TREATIES AND OTHER INTERNATIONAL ACTS SERIES 15-826.1

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and the ISLE OF MAN

Signed at London December 13, 2013 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

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

(80 Stat. 271; 1 U.S.C. 113)—

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

under the authority of the Secretary of State shall be competent

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

treaties, and proclamations by the President of such treaties and

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

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

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

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

or authentication thereof.”
 ISLE OF MAN 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at London December 13, 2013;

 Entered into force August 26, 2015.

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

Government of the Isle of Man to Improve International Tax Compliance and to 

Implement FATCA 

Whereas, the Government of the United States of America and the Government of the Isle of 

Man (each, a "Party," and together, the "Parties") have a longstanding and close relationship 

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

improve international tax compliance by further building on that relationship; 

Whereas, it is acknowledged that the Isle of Man has been entrusted under the terms of its 

entrustment from the United Kingdom, as confirmed by the United Kingdom to the United 

States, to negotiate and conclude, an agreement with the Government of the United States of 

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

Compliance Act; 

Whereas, the Parties entered into an Agreement for the Exchange of Information Relating to 

Taxes (the "TIEA"), at Washington, on October 3, 2002; 

Whereas, the Protocol amending the TIEA was signed at London on December 13, 2013 (the 

"Protocol") and includes provisions expressly authorizing the exchange of information for tax 

purposes, including on an automatic basis; 

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

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

institutions with respect to certain accounts; 

Whereas, the Government of the Isle of Man is committed to compliance with international 

standards of transparency and exchange of information for tax purposes and is supportive of 

the underlying policy goal ofF ATCA to improve tax compliance; 

Whereas, F ATCA has raised a number of issues, including that Manx financial institutions 

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

impediments; 

Whereas, the Government of the United States of America collects information regarding 

certain accounts maintained by U.S. financial institutions held by residents of the Isle of Man 

and is committed to exchanging such information with the Government of the Isle of Man 

and pursuing equivalent levels of exchange; 

Whereas, the Parties are committed to working together over the longer term towards 

achieving common reporting and due diligence standards for financial institutions; 

Whereas, the Government of the United States of America acknowledges the need to 

coordinate the reporting obligations under FATCA with other U.S. tax reporting obligations 

of Manx financial institutions to avoid duplicative reporting; 

Whereas, an intergovernmental approach to F ATCA implementation would address legal 

impediments and reduce burdens for Manx financial institutions; 

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

and provide for the implementation ofF ATCA based on domestic reporting and reciprocal 

automatic exchange pursuant to the TIEA, as amended by the Protocol, and subject to the 

confidentiality and other protections provided for therein, including the provisions limiting 

the use of the information exchanged under the TIEA, as amended by the Protocol; 

Now, therefore, the Parties have agreed as follows: 

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Article 1 

Definitions 

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

following terms shall have the meanings set forth below: 

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

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

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

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

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

the U.S. Virgin Islands. 

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

d) The term "Isle of Man" means the island of the Isle of Man. 

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

agreement with the United States to facilitate the implementation ofF ATCA. 

The IRS shall publish a list identifying all Partner Jurisdictions. 

f) The term "Competent Authority" means: 

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

delegate; and 

(2) in the case of the Isle of Man, the Assessor of Income Tax or his or her 

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 ifthe 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: 

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

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

and index instruments; transferable securities; or commodity futures 

trading; 

(2) individual and collective portfolio management; or 

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

behalf of other persons. 

This subparagraph 1 (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. 

l) The term "Manx Financial Institution" means (i) any Financial Institution 

resident in the Isle of Man, but excluding any branch of such Financial 

Institution that is located outside the Isle of Man, and (ii) any branch of a 

Financial Institution not resident in the Isle of Man, if such branch is located 

in the Isle of Man. 

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 a 

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

n) The term "Reporting Financial Institution" means a Reporting Manx 

Financial Institution or a Reporting U.S. Financial Institution, as the context 

requtres. 

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

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

p) The term "Reporting U.S. Financial Institution" means (i) any Financial 

Institution that is resident in the United States, but excluding any branch of 

such Financial Institution that is located outside the United States, and (ii) any 

branch of a Financial Institution not resident in the United States, if such 

branch is located in the United States, provided that the Financial Institution or 

branch has control, receipt, or custody of income with respect to which 

information is required to be exchanged under subparagraph (2)(b) of Article 2 

of this Agreement. 

q) The term "Non-Reporting Manx Financial Institution" means any Manx 

Financial Institution, or other Entity resident in the Isle of Man, that is 

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described in Annex II as a Non-Reporting Manx 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. 

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

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

include a Manx Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to subparagraph 2(b) of Article 5 of this 

Agreement or the corresponding provision in an agreement between the 

United States and a Partner Jurisdiction. 

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

Institution, and includes: 

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

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

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

Financial Institution; 

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

l(s)(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 

(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 the 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 the purposes of this subparagraph l(s), an interest in a 

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

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

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

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

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

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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 

t) 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. 

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

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

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

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

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

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

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

instrument). 

v) 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 

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

from the trust. 

w) 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. 

x) 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. 

y) 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. 

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z) 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. 

aa) The term "Reportable Account" means a U.S. Reportable Account or a 

Manx Reportable Account, as the context requires. 

bb) The term "Manx Reportable Account" means a Financial Account 

maintained by a Reporting U.S. Financial Institution if: (i) in the case of a 

Depository Account, the account is held by an individual resident in the Isle of 

Man and more than $10 of interest is paid to such account in any given 

calendar year; or (ii) in the case of a Financial Account other than a 

Depository Account, the Account Holder is a resident of the Isle of Man, 

including an Entity that certifies that it is resident in the Isle of Man for tax 

purposes, with respect to which U.S. source income that is subject to reporting 

under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal 

Revenue Code is paid or credited. 

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

by a Reporting Manx 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. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Account Holder. 

ee) 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(ee) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

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

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

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

affiliated group, as defined in section 147l(e)(2) of the U.S. Internal Revenue 

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

wholly owned agency or instrumentality thereof; (iv) any State 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 50l(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 ofthe U.S. Internal Revenue Code; (vii) any real estate 

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

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

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

Exchange Commission under the Investment Company Act of 1940 ( 15 

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

U.S. Internal Revenue Code; (x) any trust that is exempt from tax under 

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

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

securities, commodities, or derivative financial instruments (including notional 

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

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

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

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

U.S. Internal Revenue Code. 

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

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

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

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

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

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

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

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

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

Regulations. 

jj) 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 Isle of Man 

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 

147l(e)(2) ofthe U.S. Internal Revenue Code. 

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

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

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

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

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

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

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

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

Force Recommendations. 

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

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

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

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

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

Article 2 

Obligations to Obtain and Exchange Information with Respect to Reportable Accounts 

1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the 

information specified in paragraph 2 of this Article with respect to all Reportable Accounts 

and shall annually exchange this information with the other Party on an automatic basis 

pursuant to the provisions of Article 5A of the TIEA, as amended by the Protocol. 

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2. The information to be obtained and exchanged is: 

a) In the case of the Isle of Man with respect to each U.S. Reportable Account of 

each Reporting Manx Financial Institution: 

(1) 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; 

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

account number); 

(3) the name and identifying number of the Reporting Manx Financial 

Institution; 

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

Insurance Contract or Annuity Contract, the Cash Value or surrender 

value) as of the end of the relevant calendar year or other appropriate 

reporting period or, if the account was closed during such year, 

immediately before closure; 

( 5) in the case of any Custodial Account: 

(A) 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 

(B) 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 Manx Financial Institution acted as a custodian, 

broker, nominee, or otherwise as an agent for the Account 

Holder; 

( 6) 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 

(7) in the case of any account not described in subparagraph 2(a)(5) or 

2(a)(6) 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 

Manx Financial Institution is the obligor or debtor, including the 

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aggregate amount of any redemption payments made to the Account 

Holder during the calendar year or other appropriate reporting period. 

b) In the case of the United States, with respect to each Manx Reportable 

Account of each Reporting U.S. Financial Institution: 

( 1) the name, address, and date of birth of any person that is a resident of 

the Isle of Man and is an Account Holder of the account; 

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

account number); 

(3) the name and identifying number of the Reporting U.S. Financial 

Institution; 

( 4) the gross amount of interest paid on a Depository Account; 

(5) the gross amount of U.S. source dividends paid or credited to the 

account; and 

(6) the gross amount of other U.S. source income paid or credited to the 

account, to the extent subject to reporting under chapter 3 of subtitle A 

or chapter 61 of subtitle F ofthe U.S. Internal Revenue Code. 

Article 3 

Time and Manner of Exchange of Information 

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

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

determined in accordance with the principles of the tax laws of the Isle of Man, and the 

amount and characterization of payments made with respect to a Manx Reportable Account 

may be determined in accordance with principles of U.S. federal income tax law. 

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) In the case of the Isle of Man: 

( 1) the information to be obtained and exchanged with respect to 2014 is 

only the information described in subparagraphs 2( a)( 1) through 

2(a)(4) of Article 2 of this Agreement; 

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

the information described in subparagraphs 2( a)( 1) through 2( a )(7) of 

Article 2 of this Agreement, except for gross proceeds described in 

subparagraph 2(a)(5)(B) of Article 2 of this Agreement; and 

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(3) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2( a)( 1) 

through 2(a)(7) of Article 2 of this Agreement; 

b) In the case of the United States, the information to be obtained and exchanged 

with respect to 2014 and subsequent years is all of the information identified 

in subparagraph 2(b) of Article 2 of this Agreement. 

4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account that 

is maintained by a Reporting Financial Institution as of June 30, 2014, and subject to paragraph 4 

of Article 6: 

a) subject to subparagraph (b) of this paragraph 4, if the U.S TIN is not in the records of the 

Reporting Isle of Man Financial Institution, the date ofbirth of the relevant person shall 

be provided; and 

b) the Parties are not required to obtain and include in the exchanged information the date of 

birth or the U.S. TIN, as applicable, of any relevant person if such date of birth or U.S. 

TIN is not in the records of the Reporting Financial Institution. 

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

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

which the information relates. 

6. The Competent Authorities of the Isle of Man and the United States shall mutually 

determine in writing under the mutual agreement procedure provided for in Article 11 of the 

TIEA, as amended by the Protocol: 

a) the procedures for the automatic exchange obligations described in Article 2 

of this Agreement; 

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

Agreement; and 

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

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

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

provided for in the TIEA, as amended by the Protocol, including the provisions limiting the 

use of the information exchanged. 

Article 4 

Application of FATCA to Manx Financial Institutions 

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

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

section 1471 of the U.S. Internal Revenue Code ifthe Isle of Man complies with its 

obligations under Articles 2 and 3 of this Agreement with respect to such Reporting Manx 

Financial Institution, and the Reporting Manx Financial Institution: 

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a) identifies U.S. Reportable Accounts and reports annually to the Isle of Man 

Competent Authority the information required to be reported in subparagraph 

2( a) of Article 2 of this Agreement in the time and manner described in Article 

3 of this Agreement; 

b) for each of2015 and 2016, reports annually to the Isle of Man 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 registration requirements applicable to Financial Institutions 

in Partner Jurisdictions; 

d) to the extent that a Reporting Manx 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 of the U.S. Internal Revenue Code, (ii) a foreign 

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

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

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

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

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

Nonparticipating Financial Institution; and 

e) in the case of a Reporting Manx 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 Manx 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 Manx Financial Institution with respect to which 

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

section 1471 of the U.S. Internal Revenue Code unless such Reporting Manx Financial 

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

subparagraph 2(b) of Article 5 of this Agreement. 

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

not require a Reporting Manx Financial Institution to withhold tax under section 1471 or 

1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant 

account holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to 

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

subparagraph 2(a) 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 Manx Retirement Plans. The United States shall treat as 

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

1471 and 1472 of the U.S. Internal Revenue Code, Manx retirement plans described in Annex 

II. For this purpose, a Manx retirement plan includes an Entity established or located in, and 

13 
regulated by, the Isle of Man, 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 Isle of Man 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 Manx Financial 

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

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

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Manx 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 14 71 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 Manx Financial Institution shall continue to be in 

compliance with the terms of this Agreement and shall continue to be treated as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes of section 14 71 of the 

U.S. Internal Revenue Code, provided that: 

a) the Manx 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 

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

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

pertaining to the Related Entity or branch; and 

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

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

or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

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

the Manx 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 Isle of Man shall not be obligated to obtain and exchange information 

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

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

FFis pursuant to relevant U.S. Treasury Regulations; 

14 
b) The Isle of Man 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; 

c) the United States shall not be obligated to obtain and exchange information 

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

respect to which the Isle of Man is required to obtain and exchange 

information; and 

d) the United States shall not be obligated to begin exchanging information prior 

to the date by which the Isle of Man is required to begin exchanging 

information. 

7. Coordination of Def"mitions with U.S. Treasurv Regulations. Notwithstanding 

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

implementing this Agreement, the Isle of Man may use, and may permit Manx 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 

l. Minor and Administrative Errors. Subject to any further terms set forth in a 

competent authority arrangement concluded pursuant to paragraph 6 of Article 3 of this 

Agreement, a Competent Authority shall notify the Competent Authority of the other Party 

when the first-mentioned 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 Competent Authority of such other 

Party shall apply its domestic law (including applicable penalties) to obtain corrected and/or 

complete information or to resolve other infringements of this Agreement. 

2. Significant Non-Compliance. 

a) A Competent Authority shall notify the Competent Authority of the other 

Party when the first-mentioned Competent Authority has determined that there 

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

respect to a Reporting Financial Institution in the other jurisdiction. The 

Competent Authority of such other Party shall apply its domestic law 

(including applicable penalties) to address the significant non-compliance 

described in the notice. 

b) If, in the case of a Reporting Manx Financial Institution, such enforcement 

actions do not resolve the non-compliance within a period of 18 months after 

notification of significant non-compliance is first provided, the United States 

shall treat the Reporting Manx Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 2(b). 

3. Reliance on Third Partv Service Providers. Each Party may allow Reporting 

15 
Financial Institutions to use third party service providers to fulfill the obligations imposed on 

such Reporting Financial Institutions by a Party, as contemplated in this Agreement, but these 

obligations shall remain the responsibility of the Reporting Financial Institutions. 

4. Prevention of Avoidance. The Parties shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the reporting 

required under this Agreement. 

Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Reciprocity. The Government of the United States acknowledges the need to achieve 

equivalent levels of reciprocal automatic information exchange with the Isle of Man. The 

Government of the United States is committed to further improve transparency and enhance 

the exchange relationship with the Isle of Man by pursuing the adoption of regulations and 

advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal 

automatic information exchange. 

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

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

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

proceeds withholding that minimizes burden. 

3. Development of Common Reporting and Exchange Model. The Parties are 

committed to working with Partner Jurisdictions and the Organisation for Economic Cooperation and Development on adapting the terms of this Agreement and other agreements 

between the United States and Partner Jurisdictions to a common model for automatic 

exchange of information, including the development of reporting and due diligence standards 

for financial institutions. 

4. Documentation of Accounts Maintained as of June 30, 2014. With respect to 

Reportable Accounts maintained by a Reporting Financial Institution as of June 30, 2014: 

a) The United States commits to establish, by January 1, 2017, for reporting with 

respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial 

Institutions to obtain and report the date of birth of each Account Holder of a 

Manx Reportable Account as required pursuant to subparagraph 2(b )( 1) of 

Article 2 of this Agreement; and 

b) The Isle of Man commits to establish, by January 1, 2017, for reporting with 

respect to 201 7 and subsequent years, rules requiring Reporting Manx 

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

required pursuant to subparagraph 2( a)( 1) of Article 2 of this Agreement. 

Article 7 

Consistency in the Application ofFATCA to Partner Jurisdictions 

1. The Isle of Man shall be granted the benefit of any more favorable terms under 

Article 4 or Annex I of this Agreement relating to the application ofF ATCA to Manx 

16 
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 Isle of Man described in Articles 2 and 3 of this Agreement, and subject to 

the same terms and conditions as described therein and in Articles 5 through 9 of this 

Agreement. 

2. The United States shall notify the Isle of Man of any such more favorable terms, and 

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

were specified in this Agreement and effective as of the date of the entry into force of the 

agreement incorporating the more favorable terms, unless the Isle of Man declines the 

application thereof. 

Article 8 

Consultations and Amendments 

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

may request consultations to develop appropriate measures to ensure the fulfillment of this 

Agreement. 

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

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

procedures as set forth in paragraph 1 of Article 10 of this Agreement. 

Article 9 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 10 

Term of Agreement 

1. This Agreement shall enter into force on the date of the Isle of Man's written 

notification to the United States that the Isle of Man has completed its necessary internal 

procedures for entry into force of this Agreement or the date of entry into force of the 

Protocol, whichever is later. 

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. 

17 

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

Governments, have signed this Agreement. 

Done Jr.orllf2.on.n duplicate, in the English language this /3 day lJxe,~O }_?; 

FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF THE ISLE 

OF MAN: 

18 
ANNEX I 

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

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. The Isle of Man shall require that Reporting Manx 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 r~d to include the 

equivalent in other currencies. 

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

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

appropriate reporting period. 

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

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

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

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

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

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

appropriate reporting period. 

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

shall be treated as aU .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 Isle of Man may permitReporting Manx Financial Institutions to rely on the 

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

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

Financial Institution. The Isle of Man may permit Reporting Manx 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). 

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

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

individuals (''Preexisting Individual Accounts"). 

19 
A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

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

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

group of such accounts, where the implementing rules in the Isle of Man provide for 

such an election. the following Preexisting Individual Accounts are npt required to be 

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

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

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

2014. 

2. S!lbject to subpa:ragmph E(2) of this section, a Preexisting Individual 

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

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

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

Contmct or an Annuity Contract, provided the law or regulations of the Isle of 

Man or the United States effectively prevent the sale of such a Cash Value 

lnsumnce Contract or anAnnuity Contract to U.S. residents (e.g., if the 

relevant Financial Institution does not have the required registration under 

U.S. law, and the law of the Isle ofMan requires reporting or withholding with 

respect to insurance products held by residents of the Isle of Man). 

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

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

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

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

("Lower Value Accounts"). 

1. Electronic Record Search. The Reporting Manx Financial Institution 

must review electrpnically searchable data maintained by the Reporting Manx 

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

a) Identification oftheAccount Holder as a U.S. citizen or 

resident; 

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

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

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

t) Currently effective power of attorney or signatory authority 

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

20 
g) An "in-care-of' or "hold mail,. address that is the sole address 

the Reporting Manx Financial Institution has on file for the Account 

Holder. In the case of a Preexisting lndividua1 Account that is a Lower 

Value Accoun~ an "in-care-of' address outside the United States or 

.. hold mail" address shall not be treated as U.S. indicia. 

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

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

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

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

Acc6unt 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 ifthere is a change in circumstances 

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

the Reporting Manx Financial Institution must treat the account as a U.S. 

Reportable Account unless it elects to apply subparagraph 8(4) of this section 

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

account. 

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

this section, a Reporting Manx 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 Manx Financial 

Institution obtains, or has previously reviewed and maintains a record 

of: 

(1) A self-certific.ati;on that the Account Holder is neither a 

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

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

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

identification evidencing the Account Holder's citizenship or 

nationality in a country other than the United States; and 

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

Nationality of the United States or a reasonable explanation of: 

(a) The reason the Account Holder does not have 

such a certifiC;ate despite relinquishing U.S. citizenship; 

or 

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

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

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

21 
tlzat are the only teleplwne numbers associated witl1 tlu account, the 

Reporting Manx Financial Institution obtains, o:r'has previously 

reviewed and maintains a record of: 

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

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

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

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

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

non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer fitnds to an account maintained in the United 

States, the Reporting Manx Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

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

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

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

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

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

non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted to a person 

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

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

has one or more U.S. telephone numbers (if a nqn-U.S. te/eplzone 

number is also associated witlt tl1e account), the Reporting Manx 

Financia1lnstitution obtains, or has previously reviewed and maintains 

a record of: 

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

U.S. c~tizen nor a U.S. resident for tax purposes (which may be 

on$ IRS Form W -8 or other similar agreed fonn); or 

(2) Documentary evi<Jence, as defined in paragraph D of 

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

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

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

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

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

22 
U.S. indicia described in subparagraph B(l) of this section being associated 

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

account as a U.S. Reportable Account Wlless subparagraph B( 4) of this section 

applies. 

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

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

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

Account in all subs«quent years, Wlless the Account Holder ceases to be a 

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

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

2015 or Any Subsequent Year e'High Value Accounts"}. 

1. Electronic Record Search.. The Reporting Manx Financial Institution 

must review electronically searchable data maintained by the Reporting Manx 

Financial Institution for any of the U.S. indicia described in subparagraph B( 1) 

ofthis section. 

2. Paper Record Search. Ifthe Reporting Manx Financial Institution's 

electronically searchable databases include fields for, and capture all of the 

information described in, subparagraph D(3) of this section, then no further 

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

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

Manx Financial Institu.tion must also review the current customer master file 

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

following documents associated with the account and obtained by the 

Reporting Manx Financial Institution within the last five years for any of the 

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

a) The most recent documentary evidence collected with respect 

to the accoWlt; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Manx Financial Institution pursuant to AMUKYC Procedures or for 

other regulatory purposes; 

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

effect; and 

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

3. Exception Where DatabaseS Contain Sufficient Information. A 

Reporting Manx Financial Institution is not required to perform the paper 

record search described in subparagraph 0(2) of this section ifthe Reporting 

Manx Financial Institution's electronically searchable information includes the 

following: 

23 
a) The Account Holder's nationality or residence status; 

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

currently on file with the Reporting Manx Financial Institution; 

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

~y. with the Repqrt_ing Manx Financial Jn.stitution; 

d) Whether there are st~di;ng instructions to transfer funds i·n the 

account to another account (including an a,c<;ount at another branch of 

t}J.e Reporting Manx Financial Institution or another Financial 

Institution); 

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

address for the Account Holder; and 

f) Whether there is a.ny power of attorney or signatory authority 

for the accounL 

4. Relationship Manager Inquiry for Actual Knowledge. In addition 

to the electronie and paper record searches descri~ above, the Reporting 

Manx Financial Institution must treatas a U.S. Reportable Account any High 

Value Account assign~ to a relationshjp mana,ger (including any Financial 

Aceounts aggregated with such High Value Account) if the relationship 

manager has actual knowledge that the Account Holder is a Specified U.S. 

Person. 

5. Effect of Finding U.S. Indicia. 

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

section are discovered in the-enhanced review ofHigh Value Accounts 

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

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

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

r~ults in one or more U.S. indicia being associated with the account. 

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

~Gtion are discovered in the ~nhanced review of High Value Accounts 

described abo.ve, or if there is-a subsequent change in circumstances 

that re~ults in one or more u.s. indicia being associated with the 

account, then the Reporting Manx Financial Institution must treat the 

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

subparagraph B(4) of this section and one ofthe-ex~eptions in such 

subparagraph applies with respect to that account. 

c) Except for Depository Accounts described in subparagraph 

A(4) of this section, any Preexi$.ting.Individual Account that has been 

identified as a U.S. Reportable AccOll;llt under this section shall be 

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

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

24 
E. Additional Procedures Applicable to High Value Accounts. 

1. If a Preexisting lndividu~l Account is a High Value Account as of June 

30, 2014, the Reporting Manx Financial Institution must ctmiplete the 

enhanced review proct"<dures described in pa,ragraph D of this section with 

respect to such account by June 30, 2015. Ifbased on this review such 

account is identified as a U.S. Reportable Account on or before December 31., 

2014, the Reporting Manx Financial Institution must report the required 

information about such accowtt with respect to 2014 in the nrst report on the 

account and on an annual basis thereafter. In the case of an ac~unt identified 

as a U.S. Repbrtable Account after December 31, 2014, and on or before June 

30,2015, the Reporting Manx Financial Institution is not required to report 

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

information about the account on an annual basis thereafter. 

2. ff a Preexisting individual Accmmt is not a High Value Account ·as of 

June 30, 2014, but becomes a High Value Account as of the last d~y of2015. or 

any subsequent calendar year, the Reporting Manx Financial Institution must 

complete th~ enhat:tced Teview procedures described in paragraph D of this 

section with respect to such acco'untwithin six months after the last day of the 

calendar year in which the .account becomes a High Value Account. If based 

on this review such account is identified as a U.s~ Reportabl~ Account, th~ 

Repo'rting Manx Financial Institution must report the required infonrtation 

about such account with respect to the ye<U: 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 Manx Fimmcial Institution applies the enhanced 

review procedures described in paragraph.D of this section to a High Value 

Account. the Reporting Manx Financial InStitution is not required to re-apply 

suc::h procedures, other·tban ·the relationship manager inquiry described in 

subparagraph D(4) of this section, to the same High Value Account in any 

subsequent year. 

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

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

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

Manx Financial Institution muSt treat the account as a U.S. Reportable 

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

the exceptions in such subparagraph applies with rcspcet to that account 

5. A Reporting Manx 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 Unit~d State~, the Reporting 

Manx FinCJ,nciallnstimtion 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 .appropriat.e documentation from the Account Holder. 

15 
F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting Manx Financial Institution that has previously 

obtained documentation from an Account Holder to establish the Account Holder's 

status as neither a U.S. citizen nor a U.S. resident in order to meet its obligations 

under a qualified intermediary, withholding foreign partnership, or withholding 

foreign trust agreement with the IRS, or to fulfill its obligations under chapter 61 of 

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

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

subparagraphs 0(1) through 0(3) of this section with respect to High Value Accounts. 

Ill. New Individual Accounts. The following rules and procedures apply for the 

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

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

A. Accounts Not Required to Be Reviewed, Identif'ted, or Reported. Unless 

the Reporting Manx 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 Isle of Man 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 Individual Accounts. With respect to New Individual Accounts 

not described in paragraph A ofthis 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 Manx Financial Institution must obtain a 

self-certification, which may be part ofthc account opening documentation, that 

allows the Reporting Manx 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 corumn the 

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

Reporting Manx Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC Procedures. 

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

in the United States for tax purposes. the Reporting Manx Financial Institution 

must treat the account as a U.S. Reportable Account and obtain a selfcertification that includes the Account Holder's U.S. TIN (which may be an 

IRS Form W-9 or other similar agreed fonn). 

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

Account that causes the Reporting Manx Financial Institution to know. or have 

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

Reporting Manx Financial Institution cannot rely on the original self26 
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 Manx Financial Institution is unable to obtain a valid $elfcertification, the Reporting Manx Financialfustiti.rtion must treat. the account 

as ·a U:S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rul~s and procedures apply for purposes 

of identifYing U.S. Rep6rtable A-ccounts and accounts held by Nonparticipating Financial 

Institutions among Pre.existing Accounts held b¥ Entities (''Preexisting Entity Accounts?'). 

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

Unl~ss the Reporting Manx 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 Isle ot Man provide for 

such an election, a Preexisting Entity Account with an account balance or value· that 

does not exceed $250,000 as of Jttne 30. 2014, is not required to be reviewed, 

identified, or reported as a U.S. Reportable Account until the acq:>unt balance or value 

exceeds $1,000,000. 

B. Entity Accounts Subject to Review~ A Preexisting Entity A~coprtt that has 

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

Preexisting Entity A.ccount that does not exceed $250,000 as of June 10, 2014, but the 

account balance or value of which exceeds $1,000,000 as of the last day of20I5 or 

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

forth in paragraph D of this section. 

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

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

accounts that are held by one or m.ore Entities that ~e Specifi.ed U.S, Persons, or by 

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

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

Nonparticipating. Financial Institutions shall be treated as accounts for which 

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

are reported to the Isle of Man Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting Manx Financial Institution must apply the 

following review procedures to determine whether the account is. held by one or more 

Specified U.S. Persons, by Passive NFFEs with one or more Controlling Persons who 

are U.S. citizens or residents, or by Nonparticipating Financial Institutions: 

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

a) Review information maintained for regulatory or customer 

relationship purposes (including· information collected pursuant to 

AMUKYC Procedures) to determine whether the information 

intficates that theAccount Holder is a U.S. Person. For this purpose, 

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

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

27 
address. 

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

Person, the Reporting Manx Financial lru.1itution must treat the 

account as a U.S. Reportable Account unless it obtains a selfcertification from the Account Holder (which may be on an IRS Form 

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

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

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

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

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 Manx Financial Institution 

verifies the Account Holder's Global Intermediary Identification 

Nwnber on the published IRS FFllist, then the account is not a U.S. 

Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

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

a) Subject to subparagraph D(3Xb) of this section, a Reporting 

Manx Financial Institution may determine that the Account Holder is a 

Manx Financial Institution or other Partner Jurisdiction Financial 

Institution if the Reporting Manx 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 FFilist or other information that is publicly available or 

in the possession of the Reporting Manx Financial Institution. as 

applicable. In such case, no further review, identification, or reporting 

is required with respect to the account. 

b) If the Account Holder is a Manx Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

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

Reportable Account, but payments to the Account Holder must be 

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

Agreement. 

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

other Partner Jurisdiction Financial Institution, then the Reporting 

Manx Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are 

reportable under subparagraph 1 (b) of Article 4 of the Agreement, 

28 
unless the Reporting Manx Financial Institution: 

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

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

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

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

Treasury Regulations; or 

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

Intermediary Identification Number on the published IRS FFI 

list. 

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

Reportable Account. With ~spect to an Account Holder of 1.\ Preexisting 

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

Institution, the Reportipg Manx Financial Institution must identify (i) whether 

the Account Holder has Controlling Persons, (ii) whether the Account Holder 

is a Passive NFFE, and (iii) whether any of the Controlling Persons of the 

Account Holder is a U.S. citizen or resident. In making these determinations 

the Reporting Manx Financial Institution must follow the guidance in 

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

appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Manx Financial Institution may rely on 

information collected and maintained pursuant to AMIJKYC 

Procedures. 

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

Passive NFFE, the Reporting Manx Financial Institution must obtain a 

self-certification (which may be on an IRS Form W-8 or W-9, or on a 

similar agreed form) from the Account Holder to establish its .status, 

unless it has information in its possession or that is publicly·available, 

based on which it can reasonably determine that the Account Holder is 

an Active NFFE. 

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

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

Reporting Manx Financial Institution may rely on: 

(I) Information collected and maintained pursuant to 

AMIJKYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

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

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

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

or such Controlling Person in the case of a Prccxistin~ Entity 

Account held by one or more NFFEs with an account balance 

29 
or value that exceeds $1,000,000. 

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

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

E. Timing of Review and,Additional Procedures Applicable to Preexisting 

Entity Accounts. 

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

value that exceeds $25.0,000 as of June 30,2014, must be completed by June 

30,2016. 

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

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

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

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

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

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

Entity Account that causes the Reporting Manx Financial Jnstitution to know, 

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

associat<;.d with an a~ount is incorrect or unreliable, the Reporting Manx 

Financial Institution must redetermine the status of the account in accordance 

with the procedures set forth in paragraph D of this section. 

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

identifying U.S. Repo$ble AccolUlts and accounts held by Nonparticipating Financial 

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

("New Entity Accounts"). 

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

Unless the Reporting Manx Financial Institution elects otherwise, either with respect 

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

of such accounts, where the implementing ru!es in the Isle of Man provide for such 

election, a credit card account or a revolving credit facility treated as a New Entity 

Account is not required to be reviewed, identified, or reported, provided that the 

Reporting Manx Financial Institution maintaining such account implements policies 

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

exceeds $50,000. 

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

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

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

Manx Financial Institution.or other Partner Jurisdiction. Financial Institution; (iii) a 

participating FFI, a deemed-compliant FFI, or an exempt benefiCial owner, as those 

terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active NFFE or 

Passive NFFE. 

1. Subject to subparagraph B(2) of this s~ction, a Reporting Manx 

Financial Institution may determine that the Account Holder is an Active 

30 
NFFE, a Manx Financial Institution, or other Partner Jurisdiction Finan~ial 

Institution if the Reporting Manx 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 Man..x Financial 

Institution, as applicable. 

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

Jurisdiction Financial fnstitution treated by the IRS as a Nonparticipating 

Financial Institution, then the accolUlt 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. 

3. Tn all other cases, a Reporting Manx Financial Institution must obtain a 

self-certification from the Account Holder to establish the Account Holder's 

status. Based on the self-certification, the following rules apply: 

a) If the Account Holdeds a Specified U.S. Person, the Reporting 

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

Account. 

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

Financial Institution must identifY the Controlling Persons as 

determined under AMUKYC 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 Manx Financial 

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

c) If the Account Holder is: (i) a U.S. Person tha~ is not a 

Specified U.S. Person; (ii) subject to- subparagraph B(3)(d) of this 

seetion, a Manx Financial Institution or other Partner Jurisdiction 

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

or an exempt beneficial owner, as those terms are defined in relevant 

U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive 

NFFE none of the Controlling Persons of which is a U.S. citizen or 

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

reporting is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a Manx 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 he 

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

Agreement. 

VL Special Rules and Definitions. The following .a.clditional rules and definitions apply 

in implementing the due diligence procedures described above: 

31 
A. Reliance on Self-Certifications and Documentary Evidence. A Reporting 

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

evidence if the Reporting Manx Financial Institution knows or has reason to know 

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

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

1. AMLIKYC Procedures. "AMIJKYC Procedures" means the 

customer due diligence procedures of a Reporting Manx Financial Institution 

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

Man to which such Reporting Manx Financial Institution is .subject. 

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity described in 

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

that is established in the Isle of Man or another Partner Jurisdiction and that is 

not a Financial Institution. 

3. Passive NFFE. A "Passive NFFE'' means any NFFE that is not (i) an 

Active NFFE, or (ii) a withholding foreign partnership or withholding foreign 

trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An "Active NFFE" means any NFFE that meets any of 

the following criteria: 

a) Less than 50 percent of the NFFE's gross income for the preceding 

calendar· year or other appropriate reporting period is passive 

income and less than 50 percent of the assets held by the NFFE 

during the preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the production of 

passive income; 

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

securities market or the NFFE is a Related Entity of an Entity the 

stock of which is regularly traded on an established securities 

market~ 

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

the payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a government (other than the U.S. government), a 

political subdivision of such government (which, for the avoidance 

of doubt, includes a state, province, county, or municipality), or a 

public body performing a function of such government or a 

political subdivision thereof. a government of a U.S. Territory, an 

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

Entity wholly owned by one or more of the foregoing; 

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

whole or in part) the outstanding stock of, or providing financing 

32 
and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except 

that an NFFE shan not qualify for this status if the NFFE functions 

(or holds itself out) as an investment fund, such as a private equity 

fund, venture capital fund, leveraged buyout fund, or any 

investment vehicle whose purpose is to acquire or fund companies 

and then hold interests in those companies as capital assets for 

investment purposes; 

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

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

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

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

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

theNFFE; . 

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

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

intent to continue or recommence operations in a business other 

than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

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

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

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

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

Financial Institution; 

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

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

i. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is established 

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare; 

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

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

beneficial interest in its income or assets; 

iv. The applicable laws ofthe NFFE'sjurisdiction of residence 

or the NFFE's formation documents do not pennit any 

income or assets of the NFFE to be distributed to, or applied 

for the benefit of, a private person or non-charitable Entity 

33 
other than pursuant to the conduct of the NFFE' s charitable 

activities, or as payment of reasonable compensation for 

Services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and 

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

or the NFFE' s formation documents require that, upon the 

NFFE's liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

organization, or escheat to the government of the NFFE's 

jurisdiction of residence or any political subdivision thereof. 

5. Preexisting Account. A "Preexisting Account" means a Financial 

Account maintained by a Reporting Financial Institution as of June 30,2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining 

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

Reporting Manx Financial Institution is required to aggregate all Financial 

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

Related Entity, but only to the extent that the Reporting Manx Financial 

Institution's computerized systems link the Financial Accounts by reference to 

a data element such as client number or taxpayer identification number, and 

allow account balances or values to be aggregated. Each holder of a jointly 

held Financial Account shall be attributed the entire balance or value of the 

jointly held Financial Account for purposes of applying the aggregation 

requirements described in this paragraph 1. 

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

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

Reporting Manx Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting Manx Financial 

lru;titution, or by a Related Entity, but only to the extent that the Reporting 

Manx Financial Institution's computerized systems link the Financial 

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

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

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of Financial 

Accounts held by a person to determine whether a Financial Account is a High 

Value Account, a Reporting Manx Financial Institution is also required, in the 

case of any Financial Accounts that a relationship manager knows, or has 

reason to know, are directly or indirectly owned, controlled, or established 

(other than in a fiduciary capacity) by the same person, to aggregate all such 

accounts. 

4. Currency Translation Rule. For purposes of determining the balance 

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

dollar, a Reporting Manx Financial Institution must convert the U.S. dollar 

34 
threshold amounts described in this Annex I into such currency using a 

published spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting Manx Financial Institution is 

determining the balance or value. 

D. D<H:umentarv Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

1. A certificate of residence issued by an authorized govenunent body 

(for example, a government or agency thereof, or a municipality) of the 

jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency thereof. or 

a municipality), that includes the individual's name and is typically used for 

identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality) that includes the name of the Entity and either the address of 

its principal office in the jurisdiction (or U.S. Territory) in which it claims to 

be a resident or the jurisdiction (or U.S. Territory) in which the Entity was 

incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in connection 

with a QI agreement (as described in relevant U.S. Treasury Regulations), any 

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

jurisdiction's attachment to the QI agreement for identifying individuals or 

Entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Proeedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting Manx Financial 

Institution may preswne that an individual beneficiary (other than the owner) of a 

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

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

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

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

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

described in subparagraph (B)(1) of section II ofthis Annex I. If a Reporting Manx 

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

Specified U.S. Person, the Reporting Manx Financial Institution must follow the 

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

35 
F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, the Isle of Man may permit Reporting Manx 

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

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

36 
AnnexTI 

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

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

FinanCial Accounts. 

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

Authorities ofthe Isle ofMan and the United States: (1) to include additional Entities and 

accountc; 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 thls Annex ll as of the date of 

signature of the Agree~ent; or (2) to remove Entities and accounts that, due to changes in 

circumstances, no longer present a low risk of being used by U.S. Persons to evade U.S. tax. 

Any such addition or removal shall be. effective on the date of signature of the mutual 

agreement, unless otherwise provided therein. Procedures for reaching such a mutual 

agreement may be included in the mutual agreement 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 Manx Financial Institutions and as exempt beneficial owners for 

purposes of sections 14 71 and 14 72 of the U.S. Internal Revenue Code, other than with 

respect to a payment that is derived from an obligation held in connection with a 

commercial financial activity of a type engaged in by a Specified Insurance Company, 

Custodial Institution, or Depository Institution. 

A. Governmental Entity. The government of the Isle ofMan, any political subdivision 

of the Isle of Man (which. for the avoidance of doubt.. includes a state, province, 

county, or municipality), or a:ny wholly owned agency or instrumentality of the Isle of 

Man or any one or more of the foregoing (each, an .. Isle of Man Governmental 

Entity"). lhis category is comprised of the integral parts·, controlled entities, and 

political subdivisions of the Isle of Man. 

1. An integral part of the Isle of Man means any pers·on, organization, agency, 

bureau, fund, instrumentality, or other body, however designated, that constitutes a 

governing authority ofthe Isle ofMan. The net earnings of the governing 

authority must be credited to its own account or to other·ac.counts of the Isl~ of 

M~ with no p6rtion 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 Isle of Man 

or that otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more Isle of Man 

Governmental Entities directly or through one or more controlled entities; 

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

one or more Isle of Man Governmental Entities, with no portion of its income 

inuring to the benefit of any private person; and 

37 
c) The Entity's assets vest in one or more Isle of Man Governmental Entities 

upon dissolution. 

3. Income does not inure to the benefit of private persons if such persons are the 

intended beneficiaries of a governmental program, and the program activities are 

performed for the general public with respect to the common welfare or relate to 

the administration of some phase of government. Notwithstanding the foregoing, 

'however, income is considered to inure to the benefit Of private persons if the 

income is derived from the use of a governmental entity to conduct a commercial 

business, such as a commercial banking business, that provides fmancial services 

to private persons. 

B. International Ornanization. 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 Isle 

of Man; and (3) the income of which does not inure to the benefit of private persons. 

C. Central Bank. An institution that is by law or government sanction the principal 

authority, other than the government of the Isle of Man itself, issuing instruments 

intended to circulate as currency. Such an institution may include an instrumentality 

that is separate from the government of the Isle of Man, whether or not owned in 

whole or in part by the Isle of Man. 

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

treated as Non-Reporting Manx Financial Institutions and as exempt beneficial owners 

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

A. Broad Participation Retirement Fund. A fund established in the Isle of Man to 

provide retirement, disability, or death benefits, or any combination thereof: to 

beneficiaries that are current or former employees (or persons designated by such 

employees) of one or more employers in consideration for services rendered, provided 

that the fund: 

1. Does not have a single beneficiary with a right to more than five percent of the 

fund's assets; 

2. Is subject to government regulation and provides annual infonnation reporting 

about its beneficiaries to the relevant tax authorities in the Isle of Man; and 

3. Satisfies a:t least one of the following requirements: 

a) The.fund is generally exempt from tax in the Isle ofMan on investment 

income under the Jaws of the Isle of Man due to its status as a retirement or 

pension plan; 

b) The fund receives at least 50 percent ofits total contributions (other than 

tnmsfers of assets from other plans described 'in paragraphs A through D of 

this section or from retirement and pension accounts described in 

38 
subparagraph A( 1) of section V of this Annex II) from the sponsoring 

employers; 

c) Distributions or withdrawals from the fund are allowed only upon the 

occurrence of specified events related to retirement, disability, or death (except 

rollover distributions to other retirement funds described in paragraphs A 

through D of this section or retirement and pension accounts described in 

subparagraph A(l) of section V of this Annex II). or penalties apply to 

distributions or withdrawals made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by 

employees to the fund are limited by reference to earned income of the 

employee or may not exceed $50,000 annually, applying the rules set forth in 

Annex I for account aggregation and currency translation. 

B. Narrow Partieipation Retirement Fund. A fund established in the Isle of Man to 

provide retirement. disability, or death benefits to beneficiaries that are current or 

former employees (or persons designated by such employees) of one or more 

employers in consideration for services rendered, provided that: 

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not lnvestment Entities 

or Passive NFfEs; 

3. The employee and employer contributions to the fund (other than transfers of 

assets from retirement and pension accounts described in subparagraph A( 1) of 

section V of this Annex II) are limited by reference to earned income and 

compensation of the employee, respectively; 

4. Participants that are not residents of the Isle of Man are not entitled to more than 

20 percent of the fund's assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in the Isle of Man. 

C. Pension Fund of an Exempt Beneficial Owner. A fund established in the Isle of 

Man by an exempt beneficial owner to provide retirement. disability, or death benefits 

to beneficiaries or participants that are current or former employees of the exempt 

beneficial owner (or persons designated by such employees), or that are not current or 

former employees, if the benefits provided to such beneficiaries or participants are in 

consideration of personal services perfonned for the exempt beneficial owner. 

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

a Manx 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. 

39 
lll. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant 

FFis. The following Financial Institutions are Non-Reporting Manx Financial Institutions 

that shall be treated as deemed-compliant FFis for purposes of section 1471 ofthe U.S. 

Internal Revenue Code. 

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

the following requirements: 

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

under the laws of the Isle of Man; 

2. The Financial Institution must have no fixed place ofbusiness outside of the Isle 

of Man. 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 

perfonns solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders outside 

the Isle of Man. For this purpose, a Financial Institution shall not be considered to 

have solicited customers or Account Holders outside the Isle of Man merely 

because the Financial Institution (a) operates a website, provided that the website 

does not specitically 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 Isle of Man but is 

also incidentally distributed or aired in other countries, provided that the 

advertisement does not specifically indicate that the Financial Institution provides 

Financial Accounts or services to nonresidents, and does not otherwise target or 

solicit U.S. customers or Account Holders; 

4. The Financial Institution must be required under the laws of the Isle of Man to 

identify resident Account Holders for purposes of either information reporting or 

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

purposes of satisfying the Isle of Man's AML due diligence requirements; 

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

Institution must be held by residents (including residents that are Entities) of the 

Isle of Man, Jersey. Guernsey or a Member State of the European Union; 

6. Beginning on or before July 1, 2014, the Financial Institution must have policies 

and procedures, consistent with those set forth in Annex I, to prevent the Financial 

Institution from providing a Financial Account to any Nonparticipating Financial 

Institution and to monitor whether the Financial Institution opens or maintains a 

Financial Account for any Specified U.S. Person who is not a resident ofthe Isle 

of Man (including a U.S. Person that was a resident of the Isle of Man when the 

Financial Account was opened but subsequently ceases to be a resident of the Isle 

of Man) or any Passive NFFE with Controlling Persons who are U.S. residents or 

U.S. citizens who arc not residents of the Isle of Man; 

7. Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident of the Isle of Man or by a Passive 

40 
NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are 

not residents of the Isle of Man is identified. the Financial Institution must report 

such Financial Accotmt as would be required if the Financial Institution were a 

Reporting Manx Financial Institution (including by following the registration 

requirements applicable to Reporting Manx Financial Institutions) or close such 

Financial Account; 

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

of the Isle of Man or by an Entity, the Financial Institution must review those 

Preexisting Accounts in accordance with the procedures set forth in Annex I 

applicable to Preexisting Accounts to identify any U.S. Reportable Account or 

Financial A~ount held by a Nonparticipating Financial Institution, and must 

report such Financial Account as would be required if the FinanCial Institution 

were a Reporting Manx Financial Institution (including by following the 

registration requirements applicable to Reporting Manx Financial Institutions) or 

close such Financial Account; 

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

must b.e incorporated or organized in the Isle of Man and, with the exception of 

any Related Entity that is a retirement fund described in paragraphs A through D 

of section 11 of this Annex II, satisfY the requirements set forth in this paragraph 

A; and 

10. The Financial Institution must not have policies or practices that discriminate 

against opening or maintaining Financial Accounts for individuals· who are 

Specified U.S. Persons and residents of the Isle of Man. 

B. Local Bank. A Financial Institution satisfying the following requirements: 

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

the laws ofthe Isle of Man a.s} (a) a bank or (b) a credit union or similar 

cooperative credit organization that is operated without profit; 

2. The Financial Institution's business consists primarily of receiving deposits from 

and making loans to, with .respect to a bank unrelated retail customers and, with 

respect to a credit union or similar cooperative credit organization, members, 

provided that no member has a greater than five percent interest in such credit 

union or cooperative credit organization; 

3. The Financial institution satisfies the requirements set forth in subparagraphs A(2) 

and A(3.) of this section, provided that, in addition to the limitations on the website 

described in subparagraph A(3) of this section, the website does not permit the 

opening of a. Financial Account; 

4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million in total assets on their consolidated 

or combined balance shee~; and 

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5. Any Related Entity must be incorporated or organized in the Isle of Man. and any 

Related Entity that is a Financial Institution, with the exception of any Related 

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

ofthisAlUlex II or a Financial Institution with only low-value accounts described 

in paragraph C of this section, must satisfy the requirements set forth in this 

paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A Manx Financial 

·Institution satisfYing the following requirements: 

1. The Financial Institution is not an Investment Entity; 

2. No Financial Account maintained by the Financial Institution or any Related 

Entity has a balance or value in excess of $50,000, applying the rules set forth in 

Annex I for account aggregation and currency translation; and 

3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $50 million in total assets on their consolidated or 

combined balance sheets. 

D. Qualified Credit Card Issuer. A Manx Financial Institution satisfying the following 

requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit car<ls 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 ?UStomer; and 

2. Beginning on or before July 1, 2014, the Financial Institution implements policies 

and procedures. to either prevent a customer deposit in excess of $50,000, or to 

ensure that any customer deposit in excess of $50,000, in each case applying the 

rules set forth in Annex I for account aggregation and currency translation. is 

refunded to the customer within 60 days. For this purpose, a customer deposit 

does not refer to credit balances to the extent of disputed charges but does include 

credit balances resulting from merchandise returns. 

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

Rules. The Financial Institutions described in paragraphs A through E of this section arc 

Non-Reporting Manx Financial Institutions that shall be treated as deemed-compliant 

FFis fur purposes of section 1471 of the U.S. Internal Revenue Code. In addition, 

paragraph F of this section provides special rules.applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of the Isle of Man to 

·the extent that the trustee of the trust is a Rqmrting U.S. Financial Institution, 

Reporting Model 1 Ffl, or Participating FFI and ~ports all information required to be 

reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of 

the trust. 

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B. Sponsored Investment Entity and .Conirolled 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 of subpara,graph B(3) of this section. 

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

Entity established in the Isle ofMan that is not a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust purs.uant to relevant 

U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial 

Institution to act as a sponsoring entity for the Financial Institution. 

2. A Financial Institution is a sponsored controlled foreign corporation if (a) the 

Financial Institution is a controlled foreign corporation' organized under the laws 

of the Isle ofMan that is not a qualified intennediary. withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned,. directly or indirectly, 

by a Reporting U.S. Financial Institution that agrees to act, or reqt1ires an affiliate 

of the Financial Institution to act, as a sponsoring entity for the Financial 

Institution; and (c) the Financial Institution shares a common electronic account 

system with the sponsoring entity that enables the sponsoring entity to identify all 

Account Holders and payees of the Financial Institution and to access all account 

and customer information maintained by the Financial Institution including, but 

not limited to, customer identification infonnation, 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; 

b) '!be sponsoring entity has registered as a sponsoring. entity pursuant to 

applicable registration requirements; 

c) lfthe sponsoring entity identifies any U.S. Reportable Accounts with respect 

to the Financial Institution, the sponsoring entity registers the Financial 

Institution pursuant to applicable "registration requirements on 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 perfonn, 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 Manx Financial Institution; 

1 A "controlled foreign corporation"' means any foreign corporation if more than SO percent of the total 

combined voting power of all classes of stock of such corporation entitled to vote, or lhe total value csfthe 

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, I 0 percent 

or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation. 

43 
e) The sponsoring entity identifies th~ Financial Institution.and includes the 

identifying number ofthe Financial Institution (obtained by following 

applicable registration requirements) in all reporting completed on the 

Financial Institution's behalf; and 

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

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

satisfYing the following requirements: 

1. The Financial Insti~tion is a Financial Institution solely bec&use it is an 

Investment Entity and is not a qualifictl intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; 

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

FFI, or Participating FFI, is .authorized to act on behalf of the Financial institution 

(sucl;l 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 Financiallpstitutjon would have been 

required to perform if it wete a Reporting Manx Financial Institution; 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests in 

the Financial Institution (disregarding debt interests owned by Participating FFis 

and deemed-compli~t FFis and Equity Interests owned by an Entity ifthat Entity 

owns 100 percent of the Equity Interests in the Financial Institution and is itself a 

sponsored Financial Institution described in this paragraph C); .and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring,entity pursuant to 

applicable registration requir~ments; 

b) The sponsoring entity agre~s 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 Manx Financial 'Institution and retains documentation collected with 

respect to the Financial Institution for a period of six y~rs; 

c) The sponsoring entity 'identifies the Financial Institution in all reporting 

completed on the Financi~ Institution,s behalf; and 

d) The sponsoring eotity has not had its status. as a. sponsor revoked. 

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

in the Isle ofMan that is.a Financial Institution solely because it (1) render.s 

44 
investment advice to, and acts on behalf of, or (2) manages portfolios for, and acts on 

behalf of, a customer for the purposes of investing, managing, or administering funds 

deposited in the name of the customer with a Financial Institution other than a 

Nonparticipating Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in the Isle of Man 

that is regulated as a collective investment vehicle, provided that all of the interests in 

the collective inv:estment 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 ofAnnex 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 rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated as a 

colle<.."tive 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 Nonp~icipating 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 th~ is a Manx 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 Isle of Man that 

is not described in paragraph E or subparagtaph F(2) of this section, consistent 

with paragraph 3 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 infonnation required to be reported by the first-mentioned Investment Entity 

pursuant to the Agreement with respect to such interests is reported by such 

Investment Entity or another person. 

V. Accounts Excluded from Financial Accounts. The following accounts are excluded 

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

Reportable Accounts. 

45 
A. Certain Savinp Accounts. 

1. Retirement and Pension Account. A retirement or pension account maintained in 

the Isle of Man that satisfies the following requirements under the laws of the Isle 

of Man. 

a) The account is subject to regulation as a personal retirement account or is part 

of a registered or regulated retirement or pension plan for the provision of 

retirement or pension benefits (including disability or death benefits); 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of the Isle of Man are deductible or 

excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at 

a reduced rate); 

c) Annual information reporting is required to the tax authorities in the Isle of 

Man with respect to the account; 

d) Withdrawals are conditioned on reaching a specified retirement age, disability, 

or death, or penalties apply to withdrawals made before such specified events; 

and 

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of $1 ,000,000 or less, in 

each case· applying the rules set forth in Annex I for account aggregation and 

currency translation. 

2. Non-Retirement Savings Accounts. An account maintained in the Isle of Man 

(other than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of the Isle ofMan. 

a) The accountis subject to regulation as a savings vehicle for purposes other 

than for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of the Isle of Man are deductible or 

excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at 

a reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the purpose 

of the savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; 

and 

d) Annual contributions are limited to $50,000 or less, applying the rules set 

forth in Annex I for account aggregation and currency translation. 

46 
B. Certain Term Life Insurance Contracts. A life insurance contract maintained in the 

Isle of Man with a coverage period that will end before the insured individual attains 

age 90. provided that the contract satisfies the following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the contract is in existence or until the insured attains age 90, 

whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, 

loan, or otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or termination 

of the contract cannot exceed the aggregate premiums paid for the contract. less 

the sum of mortality, morbidity, and expense ch~es (whether or not actually 

imposed) for the period or periods of the contract's existence and any amounts 

paid prior to the canGellation or termination of the contract; and 

4. The contract is not held by a transferee for value. 

C. Account Held By an Estate. An account maintained in the Isle of Man that is held 

solely by an estate if the d~umentation for such account includes a copy of the 

deceased's will or death certificate. 

D. Escrow Accounts. An account maintained in the Isle of Man established in 

connection with any of the following: 

l. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the account 

satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit in 

an amount appropriate to secure an obligation directly related to the 

transaction, or a similar payment, or is funded with a financial asset that is 

deposited in the account in connection with the sale, exchange~ or lease of the 

property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability. or the lessor or lessee to pay for any damages relating to 

the leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee 

(including to satisfy such person's obligation) when the property is sold, 

exchanged, or surrendered, or the lease teqninates; 

d) The account is not a margin or similar account established in connection with 

a sale or exchange of a financial asset; and 

47 
e) The account is not associated with a credit card a<;cotmt 

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. Art 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 Isle of Man and 

ex«luded from the·defi.nition ofFinanc_ial A~\lllt :under an agreement between the 

United States and another Partner Jurisdiction to facilitate the implementation of 

FATCA, provi4ed that such account is subje.ct 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 J urisdi~tiop. 

VI. Definitions. The following addHional definitions apply to the descriptions above: 

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial 

Institution with respect to which anon-U.S. goverrtment or agency thereof agrees to 

obtain and exchange information pursuant to a Modei 1 IGA, other than a Financial 

Institution treated as a Nonparticipating Financial Institution und~r the Model 1 fGA. 

For purposes of this definition. the terth Modell IGAmeans an arrangement between 

the United States or the Treasury Department and anon-U.S. government or one· or 

more agencies thereof to implement"FATCA through reporting by Financial 

Institutions to such non-U.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 Hnancial Ins~itution 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 Agr~ement. The term Participating FFI ruso 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 definition. the term FFI 

Agreement means an agreement that sets forth the requirements for a Financial 

Institution to be treated as complying with the requirements ofs~tion 1471(b) ofthe 

U.S. Internal Revenue Code. In addition, for purposes of this. definition, ·the term 

Model 2 IGA means an arrangement between the United States or the Treasury 

Department and a non-U.S. government or one or more agencies thereof to. facilimte 

the implementation ofFATCA through reporting by Financial Institutions directly to 

the.. IRS in accordance with the requirements 9f an FFI Agreement. supplemented by 

the exchange ofinformation between such.non-U.S. government or agency thereof 

and the IRS. 

48