TREATIES AND OTHER INTERNATIONAL ACTS SERIES 15-610

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and the HOLY SEE

Signed at Vatican City June 10, 2015 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

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

(80 Stat. 271; 1 U.S.C. 113)—

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

under the authority of the Secretary of State shall be competent

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

treaties, and proclamations by the President of such treaties and

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

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

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

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

or authentication thereof.”
 HOLY SEE 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at Vatican City June 10, 2015;

 Entered into force June 10, 2015.

 With annexes.
Agreement between the United States of America and the Holy ~Acting Also in the 

Name and on Behalf of the Vatican City State, to Improve International Thx 

Compliance and to Implement FATCA 

Whereas. the United States of America and the Holy See, acting also in the name and on 

behalf of the Vatican City State (each, a "Party," and together, the· "Parties"), desire to 

conclude an agreement to improve international tax compliance; 

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

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

institutions with respect to certain accounts; 

Whereas, the Holy See, acting also in the name and ()n behalfofthe Vatican City State, iS 

supportive of the underlying policy goal ofFATCA to improve tax compliance; 

Whereas, FATCA has raised a number ofissues, including that HSNCS Financial Institutions 

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

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for HSNCS Financial Institutions; 

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

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

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

the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 

Arliclel 

Definitions 

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

terms shall have the meanings set forth below: 

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

States thereof, but does not include the U.S. Territories. Any f(!ference to a 

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

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

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

the U.S. Virgin Islands. 

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

d) The term "HSNCS" means Holy See, acting also in the name and on behalf 

of the Vatican City State. 

e) The term "Partner Jurisdiction" means a jurisdiction that has in effect an 
agreement with the United States to facilitate the implementation of FATCA. 

The IRS shall publish a list identifying all Partner Jurisdictions. 

f) The term "Competent Authority" means: 

(l) in the case of the United States. the Secretary of the Treasury or his 

delegate; and 

(2) in the case of HSNCS, the Cardinal Prefect of the Secretariat for the 

Economy or his delegate. 

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

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

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

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

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

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

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

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

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

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

period during which the entity has been in existence. 

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

the ordinary course of a banking or similar business. 

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

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

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

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

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

and index instruments; transferable securities; or commodity futures 

trading; 

(2) individual and collective portfolio management; or 

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

behalf of other persons. 

This subparagraph I (j) shall be interpreted in a manner consistent with similar 

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

Action Task Force Recommendations. 

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

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

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

Insurance Contract or an Annuity Contract. 

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I) The term "HSNCS Financial Institution" means (i) any Financial Institution 

organized under the laws of the Holy See or the Vatican City State, but 

excluding any branch of such Financial Institution that is located outside the 

Vatican City State, and (ii) any branch of a Financial Institution not organized 

under the laws of the Holy See or the Vatican City State, if such branch is 

located in the Vatican City State. 

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

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

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

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

n) The term "Reporting HSNCS Financial Institution" means any HSNCS 

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

The Institute for the Works of Religion (IOR) is a public law foundation under 

the laws of the Holy See and the Vatican City State and, for purposes of this 

Agreement, a Reporting HSNCS Financial Institution. 

o) The term "Non-Reporting HSNCS Financial Institution" means any 

HSIVCS Financial Institution, or other Entity resident in the Vatican City 

State, that is described in Annex II as a Non-Reporting HSNCS Financial 

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

beneficial owner under relevant U.S. Treasury Regulations in effect on the 

date of signature of this Agreement. 

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

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

include a HSNCS Financial Institution or other PartnerJurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

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

Agreement or the corresponding provision in an agreement between the 

United States and a Partner Jurisdiction. 

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

Institution, and includes: 

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

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

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

Financial Institution; 

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

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

Institution (other than interests that are regularly traded on an 

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

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

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

class of interests was established with a purpose of avoiding reporting 

in accordance with this Agreement; and 

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

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

individual and monetizes a pension or disability benefit provided under 

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

Annex II. 

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

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

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

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

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

is officially recognized and supervised by a governmental authority in which 

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

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

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

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

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

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

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

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

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

apply the preceding sentence prior to January 1, 2016. 

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

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

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

other similar instrument maintained by a Financial Institution in the ordinary 

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

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

contract or similar agreement to pay or credit interest thereon. 

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

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

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

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

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

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

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

instrument). 

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

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

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

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

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

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

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

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

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

from the trust. 

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

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

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

property risk. 

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

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

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

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

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

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

years. 

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

(other than an indemnity reinsurance contract between two insurance 

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

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

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or policy 

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

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

include an amount payable under an Insurance Contract as: 

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

indemnification of an economic loss incurred upon the occurrence of 

the event insured against; 

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

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

policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

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

contract or group involved. 

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

by a Reporting HSNCS Financial Institution and held by one or more 

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

Persons that is a Specified U.S. Person~ Notwithstanding the foregoing, an 

account shall not be treated as a U.S. Reportable Account if such account is 

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

diligence procedures in Annex I. 

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

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

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

Account for the benefit or accmmt 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 ofthe 

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

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

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

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

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

Account Holder. 

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

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

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

States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of the 

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

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

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

accordance with the U.S. Internal Revenue Code. 

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

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

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

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

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

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

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

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

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

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

section 770l(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 ofthe 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) of the U.S. Internal Revenue Code; (xi) a dealer in securities, 

commodities, or derivative financial instruments (including notional principal 

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

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

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

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

Internal Revenue Code. 

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

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

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

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

wages, premiums, annuities, compensations. remunerations, emolwnents, and 

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

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

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

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

Regulations. 

fi) 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, the HSNCS 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 

l47I(e)(2) ofthe U.S. Internal Revenue Code. 

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

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

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

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

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

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

persons in equivalent or similar positions. The tenn "Controlling Persons'' 

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

Force Recommendations. 

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

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

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

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

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

Article2 

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

Accounts 

I. Subject to the provisions of Article 3 of this Agreement, the HSNCS shall obtain the 

infonnation specified in paragraph 2 of this Article with respect to all U.S. Reportable 

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Accounts and shall annually exchange this infonnation with the United States on an 

automatic basis. 

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

Account of each Reporting HSNCS Financial Institution is: 

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

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

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

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

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

Specified U.S. Person; 

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

number); 

c) the name and identifYing number of the Reporting HSNCS Financial 

Institution; 

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

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

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

account was closed during such year, immediately before closure; 

e) in the case of any Custodial Account: 

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

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

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

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

other appropriate reporting period; and 

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

credited to the account during the calendar year or other appropriate 

reporting period with respect to which the Reporting HSNCS 

Financial Institution acted as a custodian, broker, nominee, or 

otherwise as an agent for the Account Holder; 

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

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

reporting period; and 

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

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

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

period with respect to which the Reporting HSNCS Financial Institution is the 

obligor or debtor, including the aggregate amount of any redemption payments 

made to the Account Holder during the calendar year or other appropriate 

reporting period. 

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Article 3 

Time and Manner of Exchange of Information 

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

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

determined in accordance with the principles of the laws ofthe Holy See and the Vatican City 

State. 

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

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

denominated. 

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

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

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

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

Agreement; 

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

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

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

Article 2 of this Agreement; and 

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

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

2(g) of Article 2 of this Agreement; 

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

Account maintained by a Reporting HSNCS Financial Institution as of the Determination 

Date, and subject to paragraph 2 of Article 6 of this Agreement, the HSNCS is not required 

to obtain and include in the exchanged information the U.S. TIN of any relevant person if 

such U.S. TIN is not in the records of the Reporting HSNCS Financial Institution. In such a 

case, the HSNCS shall obtain and include in the exchanged information the date of birth of 

the relevant person, if the Reporting HS(VCS Financial Institution has such date of birth in its 

records. 

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

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

which the information relates. 

6. The Competent Authorities ofthe HSNCS and the United States shall enter into an 

agreement or arrangement under the mutual agreement procedure provided for in Article 8 of 

this Agreement, which shall: 

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

Article 2 of this Agreement; 

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

this Agreement; and 

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

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

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

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

information exchanged. 

Article 4 

Application of FATCA to HSNCS Financial Institutions 

1. Treatment of Reporting HSNCS Financial Institutions. Each Reporting HSNCS 

Financial Institution shall be treated as complying with, and not subject to withholding under, 

section 1471 of the U.S. Internal Revenue Code if the HSNCS complies with its obligations 

under Articles 2 and 3 of this Agreement with respect to such Reporting HSNCS Financial 

Institution, and the Reporting HSNCS Financial Institution: 

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

Competent Authority the information required to be reported in paragraph 2 of 

Article 2 of this Agreement in the time and manner described in Article 3 of 

this Agreement; 

b) for each of20 15 and 2016, reports annually to the HSNCS Competent 

Authority the name of each Nonparticipating Financial Institution to which it 

has made payments and the aggregate amount of such payments; 

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

registration website; 

d) to the extent that a Reporting HSNCS Financial Institution is (i) acting as a 

qualified intermediary (for purposes of section 1441 of the U.S. Internal 

Revenue Code) that has elected to assume primary withholding responsibility 

under chapter 3 of subtitle A ofthe U.S. Internal Revenue Code, (ii) a foreign 

partnership that has elected to act as a withholding foreign partnership (for 

purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code), 

or (iii) a foreign trust that has elected to act as a withholding foreign trust (for 

purposes ofboth sections 1441 and 1471 of the U.S. Internal Revenue Code), 

withholds 30 percent of any U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution; and 

e) in the case of a Reporting HSNCS Financial Institution that is not described 

in subparagraph 1 (d) of this Article and that makes a payment of, or acts as an 

intermediary with respect to, a U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution, the Reporting HSNCS Financial 

Institution provides to any immediate payor of such U.S. Source Withholdable 

Payment the information required for withholding and reporting to occur with 

respect to such payment. 

Notwithstanding the foregoing, a Reporting HSNCS Financial Institution with respect to 

which the conditions of this paragraph 1 are not satisfied shall not be subject to withholding 

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under section 1471 ofthe U.S. Internal Revenue Code unless such Reporting HSIVCS 

Financial Institution is treated by the IRS as a Nonparticipating Financial Institution pursuant 

to subparagraph 3(b) of Article 5 of this Agreement. 

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

not require a Reporting HSNCS 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 147l(d)(6) of the U.S. Internal Revenue Code), or to 

close such account, if the U.S. Competent Authority receives the information set forth in 

paragraph 2 of Article 2 of this Agreement, subject to the provisions of Article 3 of this 

Agreement, with respect to such account 

3. Specific Treatment of Holy See or Vatican City State Retirement Plans. The 

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

appropriate, for purposes of sections 1471 and 1472 ofthe U.S. Internal Revenue Code, Holy 

See or Vatican City State retirement plans described in Annex II. For this purpose, a Holy 

See or Vatican City State retirement plan includes an Entity established or located in, and 

regulated by, the Holy See or the Vatican City State, 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 the Holy See or the Vatican City State and regulated with 

respect to contributions, distributions, reporting, sponsorship, and taxation. 

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

Beneficial Owners. The United States shall treat each Non-Reporting HS/VCS Financial 

Institution as a deemed--compliant FFl or as an exempt beneficial owner, as appropriate, for 

purpoies of section 1471 ofthe U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a HSIVCS Financial Institution, that otherwise 

meets the requirements described in paragraph 1 of this Article or is described in paragraph 3 

or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that prevents 

such Related Entity or branch from fulfilling the requirements of a participating FFI or 

deemed--compliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code or has 

a Related Entity or branch that is treated as a Nonparticipating Financial Institution solely due 

to the expiration of the transitional rule for limited FFis and limited branches under relevant 

U.S. Treasury Regulations. such HSNCS Financial Institution shall continue to be in 

compliance with the tenns of this Agreement and shall continue to be treated as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes of section 1471 of the 

U.S. Internal Revenue Code, provided that: 

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

a separate Nonparticipating Financial Institution for purposes of all the 

reporting and withholding requirements of this Agreement and each such 

Related Entity or branch identifies itself to withholding agents as a 

Nonparticipating Financial Institution; 

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

infonnation with respect to those accounts as required under section 14 71 of 

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

pertaining to the Related Entity or branch; and 

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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 HSNCS Financial Institution or any other Related Entity to circumvent 

the obligations under this Agreement or under section 1471 of the U.S. 

Internal Revenue Code, as appropriate. 

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

Agreement: 

a) the HSlVCS shall not be obligated to obtain and exchange information with 

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

which similar information is required to be reported to the IRS by participating 

FFls pursuant to relevant U.S. Treasury Regulations; and 

b) the HSNCS shall not be obligated to begin exchanging information prior to 

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

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

7. Coordination of Definitions with U.S. Treasury Re2ulations. Notwithstanding 

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

implementing this Agreement, the HSNCS may use, and may permit HSNCS Financial 

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

corresponding definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement. 

Article 5 

Collaboration on Compliance and Enforcement 

I. GeneraJ Inquiries. Subject to any further terms set forth in a competent authority 

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

Competent Authority may make follow-up requests to the HSNCS Competent Authority, 

pursuant to which the HSNCS Competent Authority shall obtain and provide additional 

information with respect to a U.S. Reportable Account, including the account statements 

prepared in the ordinary course of a Reporting HSNCS Financial Institution's business that 

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

Account. 

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

HSNCS Competent Authority when the U.S. Competent Authority has reason to believe that 

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

information reporting or resulted in other infringements of this Agreement. The HSNCS 

Competent Authority shall apply its domestic Jaw (including applicable penalties) to 

obtain corrected and/or complete information or to resolve other infringements of this 

Agreement 

12 
3. Significant Non-Compliance. 

a) The U.S. Competent Authority shall notify the HSNCS Competent Authority 

when the U.S. Competent Authority has determined that there is significant 

non-compliance with the obligations under this Agreement with respect to a 

Reporting HSNCS Financial Institution. The HSNCS Competent Authority 

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

significant non-compliance described in the notice. 

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

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

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

HSNCS Financial Institution as a Nonparticipating Financial Institution 

pursuant to this subparagraph 3(b). 

4. Reliance on Tbird Party Service Providers. The HSNCS may allow Reporting 

HSNCS Financial Institutions to use third party service providers to fulfill the obligations 

imposed on such Reporting HSNCS Financial Institutions by the HSNCS, as contemplated 

in this Agreement, but these obligations shall remain the responsibility of the Reporting 

HSNCS Financial Institutions. 

5. Prevention of Avoidance. The HSNCS shall implement as necessary requirements 

to prevent Financial Institutions from adopting practices intended to circumvent the reporting 

required under this Agreement. 

Article 6 

Mutual Commitment to Continue to Enhance tbe Effectiveness of Information 

Exchange and Transparency 

I. Treatment ofPasstbru Payments and Gross Proceeds. The Parties are committed 

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

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

proceeds withholding that minimizes burden. 

2. Documentation of Accounts Maintained as of the Determination Date. With 

respect to U.S. Reportable Accounts maintained by a Reporting HSNCS Financial Institution 

as of the Determination Date, the HSNCS commits to establish, by January I, 2017, for 

reporting with respect to 2017 and subsequent years, rules requiring Reporting HSNCS 

Financial Institutions to obtain the U.S. TIN of each Specified U.S. Person as required 

pursuant to subparagraph 2(a) of Article 2 of this Agreement. 

Article 7 

Consistency in the Application ofF A TCA to Partner Jurisdictions 

1. The HSNCS shall be granted the benefit of any more favorable terms under Article 4 

or Annex I of this Agreement relating to the application ofF A TCA to HSNCS Financial 

Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement 

pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as 

the HSNCS described in Articles 2 and 3 of this Agreement, and subject to the same terms 

and conditions as described therein and in Articles 5, 6, 7, 10 and II of this Agreement. 

13 
2. The United States shall notifY the HSNCS of any such more favorable terms, and 

such more favorable terms shall apply automatically under this Agreement as if such terms 

were specified in this Agreement and effective as of the date of signing of the agreement 

incorporating the more favorable terms, unless the HSNCS declines in \vriting the 

application thereof. 

Article 8 

Mutual Agreement Procedure 

l. \\''here difficulties or doubts arise between the Parties regarding the implementation, 

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

resolve the matter by mutual agreement. 

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

implementation of this Agreement. 

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

reaching a mutual agreement under this Article. 

Article 9 

Confidentiality 

1. The HSNCS Competent Authority shall treat any information received from the 

United States pursuant to Article 5 of this Agreement as confidential and shall only disclose 

such information as may be necessary to carry out its obligations under this Agreement. Such 

information may be disclosed in connection with court proceedings related to the 

performance of the obligations ofthe HSNCS under this Agreement. 

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

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

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

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

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

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

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

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

authority, or jurisdiction. Notwithstanding the foregoing, where the HSNCS provides prior, 

written consent, the information may be used for purposes permitted under the provisions of a 

mutual legal assistance treaty in force between the Parties that allows for the exchange of tax 

information. 

Article 10 

Consultations and Amendments 

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

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

ofthis Agreement, request consultations to develop appropriate measures to ensure the 

fulfillment of this Agreement. 

14 
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 tpe same 

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

Article 11 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 12 

Term of Agreement 

1. This Agreement shall enter into force on the date of signature of this Agreement. 

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

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

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

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

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

Agreement. 

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

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

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

Governments,. have signed this Agreement. 

Doneat ~~ ~ ,induplicate,this ;D dayof~2015. 

FOR FOR THEHOLYSEE,ACTINGALSOIN 

TilE 7D CST;~o/;:~~-<?~ ~~~~~~:r:EHALF OF TilE 

cr~w-~·-·· ~fl.u /} ~~ 

15 
ANNEX I 

DUE Dll..IGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. The HSNCS shall require that Reporting HSNCS Financial Institutions apply 

the due diligence procedures contained in this Annex I to identify U.S. Reportable 

Accounts and accounts held by Nonparticipating Financial Institutions. 

B. For purposes 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 other 

appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of the 

Determination Date under this Annex I, the relevant balance or value shall be 

determined as of that day or the last day of the reporting period ending 

immediately before the Determination Date, and where a balance or value 

threshold is to be determined as of the last day of a calendar year under this 

Annex I, the relevant balance or value shall be determined as of the last day of 

the calendar year or other appropriate reporting period. 

4. Subject to subparagraph E(l) of section II ofthisAnnex I. an account 

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

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

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

Reportable Account shall be reported annually in the calendar year following 

the year to which the information relates. 

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

the HSNCS may permit Reporting HSNCS Financial Institutions to rely on the 

proce.dures described in relevant U.S. Treasury Regulations to establish whether an 

account is a U.S. Reportable Account or an account held by a Nonparticipating 

Financial Institution. The HSNCS may permit Reporting HSNCS Financial 

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

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

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

of where the account is maintained). 

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

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

individuals ("Preexisting Individual Accounts"). 

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

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

Preexisting Individual Accounts or, separately; wit,h respect to any clearly identified 

group of such accounts, where the implementing rules in the Holy See i>r the Vatican 

City State provide for such an election, the following Preexisting Individual Accounts 

are not required to be reviewed, ide~tified, or reported as U.S. Reportable Accounts: 

J. 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 the 

Determination Date. 

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

Account that is a Cash Value Insutanee Contract or anAnnuity Contract with a 

balance or value of$250,000 or less as oftheDetermination Date. 

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

Contract or an Annuity Contract, provided the law or regulations of the Holy 

See or the Vatican City State or the United States effectively prevent the sale 

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

residents. 

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

B. Review Procedures for Preexisting lndiyidualAccounts With a Balance or 

Value as of the petennination Date, that Exceeds $50,0QO ($250,000 for a Cash 

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

("Lower Value Accounts"). 

1. Eledrppic Record Se3rcb. The Reporting HS/VCS Institution must 

review electronically searchable data maintained by the Reporting HSNCS 

Financial Institution for any ofthe following U.S. indicia: 

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

resident; 

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

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

post office box); 

d) Current U.S. telephone number; 

e) Standing instructiops to transfer funds to an account maintained 

in the United States; 

f) Currently effective power of attorney ot signatory authority 

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

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

the Reporting HS/VCS Financial Institution bas on file for the Account 

2 
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 shalJ not be treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph B(l) of this 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 mote 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 of the 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 HSNCS Financial Institution must treat the ~unt as a U.S. 

Reportable 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 ofU.S. indicia under subparagraph B(l) of 

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

an account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting HSNCS Financial 

Institution obtains, or has previously reviewed and maintains a record 

of: 

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

U.S. citizen nor a U.S. resident for tax pwpc:>Ses (which may be 

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

(2) A non-U.S. passport or other govemment~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 ofthe United States or a reasonable explanation of: 

(a) The reason the Account Holder does not have 

such a certificate despite relinquishing H.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 curre,.t U.S. 

mailing or residence address, or one or more U.S. telt!phone numbers 

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

Reporting HSNCS Financial Institution obtains, or ha$ previously 

reviewed and maintains a record of: 

3 
(l) 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 Unjted 

States, the Reporting HSNCS Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

(1) A self~ertification thatthe Accotmt 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~are-or address or "hold IIUlil" 

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

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

number is also associated with the account), the Reporting HSNCS 

Financial Institution obtains, or has previously reviewed and maintains 

a record of: 

(I) A self~rtification that the Accourit 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 Accowit Holder's 

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Aceognts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Vatu~ 

Accounts for U.S. indiciamust be completed within two years from the 

Determination Date. 

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

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

U.S. indicia described in subparagraph B(l) of this section being ~ocia~ 

with the account, then the Reporting HSNCS Financial Irtstitution must treat 

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

section applies. · 

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

section, any Preexisting Individual A~unt that has been identified as a U.S. 

Reportable Account under this section shall be treated as a US. Reportable 

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

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting lndividuaiAceopnts With a 

Balance or Valne That Exceeds $1,000,000 as of the Determination Date, or 

December 31 of 2015 or Any SubseQuent Year ("High Value Accounts"). 

1. Electronic Record Search. The Reporting HSNCS Financial 

Institution must review electronically searchable data maintained by the 

Reporting HSNCS Financial Institution for any of the U.S. indiciadescnOed 

in subparagraph B(l) of this section. 

2. Paper Record Searcb. lftheReporting HS/VCS Financial 

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

all of the information described in, subparagraph 0(3) of this section, then no 

further paper record search is required. If the electronic databases do not 

capture all of this information, then with respect to a High Value Account, the 

Reporting HSNCS Financial Institution must also review the current 

customer master file and, to the extent not contained in the current customer 

master file, the following document$ associated with the account and obtained 

by the Reporting HSNCS Financial Institution within the laSt five years for 

any of the U.S. indicia described in subparagraph B( 1) of this section: 

a) The most recent documentary evidence coliected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the ~porting 

HS/VCS Financial Institution pursuant to AMUKYC Procedures ot 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 HSNCSFinancial Institution is not required to perform the paper 

record search described in subparagraph 0(2) oftbis section if the Reporting 

HSNCS Financial Institution's electronically searchable information includes 

the following: 

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

5 
b) The Account Holder's residence address and mailing address 

currently on file with the Reporting HSNCS Financial Institution; 

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

any, with the Reporting HSNCS 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 HSNCS 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 

t) 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 

HSNCS Financial lnstitution must treat as aU.S. Reportable Account any 

High Value Account assigned to a relationship manager (including any 

Financial Accounts aggregated with such High Value Account) if the 

relationship manager has actual knowledge that the AccountHolder is a 

Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none ofthe U.S. indicia listed in subparagraph B(l) 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 circumstailces 

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

account, then the Reporting HSNCS Financial Institution must treat 

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

subparagraph B(4) of this section and one of the exceptions in such 

subparagraph applies with respect to that account. 

c) Except for Depository Accounts descn"bed in subparagraph 

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

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

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

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

6 
E. Additional Procedures AppUcable to High Value Accounts. 

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

Determination Date, the Reporting HSIVCS Financial Institution must 

complete the enhanced review procedures described in paragraph D of this 

section with respect to such account within one year from the Determination 

Date. If based on this review such account is identified as a U.S. Reportable 

Account on or before December 31. 2014, the Reporting HSNCS Financial 

Institution must report the required information about such account with 

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

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

after December 31, 2014, the Reporting HSIVCS Financial Institution is not 

required to report infonnation about such account with respect to 2014, but 

must report infoinlation about the account on an annual basis thereafter. 

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

the Determination Date, but becomes a High Value Account as of the last day 

of 2015 or any subsequent calendar year, the Reporting HSIVCS Financial 

Institution must complete the enhanced review procedures descn1>ed in 

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

after t® last day of the calendar year in Which the account becomes a High 

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

Reportable Account. the Reporting HSNCS Financial Institution must report 

the required information about such account with respect to the year in which 

it is identified as a U.S. Reportable Account and subsequent years on an 

annual basis, unless the Account Holder ceases to be a Specified U.S. Person. 

3. Once a Reporting HSIVCS Financial Institution applies the enhanced 

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

Account, the Reporting HSIVCS Financial Institution is not required to reapply such procedures, other than the relationship managednquiry described 

in subparagraph 0(4} of this section, to the same High V:;tlue Account in any 

subsequent year. · 

4. If there is a change of circumstances with respect to :;tHigh Value 

Account that results in one or more U.S. indicia descn"bed in subparagraph 

B(l) of this section being associated with the account, then the Reporting 

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

Account unless it elects to apply subparagraph B(4) of this ~tion and one of 

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

5. A Reporting HSNCS 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 

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

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

required to obtain the appropriate documentation from the A.ccourtt Holder. 

7 
F. Preexisting lndMd.oal Accounts That Haye Been Doenmented for Certain 

Other Purposes. A Reporting HSNCS Financial Institution that has previously 

obtained documentation from an Account Holder to establish the Account HoJder•s 

status a5 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 of 

Title 26 of the United States Code, is not required to perfonn the procedures described 

in subparagraph B(l) 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. 

JlJ. Nevi Individual Accounts. The following rules and procedures apply for purposes 

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

opened after the Determination Date ('~ew Individual Accounts"). 

A. Accongts Not Reauired to Be Reviewed, ldentifled, or Reoorted. Unless 

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

NeW Individual Accounts or. separately. with respect to any clearly identified group of 

such accounts, where the implementing rules in the Holy See or the Vatican City State 

provide for such an election, the following New Individual Accounts are not required 

to be reviewed, identified, or reported as U.S. Reportable Accounts: 

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

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

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

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

B. Other New lndividoalAccoonts. 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 HSNCS Financial Institution must obtain 

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

allows the Reporting HSNCS 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 confum the 

reasonableness of such self-certification based on the information obtained by the 

Reporting HSNCS Financial Institution in connection with the opening of the 

account, including any documentation collected pursuant to AMLIKYCProcedures. 

L Jf the self-certification establishes that the Account Holder is resident 

in the United States for tax purposes, the Reporting HS/VCS Financial 

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

self-certification th~ includes the Account Holder's U.S. TIN (which may be 

an IRS Fonn W-9 or other similar agreed fonn). 

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

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

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

unreliable, the Reporting HSNCS Financial Institution cannot rely on the 

8 
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 HSNCS Financial Institution is unable to 

obtain a valid self-certification. the Reporting HSNCS Financial Institution 

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

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

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

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

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

Unless the Reporting HSNCS Financial Institution elects otherwise, either with 

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

identified group of such accounts, where the implementing rules in the Holy See or 

the Vatican City State provide for such an election, a Preexisting Entity Account with 

an account balance or value that does not exceed $250,000 as of the Determination 

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

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

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

an account balance or value that exceeds $250,000 as of the Determination Date, and 

a Preexisting Entity Account that does not exceed $250,000 as of the Determination 

Daie but the account balance or value of which exceeds $1,000,000 as ofthe last day 

of2015 or any subsequent calendar year, must be reviewed in aceordance with the 

procedures set forth in paragraph D of this section. 

C. Entitv Accounts With Respect to Which Reoorting Is Required. With 

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

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

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

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

Nonparticipating Financial Institutions shall be treated as accounts for which 

· 8.ggregate payments as described in subparagraph 1 (b) of Article 4 of the Agreement 

are reported to the HSNCS Competent Auihority. 

D. Review Procedures for Identifying Entity Aqounts With Resoeet to 

Which Reoorting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting HSNCS 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 

AMLIKYC Procedures) to determine whether the information 

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

infonnation indicating ihat the Account Holder is a U.S. Person 

9 
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 HSNCS Financial Institution must treat the 

account as a U.S. Reportable Account unless it obtains a seJf;.. 

certification from the Account Holder (which may be on an IRS Form 

W-8 or W-9, or a similar agreed form), or reasonably determines based 

on information in its possession or that is publicly available, that the 

Account Holder is not a Specified U.S. Person. 

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AMUKYC 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 HSNCS Financial Institution 

verifies the Account Holder's Global Intermediary Identification 

Number on the published IRS FFI li54 then the account is not a U.S. 

Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Pavments to Wbkb AR Subject to Aggregate 

Reporting Under Snbparagrapb l(b) of Article 4 of tbe Agreement. 

a) Subjectto subparagraph D(3)(b) of this section, a Reporting 

HSNCS Financial Institution may determine that the Account Holder 

is a HSNCS Financial Institution or other Partner Jurisdiction 

Financial Institution if the Reporting HSNCS 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 

pubJicly available or in the possession oftbe Reporting HSNCS 

Financial Institution, as applicable. In sueh case, no further review, 

identificationt or reporting is required with respect to the account. 

b) If the Account Holder is a HSNCS Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1 (b) of Article 4 of the 

Agreement. 

c) If the Account Holder is nota HSNCS Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

HSNCS Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are 

10 
reportable under ~ubparagraph l(b) of Article 4 of the Agreement. 

unless the Reporting HSNCS Financial Institution: · 

(l) Obtains a self-«rtification (which may be on an IRS 

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

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

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

Treasury Regulations; or 

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

Intermediary Identification Number on the published IRS FFI 

list. 

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

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

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

Institution, the Reporting HSNCS Financial Institution must identity (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 HSNCS 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 

Acct>unt Holder, a Reporting HSNCS financial Institution may rely 

on information collected and maintained pursuant to AMLIKYC 

Procedures. 

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

Passive NFFE, the Reporting HSNCS 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 ofa 

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

Reporting HSNCS Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case ofa 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 theAccount Holder 

or such Controlling Person in the case of a Preexisting Entity 

11 
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 Passjve NFFE is a U.S. citizen or 

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

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Asounts. 

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

value that exceeds $250,000 as of the Determination Date must be completed 

within two years from the Determination Date. 

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

value that does not exceed $250,000 as of the Determination Date~ but exceeds 

$1,000,000 as ofDecember 31 of201S.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 HSNCS Financial Institution to 

know, or have reason to know, that the self-certification or other 

documentation associated with an a~t is incorrect or unreliable, the 

Reporting HSNCS Financial Institution must redetermine the status of the 

account in accordance with the procedures set forth· in paragraph D of this 

section. 

V. New Entitt Acwuats. The following rules and procedures apply for purposes of 

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

Institutions among Financial Accounts held by Entities and opened after the Determination 

Date ("New Entity Accounts"). 

A. Entity Accounts Not Reogired to Be J!eviewed,Jdeatified or Reported. 

Unless the Reporting HSNCS Financial Institution elects otherwise, either with 

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

group of such accounts, where the inlplementing rules in the Holy See or the Vatiean 

City State provide for such election, a credit card account or a revolving credit facility 

treated as aNew Entity Account is not required to. be reviewed, identified, or reported, 

provided that the Reporting HSNCS 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 pcu-agraph A of this section, the Reporting HSNCS Financial Institution 

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

HSNCS Financial Institution or oth(:r Partner J~sdiction 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. 

12 
1. Subject to subparagraph B{2) of this section, a Reporting HSNCS 

Financial Institution may determine that the Account Holder is an Active 

NfFE, a HSNCS Financial Institution. or other Partner Jurisdiction Financial 

Institution if the Reporting HSNCS Financial Institution reasonably 

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

Holder's Global Intermediary Identification Number or other information that 

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

Institution, as applicable. 

2. If the Account Holder is a HSNCS Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution. then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be reported as 

contemplated in subparagraph l(b) of Article 4 oftheAgreement. 

3. In all other cases, a Reporting HSNCS Financial Institution must 

obtain a self--certification from the Account Holder to e$blish the Account 

Holder's status. Based on the self-certification. the following rules apply: 

a) If the Account Holder is a Specifred U.S. Person, the Reporting 

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

Reportable Account. 

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

HSNCS Financial Institution must identify the Controlling Persons as 

determined under AMLIKYC 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 HSNCS Financial 

Institution must treat the account as a U.S. Reportable 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) ofthis 

section. a HSNCS 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 ofthe Controlling Persons of which is a U.S. citizen or 

resident, then the account is not a U.S. Reportable Account, and no 

reporting is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a HSNCS Financial Institution or other Partner 

.Jurisdiction FiQancial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph l(b) of Article 4 oftbe 

Agreement. 

13 
VI. Special Rules and Definitions. The following additional. rules and definitions apply 

in implementing the due diligence procedures described above: 

A. Reliance on Self..Certificatioas and Documentary Evidence. A Reporting 

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

evidence if the Reporting HSNCS Financial Institution knows or ha:s reason to know 

that the self-certification or documentary evidence is incorrect or unreliable. 

B. Definitions. The following defmitions apply for purposes of this Annex I. 

1. AMLIKYC Procedures. "AMllKYC Procedures" means the customer 

due diligence procedures of a Reporting HSNCS Financial Institution 

pursuant to the anti .. money laundering or similar requirements of the Holy 

See or the Vatican City State to which such Reporting HSNCS Financial 

Institution is subject 

2. Nm- 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 <lescribed in 

subparagraph B(4)(j) of this section, and also includes any Non-U.S. 

Entity that is established in the Holy See or the Vatican City State 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 ofthe 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 thatproduce or are held for the production of 

passive income; 

b) The stock of the NFFE is regularly traded on an established 

securities marketorthe NFFEis a Related Entity of an Entity the 

stock of which is regularly traded on an established securities 

market; 

c) The NFFE is organized in a U.S. Territory and all oftheowners of 

the payee are bona fic.le 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 

14 
international organization, a non-U.S. central bank of isSue. or an 

Entity wholly owned by one or more of the foregoing; 

e) Substantially all of the activities of the NFFE consist of holding (in 

whole or in part) the outstanding stock of. or providing financing· 

and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except 

that an entity shall not qualify for NFFE status if the entity 

functions (or holds itself out) as an investment fund,· such as a. 

private equity fund, venture capital fund, leveraged buyout fund, or 

any investment vehicle whose purpose is to acquire or fund 

companies and then hold interests in tho~ companies as capital 

assets for investment purposes; 

t) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the intent 

to operate a business other than that of a Financial Institution, 

provided that the NFFE Shall not qualifY for this exception after the 

date that is 24 months after the date of the initial organization of 

theNFFE; 

g) The NFFE was not a Financial Institution in the past five years, and 

is in the process of liquidating its assets or is reorganizing with the 

intent to continue or reCommence operations in a business other 

than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

with, or for, Related Entities that are not Financial Institutions, and 

does not provide financing or hedging services to any Entity that is 

not a Related Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than that of a 

Financial Institution; 

i) The NFFE is an "excepted NFFE" as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all ofthe following requirements: 

i. It is es1ablished and operated in its jurisdiction of residenee 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic. or educational pUI'pOses; 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 

organizatio:ti, civic league or an organization operated 

exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction ofresidence; 

iii. It has no shareholders or members who have a proprietary or 

beneficial interest in its income or assets; 

15 
iv. The applicable laws of the NFFE's j\lrisdiction 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 fait market 

value of property which the NFFE has purchased; and 

v. The applicable laws of the NFFE'sjurisdiction of residence 

or the NFFE's fonnation 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 Accouot. A "Preexisting Accounf' means a Financial 

Account maintained by a Reporting HSIVCS Financial Institution as of the 

Determination Date. 

6. Determination Date. The "Determination Date" means the date, which 

may be prior to entry into force of this Agreement,. on which the Treasury 

Department determines not to apply withholding under section 14 71 of the 

U.S. Internal Revenue Code to HSIVCS Financial Institutions. That date 

is: (a) June 30,2014, in the case of(i) aj\lrisdiction that signed an 

agreement with the United States to implement FATCA or facilitate 

FATCA implementation on or before June 30,2014, or (ii) aj\lrisdiction 

that the Treasury Department determined reached silch an agreement in 

substance on or before June 30, 2014, and is included on the Treasury 

Department list ofsuchjurisdictions. (b) November30, 2014, in the case 

of a jurisdiction that the Treasury Department determined reached such an 

agreement in substance on or after July 1, 2014, and on or before 

November 30, 2014, and Is included on the Treaswy Department list of 

such jurisdictions. or (c) the date of signature of such an agreement, in the 

case of any other jurisdiction. ·The Determit1ation Date for the HSIVCS is 

November 30,2014, 

C. Account Balance Aggregation and Currency Translation. Rules. 

I. Aggregation oflndividual Accounts. For purposes of determining 

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

Reporting HSIVCS Financial Institution is required to aggregate all Financial 

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

Related Entity. but only to the extent that the Reporting HSIVCS 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 bal~ce or value of the 

jointly held Financial Account for purposes of applying the aggregation 

requirements described in this paragraph 1. 

16 
2. Aggregation of Entity Accounts. For purposes of determining the 

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

Reporting HSNCS Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting HSNCS Financial 

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

HSNCS Financial Institution's computerized sys~ms link the Financial 

Accounts by reference to a data element such as client number or trucpayer 

identification number, and allow account balances or values to be aggregated. 

3. Special Aggregation Rule ApQikable to Relationship Managers. 

For purpeses 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 HSNCS 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 Translatioa Rule. For purposes of determining the balance 

or value of Financial Accounts denominated in a currency other than the U.S. 

dollar, a Reporting HSNCS 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 ofthe calendar year 

preceding the year in which the Reporting HSNCS Financial Institution is 

determining the balance or value. 

D. Documentary Evidence. For purposes ofthisAnnex 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 

ofthe documents. other than a Form W-8 or W-9, referenced in the 

17 
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. Alterpative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value lnsurante Contract. A Reporting HSNCS Financial 

Institution may presume that an individual beneficiary {other than the owner) of a 

Cash Value Insurance Contract reteiving a death benefit is not a Specified U.S. 

Person and may treat such Financial Account as other than a U.S. Reportable Account 

unless the Reporting HSNCS Financial Institution has actual knowledge, or reason to 

know, that the beneficiary is a Specified U.S. Person. A Reporting HSNCS 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 HSNCS 

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

described in subparagraph {B)(I) of section II of this Annex I, If a Reporting 

HSNCS Financial Institution has actual knowledge, or reason to know, that the 

beneficiary is a Specified U.S. Person, the Reporting HSNCS FinanciaUnstitution 

must follow the procedures in subparagraph B(3) of section II of this Annex I. 

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

paragraph C of section I of this Annex I, the HSNCS may permit Reporting HSNCS 

Financial Institutions to rely on due diligence procedures performed by third parties, 

to the extent provided in relevant U.S. Treasury Regulations. 

G. Alternative Procedures for New Accounts Opened Prior to Entry Into 

Forte of this Agreement. 

I. ApDiicability. If the HSNCS has provided a written notice to the 

United States prior to entry into force of this Agreement that, as of the 

Determination Date, the HSNCS lacked the legal authority to require 

Reporting HSNCS Financial Institutions either: (i) tQ require Account 

Holders ofNew Individual Accounts to provide the self-certification Specified 

in section Ifi of this Annex I, or (ii) to perform all the due diligence 

protedures related to New Entity Accounts specified in section V of this 

Annex I, then Reporting HSNCS Financial Institutions may apply the 

alternative procedures desoribed in subparagraph G{~) of this section, as 

applicable, to such New Accounts, in lieu of the procedures otherwise required 

under this Annex I. The alternative procedures described in subparagraph 

G(2) of this section shall be avaibJ,ble only for those New Individual Accounts 

or New Entity Accounts, as applicable, opened prior to the earlier of: (i) the 

date the HSNCS has the ability to compel Reporting HSNCS Financial 

Institutions to comply with the due diligence procedures described in section 

III or section V of this Annex I, as applicable, which date the HSNCS shall 

inform the United States of in writing by the date of entry into force of this 

Agreement, or (ii) the date of entry into force of this Agreement. If the 

alternative procedures for New Entity Accounts opened after the 

Determination Date, and before January I, 2015, described in paragraph H of 

this section are applied with respect to all New Entity Accounts or a clearly 

18 
identified group of such accounts., the alternative procedures described in this 

paragraph G may not be applied with respect to Such New Entity Accounts. 

For all other New Accounts, Reporting HSNCS Financial Institutions must 

apply the due diligence procedures described in section lli or section V of this 

Annex I, as applicable, to determine if the account is a U.S. Reportable 

Account or an account held by a Nonparticipating Financial Institution. 

2. Alternative Procedures. 

a) Within one year after the date of enby into force of this 

Agreement, Reporting HSNCS Financial Institutions must: (i) with 

respect to a New Individual Account described in subpan1graph G(l) 

of this section, request the self .,certification specified in section III of 

this Annex I and confirm the reasonableness of such self-certification 

consistent with the procedures described in section III of this Annex I, 

and (ii) with respect to a New Entity Account described in 

subparagraph G(l) ofthis section, perform the due diligence 

procedures specified in section V of this Annex I and request 

information as necessary to document the account, including any selfcertification, required by section V of this Annex I. 

b) the HSNCS must report on any New Account that is identified 

pursuant to subparagraph G(2Xa) of this section as a U.S. Rep<>rtable 

Account or as an account held by a Nonparticipating Financial 

Institution, as applicable, by the date that is the later of; (i) September 

30 next following the date that the account is identified as a U.S, 

Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable. The.information 

required to be reported with respect to such a New Account is any 

information that would have been reportable under this Agreement if 

the New Account bad ~ identified as aU .S. Reportable Account or 

as an account held by a Nonparticipating Financial InstitUtion, as 

applicable, as of the date the account was opened. 

c) By the date that is one year after the date of entry into force 9f 

this Agreement, Reporting HSNCS Financial Institutions must 'Close 

any New Account described in subparagraph G(l) of this section for 

which it was unable to collect the required self ..certification or other 

documentation pursuant to the procedures described in subparagraph 

G(2)(a) of this section. In addition, by the date that is one year after 

the date of entry into force of this Agreement, Reporting HSNCS 

F~rumcial Institutions must: (i) with respect to such closed accounts 

that prior to such closure were New Individual Accounts (without 

regard to whether such accounts were High Value Accounts), perform 

the due diligence procedures specified in parasraph D ofsection II of 

this Annex I. or (ii) with respect to such closed accounts that prior to 

such closure were New Entity Accounts, perfonn the due diligence 

procedures specified in section IV ofthis Annex I. 

19 
d) the HSNCS must report on any closed account that is 

identified pursuant to subparagraph G(2)(c) of this section as a U.S. 

Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, by the date that is the later of: (i) 

September 30 next following the date that the account is identified as a 

U.S. Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable. The information 

required to be reported for such a closed account is any information 

that would have been reportable under this Agreement ifthe account 

had been identified as a U.S. Reportable Account or as an account held 

by a Nonparticipating Financial Institution, as applicable, as of the date 

the account was opened. 

H. Alternative Procedures for New Entity Accounts Opened after the 

Determination Date, and before January 1, 2015. For. New Entity Accounts 

opened after the Determination Date, and before January 1, 2015, either with respect 

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

of such accounts, the HSNCS may permit Reporting HSNCS Financial Institutions 

to treat such accounts as Preexisting Entity Accounts and apply the due diligence 

procedures related to Preexisting Entity Accounts specified in section IV of this 

Annex I in lieu of the due diligence procedures specified in section Vofthis Annex. 

I. In this case, the due diligence procedures of section IV of this Annex I must be 

applied without regard to the account balance or value threshold specified in 

paragraph A of section IV of this Annex I. 

20 
ANNEX IT 

The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFis, 

as the case may be, and the following accounts are excluded from the definition of Financial 

Accounts. 

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

Authorities of the HSNCS 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 circwnstances, 

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 decisio~ unless otherwise 

provided therein. Procedures for reaching such a mutUal decision may be included in the mutual 

agreement or arrangement described in paragraph 6 of Article 3 of the Agreement. 

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

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

of sections 1471 and 1472 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 Entity. The Holy See or the government of the Vatican City State, any 

political subdivision of the Holy See or the Vatican City State, or any Wholly owlied 

agency or instrutnentality of the Holy See or the Vatican City State or any one or more of 

the foregoing (each, a "HSNCS Governmental Entity"). This category is comprised of 

the integral parts, controlled entities, and political subdivisions of the Holy See or the 

Vatican City State. 

1. An integral part of the Holy See or the Vatican City State means any person, 

organWitio~ agency, bureau, fund, instrumentality, or other body, hoWever 

designated, that constitutes a governing authority of the Holy See or the VaticattCity 

State. The net earnings of the governing authority must be credited to its own 

accoUI1t or to other accounts of the Holy See or Vatican City State With 1iO 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 the Holy See or the 

Vatican City State or that otherwise constitutes a ~tejuridic;al entity, provided 

that: 

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

Governmental Entities directly or through one or more controlled entities; 

1 
b) The Entity's net earnings are credited to its own account or to the accounts of one 

or more HSNCS Governmental Entities, with no portion of its income inwing to 

the benefit of any private person; and 

c) The Entity's assets vest in one or more HSNCS Governmental Entiti~ 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 prognun 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 the HSNCS; 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 Holy See or the government of the Vatican City State itself, 

issuing in$truments intended to circulate as currency. Such an institution may include ari 

instrumentality that is separate from the Holy See or the government of the Vatican City 

State, whether or not owned in whole or in part by the Holy See or the Vatican City State; 

ll. Funds that Qualify as Exempt Beneficial OWners. The following Entities shall be treated 

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

purposes of sections 1471 and ~472 ofthe U.S. Internal Revenue Code. 

A Broad Participation Retirement Fund. A fund established in the Holy See or the 

Vatican City State to provide retirement, disability~ or death benefits, or any combination 

thereof, to beneficiaries that are current or former employees (or persons designated by 

such employees) of one or more employers in consideration for services rendered, 

provided that the fimd: 

1. Does nothave a single beneficiary with a right to more than five percent of the fund's 

assets; 

2. Is subject to government regulation and proVides information reporting to the relevant 

authorities in the Holy See or the Vatican City State; and 

3. Satisfies at least one of the following requirements: 

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a) The fund is generally exempt from tax in the Vatican City State on investment 

income under the laws of the Holy See or the Vatican City State due to its status 

as a retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions (other than transfers 

of assets from other plans described in paragraphs A and B this section or from 

retirement and pension accounts described in subparagraph A(l) of section V of 

this Annex ll) from the sponsoring employers; 

c) Distn'butions or withdrawals from the fund are allowed only upon the occurrence 

of specified events related to retirement, disability, or death (except rollover 

distributions to other retirement funds described in paragraphs A and B of this 

section or retirement and pension accounts described in subparagraph A(l) of 

section V ofthis Annex II), or penalties apply to distributions or withdrawals 

made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by employees 

to the fund are limited by reference to earned income of the employee or may not 

exceed $50,000 annually, applying the rules set forth in Annex I for account 

aggregation and currency translation. 

B. Pension Fund of an Exempt Beneficial Owner. A fund established in the Holy See or 

the Vatican City State 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 ofpersonal services performed for the exempt beneficial owner. 

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

HSNCS 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. 

Ill. Small or Limited Scope Finaneiallnstitutions that Oua6fy as Deemed-Compliant ms~ 

The following Financial Institutions are Non-Reporting RSNCS Financial Institutions thai 

shall be treated as deemed-compliant FFis for purposes of section 1471 or the U.S. Internal 

Revenue Code. 

A. Local Bank. A Financial Institution satisfying the following requirements:. 

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

laws of the HolySee or the Vatican City State as) (a) a bank or (b) a credit union or 

similar cooperative credit organization that is operated without profit; 

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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 must have no fixed place of business outside of the Vatican 

City State. 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; 

4. The Financial Institution must not solicit customers or Account Holders outside the 

Vatican City State. For this purpose, a Financial Institution shall not be considered to 

have solicited customers or Account Holders outside the Vatican City State merely 

because the Financial Institution (a) operates a website, provided that the website 

does permit the opening of a Financial Account, 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 the Vatican City State 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; 

·5. 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 C()tllbined 

balance sheets; and 

6. Any Related Entity must be ii.1corporated or organized in the Holy See or the Vatican 

City State, and any Related Entity that is a Financial Institution, with the exception 

of any Related Entity that is a retirement fund descnoed in paragraphs A and B of 

section II of this Annex II or a Financial Institution with only low-value accounts 

described in paragraph B of this section, must satisfy the requirements set forth in 

this paragraph A. 

B. Financial Institution with Only.Low-Valoe Accounts. A HSNCS Financial 

Institution satisfying the following requirements: 

1. The Financial Institution is not an Investment Entity; 

2. No Financial AccOunt maintained by the Financial Institution or any Related Entity 

has a balance or value in excess of$50,000, applying the rules set forth in Annex I 

for account aggregation and currency translation; and 

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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. 

C. Qualified Credit Card Issuer. A HSNCS Financial Institution satisfying the following 

requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in excess of 

a balance due with respect to the card and the overpayment is not immediately 

returned to the customer; and 

2. Beginning on or before the Determination Date, the Financial Institution implements 

policies and procedures to either prevent a customer deposit in excess of$50,000, or 

to ensure that any customer deposit in excess of $50,000, in each case applying the 

rules set forth in Annex I for account aggregation and currency translation, is 

refunded to the customer within 60 days. For this purpose, a customer deposit does 

not refer to credit balances to the extent of disputed charges but does include credit 

balances resulting from merchandise returns. 

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

The Financial Institutions described in paragraphs A through E of this section are NonReporting HSNCS Financial Institutions that shall be treated as deemed-compliant FFis for 

purposes of section 1471 ofthe U.S. Internal Revenue Code. Inaddition, paragraph F ofthis 

section provides special rules applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of the Holy See or the 

Vatican City State to the extent that the trustee ofthe trust is a Reporting U.S. Financial 

Institution, Reporting Model 1 FFI, or Participating FFI and the trustee repo¢3 all 

infol1llation required to be reported pursuant to the Agreement as would be required if the 

trust were a Reporting HSNCS Financial Institution (including by following the 

applicable registration requirements on the IRS F ATCA registration website). 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial 

Institution described in subparagraph B(l) or B(2) of this section having a sponsoring 

entity that complies with the requirements ofsubparagraph B(3) of this section. 

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

Entity established in the Holy See or the Vatican City State 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. 

5 
2. A Financial Institution is a sponsored controlled foreign corporation if( a) the 

Financial Institution is a controlled foreign corporation1 organized tmder the laws of 

the Holy See or the Vatican City State that is not a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust pursuant to relevant 

U.S. Treasury Regulations~ (b) the Financial Institution iswhoJly 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 

Accotmt Holders and payees of the Financial Institution and to access all account and 

customer information maintained by the .Financial Institution including. but not 

limited to, customer identification information, customer documentation, ·account 

balance, and all payments made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS FATCA registration 

website; 

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

IRS FATCA registration website; 

c) If the sponsoring·entity identifies any U.S. Reportable Accotmts with respect to 

the Financial Institution, the sponsoring entity registers the Financial Institution 

pursuant to applicable registration requirements on the IRS FATCA registration 

website on or before the later of December 31, 2015 and the date that is 90 days 

after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, pn belullf 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 HSIVCS 

Financial Institution; 

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

identifying number of the Financial Institution (obtained by following applicable 

registration requirements on the lRS F ATCA registration website) in all reporting 

completed on the Financial Institution's behalf; and 

1 A "controlled foreign ~ration" 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 tenn a ':<United States shareholder" means. with respect to any foreign 

corporation, a United States person who owns, or is considered as owning. 10 percent or more of the total 

combined voting power of all classes of stock entitled to vQte of such foreign corporation, 

6 
f) The sponsoring entity has not had its status as a sponsor revoked. 

C. Sponsored, Closelv Held Investment Vehicle. A HSNCS Financial Institution 

satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an Investment 

Entity and is not a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust pursuant to relevant U.S. Treasur:y Regulations; 

2. The sponsoring entity is a Reporting U.S. Financiallnstitntion, Reporting Model I 

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to perform, 

on behalf of the Financial Institution, all due diligence, withholding, reporting, and 

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

if it were a Reporting HSNCS Financial Institution; 

3. The Financial Institntion 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 Institntion and is itself a sponsored 

Financial Institution described in this pa:tagraph C); and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS F ATCA registration website; 

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

due diligence, withholding, reporting. and other requirements that the Financial 

Institntion would have been required to perform if it were a Reporting HSNCS 

Financial Institution and retains doct.unentation collected with respect to the 

Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution's behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

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

the Holy See or the Vatican City State that is a Financi!U 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 

7 
funds deposited in the name of the customer with a Financial Institution other than a 

Nonparticipating Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in the Holy See or the 

Vatican City State 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. 

F. Special Rules. The following roles 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 HSNCS 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 the Holy See or the 

Vatican City State that is not described in paragraph E or.subparagraph F(2) of this 

section, consistent with paragraph 4 of Article 5 of the Agreement, the reporting 

obligations of all other Investment Entities with respect to such interests shall be 

deemed fulfilled if the information required to be reported by the first-mentioned 

Investment Entity pursuant to the Agreement with respect to such interests is reported 

by such Investment Entity or another person. 

V. Accounts Excluded from Financial Accounts. The following accounts are excluded from 

the definition ofFinancial Accounts and therefore shall not be treated ~ U.S. Reportable 

Accounts. 

8 
A. Certain Savings Accounts. 

1. Retirement and Pension Account. A retirement or pension account maintained in the 

Vatican City State that satisfies the following requirements under the laws of the 

Holy See or the Vatican City State. 

a) The account is subject to regulation as a personal retirement account or is part of a 

registered or regulated retirement or pension plan for the provision of retirement 

or pension benefits {including disability or death benefits); 

b) The account is tax-favored (i.e., contributions to the account that would othetwise 

be subject to tax under the laws of the Holy See or the Vatican City State are 

deductible or excluded from the gross income of the account holder or taxed at a 

reduced rate, or taxation of investment income .from the account is deferred or 

taxed at a reduced rate); 

c) Annual information reporting is required to the relevant authorities in the Holy 

See or Vatican City State with respect to the account; 

d) Withdrawals are conditioned on reaching a specified retirement age, disability, or 

death, or penalties apply to withdrawals made before such specified events; and 

e) Either (i) annual contributions are limited ~o $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of$1,000,000 or less, in each 

case applying the rules set forth in Annex I for account aggregation and currency 

translation. 

2. Non-Retirement Savings Accounts. An account maintained in the Vatican City State 

(other than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of the Holy See or the Vatican City State. 

a) The account is subject to regulation as a savings vehicle for purposes other t:han 

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 the Holy See or the Vatican City State are 

deductible or excluded from the gross income of the account hold~ 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. 

9 
B. Certain Term Life.Jnsurance Contracts.. A life insurance contract maintained in the 

Vatican City State with a coverage period that will end before the insured individual 

attains age 90, provided that the cont.ntct satisfies the following ~ments: 

1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the cont.ntct is in existence or until the insured attains age 90, 

whichever is shorter; 

2. The cont.ntct has no cont.ntct value that any person can access (by Withdtawal, loan, or 

otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or termination of 

the contract cannot exceed the aggregate premiums paid for the .contract, less the sum 

of mortality, morbidity, and expense charges (whether or not actually imposed) for 

the period or periods of the contract's existence and any amounts paid prior to the 

cancellation or tennination of the cont.ntct; and 

4. The cont.ntct is not held by a t.ntnsferee for value. 

C. Account Held By an Estate. An account maintained in the Vatican City State 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 the Vatican City State established in 

connection with any of the following: 

1. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, prQvided. that the account 

satisfies the following requirements: 

a) The account is funded. solely with a down payment, ~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 ear:11ed. 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 teiminates; 

10 
d) The account is not a margin or similar account established in connection with a 

sale or exchange of a fmancial 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 the Vatican City State and 

excluded from the defmition 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. The following additional defmitions shall apply to the descriptions above: 

A. Reporting Modell FFI. The term Reporting Model I 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 IGA. For purposes 

of this definition, the term Modell 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 implement F ATCA 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 FFL For purposes of this defmition, the term FFI Agreement means an agreement that 

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

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

, purpOses 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. 

11