TREATIES AND OTHER INTERNATIONAL ACTS SERIES 14-819

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and BERMUDA

Signed at Hamilton December 19, 2013 

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.”
 BERMUDA 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at Hamilton December 19, 2013;

 Entered into force August 19, 2014.

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

Government of Bermuda for Cooperation to Facilitate the Implementation of FATCA 

Whereas, the Government ofthe United States of America and the Government ofBermuda 

(each, a "Party," and together, the "Parties") seek to build on their existing relationship with 

respect to mutual assistance in tax matters and desire to conclude an agreement to improve 

their cooperation in combating international tax evasion; 

Whereas, Article 3 ofthe Agreement between the Government of the United States of America and 

the Government of the United Kingdom of Great Britain and Northern Ireland (on Behalf of the 

Government of Bermuda) for the Exchange of Information with respect to Taxes, Done at 

Washington DC on December 2, 1988 (the "TIEA"), which is implemented in Bermuda by the 

USA Bermuda Tax Convention Act of 1986 (the "Act"), authorizes the exchange of 

information for tax purposes; 

Noting that the Government ofthe United Kingdom of Great Britain and Northern Ireland (the 

"United Kingdom") provided a copy of a Letter of Entrustment, via diplomatic note [no.] of 

[date] to the Government of the United States of America in which the United Kingdom entrusts 

the Government of Bermuda to negotiate and conclude a [tax agreement with the United States 

on information exchange to facilitate implementation of the Foreign Account Tax Compliance 

Act of America]; 

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 Bermuda is supportive of the underlying policy goal ofFATCA to 

improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that Bermuda financial institutions 

may not be able to comply with certain aspects ofFATCA due to domestic legal 

impediments; 

Whereas, intergovernmental cooperation to facilitate FATCA implementation would address 

these issues and reduce burdens for Bermuda financial institutions; 

Whereas, the Parties desire to conclude an agreement to provide for cooperation to facilitate 

the implementation ofFATCA based on direct reporting by Bermuda financial institutions to 

the U.S. Internal Revenue Service, supplemented by the exchange of information upon 

request pursuant to the TIEA and the Act, and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the· information 

exchanged under the TIEA and the Act; 

Now, therefore, the Parties have agreed as follows: 

Article 1 

Definitions 

1. For purposes ofthis 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" ofthe 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 "Bermuda" means the islands in the Atlantic Ocean 

known as Bermuda 

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 of the United States, the Secretary of the Treasury or his 

delegate; and 

2) in the case of Bermuda, the Minister of Finance 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 "Foreign Reportable Amount" means, in accordance with relevant 

U.S. Treasury Regulations, a payment of fixed or determinable annual or 

periodical income that would be a withholdable payment if it were from sources 

within the United States. 

i) 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. 

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

the ordinary course of a banking or similar business. 

k) 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; 

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2) individual and collective portfolio management; or 

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

behalf of other persons. 

This subparagraph 1 (k) 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. 

I) 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. 

m) The term "Bermuda Financial Institution" means (i) any Financial Institution 

organized under the laws of Bermuda, but excluding any branch of such Financial 

Institution that is located outside Bermuda, and (ii) any branch of a Financial 

Institution not organized under the laws of Bermuda, if such branch is located in 

Bermuda. 

n) 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. 

o) The term "Reporting Bermuda Financial Institution" means any Bermuda 

Financial Institution that is not a Non-Reporting Bermuda Financial Institution. 

p) The term "Non-Reporting Bermuda Financial Institution" means any 

Bermuda Financial Institution, or other Entity resident in Bermuda, that is 

described in Annex II as a Non-Reporting Bermuda Financial Institution or that 

otherwise qualifies as a deemed-compliant FFI or an exempt beneficial owner 

under relevant U.S. Treasury Regulations. 

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

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

include a Bermuda Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to paragraph 2 of Article 4 ofthis Agreement or the 

corresponding provision in an agreement between the United States and a Partner 

Jurisdiction. 

r) The term "New Account" means a Financial Account opened by a Reporting 

Bermuda Financial Institution on or after July 1, 2014. 

s) The term "U.S. Account" means a Financial Account maintained by a Reporting 

Bermuda 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. 

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Account if such account is not identified as a U.S. Account aft~r application of the 

due diligence procedures in Annex I. 

t) The term "Non-Consenting U.S. Account" means a Financial Account 

maintained by a Reporting Bermuda Financial Institution as of June 30, 2014 with 

respect to which (i) a Reporting Bermuda Financial Institution has determined 

that it is a U.S. Account in accordance with the due diligence procedures in Annex 

I, (ii) the laws of Bermuda prohibit the reporting required under an FFI 

Agreement absent consent of the Account Holder, (iii) the Reporting Bermuda 

Financial Institution has sought, but was unable to obtain, the required consent to 

report or the Account Holder's U.S. TIN; and (iv) the Reporting Bermuda 

Financial Institution has reported, or was required to report, aggregate account 

information to the IRS as prescribed under sections 1471 to 1474 ofthe U.S. 

Internal Revenue Code and relevant U.S. Treasury Regulations. 

u) The term "Financial Account" has the meaning set forth in relevant U.S. 

Treasury Regulations, but does not include any account that is excluded from 

the definition of Financial Account in Annex II. 

v) The term "FFI Agreement" means an agreement that sets forth the requirements, 

consistent with this Agreement, for the Reporting Bermuda Financial Institution 

to be treated as complying with the requirements of section 1471(b) of the U.S. 

Internal Revenue Code. 

w) 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 Financiallnstitution, 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. 

x) The terms "Cash Value Insurance Contract" and "Annuity Contract" have the 

meanings set forth in relevant U.S. Treasury Regulations. 

y) 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 

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subparagraph l(y) shall be interpreted in accordance with the U.S. Internal 

Revenue Code. 

z) 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) of the 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 ofthe United States, any 

U.S. Territory, any political subdivision of any ofthe 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 of the 

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 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. · 

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

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

cc) 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, Bermuda 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) 

ofthe U.S. Internal Revenue Code. 

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

ee) 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. 

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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 

Reporting and Exchange of Information 

1. Directive to Bermuda Financial Institutions. Bermuda shall direct and enable all 

Reporting Bermuda Financial Institutions to: 

a) register with the IRS by July 1, 2014, and comply with the requirements of an 

FFI Agreement, including with respect to due diligence, reporting, and 

withholding; 

b) with respect to Financial Accounts maintained by Reporting Bermuda Financial 

Institutions as of June 30, 2014 identified as U.S. Accounts, 

(i) request from each Account Holder the Account Holder's U.S. TIN and 

consent to report and simultaneously inform the Account Holder in writing 

that, if the U.S. TIN and consent are not given, (1) aggregate information 

about the account shall be reported to the IRS, (2) information about the 

account may give rise to a group request by the IRS for specific information 

about the account, (3) in such case, the account information shall be 

transmitted to the Bermuda Competent Authority, and (4) the Bermuda 

Competent Authority may exchange this information with the IRS in 

accordance with paragraph 2 of this Article; 

(ii) report annually to the IRS, in the time and manner required by an FFI 

Agreement and relevant U.S. Treasury Regulations, the aggregate 

information required with respect to Non-Consenting U.S. Accounts; 

c) with respect to accounts of, or obligations to, Nonparticipating Financial 

Institutions that exist as of June 30, 2014, and in connection with which the 

Reporting Bermuda Financial Institution expects to pay a Foreign Reportable 

Amount, 

(i) with respect to calendar years 2015 and 2016, request from each such 

Nonparticipating Financial Institution the Nonparticipating Financial 

Institution's consent to report and simultaneously inform the 

Nonparticipating Financial Institution in writing that, if such consent is not 

given, (1) aggregate information about Foreign Reportable Amounts paid to 

the Nonparticipating Financial Institution shall be repbrted to the IRS, (2) 

such information may give rise to a group request by the IRS for specific 

information about the account or obligation, (3) in such case, the information 

about the account or obligation shall be transmitted to the Bermuda 

Competent Authority, and (4) the Bermuda Competent Authority may 

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exchange this information with the IRS in accordance with paragraph 2 of 

this Article; 

(ii) with respect to calendar years 2015 and 2016, report to the IRS the number 

of non-consenting Nonparticipating Financial Institutions to which Foreign 

Reportable Amounts were paid during the year and the aggregate value of 

all such payments no later than March 15 of the year following the year to 

which the information relates; 

d) with respect to New Accounts identified as U.S. Accounts, obtain from each 

Account Holder consent to report, consistent with the requirements of an FFI 

Agreement, as a condition of account opening; and 

e) with respect to new accounts opened by, or obligations entered into with, a 

Nonparticipating Financial Institution on or after July 1, 2014, and in 

connection with which the Reporting Bermuda Financial Institution expects 

to pay a Foreign Reportable Amount, obtain from each such 

Nonparticipating Financial Institution consent to report, consistent with the 

requirements of an FFI Agreement, as a condition of opening the account, or 

entering into the obligation. 

2. Exchange of Information. 

a) In the context ofFATCA implementation, the U.S. Competent Authority may make 

group requests to the Bermuda Competent Authority based on the aggregate 

information reported to the IRS pursuant to the directive described in 

subparagraphs 1 (b )(ii) and 1 ( c )(ii) of this Article, for all the information about 

Non-Consenting U.S. Accounts and Foreign Reportable Amounts paid to 

Nonparticipating Financial Institutions that the Reporting Bermuda Financial 

Institution would have had to report under an FFI Agreement had it obtained 

consent. Such requests shall be made pursuant to Article 3 of the TIEA and shall 

apply to information for the time period beginning on or after the date of signature 

of this Agreement. 

b) The information requested pursuant to subparagraph 2(a) of this Article shall be 

considered information that is necessary for carrying out the administration or 

enforcement of the domestic laws ofthe United States concerning taxes covered by 

the TIEA and the Act and under which taxation is not contrary to the TIEA and the 

Act, without regard to whether the Reporting Bermuda Financial Institution or 

another party has contributed to non-compliance of the taxpayers in the group 

request. 

c) The Bermuda Competent Authority shall, within six months ofthe receipt ofthe 

group request, provide the U.S. Competent Authority with all such requested 

information in the same format in which the information would have been 

reported if it had been reported directly to the IRS by the Reporting Bermuda 

Financial Institution. The Bermuda Competent Authority shall notify the U.S. 

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Competent Authority and the relevant Reporting Bermuda Financial Institution if 

there will be any delay in the exchange of the requested information. In such 

case, the provisions of subparagraph 2(b) of Article 3 of this Agreement shall 

apply with respect to the Reporting Bermuda Financial Institution, and the 

Bermuda Competent Authority must exchange the requested information with the 

U.S. Competent Authority as soon as possible. 

d) Notwithstanding subparagraph 2( c) of this Article, the Bermuda Competent 

Authority is not required to obtain and exchange the U.S. TIN of the Account 

Holder of a Non-Consenting U.S. Account if such U.S. TIN is not in the 

records of the Reporting Bermuda Financial Institution. In such a case, the 

Bennuda Competent Authority shall obtain and include in the exchanged 

information the date of birth of the relevant person, if the Reporting Bermuda 

Financial Institution has such date ofbirth in its records. 

Article 3 

Application of FATCA to Bermuda Financial Institutions 

1. Treatment of Reporting Bermuda Financial Institutions. Subject to the provisions 

of paragraph 2 of Article 4 of this Agreement, each Reporting Bermuda Financial Institution 

that registers with the IRS and complies with the terms of an FFI Agreement shall be treated 

as complying with the requirements of, and as not subject to withholding under, section 1471 

ofthe U.S. Internal Revenue Code. 

2. Suspension of Rules Relating to Non-Consenting U.S. Accounts. 

a) Subject to subparagraph 2(b) of this Article, the United States shall not require a 

Reporting Bermuda 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: 

(i) the Reporting Bermuda Financial Institution complies with the directives in 

paragraph 1 of Article 2 of this Agreement with respect to the account; and 

(ii) the Bermuda Competent Authority exchanges with the U.S. Competent 

Authority the requested information described in subparagraph 2(a) of Article 

2 ofthis Agreement within six months from the date ofthe receipt of such 

request. 

b) Ifthe condition of subparagraph 2(a)(ii) ofthisArticle is not fulfilled, the 

Reporting Bermuda Financial Institution shall be required to treat the account as 

held by a recalcitrant account holder as defined in relevant U.S. Treasury 

Regulations, including by withholding tax where required by those U.S. Treasury 

Regulations, beginning on the date that is six months after the date of the receipt of 

the request described in subparagraph 2(a) of Article 2 of this Agreement and 

ending on the date on which the Bermuda Competent Authority exchanges the 

requested information with the U.S. Competent Authority. 

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3. Specific Treatment of Bermuda Retirement Plans. The United States shall treat as 

deemed-compliant FFis or exempt beneficial owners, as appropriate, for purposes of sections 

1471 and 1472 ofthe U.S. Internal Revenue Code, Bermuda retirement plans described in 

Annex II. For this purpose, a Bermuda retirement plan includes an Entity established or 

located in, and regulated by, Bermuda, 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 Bermuda and regulated with respect to contributions, distributions, reporting, 

sponsorship, and taxation. 

4. Identification and Treatme.nt of Other Deemed Compliant FFis and Exempt 

Beneficial Owners. The United States shall treat each Non-Reporting Bermuda 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 Bermuda Financial Institution, that 

otherwise meets the requirements described in Article 2 of this Agreement 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 ofthe U.S. Internal Revenue Code 

or has a Related Entity or branch that is treated as a nonparticipating FFI solely due to the 

expiration of the transitional rule for limited FFis and limited branches under relevant U.S. 

Treasury Regulations, such Bermuda Financial Institution shall continue to be treated as a 

participating FFI, deemed-compliant FFI, or exempt beneficial owner, as appropriate, for 

purposes of section 14 71 of the U.S. Internal Revenue Code, provided that: 

a) the Bermuda Financial Institution treats each such Related Entity or branch as a 

separate Nonparticipating Financial Institution 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 to the 

IRS 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 Bermuda Financial 

Institution or any other Related Entity to circumvent the obligations under this 

Agreement or under section 1471 ofthe U.S. Internal Revenue Code, as 

appropriate. 

6. 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, Bermuda may use, and may permit Bermuda Financial 

Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding 

9 
definition in this Agreement, provided that such application would not frustrate the purposes of 

this Agreement. 

Article 4 

Verification and Enforcement 

1. Minor and Administrative Errors. Consistent with the terms of an FFI Agreement, 

and subject to any further terms set forth in a competent authority agreement concluded 

pursuant to paragraph 3 of this Article, the U.S. Competent Authority may make an inquiry 

directly to a Reporting Bermuda Financial Institution where it has reason to believe that 

administrative errors or other minor errors may have led to incorrect or incomplete 

information reporting inconsistent with the requirements of an FFI Agreement. The competent 

authority agreement may provide that the U.S. Competent Authority shall notify the Bermuda 

Competent Authority when the U.S. Competent Authority makes such an inquiry of a 

Reporting Bermuda Financial Institution regarding the Reporting Bermuda Financial 

Institution's compliance with the conditions set forth in this Agreement. 

2. Significant Non-Compliance. The U.S. Competent Authority shall notify the 

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

is significant non-compliance with the requirements of an FFI Agreement or this Agreement 

with respect to a Reporting Bermuda Financial Institution. If the non-compliance is not· 

resolved within a period of 12 months after notification of significant non-compliance is first 

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

Bermuda Financial Institution as a Nonparticipating Financial Institution pursuant to this 

paragraph 2. 

3. Competent Authority Consultation. The Competent Authorities of Bermuda and the 

United States may consult on notified cases of significant non-compliance pursuant to paragraph 

2 of this Article. 

4. Reliance on Third Partv Service Providers. In accordance with the provisions of an 

FFI Agreement and relevant U.S. Treasury Regulations, Reporting Bermuda Financial 

Institutions may use third party service providers to fulfill the requirements of an FFI 

Agreement, but these requirements shall remain the responsibility of the Reporting Bermuda 

Financial Institutions. 

Article 5 

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. 

Article 6 

Consistency in the Application of FATCA to Partner Jurisdictions 

1. Bermuda shall be granted the benefit of any more favorable terms under Article 3 or 

Annex I of this Agreement relating to the application ofFATCA to Bermuda Financial 

10 
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 Bermuda 

described in Article 2 of this Agreement, and subject to the same terms and conditions as 

described therein and in Articles 4, 6, 8, and 9 of this Agreement. 

2. The United States shall notify Bermuda 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 the entry into force of the agreement 

incorporating the more favorable terms, unless Bermuda declines the application thereof. 

Article 7 

Reciprocal Information Exchange 

Consistent with its obligations under the TIEA, the United States shall continue to cooperate 

with Bermuda to respond to requests pursuant to the TIEA to collect and exchange 

information on accounts held in U.S. financial institutions by residents of Bermuda. In 

addition, when and to the extent Bermuda seeks to collaborate with the United States to 

implement FATCA based on direct reporting by Bermuda Financial Institutions to the 

Government of Bermuda, followed by the transmission of such information to the United 

States, the United States is willing to negotiate such an agreement on the same terms and 

conditions as similar agreements concluded with Partner Jurisdictions, subject to the Parties 

having determined that the standards of confidentiality and other prerequisites for such 

cooperation are fulfilled. 

Article 8 

Consuitations and Amendments 

1. In case any difficulties in the implementation or interpretation of this Agreement arise, 

either Party may 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 10 of this Agreement. 

Article 9 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 10 

Term of Agreement 

1. This Agreement shall enter into force on the date of Bermuda's written notification to 

the United States through diplomatic channels that Bermuda has completed its necessary 

internal procedures for entry into force of this Agreement. 

11 
2. Either Party may terminate this Agreement by giving notice of termination in writing to 

the other PartythroughDiplomaticchannels. Such termination shall become effective on the first 

day of the month following the expiration of a period of 12 months after the date of the notice 

of termination. 

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

Governments, have signed this Agreement. 

Done a~~lj;;p!icate, in the English language, this !fi';y ~/t£f;!. 

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF 

BERMUDA: 

12 
MEMORANDUM OF UNDERSTANDING 

In connection with the signing today of the Agreement between the Government of the 

United States of America and the Government of Bermuda for Cooperation to Facilitate 

the Implementation of FATCA (hereinafter the "Agreement"), the representatives of 

Bermuda and the United States of America wish to confirm their understanding of the 

following: 

I. For purposes of subparagraph B(4)(j)(i) of Section VI of Annex I of the 

Agreement, an Entity is understood to be "operated in its jurisdiction of 

residence" if it is administered from its jurisdiction of residence. 

2. The United States is committed to discussing concerns raised by Bermuda with 

respect to Bermuda property and casualty insurance companies treated as 

passive NFFEs under relevant U.S. Treasury Regulations and to examining 

potential solutions to those concerns, including through the potential 

modification of existing U.S. Treasury Regulations. 

3. In reference to paragraph I of Article 10 (Term of Agreement), the United States 

issued Notice 2013-43 (the "Notice") on July 12, 2013, which clarifies that: "A 

jurisdiction will be treated as having in effect an IGA [an intergovernmental 

agreement to implement F ATCA] if the jurisdiction is listed on the Treasury 

website as a jurisdiction that is treated as having an IGA in effect. In general, 

Treasury and the IRS intend to include on this list jurisdictions that have signed 

but have not yet brought into force an IGA. Consistent with the Notice, once the 

Agreement is signed, the United States Department of the Treasury intends to 

list Bermuda as having an IGA in effect. 

Upon such listing, Reporting Bermuda Financial Institutions, as that term is 

defined in the Agreement, may register and agree to comply with the terms of an 

FFI Agreement, as that term is defined in the Agreement. The United States 

intends to treat a Reporting Bermuda Financial Institution that acts consistently 

with the requirements for Reporting Bermuda Financial Institutions in the 

Agreement (including the requirement to register with the IRS by July 1, 2014, 

and comply with the requirements of an FFI Agreement) as complying with, and 

not subject to withholding under section 1471 ofthe U.S. Internal Revenue Code 

during such time as Bermuda is pursuing the necessary internal procedures for 

entry into force of the Agreement. If the Agreement has not entered into force 

prior to March 31, 2015, and assuming that Bermuda is on the list at that time, 

the United States Department of the Treasury intends to consider removing 

Bermuda from the list of jurisdictions treated as having an IGA in effect. 

If upon consultation with Bermuda, the United States receives credible 

assurances that such a delay is likely to be resolved in a reasonable period of 

time, the United States Department of the Treasury may decide to continue to 

list Bermuda as having an IGA in effect as long as the United States Department 

of the Treasury assesses that Bermuda is likely to be able to send its notification 

under paragraph 1 of Article 10 by March 31, 2016. It is understood that should 

the Agreement enter into force after March 31, 20 15, any information that would 

have been reported by Reporting Bermuda Financial Institutions or the 
Competent Authority of Bermuda, as those terms are defined under the 

Agreement, thereafter (and prior to the entry into force of the Agreement) had 

the Agreement been in force by March 31, 2015, is owed within six months of 

the date of entry into force. 

Signedat~6 English IltlgUage. 

in duplicate, this /May~ /w--, 2013, in the 

FOR THE UNITED STATES OF 

AMERICA: 

FOR BERMUDA: 
ANNEX I 

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

ACCOUNTS AND ON PAYMENTS TO CERTAIN NONPARTICIPATING 

FINANCIAL INSTITUTIONS 

I. General. 

A. Reporting Bermuda Financial Institutions must identify U.S. Accounts and 

accounts held by Nonparticipating Financial Institutions in accordance with the due 

diligence procedures contained in this Annex I. 

B. For purposes of the Agreement, 

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 in the case of a 

Cash Value Insurance Contract or an Annuity Contract, as of the last day of the 

calendar year or the most recent contract anniversary date. 

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

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

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

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

must 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, 

Reporting Bermuda Financial Institutions may rely on the procedures described in 

relevant U.S. Treasury Regulations to establish whether an account is a U.S. Account 

or an account held by a Nonparticipating Financial Institution, except that if an 

account is treated as held by a recalcitrant account holder under procedures described 

in relevant U.S. Treasury Regulations, such account shall be treated as a U.S. Account 

for purposes of this Agreement. Reporting Bermuda Financial Institutions may 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). Except as otherwise provided in an FFI Agreement, once a Reporting 

Bermuda Financial Institution has chosen to rely on the procedures in relevant U.S. 

Treasury Regulations with respect to any group of accounts, such Reporting Bermuda 

Financial Institution must continue to apply such procedures consistently in all 

subsequent years, unless there has been a material modification to relevant U.S. 

Treasury Regulations. 

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

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

("Preexisting Individual Accounts"). 
A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting Bermuda Financial Institution elects otherwise, either with respect to all 

Preexisting Individual Accounts or, separately, with respect to any clearly identified 

group of such accounts, the following Preexisting Individual Accounts are not required 

to be reviewed, identified, or reported as U.S. 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 Bermuda 

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 Bermuda requires reporting or withholding with respect to insurance 

products held by residents ofBermuda). 

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 orAnnuity Contract), But Does Not Exceed $1,000,000 

("Lower Value Accounts"). 

1.. Electronic Record Search. The Reporting Bermuda Financial 

Institution must review electronically searchable data maintained by the 

Reporting Bermuda 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 ofbirth; 

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

office box); 

d) Current U.S. telephone number; 

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 

2 
g) An "in-care-of' or "hold mail" address that is the sole address 

the Reporting Bermuda 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(l) 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 of this section. 

3. If any ofthe U.S. indicia listed in subparagraph B(l) 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 Bermuda Financial Institution must treat the account as a U.S. 

Account unless it elects to apply subparagraph B(4) ofthis section and one of 

the exceptions in such subparagraph applies with respect to that account. 

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

this section, a Reporting Bermuda Financial Institution is not required to treat 

an account as a U.S. Account if: 

a) Where the Account Holder information unambiguously indicates 

a U.S. place of birth, the Reporting Bermuda 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: 

(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 Bermuda Financial Institution obtains, or has previously 

reviewed and maintains a record of: 

3 
(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 Bermuda 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 Bermuda 

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 

(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(1) ofthis section being associated 

with the account, then the Reporting Bermuda Financial Institution must treat 

the account as a U.S. Account unless subparagraph B(4) of this section applies. 

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

4 
section, any Preexisting Individual Account that has been identified as a U.S. 

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

Institution must review electronically searchable data maintained by the 

Reporting Bermuda Financial Institution for any of the U.S. indicia described 

in subparagraph B(l) ofthis section. 

2. Paper Record Search. If the Reporting Bermuda Financial 

Institution's electronically searchable databases include fields for, and capture 

all of the information described in, subparagraph 0(3) ofthis 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 Bermuda 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 Bermuda Financial Institution within the last five years for any of 

the U.S. indicia described in subparagraph B(l) of this section: 

a) The most recent documentary evidence collected with respect to 

the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Bermuda Financial Institution pursuant to AML/KYC 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 Bermuda Financial Institution is not required to perform the paper 

record search described in subparagraph D(2) of this section if the Reporting 

Bermuda 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 Bermuda Financial Institution; 

5 
c) The Account Holder's telephone number(s) currently on file, if 

any, with the Reporting Bermuda 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 Bermuda 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 

Bermuda Financial Institution must treat as a U.S. 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 ofthe U.S. indicia listed in subparagraph B(1) ofthis 

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 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(l) 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 Bermuda Financial Institution must treat 

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

B(4) ofthis 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. Account under this section shall be treated as a U.S. 

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 Bermuda Financial Institution must complete the 

enhanced review procedures described in paragraph D of this section with 

6 
respect to such account by June 30, 2015. If based on this review such account 

is identified as a U.S. Account on or before December 31, 2014, the Reporting 

Bermuda Financial Institution must report the required information about such 

account with respect to 20 14 in the first report on the account and on an annual 

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

December 31, 2014 and on or before June 30, 2015, the Reporting Bermuda 

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 of the last day of2015 or 

any subsequent calendar year, the Reporting Bermuda 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. Account, the 

Reporting Bermuda Financial Institution must report the required information 

about such account with respect to the year in which it is identified as a U.S. 

Account and subsequent years on an annual basis, unless the Account Holder 

ceases to be a Specified U.S. Person. 

3. Once a Reporting Bermuda Financial Institution applies the enhanced 

review procedures described in paragraph D ofthis section to a High Value 

Account, the Reporting Bermuda Financial Institution is not required to reapply 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) of this section being associated with the account, then the Reporting 

Bermuda Financial Institution must treat the account as a U.S. 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 Bermuda 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 Bermuda 

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

circumstances and, if it elects to apply subparagraph B(4) ofthis 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 Bermuda 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 

7 
United States Code, is not required to perform the procedures described in 

subparagraph B( 1) of this section with respect to Lower Value Accounts or 

subparagraphs D(l) through 0(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. 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 Bermuda Financial Institution elects otherwise, either with respect to all 

New Individual Accounts or, separately, with respect to any clearly identified group of 

such accounts, the following New Individual Accounts are not required to be 

reviewed, identified, or reported as U.S. Accounts: 

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

the end of any calendar year. 

2. A Cash Value Insurance Contract unless the cash value exceeds $50,000 

at the end of any calendar year. 

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 Bermuda Financial Institution must obtain 

a self-certification, which may be part of the account opening documentation, that 

allows the Reporting Bermuda 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 Bermuda 

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 Bermuda Financial Institution 

must treat the account as a U.S. 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. Ifthere is a change of circumstances with respect to a New Individual 

Account that causes the Reporting Bermuda Financial Institution to know, or 

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

unreliable, the Reporting Bermuda 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 Bermuda Financial Institution is unable to 

obtain a valid self-certification, the Reporting Bermuda Financial Institution 

must treat the account as a Non-Consenting U.S. Account. 

8 
IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. 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 Bermuda Financial Institution elects otherwise, either with 

respect to all Preexisting Entity Accounts or, separately, with respect to any clearly 

identified group of such accounts, 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. 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 of which exceeds $1,000,000 as of the last day of2015 or 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. Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments are required to be reported under an FFI Agreement. 

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 Bermuda 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: 

I. 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 

AML/KYC 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 Bermuda Financial Institution must treat the 

account as a U.S. 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. 

9 
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 

AML/KYC 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 Bermuda 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. 

Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

Reporting Consistent with the Requirements of an FFI Agreement. 

a) Subject to subparagraph D(3)(b) ofthis section, a Reporting 

Bermuda Financial Institution may determine that the Account Holder 

is a Bermuda Financial Institution or other Partner Jurisdiction 

Financial Institution if the Reporting Bermuda 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 of the Reporting Bermuda 

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 Bermuda 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. 

Account, but payments to the Account Holder must be reported 

consistent with the requirements of an FFI Agreement. 

c) If the Account Holder is not a Bermuda Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

Bermuda Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are reportable 

consistent with the requirements of an FFI Agreement, unless the 

Reporting Bermuda 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 

10 
(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. 

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 Bermuda 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 Controlling Persons of the Account Holder 

is a U.S. citizen or resident. In making these determinations the Reporting 

Bermuda Financial Institution must follow the guidance in subparagraphs 

D(4)(a) through D(4)(d) of this section in the order most appropriate under the 

circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Bermuda 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 Bermuda 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 

Bermuda 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. Account. 

11 
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 of2015 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. 

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

Account that causes the Reporting Bermuda 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 Bermuda 

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. 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 Bermuda Financial Institution elects otherwise, either with 

respect to all New Entity Accounts or, separately, with respect to any clearly identified 

group of such accounts, 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 Bermuda 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 Entity Accounts. With respect to New Entity Accounts not 

described in paragraph A of this section, the Reporting Bermuda Financial Institution 

must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a 

Bermuda 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) ofthis section, a Reporting Bermuda 

Financial Institution may determine that the Account Holder is an Active 

NFFE, a Bermuda Financial Institution, or other Partner Jurisdiction Financial 

Institution if the Reporting Bermuda Financial Institution reasonably 

determines that the Account Holder has such status on the basis ofthe Account 

Holder's Global Intermediary Identification Number or other information that 

is publicly available or in the possession of the Reporting Bermuda Financial 

Institution, as applicable. 

12 
2. If the Account Holder is a Bermuda 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. Account, 

but payments to the Account Holder must be reported consistent with the 

requirements of an FFI Agreement. 

3. In all other cases, a Reporting Bermuda 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 

Bermuda Financial Institution must treat the account as a U.S. Account. 

b) If the Account Holder is a Passive NFFE, the Reporting 

Bermuda 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 selfcertification from the Account Holder or such person. If any such 

person is a U.S. citizen or resident, the Reporting Bermuda Financial 

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

c) IftheAccount 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 

Bermuda 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. Account, and no reporting is required 

with respect to the account. 

d) IftheAccount Holder is a Nonparticipating Financial Institution 

(including a Bermuda 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. Account, but payments to the 

Account Holder must be reported consistent with the requirements of 

an FFI 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 

Bermuda Financial Institution may not rely on a self-certification or documentary 

evidence if the Reporting Bermuda 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 

13 
customer due diligence procedures of a Reporting Bermuda Financial 

Institution pursuant to the anti-money laundering or similar requirements of 

Bermuda to which such Reporting Bermuda 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)G) of this section, and also includes any Non-U.S. Entity that 

is established in Bermuda 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. 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; 

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 ofthe activities ofthe NFFE consist ofholding 

(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 NFFE shall not qualifY for this status if the NFFE 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 

14 
purpose is to acquire or fund companies and then hold interests in those 

companies as capital assets for investment purposes; 

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 the NFFE; 

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: 

i. 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; 

ii. It is exempt from income tax in its jurisdiction of 

residence; 

m. 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 of 

residence 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 

15 
v. The applicable laws of the NFFE's jurisdiction of 

residence 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 

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 Bermuda 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 Bermuda Financial Institution is required to aggregate all Financial 

Accounts maintained by the Reporting Bermuda Financial Institution, or by a 

Related Entity, but only to the extent that the Reporting Bermuda 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. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

·Reporting Bermuda Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting Bermuda Financial 

Institution, or by a Related Entity, but only to the extent that the Reporting 

Bermuda 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 Bermuda 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 Bermuda 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 of the last day of the calendar year preceding 

the year in which the Reporting Bermuda Financial Institution is determining 

the balance or value. 

16 
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 financial 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 Bermuda 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. Account unless the 

Reporting Bermuda Financial Institution has actual knowledge, or reason to know, that 

the beneficiary is a Specified U.S. Person. A Reporting Bermuda 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 Bermuda Financial 

Institution and associated with the beneficiary contains U.S. indicia as described in 

subparagraph (B)( 1) of section II of this Annex I. If a Reporting Bermuda Financial 

Institution has actual knowledge, or reason to know, that the beneficiary is a Specified 

U.S. Person, the Reporting Bermuda Financial Institution must follow the procedures 

in subparagraph B(3) of section II ofthisAnnex I. 

F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, Reporting Bermuda Financial Institutions 

may rely on due diligence procedures performed by third parties, to the extent 

provided in an FFI Agreement and relevant U.S. Treasury Regulations. 

17 
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 shall be excluded from the definition of Financial 

Accounts. 

This Annex II may be modified by a mutual agreement entered into between the Competent 

Authorities ofBermuda 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 agreement, unless otherwise 

provided therein. 

I. Exempt Beneficial Owners other than Funds. The following Entities shall be treated as 

Non-Reporting Bermuda Financial Institutions and as exempt beneficial owners for purposes 

of sections 14 71 and 14 72 of the 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 Entitv. The government of Bermuda, any political subdivision of 

Bermuda (which, for the avoidance of doubt, includes a state, province, county, or 

municipality), or any wholly owned agency or instrumentality of Bermuda or any one or 

more of the foregoing (each, a "Bermuda Governmental Entity"). This category is 

comprised of the integral parts, controlled entities, and political subdivisions of Bermuda. 

1. An integral part of Bermuda means any person, organization, agency, bureau, fund, 

instrumentality, or other body, however designated, that constitutes a governing 

authority of Bermuda. The net earnings of the governing authority must be credited 

to its own account or to other accounts of Bermuda, 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 Bermuda or that 

otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more Bermuda 

Governmental Entities directly or through one or more controlled entities; 

b) The Entity's net earnings are credited to its own account or to the accounts of one 

or more Bermuda Governmental Entities, with no portion of its income inuring to 

the benefit of any private person; and 

1 
c) The Entity's assets vest in one or more Bermuda 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 Bermuda; 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 Bermuda itself, issuing instruments intended to 

circulate as currency. Such an institution may include an instrumentality that is separate 

from the government of Bermuda, whether or not owned in whole or in part by Bermuda. 

II. Funds that Qualify as Exempt Beneficial Owners. The following Entities shall be treated 

as Non-Reporting Bermuda Financial Institutions and as exempt beneficial owners for 

purposes of sections 1471 and 1472 ofthe U.S. Internal Revenue Code. 

A. Any pension fund established in Bermuda under the National Pension Scheme Act 

of 1998. 

B. Pension Fund of an Exempt Beneficial Owner. A fund established in Bermuda 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. 

C. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that is a 

Bermuda 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 shall be Non-Reporting Bermuda Financial Institutions 

.2 
that shall be treated as registered deemed-compliant FFis or certified deemed-compliant 

FFis, as the case may be, for purposes of section 1471 ofthe U.S. Internal Revenue Code. 

A. Registered Financial Institution with a Local Client Base. A Financial Institution 

satisfying the following requirements is a Non-Reporting Bermuda Financial Institution 

treated as a registered deemed-compliant FFI for purposes of section 1471 of the U.S. 

Internal Revenue Code: 

1. The Financial Institution must be licensed and regulated as a financial institution 

under the laws of Bermuda; 

2. The Financial Institution must have no fixed place of business outside of Bermuda. 

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 

Bermuda. For this purpose, a Financial Institution shall not be considered to have 

solicited customers or Account Holders outside Bermuda 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 Bermuda 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 Bermuda to identify 

resident Account Holders for purposes of either information reporting or withholding 

of tax with respect to Financial Accounts held by residents or for purposes of 

satisfying Bermuda's AML due diligence requirements; 

5. At least 98 percent of the Financial Accounts by value maintained by the Financial 

Institution as of the last day of the preceding calendar year must be held by residents 

(including residents that are Entities) of Bermuda; 

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 Bermuda 

(including a U.S. Person that was a resident of Bermuda when the Financial Account 

was opened but subsequently ceases to be a resident of Bermuda) or any Passive 

NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not 

residents of Bermuda; 

3 
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 Bermuda or by a Passive NFFE with 

Controlling Persons who are U.S. residents or U.S. citizens who are not residents of 

Bermuda is identified, the Financial Institution must report such Financial Account as 

would be required if the Financial Institution were a Reporting Bermuda Financial 

Institution or close such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a resident of 

Bermuda 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. 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 Bermuda Financial 

Institution or close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution must be 

incorporated or organized in Bermuda and, with the exception of any Related Entity 

that is a retirement fund described in paragraphs A through D of section II of this 

Annex II, satisfy the requirements set forth in this paragraph A; 

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 Bermuda; and 

11. The Financial Institution must satisfy the requirements set forth in paragraph C of 

section VI of this Annex II. 

B. Local Bank. A Financial Institution satisfying the following requirements is a NonReporting Bermuda Financial Institution treated as a certified deemed-compliant FFI for 

purposes of section 1471 ofthe U.S. Internal Revenue Code: 

1. The Financial Institution operates solely as (and is licensed and regulated under the 

laws of Bermuda 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) ofthis 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 
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 Bermuda, 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 Bermuda Financial 

Institution satisfying the following requirements is a Non-Reporting Bermuda Financial 

Institution treated as a certified deemed-compliant FFI for purposes of section 1471 of 

the U.S. Internal Revenue Code: 

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. Registered Qualified Credit Card Issuer. A Bermuda Financial Institution satisfying 

the following requirements is a Non-Reporting Bermuda Financial Institution treated as a 

registered deemed-compliant FFI for purposes of section 14 71 of the U.S. Internal 

Revenue Code: 

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; 

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; and 

5 
3. The Financial Institution must satisfy the requirements set forth in paragraph C of 

section VI of this Annex II. 

IV. Investment Entities that Qualify as Deemed-Compliant FFis and Other Special Rules. 

The Financial Institutions described in paragraphs A through D of this section shall be NonReporting Bermuda Financial Institutions that shall be treated as registered deemedcompliant FFis or certified deemed-compliant FFis, as the case may be, for purposes of 

section 1471 of the U.S. Internal Revenue Code. In addition, paragraph E of this section 

provides special rules applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of Bermuda 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. Accounts of the trust. Such a trust is a 

Non-Reporting Bermuda Financial Institution treated as a certified deemed-compliant 

FFI for purposes of section 1471 ofthe U.S. Internal Revenue Code. . 

B. Registered 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) ofthis 

section is a Non-Reporting Bermuda Financial Institution treated as a registered deemedcompliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code. 

1. A Financial Institution is a sponsored investment entity if (a) it is an Investment 

Entity established in Bermuda 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 

Bermuda 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 

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, I 0 percent or more of the total 

combined voting power of all classes of stock entitled to vote of such foreign corporation .. 

6 
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 the requirements of an FFI Agreement; 

b) The sponsoring entity has registered as a sponsoring entity with the IRS; 

c) Prior to December 31, 2015, the sponsoring entity has registered the Financial 

Institution with the IRS pursuant to the registration requirements set forth in 

paragraph C of section VI of this Annex II; 

d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements (including the 

requirements set forth in paragraph C of section VI of this Annex II) that the 

Financial Institution would have been required to perform if it were a Reporting 

Bermuda Financial Institution; 

e) The sponsoring entity identifies the Financial Institution and includes the 

Financial Institution's Global Intermediary Identification Number in all reporting 

completed on the Financial Institution's behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked. The IRS may 

revoke a sponsoring entity's status as a sponsor with respect to all sponsored 

Financial Institutions if there is a material failure by the sponsoring entity to 

comply with its obligations described above with respect to any sponsored 

Financial Institution. 

C.. Sponsored, Closely Held Investment Vehicle. A Bermuda Financial Institution 

satisfying the following requirements is a Non-Reporting Bermuda Financial Institution 

treated as a certified deemed-compliant FFI for purposes of section 1471 ofthe U.S. 

Internal Revenue Code: 

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; 

2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Modell 

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 

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other requirements that the Financial Institution would have been required to perform 

if it were a Reporting Bermuda 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 

100 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; 

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 Bermuda 

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. The IRS may 

revoke a sponsoring entity's status as a sponsor with respect to all sponsored 

Financial Institutions if there is a material failure by the sponsoring entity to 

comply with its obligations described above with respect to any sponsored 

Financial Institution. 

D. Investment Advisors and Investment Managers. An Investment Entity established in 

Bermuda 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 Nonparticipatin'g Financial Institution. 

Such an Investment Entity is a Non-Reporting Bermuda Financial Institution treated as a 

certified deemed-compliant FFI for purposes of section 1471 ofthe U.S. Internal 

Revenue Code. 

E. Collective Investment Vehicle. An Investment Entity established in Bermuda 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 Specified U.S. 

Persons, or Financial Institutions that are not Nonparticipating Financial Institutions, and 

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the Investment Entity satisfies the requirements set forth in paragraph C of section VI of 

this Annex II. Such an Investment Entity is a Non-Reporting Bermuda Financial 

Institution treated as a registered deemed-compliant FFI for purposes of section 14 71 of 

the U.S. Internal Revenue Code. 

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 Bermuda 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 Bermuda that is not 

described in paragraph E or subparagraph F(2) of this section, consistent with 

paragraph 4 of Article 4 of the Agreement, the reporting obligations of all other 

Investment Entities with respect to such interests shall be deemed fulfilled.ifthe 

information required to be reported by 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 shall be excluded 

from the definition of Financial Accounts and therefore shall not be treated as U.S. Accounts. 

A. Certain Savings Accounts. 

1. Retirement and Pension Account. A Prescribed Retirement Product approved under 

the National Pension Scheme (Occupational Pensions) Act 1998. 

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2. Non-Retirement Savings Accounts. An account maintained in Bermuda (other than 

an insurance or Annuity Contract) that satisfies the following requirements under the 

laws of Bermuda. 

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 Bermuda 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 

Bermuda with a coverage period that will end before the insured individual attains age 

90, provided that the contract satisfies the following requirements: 

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 a:t;J.d 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 Bermuda 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 Bermuda established in connection with 

any of the following: 

1. A court order or judgment. 

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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. 

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 Bermuda and excluded from 

the definition of Financial Account under an agreement between the United States and 

another Partner Jurisdiction to facilitate the implementation ofF ATCA, 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 and Other Special Rules. The following additional definitions and special rules 

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 

ofthis definition, the term Model 1 IGA means an arrangement between the United 

States or the Treasury Department and a non-U.S. government or one or more agencies 

11 
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 Model 2 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 ofthis definition, the term FFI Agreement means where relevant, an 

FFI Agreement as defined in Article 1 of the Agreement as well as an agreement that sets 

forth the requirements for a Financial Institution to be treated as complying with the 

requirements of section 1471(b) ofthe U.S. Internal Revenue Code. In addition, for 

purposes of this definition, the term Model 2 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. 

C. Registration Requirements for a Financial Institution that Qualifies as a Registered 

Deemed-Compliant FFI. A Financial Institution that qualifies as a registered deemedcompliant FFI must satisfy the following requirements: 

1. Register with the IRS pursuant to procedures prescribed by the IRS and agree to 

comply with the terms of its registered deemed-compliant status; 

2. Have its responsible officer certify every three years to the IRS, either individually or 

collectively for such Financial Institution and its Related Entities, that all of the 

requirements for the deemed-compliant category claimed by the Financial Institution 

have been satisfied since July 1, 2014; 

3. Maintain in its records the confirmation from the IRS ofthe Financial Institution's 

registration as a deemed-compliant FFI and the Financial Institution's Global 

Intermediary Identification Number or such other information as the IRS specifies in 

forms or other guidance; and 

4. Agree to notify the IRS if there is a change in circumstances that would make the 

Financial Institution ineligible for the deemed-compliant status for which it has 

registered, and to do so with six months of the change in circumstances unless the 

Financial Institution is able to resume its eligibility for its registered deemedcompliant status within the six-month notification period. 

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