch from fulfilling the requirements of a 

participating FFI or deemed-compliant FFI for purposes of section 1471 of the U.S. Internal 

Revenue Code or has a Related Entity or branch that is treated as a Nonparticipating 

Financial Institution solely due to the expiration of the transitional rule for limited FFis and 

limited branches under relevant U.S. Treasury Regulations, such St. Vincent and the 

Grenadines Financial Institution shall continue to be in compliance with the terms of this 

Agreement and shall continue to be treated as a deemed-compliant FFI or exempt beneficial 

owner, as appropriate, for purposes of section 1471 ofthe U.S. Internal Revenue Code, 

provided that: 

a) the St. Vincent and the Grenadines Financial Institution treats each such 

Related Entity or branch as a separate Nonparticipating Financial Institution 

for purposes of all the reporting and withholding requirements of this 

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Agreement and each such Related Entity or branch identifies itself to 

withholding agents as a Nonparticipating Financial Institution; 

b) each such Related Entity or branch identifies its U.S. accounts and reports the 

information with respect to those accounts as required under section 1471 of 

the U.S. Internal Revenue Code to the extent permitted under the relevant laws 

pertaining to the Related Entity or branch; and 

c) such Related Entity or branch does not specifically solicit U.S. accounts held 

by persons that are not resident in the jurisdiction where such Related Entity 

or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

Entity or branch is located, and such Related Entity or branch is not used by 

the St. Vincent and the Grenadines Financial Institution or any other Related 

Entity to circumvent the obligations under this Agreement or under section 

1471 of the U.S. Internal Revenue Code, as appropriate. 

6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 ofthis 

Agreement: 

a) St. Vincent and the Grenadines shall not be obligated to obtain and exchange 

information with respect to a calendar year that is prior to the calendar year 

with respect to which similar information is required to be reported to the IRS 

by participating FFis pursuant to relevant U.S. Treasury Regulations; and 

b) St. Vincent and the Grenadines shall not be obligated to begin exchanging 

information prior to the date by which participating FFis are required to report 

similar information to the IRS under relevant U.S. Treasury Regulations. 

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding 

Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, St. Vincent and the Grenadines may use, and may permit St. 

Vincent and the Grenadines Financial Institutions to use, a definition in relevant U.S. 

Treasury Regulations in lieu of a corresponding definition in this Agreement, provided that 

such application would not frustrate the purposes of this Agreement. 

Article 5 

Collaboration on Compliance and Enforcement 

1. General Inquiries. Subject to any further terms set forth in a competent authority 

agreement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the U.S. 

Competent Authority may make follow-up requests to the St. Vincent and the Grenadines 

Competent Authority, pursuant to which the St. Vincent and the Grenadines Competent 

Authority shall obtain and provide additional information with respect to a U.S. Reportable 

Account, including the account statements prepared in the ordinary course of a Reporting St. 

Vincent and the Grenadines Financial Institution's business that summarize the activity 

(including withdrawals, transfers, and closures) of the U.S. Reportable Account. 

2. Minor and Administrative Errors. The U.S. Competent Authority shall notify the 

St. Vincent and the Grenadines Competent Authority when the U.S. Competent Authority has 

12 
reason to believe that administrative errors or other minor errors may have led to incorrect or 

incomplete information reporting or resulted in other infringements ofthisAgreement. The 

St. Vincent and the Grenadines Competent Authority shall apply its domestic law (including 

applicable penalties) to obtain corrected and/or complete information or to resolve other 

infringements ofthis Agreement. 

3. Significant Non-Compliance. 

a) The U.S. Competent Authority shall notify the St. Vincent and the Grenadines 

Competent Authority when the U.S. Competent Authority has determined that 

there is significant non-compliance with the obligations under this Agreement 

with respect to a Reporting St. Vincent and the Grenadines Financial 

Institution. The St. Vincent and the Grenadines Competent Authority shall 

apply its domestic law (including applicable penalties) to address the 

significant non-compliance described in the notice. 

b) If such enforcement actions do not resolve the non-compliance within a period 

of 18 months after notification of significant non-compliance is first provided 

by the U.S. Competent Authority, the United States shall treat the Reporting 

St. Vincent and the Grenadines Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 3(b ). 

4. Reliance on Third Party Service Providers. St. Vincent and the Grenadines may 

allow Reporting St. Vincent and the Grenadines Financial Institutions to use third party 

service providers to fulfill the obligations imposed on such Reporting St. Vincent and the 

Grenadines Financial Institutions by St. Vincent and the Grenadines, as contemplated in this 

Agreement, but these obligations shall remain the responsibility of the Reporting St. Vincent 

and the Grenadines Financial Institutions. 

5. Prevention of Avoidance. St. Vincent and the Grenadines shall implement as 

necessary requirements to prevent Financial Institutions from adopting practices intended to 

circumvent the reporting required under this Agreement. 

Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed 

to work together, along with Partner Jurisdictions, to develop a practical and effective 

alternative approach to achieve the policy objectives of foreign passthru payment and gross 

proceeds withholding that minimizes burden. 

2. Documentation of Accounts Maintained as of June 30, 2014. With respect to U.S. 

Reportable Accounts maintained by a Reporting St. Vincent and the Grenadines Financial 

Institution as of June 30, 2014, St. Vincent and the Grenadines commits to establish, by 

January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring 

Reporting St. Vincent and the Grenadines Financial Institutions to obtain the U.S. TIN of 

each Specified U.S. Person as required pursuant to subparagraph 2(a) of Article 2 of this 

Agreement. 

13 
Article 7 

Consistency in the Application of FATCA to Partner Jurisdictions 

1. St. Vincent and the Grenadines shall be granted the benefit of any more favorable 

terms under Article 4 or Annex I of this Agreement relating to the application ofF A TCA to 

St. Vincent and the Grenadines Financial Institutions afforded to another Partner Jurisdiction 

under a signed bilateral agreement pursuant to which the other Partner Jurisdiction commits 

to undertake the same obligations as St. Vincent and the Grenadines described in Articles 2 

and 3 of this Agreement, and subject to the same terms and conditions as described therein 

and in Articles 5, 6, 7, 10 and 11 of this Agreement. 

2. The United States shall notify St. Vincent and the Grenadines of any such more 

favorable terms, and such more favorable terms shall apply automatically under this 

Agreement as if such terms were specified in this Agreement and effective as of the date of 

signing of the agreement incorporating the more favorable terms, unless St. Vincent and the 

Grenadines declines in writing the application thereof. 

Article 8 

Mutual Agreement Procedure 

1. Where difficulties or doubts arise between the Parties regarding the implementation, 

application, or interpretation of this Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement. 

2. The Competent Authorities may adopt and implement procedures to facilitate the 

implementation of this Agreement. 

3. The Competent Authorities may communicate with each other directly for purposes of 

reaching a mutual agreement under this Article. 

Article 9 

Confidentiality 

1. The St. Vincent and the Grenadines Competent Authority shall treat any information 

received from the United States pursuant to Article 5 of this Agreement as confidential and 

shall only disclose such information as may be necessary to carry out its obligations under 

this Agreement. Such information may be disclosed in connection with court proceedings 

related to the performance of the obligations of St. Vincent and the Grenadines under this 

Agreement. 

2. Information provided to the U.S. Competent Authority pursuant Articles 2 and 5 of 

this Agreement shall be treated as confidential and may be disclosed only to persons or 

authorities (including courts and administrative bodies) of the Government of the United 

States concerned with the assessment, collection, or administration of, the enforcement or 

prosecution in respect of, or the determination of appeals in relation to, U.S. federal taxes, or 

the oversight of such functions. Such persons or authorities shall use such information only 

for such purposes. Such persons may disclose the information in public court proceedings or 

in judicial decisions. The information may not be disclosed to any other person, entity, 

authority, or jurisdiction. Notwithstanding the foregoing, where St. Vincent and the 

Grenadines provides prior, written consent, the information may be used for purposes 

14 
permitted under the provisions of a mutual legal assistance treaty in force between the Parties 

that allows for the exchange of tax information. 

Article 10 

Consultations and Amendments 

1. In case any difficulties in the implementation of this Agreement arise, either Party 

may, independently of the mutual agreement procedure described in paragraph 1 of Article 8 

of this Agreement, request consultations to develop appropriate measures to ensure the 

fulfillment of this Agreement. 

2. This Agreement may be amended by written mutual agreement of the Parties. Unless 

otherwise agreed upon, such an amendment shall enter into force through the same 

procedures as set forth in paragraph 1 of Article 12 of this Agreement. 

Article 11 

Annexes 

The Annexes form an integral part ofthis Agreement. 

Article 12 

Term of Agreement 

1. This Agreement shall enter into force on the date of St. Vincent and the Grenadines's 

written notification to the United States that St. Vincent and the Grenadines has completed its 

necessary internal procedures for entry into force of this Agreement. 

2. Either Party may terminate this Agreement by giving notice of termination in writing 

to the other Party. Such termination shall become effective on the first day of the month 

following the expiration of a period of 12 months after the date ofthe notice oftermination. 

3. The Parties shall, prior to December 31, 2016, consult in good faith to amend this 

Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this 

Agreement. 

4. If this Agreement is terminated, both Parties shall remain bound by the provisions of 

Article 9 of this Agreement with respect to any information obtained under this Agreement. 

15 
In witness whereof, the undersigned, being duly authorized thereto by their respective 

Governments, have signed this Agreement. 

d the Grenadines, in duplicate, in the English language, 

FOR THE GOVERNMENT OF 

ST. VINCENT AND THE GRENADINES: 

16 
ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. St. Vincent and the Grenadines shall require that Reporting St. Vincent and the 

Grenadines Financial Institutions apply the due diligence procedures contained in this 

Annex I to identify U.S. Reportable Accounts and accounts held by Nonparticipating 

Financial Institutions. 

B. For purposes oftheAgreement, 

1. All dollar amounts are in U.S. dollars and shall be read to include the 

equivalent in other currencies. 

2. Except as otherwise provided herein, the balance or value of an 

account shall be determined as of the last day of the calendar year or other 

appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of June 30, 

2014 under this Annex I, the relevant balance or value shall be determined as 

of that day or the last day of the reporting period ending immediately before 

June 30, 2014, and where a balance or value threshold is to be determined as 

of the last day of a calendar year under this Annex I, the relevant balance or 

value shall be determined as of the last day of the calendar year or other 

appropriate reporting period. 

4. Subject to subparagraph E(l) of section II of this Annex I, an account 

shall be treated as a U.S. Reportable Account beginning as of the date it is 

identified as such pursuant to the due diligence procedures in this Annex I. 

5. Unless otherwise provided, information with respect to a U.S. 

Reportable Account shall be reported annually in the calendar year following 

the year to which the information relates. 

C. As an alternative to the procedures described in each section of this Annex I, 

St. Vincent and the Grenadines may permit Reporting St. Vincent and the Grenadines 

Financial Institutions to rely on the procedures described in relevant U.S. Treasury 

Regulations to establish whether an account is a U.S. Reportable Account or an 

account held by a Nonparticipating Financial Institution. St. Vincent and the 

Grenadines may permit Reporting St. Vincent and the Grenadines Financial 

Institutions to make such election separately for each section of this Annex I either 

with respect to all relevant Financial Accounts or, separately, with respect to any 

clearly identified group of such accounts (such as by line of business or the location 

of where the account is maintained). 

1 
II. Preexisting Individual Accounts. The following rules and procedures apply for 

purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by 

individuals ("Preexisting Individual Accounts"). 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. 

Unless the Reporting St. Vincent and the Grenadines Financial Institution elects 

otherwise, either with respect to all Preexisting Individual Accounts or, separately, 

with respect to any clearly identified group of such accounts, where the implementing 

rules in St. Vincent and the Grenadines provide for such an election, the following 

Preexisting Individual Accounts are not required to be reviewed, identified, or 

reported as U.S. Reportable Accounts: 

1. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account with a balance or value that does not exceed $50,000 as of June 30, 

2014. 

2. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account that is a Cash Value Insurance Contract or an Annuity Contract with a 

balance or value of$250,000 or less as of June 30, 2014. 

3. A Preexisting Individual Account that is a Cash Value Insurance 

Contract or an Annuity Contract, provided the law or regulations of St. 

Vincent and the Grenadines or the United States effectively prevent the sale of 

such a Cash Value Insurance Contract or an Annuity Contract to U.S. residents 

(e.g., if the relevant Financial Institution does not have the required 

registration under U.S. law, and the law of St. Vincent and the Grenadines 

requires reporting or withholding with respect to insurance products held by 

residents of St. Vincent and the Grenadines. 

4. A Depository Account with a balance of $50,000 or less. 

B. Review Procedures for Preexisting Individual Accounts With a Balance or 

Value as of June 30,2014, that Exceeds $50,000 ($250,000 for a Cash Value 

Insurance Contract or Annuity Contract), But Does Not Exceed $1,000,000 

("Lower Value Accounts"). 

I. Electronic Record Search. The Reporting St. Vincent and the 

Grenadines Financial Institution must review electronically searchable data 

maintained by the Reporting St. Vincent and the Grenadines Financial 

Institution for any of the following U.S. indicia: 

a) Identification of the Account Holder as a U.S. citizen or 

resident; 

b) Unambiguous indication of a U.S. place of birth; 

c) Current U.S. mailing or residence address (including a U.S. 

post office box); 

d) Current U.S. telephone number; 

2 
e) Standing instructions to transfer funds to an account maintained 

in the United States; 

f) Currently effective power of attorney or signatory authority 

granted to a person with a U.S. address; or 

g) An "in-care-of' or "hold mail" address that is the sole address 

the Reporting St. Vincent and the Grenadines Financial 

Institution has on file for the Account Holder. In the case of a 

Preexisting Individual Account that is a Lower Value Account, 

an "in-care-of' address outside the United States or "hold mail" 

address shall not be treated as U.S. indicia. 

2. If none ofthe U.S. indicia listed in subparagraph B (1) ofthis section 

are discovered in the electronic search, then no further action is required until 

there is a change in circumstances that results in one or more U.S. indicia 

being associated with the account, or the account becomes a High Value 

Account described in paragraph D ofthis section. 

3. If any of the U.S. indicia listed in subparagraph B (1) of this section 

are discovered in the electronic search, or if there is a change in circumstances 

that results in one or more U.S. indicia being associated with the account, then 

the Reporting St. Vincent and the Grenadines Financial Institution must treat 

the account as a U.S. Reportable Account unless it elects to apply 

subparagraph B(4) ofthis section and one ofthe exceptions in such 

subparagraph applies with respect to that account. 

4. Notwithstanding a finding ofU.S. indicia under subparagraph B(l) of 

this section, a Reporting St. Vincent and the Grenadines Financial Institution is 

not required to treat an account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting St. Vincent and the 

Grenadines Financial Institution obtains, or has previously reviewed 

and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); 

(2) A non-U.S. passport or other government-issued 

identification evidencing the Account Holder's 

citizenship or nationality in a country other than the 

United States; and 

(3) A copy of the Account Holder's Certificate of Loss of 

Nationality of the United States or a reasonable 

explanation of: 

3 
(a) The reason the Account Holder does not have 

such a certificate despite relinquishing U.S. 

citizenship; or 

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

b) Where the Account Holder information contains a current U.S. 

mailing or residence address, or one or more U.S. telephone numbers 

that are the only telephone numbers associated with the account, the 

Reporting St. Vincent and the Grenadines Financial Institution obtains, 

or has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting St. Vincent and the Grenadines Financial 

Institution obtains, or has previously reviewed and maintains a record 

of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted to a person 

with a U.S. address, has an "in-care-of' address or "hold mail" 

address that is the sole address identified for the Account Holder, or 

has one or more U.S. telephone numbers (if a non-U.S. telephone 

number is also associated with the account), the Reporting St. Vincent 

and the Grenadines Financial Institution obtains, or has previously 

reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); or 

4 
(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed by June 30, 2016. 

2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or more 

U.S. indicia described in subparagraph B(l) ofthis section being associated 

with the account, then the Reporting St. Vincent and the Grenadines Financial 

Institution must treat the account as a U.S. Reportable Account unless 

subparagraph B(4) of this section applies. 

3. Except for Depository Accounts described in subparagraph A(4) of this 

section, any Preexisting Individual Account that has been identified as a U.S. 

Reportable Account under this section shall be treated as a U.S. Reportable 

Account in all subsequent years, unless the Account Holder ceases to be a 

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or December 31 of 

2015 or Any Subsequent Year ("High Value Accounts"). 

1. Electronic Record Search. The Reporting St. Vincent and the 

Grenadines Financial Institution must review electronically searchable data 

maintained by the Reporting St. Vincent and the Grenadines Financial 

Institution for any of the U.S. indicia described in subparagraph B(l) of this 

section. 

2. Paper Record Search. If the Reporting St. Vincent and the 

Grenadines Financial Institution's electronically searchable databases include 

fields for, and capture all of the information described in, subparagraph D(3) 

of this section, then no further paper record search is required. If the 

electronic databases do not capture all of this information, then with respect to 

a High Value Account, the Reporting St. Vincent and the Grenadines Financial 

Institution must also review the current customer master file and, to the extent 

not contained in the current customer master file, the following documents 

associated with the account and obtained by the Reporting St. Vincent and the 

Grenadines Financial Institution within the last five years for any of the U.S. 

indicia described in subparagraph B( 1) of this section: 

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

5 
c) The most recent documentation obtained by the Reporting St. 

Vincent and the Grenadines Financial Institution pursuant to 

AMLIKYC Procedures or for other regulatory purposes; 

d) Any power of attorney or signature authority forms currently in 

effect; and 

e) Any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting St. Vincent and the Grenadines Financial Institution is not required 

to perform the paper record search described in subparagraph D(2) of this 

section if the Reporting St. Vincent and the Grenadines Financial Institution's 

electronically searchable information includes the following: 

a) The Account Holder's nationality or residence status; 

b) The Account Holder's residence address and mailing address 

currently on file with the Reporting St. Vincent and the 

Grenadines Financial Institution; 

c) The Account Holder's telephone number(s) currently on file, if 

any, with the Reporting St. Vincent and the Grenadines 

Financial Institution; 

d) Whether there are standing instructions to transfer funds in the 

account to another account (including an account at another 

branch of the Reporting St. Vincent and the Grenadines 

Financial Institution or another Financial Institution); 

e) Whether there is a current "in-care-of' address or "hold mail" 

address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority 

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition 

to the electronic and paper record searches described above, the Reporting St. 

Vincent and the Grenadines Financial Institution must treat as a U.S. 

Reportable Account any High Value Account assigned to a relationship 

manager (including any Financial Accounts aggregated with such High Value 

Account) if the relationship manager has actual knowledge that the Account 

Holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph B(l) of this 

section are discovered in the enhanced review of High Value Accounts 

described above, and the account is not identified as held by a 

Specified U.S. Person in subparagraph D(4) of this section, then no 

6 
further action is required until there is a change in circumstances that 

results in one or more U.S. indicia being associated with the account. 

b) If any ofthe U.S. indicia listed in subparagraph B(1) ofthis 

section are discovered in the enhanced review of High Value Accounts 

described above, or if there is a subsequent change in circumstances 

that results in one or more U.S. indicia being associated with the 

account, then the Reporting St. Vincent and the Grenadines Financial 

Institution must treat the account as a U.S. Reportable Account unless 

it elects to apply subparagraph B(4) of this section and one ofthe 

exceptions in such subparagraph applies with respect to that account. 

c) Except for Depository Accounts described in subparagraph 

A( 4) of this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall be 

treated as a U.S. Reportable Account in all subsequent years, unless the 

Account Holder ceases to be a Specified U.S. Person. 

E. Additional Procedures Applicable to High Value Accounts. 

1. If a Preexisting Individual Account is a High Value Account as of June 

30, 2014, the Reporting St. Vincent and the Grenadines Financial Institution 

must complete the enhanced review procedures described in paragraph D of 

this section with respect to such account by June 30, 2015. If based on this 

review such account is identified as a U.S. Reportable Account on or before 

December 31, 2014, the Reporting St. Vincent and the Grenadines Financial 

Institution must report the required information about such account with 

respect to 2014 in the first report on the account and on an annual basis 

thereafter. In the case of an account identified as a U.S. Reportable Account 

after December 31, 2014 and on or before June 30, 2015, the Reporting St. 

Vincent and the Grenadines Financial Institution is not required to report 

information about such account with respect to 2014, but must report 

information about the account on an annual basis thereafter. 

2. If a Preexisting Individual Account is not a High Value Account as of 

June 30,2014, but becomes a High Value Account as ofthe last day of2015 or 

any subsequent calendar year, the Reporting St. Vincent and the Grenadines 

Financial Institution must complete the enhanced review procedures described 

in paragraph D of this section with respect to such account within six months 

after the last day of the calendar year in which the account becomes a High 

Value Account. If based on this review such account is identified as a U.S. 

Reportable Account, the Reporting St. Vincent and the Grenadines Financial 

Institution must report the required information about such account with 

respect to the year in which it is identified as a U.S. Reportable Account and 

subsequent years on an annual basis, unless the Account Holder ceases to be a 

Specified U.S. Person. 

3. Once a Reporting St. Vincent and the Grenadines Financial Institution 

applies the enhanced review procedures described in paragraph D of this 

section to a High Value Account, the Reporting St. Vincent and the Grenadines 

7 
Financial Institution is not required to re-apply such procedures, other than the 

relationship manager inquiry described in subparagraph D(4) of this section, to 

the same High Value Account in any subsequent year. 

4. If there is a change of circumstances with respect to a High Value 

Account that results in one or more U.S. indicia described in subparagraph 

B(l) ofthis section being associated with the account, then the Reporting St. 

Vincent and the Grenadines Financial Institution must treat the account as a 

U.S. Reportable Account unless it elects to apply subparagraph B( 4) of this 

section and one of the exceptions in such subparagraph applies with respect to 

that account. 

5. A Reporting St. Vincent and the Grenadines Financial Institution must 

implement procedures to ensure that a relationship manager identifies any 

change in circumstances of an account. For example, if a relationship 

manager is notified that the Account Holder has a new mailing address in the 

United States, the Reporting St. Vincent and the Grenadines Financial 

Institution is required to treat the new address as a change in circumstances 

and, if it elects to apply subparagraph B( 4) of this section, is required to obtain 

the appropriate documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting St. Vincent and the Grenadines Financial Institution 

that has previously obtained documentation from an Account Holder to establish the 

Account Holder's status as neither a U.S. citizen nor a U.S. resident in order to meet 

its obligations under a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust agreement with the IRS, or to fulfill its obligations under 

chapter 61 ofTitle 26 of the United States Code, is not required to perform the 

procedures described in subparagraph B(l) of this section with respect to Lower Value 

Accounts or subparagraphs D(l) through D(3) of this section with respect to High 

Value Accounts. 

III. New Individual Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts among Financial Accounts held by individuals and 

opened on or after July 1, 2014 ("New Individual Accounts"). 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting St. Vincent and the Grenadines Financial Institution elects otherwise, 

either with respect to all New Individual Accounts or, separately, with respect to any 

clearly identified group of such accounts, where the implementing rules in St. Vincent 

and the Grenadines provide for such an election, the following New Individual 

Accounts are not required to be reviewed, identified, or reported as U.S. Reportable 

Accounts: 

1. A Depository Account unless the account balance exceeds $50,000 at 

the end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds 

$50,000 at the end of any calendar year or other appropriate reporting 

period. 

8 
B. Other New Individual Accounts. With respect to New Individual Accounts 

not described in paragraph A of this section, upon account opening (or within 90 days 

after the end of the calendar year in which the account ceases to be described in 

paragraph A of this section), the Reporting St. Vincent and the Grenadines Financial 

Institution must obtain a self-certification, which may be part of the account opening 

documentation, that allows the Reporting St. Vincent and the Grenadines Financial 

Institution to determine whether the Account Holder is resident in the United States 

for tax purposes (for this purpose, a U.S. citizen is considered to be resident in the 

United States for tax purposes, even if the Account Holder is also a tax resident of 

another jurisdiction) and confirm the reasonableness of such self-certification based 

on the information obtained by the Reporting St. Vincent and the Grenadines 

Financial Institution in connection with the opening of the account, including any 

documentation collected pursuant to AML/KYC Procedures. 

1. If the self-certification establishes that the Account Holder is resident 

in the United States for tax purposes, the Reporting St. Vincent and the 

Grenadines Financial Institution must treat the account as a U.S. Reportable 

Account and obtain a self-certification that includes the Account Holder's U.S. 

TIN (which may be an IRS Form W-9 or other similar agreed form). 

2. If there is a change of circumstances with respect to a New Individual 

Account that causes the Reporting St. Vincent and the Grenadines Financial 

Institution to know, or have reason to know, that the original self-certification 

is incorrect or unreliable, the Reporting St. Vincent and the Grenadines 

Financial Institution cannot rely on the original self-certification and must 

obtain a valid self-certification that establishes whether the Account Holder is 

a U.S. citizen or resident for U.S. tax purposes. If the Reporting St. Vincent 

and the Grenadines Financial Institution is unable to obtain a valid selfcertification, the Reporting St. Vincent and the Grenadines Financial 

Institution must treat the account as a U.S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Preexisting Accounts held by Entities ("Preexisting Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. 

Unless the Reporting St. Vincent and the Grenadines Financial Institution elects 

otherwise, either with respect to all Preexisting Entity Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the implementing rules 

in St. Vincent and the Grenadines provide for such an election, a Preexisting Entity 

Account with an account balance or value that does not exceed $250,000 as of June 

30, 2014, is not required to be reviewed, identified, or reported as a U.S. Reportable 

Account until the account balance or value exceeds $1,000,000. 

B. Entity Accounts Subject to Review. A Preexisting Entity Account that has 

an account balance or value that exceeds $250,000 as of June 30, 2014, and a 

Preexisting Entity Account that does not exceed $250,000 as of June 30, 2014 but the 

account balance or value ofwhich exceeds $1,000,000 as ofthe last day of2015 or 

9 
any subsequent calendar year, must be reviewed in accordance with the procedures set 

forth in paragraph D of this section. 

C. Entity Accounts With Respect to Which Reporting Is Required. With 

respect to Preexisting Entity Accounts described in paragraph B of this section, only 

accounts that are held by one or more Entities that are Specified U.S. Persons, or by 

Passive NFFEs with one or more Controlling Persons who are U.S. citizens or 

residents, shall be treated as U.S. Reportable Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in subparagraph 1 (b) of Article 4 of the Agreement 

are reported to the St. Vincent and the Grenadines Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting St. Vincent and the Grenadines Financial 

Institution must apply the following review procedures to determine whether the 

account is held by one or more Specified U.S. Persons, by Passive NFFEs with one or 

more Controlling Persons who are U.S. citizens or residents, or by Nonparticipating 

Financial Institutions: 

1. Determine Whether the Entity Is a Specified U.S. Person. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AMLIKYC Procedures) to determine whether the information 

indicates that the Account Holder is a U.S. Person. For this purpose, 

information indicating that the Account Holder is a U.S. Person 

includes a U.S. place of incorporation or organization, or a U.S. 

address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting St. Vincent and the Grenadines Financial 

Institution must treat the account as a U.S. Reportable Account unless 

it obtains a self-certification from the Account Holder (which may be 

on an IRS Form W-8 or W-9, or a similar agreed form), or reasonably 

determines based on information in its possession or that is publicly 

available, that the Account Holder is not a Specified U.S. Person. 

2. Determine Whether a Non-U.S. Entity Is a Financial Institution. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AMLIKYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

b) If the information indicates that the Account Holder is a 

Financial Institution, or the Reporting St. Vincent and the Grenadines 

Financial Institution verifies the Account Holder's Global Intermediary 

Identification Number on the published IRS FFI list, then the account 

is not a U.S. Reportable Account. 

10 
3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

Reporting Under Subparagraph l(b) of Article 4 of the Agreement. 

a) Subject to subparagraph D(3)(b) of this section, a Reporting St. 

Vincent and the Grenadines Financial Institution may determine that 

the Account Holder is a St. Vincent and the Grenadines Financial 

Institution or other Partner Jurisdiction Financial Institution if the 

Reporting St. Vincent and the Grenadines Financial Institution 

reasonably determines that the Account Holder has such status on the 

basis of the Account Holder's Global Intermediary Identification 

Number on the published IRS FFI list or other information that is 

publicly available or in the possession ofthe Reporting St. Vincent and 

the Grenadines Financial Institution, as applicable. In such case, no 

further review, identification, or reporting is required with respect to 

the account. 

b) If the Account Holder is a St. Vincent and the Grenadines 

Financial Institution or other Partner Jurisdiction Financial Institution 

treated by the IRS as a Nonparticipating Financial Institution, then the 

account is not a U.S. Reportable Account, but payments to the Account 

Holder must be reported as contemplated in subparagraph 1 (b) of 

Article 4 of the Agreement. 

c) If the Account Holder is not a St. Vincent and the Grenadines 

Financial Institution or other Partner Jurisdiction Financial Institution, 

then the Reporting St. Vincent and the Grenadines Financial Institution 

must treat the Account Holder as a Nonparticipating Financial · 

Institution payments to which are reportable under subparagraph l(b) 

of Article 4 of the Agreement, unless the Reporting St. Vincent and the 

Grenadines Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS 

Form W-8 or similar agreed form) from the Account Holder 

that it is a certified deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant U.S. 

Treasury Regulations; or 

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder's Global 

Intermediary Identification Number on the published IRS FFI 

list. 

4. Determine Whether an Account Held by an NFFE Is a U.S. 

Reportable Account. With respect to an Account Holder of a Preexisting 

Entity Account that is not identified as either a U.S. Person or a Financial 

Institution, the Reporting St. Vincent and the Grenadines Financial Institution 

must identify (i) whether the Account Holder has Controlling Persons, (ii) 

whether the Account Holder is a Passive NFFE, and (iii) whether any of the 

11 
Controlling Persons of the Account Holder is a U.S. citizen or resident. In 

making these determinations the Reporting St. Vincent and the Grenadines 

Financial Institution must follow the guidance in subparagraphs D(4)(a) 

through D(4)(d) ofthis section in the order most appropriate under the 

circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting St. Vincent and the Grenadines Financial 

Institution may rely on information collected and maintained pursuant 

to AML/KYC Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting St. Vincent and the Grenadines Financial 

Institution must obtain a self-certification (which may be on an IRS 

Form W-8 or W-9, or on a similar agreed form) from the Account 

Holder to establish its status, unless it has information in its possession 

or that is publicly available, based on which it can reasonably 

determine that the Account Holder is an Active NFFE. 

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a U.S. citizen or resident for tax purposes, a 

Reporting St. Vincent and the Grenadines Financial Institution may 

rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that does not exceed $1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 

or W-9, or on a similar agreed form) from the Account Holder 

or such Controlling Person in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a U.S. citizen or 

resident, the account shall be treated as a U.S. Reportable Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts. 

1. Review of Preexisting Entity Accounts with an account balance or 

value that exceeds $250,000 as of June 30, 2014 must be completed by June 

30, 2016. 

2. Review of Preexisting Entity Accounts with an account balance or 

value that does not exceed $250,000 as of June 30, 2014, but exceeds 

$1,000,000 as of December 31 of 2015 or any subsequent year, must be 

completed within six months after the last day of the calendar year in which 

the account balance or value exceeds $1,000,000. 

12 
3. If there is a change of circumstances with respect to a Preexisting 

Entity Account that causes the Reporting St. Vincent and the Grenadines 

Financial Institution to know, or have reason to know, that the self-certification 

or other documentation associated with an account is incorrect or unreliable, 

the Reporting St. Vincent and the Grenadines Financial Institution must 

redetermine the status of the account in accordance with the procedures set 

forth in paragraph D of this section. 

V. New Entity Accounts. The following rules and procedures apply for purposes of 

identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 

("New Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. 

Unless the Reporting St. Vincent and the Grenadines Financial Institution elects 

otherwise, either with respect to all New Entity Accounts or, separately, with respect 

to any clearly identified group of such accounts, where the implementing rules in St. 

Vincent and the Grenadines provide for such election, a credit card account or a 

revolving credit facility treated as a New Entity Account is not required to be 

reviewed, identified, or reported, provided that the Reporting St. Vincent and the 

Grenadines Financial Institution maintaining such account implements policies and 

procedures to prevent an account balance owed to the Account Holder that exceeds 

$50,000. 

B. Other New Entitv Accounts. With respect to New Entity Accounts not 

described in paragraph A of this section, the Reporting St. Vincent and the Grenadines 

Financial Institution must determine whether the Account Holder is: (i) a Specified 

U.S. Person; (ii) a St. Vincent and the Grenadines Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemed-compliant 

FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. 

Treasury Regulations; or (iv) an Active NFFE or Passive NFFE. 

1. Subject to subparagraph B(2) of this section, a Reporting St. Vincent 

and the Grenadines Financial Institution may determine that the Account 

Holder is an Active NFFE, a St. Vincent and the Grenadines Financial 

Institution, or other Partner Jurisdiction Financial Institution if the Reporting 

St. Vincent and the Grenadines Financial Institution reasonably determines 

that the Account Holder has such status on the basis of the Account Holder's 

Global Intermediary Identification Number or other information that is 

publicly available or in the possession of the Reporting St. Vincent and the 

Grenadines Financial Institution, as applicable. 

2. If the Account Holder is a St. Vincent and the Grenadines Financial 

Institution or other Partner Jurisdiction Financial Institution treated by the IRS 

as a Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be reported as 

contemplated in subparagraph l(b) of Article 4 of the Agreement. 

13 
3. In all other cases, a Reporting St. Vincent and the Grenadines Financial 

Institution must obtain a self-certification from the Account Holder to 

establish the Account Holder's status. Based on the self-certification, the 

following rules apply: 

a) If the Account Holder is a Specified U.S. Person, the Reporting 

St. Vincent and the Grenadines Financial Institution must treat the 

account as a U.S. Reportable Account. 

b) If the Account Holder is a Passive NFFE, the Reporting St. 

Vincent and the Grenadines Financial Institution must identifY the 

Controlling Persons as determined under AML/KYC Procedures, and 

must determine whether any such person is a U.S. citizen or resident 

on the basis of a self-certification from the Account Holder or such 

person. If any such person is a U.S. citizen or resident, the Reporting 

St. Vincent and the Grenadines Financial Institution must treat the 

account as a U.S. Reportable Account. 

c) If the Account Holder is: (i) a U.S. Person that is not a 

Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this 

section, a St. Vincent and the Grenadines Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a participating FFI, a 

deemed-compliant FFI, or an exempt beneficial owner, as those terms 

are defined in relevant U.S. Treasury Regulations; (iv) an Active 

NFFE; or (v) a Passive NFFE none of the Controlling Persons of which 

is a U.S. citizen or resident, then the account is not a U.S. Reportable 

Account, and no reporting is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a St. Vincent and the Grenadines Financial 

Institution or other Partner Jurisdiction Financial Institution treated by 

the IRS as a Nonparticipating Financial Institution), then the account is 

not a U.S. Reportable Account, but payments to the Account Holder 

must be reported as contemplated in subparagraph 1 (b) of Article 4 of 

the Agreement. 

VI. Special Rules and Definitions. The following additional rules and definitions apply 

in implementing the due diligence procedures described above: 

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting 

St. Vincent and the Grenadines Financial Institution may not rely on a selfcertification or documentary evidence if the Reporting St. Vincent and the Grenadines 

Financial Institution knows or has reason to know that the self-certification or 

documentary evidence is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this Annex I. 

1. AML/KYC Procedures. "AML/KYC Procedures" means the customer 

due diligence procedures of a Reporting St. Vincent and the Grenadines 

Financial Institution pursuant to the anti-money laundering or similar 

14 
requirements of St. Vincent and the Grenadines to which such Reporting 

St. Vincent and the Grenadines Financial Institution is subject. 

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity described in 

subparagraph B(4)(j) of this section, and also includes any Non-U.S. 

Entity that is established in St. Vincent and the Grenadines or another 

Partner Jurisdiction and that is not a Financial Institution. 

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not (i) an 

Active NFFE, or (ii) a withholding foreign partnership or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An "Active NFFE" means any NFFE that meets any of the 

following criteria: 

a) Less than 50 percent of the NFFE's gross income for the preceding 

calendar year or other appropriate reporting period is passive 

income and less than 50 percent of the assets held by the NFFE 

during the preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the production of 

passive income; 

b) The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity the 

stock of which is regularly traded on an established securities 

market; 

c) The NFFE is organized in a U.S. Territory and all of the owners of 

the payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a government (other than the U.S. government), a 

political subdivision of such government (which, for the avoidance 

of doubt, includes a state, province, county, or municipality), or a 

public body performing a function of such government or a 

political subdivision thereof, a government of a U.S. Territory, an 

international organization, a non-U.S. central bank of issue, or an 

Entity wholly owned by one or more of the foregoing; 

e) Substantially all of the activities ofthe NFFE consist of holding (in 

whole or in part) the outstanding stock of, or providing financing 

and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except 

that an entity shall not qualify for NFFE status if the entity 

functions (or holds itself out) as an investment fund, such as a 

private equity fund, venture capital fund, leveraged buyout fund, or 

any investment vehicle whose purpose is to acquire or fund 

companies and then hold interests in those companies as capital 

assets for investment purposes; 

15 
f) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the intent 

to operate a business other than that of a Financial Institution, 

provided that the NFFE shall not qualify for this exception after the 

date that is 24 months after the date of the initial organization of 

theNFFE; 

g) The NFFE was not a Financial Institution in the past five years, and 

is in the process of liquidating its assets or is reorganizing with the 

intent to continue or recommence operations in a business other 

than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

with, or for, Related Entities that are not Financial Institutions, and 

does not provide financing or hedging services to any Entity that is 

not a Related Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than that of a 

Financial Institution; 

i) The NFFE is an "excepted NFFE" as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

1. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is established 

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare; 

u. It is exempt from income tax in its jurisdiction of residence; 

iii. It has no shareholders or members who have a proprietary or 

beneficial interest in its income or assets; 

iv. The applicable laws ofthe NFFE'sjurisdiction ofresidence 

or the NFFE's formation documents do not permit any 

income or assets of the NFFE to be distributed to, or applied 

for the benefit of, a private person or non-charitable Entity 

other than pursuant to the conduct of the NFFE's charitable 

activities, or as payment of reasonable compensation for 

services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and 

v. The applicable laws ofthe NFFE'sjurisdiction ofresidence 

or the NFFE's formation documents require that, upon the 

NFFE' s liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

16 
organization, or escheat to the government of the NFFE's 

jurisdiction of residence or any political subdivision thereof. 

5. Preexisting Account. A "Preexisting Account" means a Financial 

Account maintained by a Reporting St. Vincent and the Grenadines 

Financial Institution as of June 30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of Financial Accounts held by an individual, a 

Reporting St. Vincent and the Grenadines Financial Institution is required to 

aggregate all Financial Accounts maintained by the Reporting St. Vincent and 

the Grenadines Financial Institution, or by a Related Entity, but only to the 

extent that the Reporting St. Vincent and the Grenadines Financial Institution's 

computerized systems link the Financial Accounts by reference to a data 

element such as client number or taxpayer identification number, and allow 

account balances or values to be aggregated. Each holder of a jointly held 

Financial Account shall be attributed the entire balance or value of the jointly 

held Financial Account for purposes of applying the aggregation requirements 

described in this paragraph 1. 

2. A!!!!re2:ation of Entitv Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting St. Vincent and the Grenadines Financial Institution is required to 

take into account all Financial Accounts that are maintained by the Reporting 

St. Vincent and the Grenadines Financial Institution, or by a Related Entity, 

but only to the extent that the Reporting St. Vincent and the Grenadines 

Financial Institution's computerized systems link the Financial Accounts by 

reference to a data element such as client number or taxpayer identification 

number, and allow account balances or values to be aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of Financial 

Accounts held by a person to determine whether a Financial Account is a High 

Value Account, a Reporting St. Vincent and the Grenadines Financial 

Institution is also required, in the case of any Financial Accounts that a 

relationship manager knows, or has reason to know, are directly or indirectly 

owned, controlled, or established (other than in a fiduciary capacity) by the 

same person, to aggregate all such accounts. 

4. Currency Translation Rule. For purposes of determining the balance 

or value of Financial Accounts denominated in a currency other than the U.S. 

dollar, a Reporting St. Vincent and the Grenadines Financial Institution must 

convert the U.S. dollar threshold amounts described in this Annex I into such 

currency using a published spot rate determined as ofthe last day of the 

calendar year preceding the year in which the Reporting St. Vincent and the 

Grenadines Financial Institution is determining the balance or value. 

17 
D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

1. A certificate of residence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) of the 

jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality), that includes the individual's name and is typically used for 

identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality) that includes the name of the Entity and either the address of 

its principal office in the jurisdiction (or U.S. Territory) in which it claims to 

be a resident or the jurisdiction (or U.S. Territory) in which the Entity was 

incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in connection 

with a QI agreement (as described in relevant U.S. Treasury Regulations), any 

of the documents, other than a Form W-8 or W-9, referenced in the 

jurisdiction's attachment to the QI agreement for identifying individuals or 

Entities. 

5. Any fmancial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting St. Vincent and 

the Grenadines Financial Institution may presume that an individual beneficiary (other 

than the owner) of a Cash Value Insurance Contract receiving a death benefit is not a 

Specified U.S. Person and may treat such Financial Account as other than a U.S. 

Reportable Account unless the Reporting St. Vincent and the Grenadines Financial 

Institution has actual knowledge, or reason to know, that the beneficiary is a Specified 

U.S. Person. A Reporting St. Vincent and the Grenadines Financial Institution has 

reason to know that a beneficiary of a Cash Value Insurance Contract is a Specified 

U.S. Person if the information collected by the Reporting St. Vincent and the 

Grenadines Financial Institution and associated with the beneficiary contains U.S. 

indicia as described in subparagraph (B)(l) of section II ofthis Annex I. If a 

Reporting St. Vincent and the Grenadines Financial Institution has actual knowledge, 

or reason to know, that the beneficiary is a Specified U.S. Person, the Reporting St. 

Vincent and the Grenadines Financial Institution must follow the procedures in 

subparagraph B(3) of section II of this Annex I. 

F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, St. Vincent and the Grenadines may permit 

Reporting St. Vincent and the Grenadines Financial Institutions to rely on due 

18 
diligence procedures performed by third parties, to the extent provided in relevant 

U.S. Treasury Regulations. 

G. Alternative Procedures for New Accounts Opened Prior to Entry Into 

Force of this Agreement. 

1. Applicability. If St. Vincent and the Grenadines has provided a 

written notice to the United States prior to entry into force of this Agreement 

that, as of July 1, 2014, St. Vincent and the Grenadines lacked the legal 

authority to require Reporting St. Vincent and the Grenadines Financial 

Institutions either: (i) to require Account Holders ofNew Individual Accounts 

to provide the self-certification specified in section III of this Annex I, or (ii) 

to perform all the due diligence procedures related to New Entity Accounts 

specified in section V of this Annex I, then Reporting St. Vincent and the 

Grenadines Financial Institutions may apply the alternative procedures 

described in subparagraph G(2) of this section, as applicable, to such New 

Accounts, in lieu of the procedures otherwise required under this Annex I. 

The alternative procedures described in subparagraph G(2) of this section shall 

be available only for those New Individual Accounts or New Entity Accounts, 

as applicable, opened prior to the earlier of: (i) the date St. Vincent and the 

Grenadines has the ability to compel Reporting St. Vincent and the Grenadines 

Financial Institutions to comply with the due diligence procedures described in 

section III or section V of this Annex I, as applicable, which date St. Vincent 

and the Grenadines shall inform the United States of in writing by the date of 

entry into force of this Agreement, or (ii) the date of entry into force of this 

Agreement. If the alternative procedures for New Entity Accounts opened on 

or after July 1, 2014, and before January 1, 2015, described in paragrapq H of 

this section are applied with respect to all New Entity Accounts or a clearly 

identified group of such accounts, the alternative procedures described in this 

paragraph G may not be applied with respect to such New Entity Accounts. 

For all other New Accounts, Reporting St. Vincent and the Grenadines 

Financial Institutions must apply the due diligence procedures described in 

section III or section V ofthis Annex I, as applicable, to determine if the 

account is a U.S. Reportable Account or an account held by a Nonparticipating 

Financial Institution. 

2. Alternative Procedures. 

a) Within one year after the date of entry into force of this 

Agreement, Reporting St. Vincent and the Grenadines Financial 

Institutions must: (i) with respect to a New Individual Account 

described in subparagraph G(1) of this section, request the selfcertification specified in section III of this Annex I and confirm the 

reasonableness of such self-certification consistent with the procedures 

described in section III of this Annex I, and (ii) with respect to a New 

Entity Account described in subparagraph G(1) of this section, perform 

the due diligence procedures specified in section V ofthis Annex I and 

request information as necessary to document the account, including 

any self-certification, required by section V of this Annex I. 

19 
b) St. Vincent and the Grenadines must report on any New 

Account that is identified pursuant to subparagraph G(2)(a) of this 

section as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, by the date that is 

the later of: (i) September 30 next following the date that the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, or (ii) 90 days 

after the account is identified as a U.S. Reportable Account or as an 

account held by a Nonparticipating Financial Institution, as applicable. 

The information required to be reported with respect to such a New 

Account is any information that would have been reportable under this 

Agreement ifthe New Account had been identified as a U.S. 

Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, as of the date the account was 

opened. 

c) By the date that is one year after the date of entry into force of 

this Agreement, Reporting St. Vincent and the Grenadines Financial 

Institutions must close any New Account described in subparagraph 

G(l) of this section for which it was unable to collect the required selfcertification or other documentation pursuant to the procedures 

described in subparagraph G(2)(a) of this section. In addition, by the 

date that is one year after the date of entry into force of this 

Agreement, Reporting St. Vincent and the Grenadines Financial 

Institutions must: (i) with respect to such closed accounts that prior to 

such closure were New Individual Accounts (without regard to 

whether such accounts were High Value Accounts), perform the due 

diligence procedures specified in paragraph D of section II ofthis 

Annex I, or (ii) with respect to such closed accounts that prior to such 

closure were New Entity Accounts, perform the due diligence 

procedures specified in section IV of this Annex I. 

d) St. Vincent and the Grenadines must report on any closed 

account that is identified pursuant to subparagraph G(2)( c) of this 

section as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, by the date that is 

the later of: (i) September 30 next following the date that the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, or (ii) 90 days 

after the account is identified as a U.S. Reportable Account or as an 

account held by a Nonparticipating Financial Institution, as applicable. 

The information required to be reported for such a closed account is 

any information that would have been reportable under this Agreement 

if the account had been identified as a U.S. Reportable Account or as 

an account held by a Nonparticipating Financial Institution, as 

applicable, as of the date the account was opened. 

H. Alternative Procedures for New Entity Accounts Opened on or after July 

1, 2014, and before January 1, 2015. For New Entity Accounts opened on or after 

July I, 2014, and before January 1, 2015, either with respect to all New Entity 

20 
Accounts or, separately, with respect to any clearly identified group of such accounts, 

St. Vincent and the Grenadines may permit Reporting St. Vincent and the Grenadines 

Financial Institutions to treat such accounts as Preexisting Entity Accounts and apply 

the due diligence procedures related to Preexisting Entity Accounts specified in 

section IV of this Annex I in lieu of the due diligence procedures specified in section 

V of this Annex I. In this case, the due diligence procedures of section IV of this 

Annex I must be applied without regard to the account balance or value threshold 

specified in paragraph A of section IV of this Annex I. 

21 
ANNEX II 

The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFis, 

as the case may be, and the following accounts are excluded from the definition of Financial 

Accounts. 

This Annex II may be modified by a mutual written decision entered into between the Competent 

Authorities of St. Vincent and the Grenadines and the United States: (1) to include additional 

Entities and accounts that present a low risk of being used by U.S. Persons to evade U.S. tax and 

that have similar characteristics to the Entities and accounts described in this Annex II as of the 

date of signature of the Agreement; or (2) to remove Entities and accounts that, due to changes in 

circumstances, no longer present a low risk of being used by U.S. Persons to evade U.S. tax. 

Any such addition or removal shall be effective on the date of signature of the mutual decision, 

unless otherwise provided therein. Procedures for reaching such a mutual decision may be 

included in the mutual agreement or arrangement described in paragraph 6 of Article 3 of the 

Agreement. 

I. Exempt Beneficial Owners other than Funds. The following Entities shall be treated as 

Non-Reporting St. Vincent and the Grenadines Financial Institutions and as exempt 

beneficial owners for purposes of sections 1471 and 1472 ofthe U.S. Internal Revenue Code, 

other than with respect to a payment that is derived from an obligation held in connection 

with a commercial financial activity of a type engaged in by a Specified Insurance Company, 

Custodial Institution, or Depository Institution. 

A. Governmental Entity. The government of St. Vincent and the Grenadines any political 

subdivision of St. Vincent and the Grenadines (which, for the avoidance of doubt, 

includes a state, province, county, or municipality), or any wholly owned agency or 

instrumentality of St. Vincent and the Grenadines or any one or more of the foregoing 

(each, a "St. Vincent and the Grenadines Governmental Entity"). This category is 

comprised of the integral parts, controlled entities, and political subdivisions of St. 

Vincent and the Grenadines 

1. An integral part of St. Vincent and the Grenadines means any person, organization, 

agency, bureau, fund, instrumentality, or other body, however designated, that 

constitutes a governing authority of St. Vincent and the Grenadines The net earnings 

of the governing authority must be credited to its own account or to other accounts of 

St. Vincent and the Grenadines, with no portion inuring to the benefit of any private 

person. An integral part does not include any individual who is a sovereign, official, 

or administrator acting in a private or personal capacity. 

2. A controlled entity means an Entity that is separate in form from St. Vincent and the 

Grenadines or that otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more St. Vincent and the 

Grenadines Governmental Entities directly or through one or more controlled 

entities; 

1 
b) The Entity's net earnings are credited to its own account or to the accounts of one 

or more St. Vincent and the Grenadines Governmental Entities, with no portion 

of its income inuring to the benefit of any private person; and 

c) The Entity's assets vest in one or more St. Vincent and the Grenadines 

Governmental Entities upon dissolution. 

3. Income does not inure to the benefit of private persons if such persons are the 

intended beneficiaries of a governmental program, and the program activities are 

performed for the general public with respect to the common welfare or relate to the 

administration of some phase of government. Notwithstanding the foregoing, 

however, income is considered to inure to the benefit of private persons if the income 

is derived from the use of a governmental entity to conduct a commercial business, 

such as a commercial banking business, that provides financial services to private 

persons. 

B. International Organization. Any international organization or wholly owned agency or 

instrumentality thereof. This category includes any intergovernmental organization 

(including a supranational organization) (1) that is comprised primarily of non-U.S. 

governments; (2) that has in effect a headquarters agreement with St. Vincent and the 

Grenadines; and (3) the income of which does not inure to the benefit of private persons. 

C. Central Bank. An institution that is by law or government sanction the principal 

authority, other than the government of St. Vincent and the Grenadines itself, issuing 

instruments intended to circulate as currency. Such an institution may include an 

instrumentality that is separate from the government of St. Vincent and the Grenadines, 

whether or not owned in whole or in part by St. Vincent and the Grenadines. 

II. Funds that Qualify as Exempt Beneficial Owners. The following Entities shall be treated 

as Non-Reporting St. Vincent and the Grenadines Financial Institutions and as exempt 

beneficial owners for purposes of sections 1471 and 1472 ofthe U.S. Internal Revenue Code. 

A. Broad Participation Retirement Fund. A fund established in St. Vincent and the 

Grenadines to provide retirement, disability, or death benefits, or any combination 

thereof, to beneficiaries that are current or former employees (or persons designated by 

such employees) of one or more employers in consideration for services rendered, 

provided that the fund: 

1. Does not have a single beneficiary with a right to more than five percent of the fund's 

assets; 

2. Is subject to government regulation and provides annual information reporting about 

its beneficiaries to the relevant tax authorities in St. Vincent and the Grenadines; and 

2 
3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in St. Vincent and the Grenadines on 

investment income under the laws of St. Vincent and the Grenadines due to its 

status as a retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions (other than transfers 

of assets from other plans described in paragraphs A through C of this section or 

from retirement and pension accounts described in subparagraph A(l) of section 

V of this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon the occurrence 

of specified events related to retirement, disability, or death (except rollover 

distributions to other retirement funds described in paragraphs A through C of this 

section or retirement and pension accounts described in subparagraph A(l) of 

section V of this Annex II), or penalties apply to distributions or withdrawals 

made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by employees 

to the fund are limited by reference to earned income of the employee or may not 

exceed $50,000 annually, applying the rules set forth in Annex I for account 

aggregation and currency translation. 

B. Narrow Participation Retirement Fund. A fund established in St. Vincent and the 

Grenadines to provide retirement, disability, or death benefits to beneficiaries that are 

current or former employees (or persons designated by such employees) of one or more 

employers in consideration for services rendered, provided that: 

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not Investment Entities or 

Passive NFFEs; 

3. The employee and employer contributions to the fund (other than transfers of assets 

from retirement and pension accounts described in subparagraph A( I) of section V of 

this Annex II) are limited by reference to earned income and compensation of the 

employee, respectively; 

4. Participants that are not residents of St. Vincent and the Grenadines are not entitled to 

more than 20 percent of the fund's assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in St. Vincent and the 

Grenadines. 

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C. Pension Fund of an Exempt Beneficial Owner. A fund established in St. Vincent and 

the Grenadines by an exempt beneficial owner to provide retirement, disability, or death 

benefits to beneficiaries or participants that are current or former employees of the 

exempt beneficial owner (or persons designated by such employees), or that are not 

current or former employees, if the benefits provided to such beneficiaries or participants 

are in consideration of personal services performed for the exempt beneficial owner. 

D. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that is a 

St. Vincent and the Grenadines Financial Institution solely because it is an Investment 

Entity, provided that each direct holder of an Equity Interest in the Entity is an exempt 

beneficial owner, and each direct holder of a debt interest in such Entity is either a 

Depository Institution (with respect to a loan made to such Entity) or an exempt 

beneficial owner. 

III. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant FFis. 

The following Financial Institutions are Non-Reporting St. Vincent and the Grenadines 

Financial Institutions that shall be treated as deemed-compliant FFis for purposes of section 

1471 ofthe U.S. Internal Revenue Code. 

A. Financial Institution with a Local Client Base. A Financial Institution satisfYing the 

following requirements: 

1. The Financial Institution must be licensed and regulated as a financial i.'lstitution 

under the laws of St. Vincent and the Grenadines ; 

2. The Financial Institution must have no fixed place of business outside of St. Vincent 

and the Grenadines. For this purpose, a fixed place of business does not include a 

location that is not advertised to the public and from which the Financial Institution 

performs solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders outside St. 

Vincent and the Grenadines. For this purpose, a Financial Institution shall not be 

considered to have solicited customers or Account Holders outside St. Vincent and 

the Grenadines merely because the Financial Institution (a) operates a website, 

provided that the website does not specifically indicate that the Financial Institution 

provides Financial Accounts or services to nonresidents, and does not otherwise 

target or solicit U.S. customers or Account Holders, or (b) advertises in print media or 

on a radio or television station that is distributed or aired primarily within St. Vincent 

and the Grenadines but is also incidentally distributed or aired in other countries, 

provided that the advertisement does not specifically indicate that the Financial 

Institution provides Financial Accounts or services to nonresidents, and does not 

otherwise target or solicit U.S. customers or Account Holders; 

4. The Financial Institution must be required under the laws of St. Vincent and the 

Grenadines to identify resident Account Holders for purposes of either information 

reporting or withholding of tax with respect to Financial Accounts held by residents 

4 
or for purposes of satisfying St. Vincent and the Grenadines's AML due diligence 

requirements; 

5. At least 98 percent of the Financial Accounts by value maintained by the Financial 

Institution must be held by residents (including residents that are Entities) of St. 

Vincent and the Grenadines; 

6. Beginning on or before July 1, 2014, the Financial Institution must have policies and 

procedures, consistent with those set forth in Annex I, to prevent the Financial 

Institution from providing a Financial Account to any Nonparticipating Financial 

Institution and to monitor whether the Financial Institution opens or maintains a 

Financial Account for any Specified U.S. Person who is not a resident of St. Vincent 

and the Grenadines (including a U.S. Person that was a resident of St. Vincent and the 

Grenadines when the Financial Account was opened but subsequently ceases to be a 

resident of St. Vincent and the Grenadines or any Passive NFFE with Controlling 

Persons who are U.S. residents or U.S. citizens who are not residents of St. Vincent 

and the Grenadines; 

7. Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident of St. Vincent and the Grenadines or by a 

Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who 

are not residents of St. Vincent and the Grenadines is identified, the Financial 

Institution must report such Financial Account as would be required if the Financial 

Institution were a Reporting St. Vincent and the Grenadines Financial Institution 

(including by following the applicable registration requirements on the IRS FA TCA 

registration website) or close such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a resident of 

St. Vincent and the Grenadines or by an Entity, the Financial Institution must review 

those Preexisting Accounts in accordance with the procedures set forth in Annex I 

applicable to Preexisting Accounts to identify any U.S. Reportable Account or 

Financial Account held by a Nonparticipating Financial Institution, and must report 

such Financial Account as would be required if the Financial Institution were a 

Reporting St. Vincent and the Grenadines Financial Institution (including by 

following the applicable registration requirements on the IRS FA TCA registration 

website) or close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution must be 

incorporated or organized in St. Vincent and the Grenadines and, with the exception 

of any Related Entity that is a retirement fund described in paragraphs A through C 

of section II of this Annex II, satisfy the requirements set forth in this paragraph A; 

and 

10. The Financial Institution must not have policies or practices that discriminate against 

opening or maintaining Financial Accounts for individuals who are Specified U.S. 

Persons and residents of St. Vincent and the Grenadines. 

5 
B. Local Bank. A Financial Institution satisfying the following requirements: 

1. The Financial Institution operates solely as (and is licensed and regulated under the 

laws of St. Vincent and the Grenadines as) (a) a bank or (b) a credit union or similar 

cooperative credit organization that is operated without profit; 

2. The Financial Institution's business consists primarily of receiving deposits from and 

making loans to, with respect to a bank, unrelated retail customers and, with respect 

to a credit union or similar cooperative credit organization, members, provided that 

no member has a greater than five percent interest in such credit union or cooperative 

credit organization; 

3. The Financial Institution satisfies the requirements set forth in subparagraphs A(2) 

and A(3) of this section, provided that, in addition to the limitations on the website 

described in subparagraph A(3) of this section, the website does not permit the 

opening of a Financial Account; 

4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken together, 

do not have more than $500 million in total assets on their consolidated or combined 

balance sheets; and 

5. Any Related Entity must be incorporated or organized in St. Vincent and the 

Grenadines, and any Related Entity that is a Financial Institution, with the exception 

of any Related Entity that is a retirement fund described in paragraphs A through C 

of section II of this Annex II or a Financial Institution with only low-value accounts 

described in paragraph C of this section, must satisfy the requirements set forth in 

this paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A St. Vincent and the 

Grenadines Financial Institution satisfying the following requirements: 

1. The Financial Institution is not an Investment Entity; 

2. No Financial Account maintained by the Financial Institution or any Related Entity 

has a balance or value in excess of $50,000, applying the rules set forth in Annex I 

for account aggregation and currency translation; and 

3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken together, 

do not have more than $50 million in total assets on their consolidated or combined 

balance sheets. 

D. Qualified Credit Card Issuer. A St. Vincent and the Grenadines Financial Institution 

satisfying the following requirements: 

6 
1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in excess of 

a balance due with respect to the card and the overpayment is not immediately 

returned to the customer; and 

2. Beginning on or before July 1, 2014, the Financial Institution implements policies and 

procedures to either prevent a customer deposit in excess of $50,000, or to ensure that 

any customer deposit in excess of $50,000, in each case applying the rules set forth in 

Annex I for account aggregation and currency translation, is refunded to the 

customer within 60 days. For this purpose, a customer deposit does not refer to credit 

balances to the extent of disputed charges but does include credit balances resulting 

from merchandise returns. 

IV. Investment Entities that Qualify as Deemed-Compliant FFis and Other Special Rules. 

The Financial Institutions described in paragraphs A through E of this section are NonReporting St. Vincent and the Grenadines Financial Institutions that shall be treated as 

deemed-compliant FFis for purposes of section 1471 of the U.S. Internal Revenue Code. In 

addition, paragraph F of this section provides special rules applicable to an Investment 

Entity. 

A. Trustee-Documented Trust. A trust established under the laws of St. Vincent and the 

Grenadines to the extent that the trustee of the trust is a Reporting U.S. Financial 

Institution, Reporting Model 1 FFI, or Participating FFI and reports all information 

required to be reported pursuant to the Agreement with respect to all U.S. Reportable 

Accounts of the trust. 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial 

Institution described in subparagraph B (1) or B(2) of this section having a sponsoring 

entity that complies with the requirements of subparagraph B(3) of this section. 

1. A Financial Institution is a sponsored investment entity if (a) it is an Investment 

Entity established in St. Vincent and the Grenadines that is not a qualified 

intermediary, withholding foreign partnership, or withholding foreign trust pursuant 

to relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial 

Institution to act as a sponsoring entity for the Financial Institution. 

2. A Financial Institution is a sponsored controlled foreign corporation if (a) the 

Financial Institution is a controlled foreign corporation 1 organized under the laws of 

1 A "controlled foreign corporation" means any foreign corporation if more than 50 percent of the total combined 

voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such 

corporation, is owned, or is considered as owned, by "United States shareholders" on any day during the taxable 

year of such foreign corporation. The term a "United States shareholder" means, with respect to any foreign 

corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total 

combined voting power of all classes of stock entitled to vote of such foreign corporation. 

7 
St. Vincent and the Grenadines that is not a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned, directly or indirectly, by a 

Reporting U.S. Financial Institution that agrees to act, or requires an affiliate of the 

Financial Institution to act, as a sponsoring entity for the Financial Institution; and (c) 

the Financial Institution shares a common electronic account system with the 

sponsoring entity that enables the sponsoring entity to identify all Account Holders 

and payees of the Financial Institution and to access all account and customer 

information maintained by the Financial Institution including, but not limited to, 

customer identification information, customer documentation, account balance, and 

all payments made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS F ATCA registration 

website; 

b) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS F ATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with respect to 

the Financial Institution, the sponsoring entity registers the Financial Institution 

pursuant to applicable registration requirements on the IRS FATCA registration 

website on or before the later of December 31, 20 15 and the date that is 90 days 

after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting St. Vincent 

and the Grenadines Financial Institution; 

e) The sponsoring entity identifies the Financial Institution and includes the 

identifying number of the Financial Institution (obtained by following applicable 

registration requirements on the IRS F ATCA registration website) in all reporting 

completed on the Financial Institution's behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked. 

C. Sponsored, Closely Held Investment Vehicle. A St. Vincent and the Grenadines 

Financial Institution satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an Investment 

Entity and is not a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust pursuant to relevant U.S. Treasury Regulations; 

8 
2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1 

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to perform, 

on behalf of the Financial Institution, all due diligence, withholding, reporting, and 

other requirements that the Financial Institution would have been required to perform 

if it were a Reporting St. Vincent and the Grenadines Financial Institution; 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests in the 

Financial Institution (disregarding debt interests owned by Participating FFis and 

deemed-compliant FFis and Equity Interests owned by an Entity if that Entity owns 

1 00 percent of the Equity Interests in the Financial Institution and is itself a sponsored 

Financial Institution described in this paragraph C); and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FA TCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting St. Vincent 

and the Grenadines Financial Institution and retains documentation collected with 

respect to the Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution's behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity established in 

St. Vincent and the Grenadines that is a Financial Institution solely because it (1) renders 

investment advice to, and acts on behalf of, or (2) manages portfolios for, and acts on 

behalf of, a customer for the purposes of investing, managing, or administering funds 

deposited in the name of the customer with a Financial Institution other than a 

Nonparticipating Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in St. Vincent and the 

Grenadines that is regulated as a collective investment vehicle, provided that all of the 

interests in the collective investment vehicle (including debt interests in excess of 

$50,000) are held by or through one or more exempt beneficial owners, Active NFFEs 

described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not 

9 
Specified U.S. Persons, or Financial Institutions that are not Nonparticipating Financial 

Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated as a 

collective investment vehicle, all of the interests in which (including debt interests 

in excess of $50,000) are held by or through one or more exempt beneficial 

owners, Active NFFEs described in subparagraph B( 4) of section VI of Annex I, 

U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are 

not Nonparticipating Financial Institutions; or 

b) An Investment Entity that is a qualified collective investment vehicle under 

relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a St. Vincent and the 

Grenadines Financial Institution (other than a Financial Institution through which 

interests in the collective investment vehicle are held) shall be deemed fulfilled. 

3. With respect to interests in an Investment Entity established in St. Vincent and the 

Grenadines that is not described in paragraph E or subparagraph F(2) of this section, 

consistent with paragraph 4 of Article 5 of the Agreement, the reporting obligations 

of all other Investment Entities with respect to such interests shall be deemed fulfilled 

if the information required to be reported by the first-mentioned Investment Entity 

pursuant to the Agreement with respect to such interests is reported by such 

Investment Entity or another person. 

V. Accounts Excluded from Financial Accounts. The following accounts are excluded from 

the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable 

Accounts. 

A. Certain Savings Accounts. 

1. Retirement and Pension Account. A retirement or pension account maintained in St. 

Vincent and the Grenadines that satisfies the following requirements under the laws 

of St. Vincent and the Grenadines. 

10 
a) The account is subject to regulation as a personal retirement account or is part of a 

registered or regulated retirement or pension plan for the provision of retirement 

or pension benefits (including disability or death benefits); 

b) The account is tax-favored (i.e., contributions to the account that would otherwise 

be subject to tax under the laws of St. Vincent and the Grenadines are deductible 

or excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at a 

reduced rate); 

c) Annual information reporting is required to the tax authorities in St. Vincent and 

the Grenadines with respect to the account; 

d) Withdrawals are conditioned on reaching a specified retirement age, disability, or 

death, or penalties apply to withdrawals made before such specified events; and 

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of $1,000,000 or less, in each 

case applying the rules set forth in Annex I for account aggregation and currency 

translation. 

2. Non-Retirement Savings Accounts. An account maintained in St. Vincent and the 

Grenadines (other than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of St. Vincent and the Grenadines. 

a) The account is subject to regulation as a savings vehicle for purposes other than 

for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would otherwise 

be subject to tax under the laws of St. Vincent and the Grenadines are deductible 

or excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at a 

reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the purpose of 

the savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; and 

d) Annual contributions are limited to $50,000 or less, applying the rules set forth in 

Annex I for account aggregation and currency translation. 

B. Certain Term Life Insurance Contracts. A life insurance contract maintained in St. 

Vincent and the Grenadines with a coverage period that will end before the insured 

individual attains age 90, provided that the contract satisfies the following requirements: 

11 
1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the contract is in existence or until the insured attains age 90, 

whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, loan, or 

otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or termination of 

the contract cannot exceed the aggregate premiums paid for the contract, less the sum 

of mortality, morbidity, and expense charges (whether or not actually imposed) for 

the period or periods of the contract's existence and any amounts paid prior to the 

cancellation or termination of the contract; and 

4. The contract is not held by a transferee for value. 

C. Account Held By an Estate. An account maintained in St. Vincent and the Grenadines 

that is held solely by an estate if the documentation for such account includes a copy of 

the deceased's will or death certificate. 

D. Escrow Accounts. An account maintained in St. Vincent and the Grenadines established 

in connection with any of the following: 

1. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the account 

satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit in an 

amount appropriate to secure an obligation directly related to the transaction, or a 

similar payment, or is funded with a financial asset that is deposited in the 

account in connection with the sale, exchange, or lease of the property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating to the 

leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee 

(including to satisfy such person's obligation) when the property is sold, 

exchanged, or surrendered, or the lease terminates; 

d) The account is not a margin or similar account established in connection with a 

sale or exchange of a financial asset; and 

e) The account is not associated with a credit card account. 

12 
3. An obligation of a Financial Institution servicing a loan secured by real property to 

set aside a portion of a payment solely to facilitate the payment of taxes or insurance 

related to the real property at a later time. 

4. An obligation of a Financial Institution solely to facilitate the payment of taxes at a 

later time. 

E. Partner Jurisdiction Accounts. An account maintained in St. Vincent and the 

Grenadines and excluded from the definition of Financial Account under an agreement 

between the United States and another Partner Jurisdiction to facilitate the 

implementation ofF A TCA, provided that such account is subject to the same 

requirements and oversight under the laws of such other Partner Jurisdiction as if such 

account were established in that Partner Jurisdiction and maintained by a Partner 

Jurisdiction Financial Institution in that Partner Jurisdiction. 

VI. Definitions. The following additional definitions shall apply to the descriptions above: 

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial Institution 

with respect to which a non-U.S. government or agency thereof agrees to obtain and 

exchange information pursuant to a Model 1 IGA, other than a Financial Institution 

treated as a Nonparticipating Financial Institution under the Model 1 I GA. For purposes 

of this definition, the term Model 1 IGA means an arrangement between tlie United 

States or the Treasury Department and a non-U.S. government or one or more agencies 

thereof to implement FA TCA through reporting by Financial Institutions to such nonU.S. government or agency thereof, followed by automatic exchange of such reported 

information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that has 

agreed to comply with the requirements of an FFI Agreement, including a Financial 

Institution described in a Model2 IGA that has agreed to comply with the requirements 

of an FFI Agreement. The term Participating FFI also includes a qualified intermediary 

branch of a Reporting U.S. Financial Institution, unless such branch is a Reporting Model 

1 FFI. For purposes of this definition, the term FFI Agreement means an agreement that 

sets forth the requirements for a Financial Institution to be treated as complying with the 

requirements of section 1471(b) of the U.S. Internal Revenue Code. In addition, for 

purposes ofthis definition, the term Model2 IGA means an arrangement between the 

United States or the Treasury Department and a non-U.S. government or one or more 

agencies thereof to facilitate the implementation ofF A TCA through reporting by 

Financial Institutions directly to the IRS in accordance with the requirements of an FFI 

Agreement, supplemented by the exchange of information between such non-U.S. 

government or agency thereof and the IRS. 

13