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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 18-406
 

TAXATION 

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA 

and GRENADA 

Signed at St. George’s November 29, 2016 

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.”
 

 

 

 

 

 

 

GRENADA 

Taxation: Foreign Account Tax Compliance 

Agreement signed at St. George’s November 29, 2016;
 

Entered into force April 6, 2018.
 

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

Government of Grenada to Improve International Tax Compliance and to Implem

FATCA 


Whereas, the Government ofthe United States ofAmerica and the Government ofGrena

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

international tax compliance; 

Whereas, the United States ofAmerica enacted provisions commonly known as the Fore

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

institutions with respect to certain accounts; 

Whereas, the Government ofGrenada is supportive ofthe underlying policy goal ofFAT

to improve tax compliance; 

Whereas, FATCA has raised a number ofissues, including that Grenada financial institut

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

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

impediments and reduce burdens for Grenada financial institutions; 

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

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

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

the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 

Article 1 


Definitions 


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

terms shall have the meanings set forth below: 

a) 	 The term "United States" means the United States ofAmerica, including 

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

"State" ofthe United States includes the District ofColumbia. 

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

the Northern Mariana Islands, Guam, the Commonwealth ofPuerto Rico, 

the U.S. Virgin Islands. · 

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

d) 	 The term "Grenada" means the State ofGrenada, including Carriacou an

Petite Martinique. 

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


agreement with the United States to facilitate the implementation ofFATCA. 


The IRS shall publish a list identifying all Partner Jurisdictions. 


f) 	 The term "Competent Authority" means: 

(1) in the case ofthe United States, the Secretazy of the Treasuzy or his 

delegate; and 

(2) 	 in the case ofGrenada, the Minister ofFinance or his delegate. 

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

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 ofothers. 

An entity holds financial assets for the account ofothers as a substantial 

portion ofits business ifthe entity's gross income attributable to the holding of 

financial assets and relate.ct 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 ofa 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 ordinazy 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 ofthe 

following activities or operations for or on behalf ofa customer: 

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

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

and index instruments; transferable securities; or commodity futures 

trading; 

(2) 	 individual and collective portfolio management; or 

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

behalfofother persons. 

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

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

Action Task Force Recommendations. 

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

insurance company (or the holding company ofan insurance company) that 

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

Insurance Contract or an Annuity Contract. 

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

Institution resident in Grenada, but excluding any branch of such Financial 

Institution that is located outside Grenada, and (ii) any branch ofa Financial 

Institution not resident in Grenada, if such branch is located in Grenada. 

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

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

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

Partner Jurisdiction, ifsuch branch is located in the Partner Jurisdiction. 

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

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

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

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

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

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

under relevant U.S. Treasury Regulations in effect on the date of signature of 

this Agreement. 

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

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

include a Grenada Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to subparagraph 3(b) ofArticle 5 ofthis 

Agreement or the corresponding provision in an agreement between the 

United States and a Partner Jurisdiction. 

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

Institution, and includes: 

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

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

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

Financial Institution; 

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

. l(q)(l) ofthis 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 ofthe 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 ofavoiding 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 

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an account that is excluded from the definition ofFinancial Account in 

Annex IL · 

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

any account that is excluded from the definition ofFinancial Account in 

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

there is a meaningful volume oftrading 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 ofshares traded 

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

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

Financial Account ifthe holder ofthe interest (other than a Financial 

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

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

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

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

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

apply the preceding sentence·prior to January 1, 2016. 

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

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

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

other similar instrument maintained by a Financial Institution in the ordinary 

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

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

contract or similar agreement to pay or credit interest thereon. 

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

Contract or Annuity Contract) for the benefit ofanother person that holds any 

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

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

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

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

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

instrument). 

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

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

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

considered to be held by any person treated as a settler or beneficiary ofall or 

a portion ofthe 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. 

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

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

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

property risk. 

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

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

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

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

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

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

years. 

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

(other than an indemnity reinsurance contract between two insurance 

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

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

policyholder is entitled to receive upon surrender or termination ofthe 

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 ofa 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 ofthe Insurance Contract, or arising from a 

redetermination ofthe premium due to correction of posting or other 

similar error; or 

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

contract or group involved. 

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

by a Reporting Grenada 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 ifsuch account is 

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

diligence procedures in Annex I. 

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

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

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

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

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

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

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treated as holding the account. For purposes ofthe immediately preceding 

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

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

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

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

contract. Ifno 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 ofthe contract. 

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

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

Account Holder. 

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

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

th.e 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 ofthe 

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

substantial decisions ofthe trust, or an estate ofa decedent that is a citizen or 

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

accordance with the U.S. Internal Revenue Code. 

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

corporation the stock ofwhich is regularly traded on one or more established 

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

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

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

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

States, any U.S. Territory, any political subdivision ofany ofthe foregoing, or 

any wholly owned agency or instrumentality ofany one or more ofthe 

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

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

section 770l(a)(37) ofthe 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 ofthe U.S. Internal Revenue Code; 

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

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

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

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

Internal Revenue Code. 

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

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

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

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

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

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

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

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

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

Regulations. 

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

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

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

vote or value in an Entity. Notwithstanding the foregoing, Grenada 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. 

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

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

control over an Entity. In the case ofa 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 ofthe Party applying this 

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

meaning given to the term under other laws ofthat Party. 

Article 2 


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


Accounts 


1. Subject to the provisions ofArticle 3 ofthis Agreement, Grenada shall obtain the 

information specified in paragraph 2 ofthis Article with respect to all U.S. Reportable 

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

automatic basis. 

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

Account ofeach Reporting Grenada Finandal Institution is: 

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

Account Holder ofsuch account and, in the case ofa 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) ofsuch entity and each such 

Specified U.S. Person; 

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

number); 

c) 	 the name and identifying number of the Reporting Grenada Financial 

Institution; 

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

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

ofthe relevant calendar year or other appropriate reporting period or, ifthe 

account was closed during such year, immediately before closure; 

e) . 	 in the case of any Custodial Account: 

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

and the total gross amount ofother income generated with respect to 

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

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

other appropriate reporting period; and 

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

credited to the account during the calendar year or other appropriate 

reporting ·period with respect to which the Reporting Grenada 

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

otherwise as an agent for the Account Holder; 

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

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

reporting period; and 

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

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 Grenada Financial Institution is the 

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

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

reporting period. 

Article 3 

Time and Manner ofExchange of Information 

1. For purposes ofthe exchange obligation in Article 2 ofthis Agreement, the amount 

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

determined in accordance with the principles ofthe tax laws ofGrenada. 

8 

2. For purposes ofthe exchange obligation in Article 2 ofthis Agreement, the 

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

denominated. 

3. With respect to paragraph 2 ofArticle 2 ofthis Agreement, information is to be 

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

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

information described in subparagraphs 2(a) through 2(d) ofArticle 2 ofthis 

Agreement; 

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

information described in subparagraphs 2(a) through 2(g) ofArticle 2 ofthis 

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

Article 2 of this Agreement; and 

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

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

2(g) ofArticle 2 ofthis Agreement; 

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

Account maintained by a Reporting Grenada Financial Institution as ofJune 30, 2014, and 

subject to paragraph 2 ofArticle 6 ofthis Agreement, Grenada is not required to obtain and 

include in the exchanged information the U.S. TIN of any relevant person ifsuch U.S. TIN is 

not in the records of the Reporting Grenada Financial Institution. In such a case, Grenada 

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

ifthe Reporting Grenada Financial Institution has such date ofbirth in its records. 

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

this Agreement shall be exchanged by the later ofnine m,onths after the end of the calendar 

year to which the information relates or the next September 30th after the agreement enters 

into force. 

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

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

this Agreement, which shall: 

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

Article 2 ofthis Agreement; 

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

this Agreement; and 

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

under subparagraph 1 (b) ofArticle 4 ofthis Agreement. 

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

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

information exchanged. 

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Article 4 


Application of FATCA to Grenada Financial Institutions 


l. Treatment of Reporting Grenada Financial Institutions. Each Reporting Grenada 

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

section 1471 ofthe U.S. Internal Revenue Code if Grenada complies with its obligations 

under Articles 2 and 3 ofthis Agreement with respect to such Reporting Grenada Financial 

Institution, and the Reporting Grenada Financial Institution: 

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

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

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

this Agreement; 

b) 	 for each of2015 and 2016, reports annually to the Grenada Competent 

Authority the name ofeach Nonparticipating Financial Institution to which it 

has made payments and the aggregate amount of such payments; 

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

registration website; 

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

qualified intermediary (for purposes ofsection 1441 ofthe U.S. Internal 

Revenue Code) that has elected to assume primary withholding responsibility 

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

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

purposes of both sections 1441and1471 of the U.S. Internal Revenue Code), 

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

purposes of both sections 1441and1471 ofthe U.S. Internal Revenue Code), 

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

Nonparticipating Financial Institution; and 

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

subparagraph l(d) ofthis Article and that makes a payment of, or acts as an 

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

Nonparticipating Financial Institution, the Reporting Grenada 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 Grenada Financial Institution with respect to 

which the conditions ofthis paragraph I are not satisfied shall not be subject to withholding 

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

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

to subparagraph 3(b) ofArticle 5 ofthis Agreement. 

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

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

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

10 

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

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

paragraph 2 ofArticle 2 ofthis Agreement, subject to the provisions ofArticle 3 ofthis 

Agreement, with respect to such account. 

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

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

1471and1472 ofthe U.S. Internal Revenue Code, Grenada retirement plans described in 

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

located in, and regulated by, Grenada, 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 Grenada 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 Grenada Financial 

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

purposes ofsection 1471 ofthe U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. Ifa Grenada Financial Institution, that otherwise 

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

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

such Related Entity or branch from fulfilling the requirements ofa participating FFI or 

deemed-compliant FFI for purposes ofsection 1471 ofthe 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. Treasw.y Regulations, such Grenada Financial Institution shall continue to be in 

compliance with the terms ofthis Agreement and shall continue to be treated as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes ofsection 1471 ofthe 

U.S. Internal Revenue Code, provided that: 

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

separate Nonparticipating Financial Institution for purposes of all the reporting 

and withholding requirements ofthis 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 Grenada Financial Institution or any other Related Entity to circumvent the 

II 

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 ofArticle 3 ofthis 


Agreement: 


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

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

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

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

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

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

the IRS under relevant U.S. Treasury Regulations. 

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

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

implementing this Agreement, Grenada may use, and may permit Grenada Financial 

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

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

frustrate the purposes ofthis Agreement. 

Article 5 


Collaboration on Compliance and Enforcement 


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


agreement concluded pursuant to paragraph 6 ofArticle 3 ofthis Agreement, the U.S. 


· Competent Authority may make follow-up requests to the Grenada Competent Authority, 

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

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

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

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

Account. 

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


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


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


information reporting or resul.ted in other infringements ofthis Agreement. The Grenada 


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


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


Agreement. 


3. 	 Significant Non-Compliance. 

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

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

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

Reporting Grenada Financial Institution. The Grenada Competent Authority 

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

significant non-compliance described in the notice. 

12 

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

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

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

Grenada Financial Institution as a Nonparticipating Financial Institution 

pursuant to this subparagraph 3(b). 

4. Reliance on Third Partv Service Providers. Grenada may allow Reporting Grenada 

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

such Reporting Grenada Financial Institutions by Grenada, as contemplated in this 

Agreement, but these obligations shall remain the responsibility ofthe Reporting Grenada 

Financial Institutions. 

5. Prevention ofAvoidance. Grenada shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the reporting 

required under this Agreement. 

Article 6 


Mutual Commitment to Continue to Enhance the Effectiveness of Information 


Exchange and Transparency 


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

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

alternative approach to achieve the policy objectives offoreign passthru payment and gross 

proceeds withholding that minimizes burden. 

2. Documentation ofAccounts Maintained as ofJune 30, 2014. With respect to U.S. 

Reportable Accounts maintained by a Reporting Grenada Financial Institution as ofJune 30, 

2014, Grenada commits to establish, by January 1, 2017, for reporting with respect to 2017 

and subsequent years, rules requiring Reporting Grenada Financial Institutions to obtain the 

U.S. TIN ofeach Specified U.S. Person as required pursuant to subparagraph 2(a) ofArticle 2 

ofthis Agreement. 

Article 7 


Consistency in the Application of FATCA to Partner Jurisdictions 


1. Grenada shall be granted the benefit of any more favorable terms under Article 4 or 

Annex I ofthis Agreement relating to the application ofFATCA to Grenada 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 

Grenada described in Articles 2 and 3 ofthis Agreement, and subject to the same terms and 

conditions as described therein and in Articles 5, 6, 7, 10 and 11 ofthis Agreement. 

2. The United States shall notify Grenada 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 ofthe date ofsigning ofthe agreement 

incorporating the more favorable terms, unless Grenada declines in writing the application 

thereof 

13 

Article 8 


Mutual Agreement Procedure 


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

application, or interpretation ofthis Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement. 

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

implementation ofthis Agreement. 

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

reaching a mutual agreement under this Article. 

Article 9 


Confidentiality 


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

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

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

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

performance ofthe obligations ofGrenada under this Agreement. 

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

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

authorities (including courts and administrative bodies) ofthe Government ofthe United 

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

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

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

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

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

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

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

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

information. 

Article 10 


Consultations and Amendments 


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

may, independently ofthe mutual agreement procedure described in paragraph l ofArticle 8 

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

fulfillment ofthis Agreement. 

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

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

procedures as set forth in paragraph 1 ofArticle 12 ofthis Agreement. 

14 

L 

Article 11 


Annexes 


The Annexes form an integral part ofthis Agreement. 

Article 12 


Term ofAgreement 


This Agreement shall enter into force on the date of Grenada's written notification to 

the United States that Grenada has completed its necessary internal procedures for entry into 

force ofthis Agreement. 

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

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

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

3. The Parties shall, prior to December 31, 2018, consult in good faith to amend this 

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

Agreement. 

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

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

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

Governments, have signed this Agreement. 

Done at SI-· ~O""'"' ,this..2.'I day of t/~2016, in duplicate, in the English language. 

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF 

UNITED STATES OF AMERICA: GRENADA: 

15 

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. Grenada shall require that Reporting Grenada 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 ofthe Agreement, 

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

equivalent in other currencies. 

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

account shall be determined as ofthe last day ofthe calendar year or other 

appropriate reporting period. 

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

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

ofthat day or the last day ofthe reporting period ending immediately before 

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

ofthe last day ofa calendar year under this Annex I, the relevant balance or 

value shall be determined as·ofthe last day ofthe calendar year or other 

appropriate reporting period. 

4. Subject to subparagraph E(l) ofsection II ofthis Annex I, an account 

shall be treated as a U.S. Reportable Account beginning as ofthe 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 ofthis Annex I, 

Grenada may permit Reporting Grenada 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. Grenada may permit Reporting Grenada Financial Institutions 

to make such election separately for each section ofthis Annex I either with respect to 

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

group ofsuch accounts (such as by line ofbusiness or the location ofwhere the 

account is maintained). 

16 

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

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

individuals ("Preexisting Individual Accounts"): 

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

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

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

group ofsuch accounts, where the implementing rules in Grenada provide for such an 

election, the following Preexisting Individual Accounts are not required to be 

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

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

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

2014. 

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

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

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

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

Contract or an Annuity Contract, provided the law or regulations ofGrenada 

or the United States effectively prevent the sale ofsuch a Cash Value 

Insurance Contract or an Annuity Contract to U.S. residents (e.g., if the 

relevant Financial Institution does not have the required registration under 

U.S. law, and the law ofGrenada requires reporting or withholding with 

respect to insurance products held by residents ofGrenada). 

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 ofJune 30, 2014, that Exceeds $50,000 ($250,000 for a Cash Value 

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

("Lower Value Accounts"). 

I. Electronic Record Search. The Reporting Grenada Financial 

Institution must review electronically searchable data maintained by the 

Reporting Grenada Financial Institution for any of the following U.S. indicia: 

a) Identification ofthe Account Holder as a U.S. citizen or 

resident; 

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

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

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

17 

f) Currently effective power ofattorney or signatory authority 

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

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

the Reporting Grenada Financial Institution has on file for the Account 

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

Value Account, an "in-care-of' address outside the United States or 

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

2. Ifnone ofthe U.S. indicia listed in subparagraph B(l) ofthis section 

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

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

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

Account described in paragraph D ofthis section. 

3. Ifany ofthe U.S. indicia listed in subparagraph B(l) ofthis 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 Grenada Financial Institution must treat the account as a U.S. 

Reportable Account unless it elects to apply subparagraph B(4) ofthis section 

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

account. 

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

this section, a Reporting Grenada 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 ofbirth, the Reporting Grenada Financial 

Institution obtains, or has previously reviewed and maintains a record 

of: 

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

U.S. citizen nor a U.S. resident for.tax 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 ofthe Account Holder's Certificate of Loss of 

Nationality ofthe United States or a reasonable explanation of: 

(a) The reason the Account Holder does not have 

such a certificate despite relinquishing U.S. citizenship; 

or 

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

18 
b) Where the Account Holder information contains a current U.S. 

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

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

Reporting Grenada Financial Institution obtains, or has previously 

reviewed and maintains a record of: 

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

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

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

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

section VI ofthis Annex I, establishing the Account HoIder 's 

non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting Grenada Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

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

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

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

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

section VI ofthis Annex I, establishing the Account Holder's 

non-U.S. status. 

d) Where the Account Holder information contains a currendy 

effective power ofattorney or signatory authority granted to a person 

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

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

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

number is also associated with the account),·the Reporting Grenada 

Financial Institution obtains, or has previously reviewed and maintains 

a record of: 

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

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

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

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

section VI ofthis Annex I, establishing the Account Holder's 

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

I. Review of Preexisting Individual Accounts that are Lower Value 

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

19 

2. Ifthere is a change ofcircumstances· with respect to a Preexisting 

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

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

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

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

section applies. 

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

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

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

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

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

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

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

l. Electronic Record Search. The Reporting Grenada Financial 

Institution must review electronically searchable data maintained by the 

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

in subparagraph B( l) ofthis section. 

2. Paper Record Search. Ifthe Reporting Grenada Financial 

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

all ofthe information described in, subparagraph D(3) ofthis section, then no 

further paper record search is required. Ifthe electronic databases do not 

captUre all ofthis information, then with respect to a High Value Account, the 

Reporting Grenada Financial Institution must also review the current customer 

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

the following documents associated with the account and obtained by the 

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

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

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Grenada Financial Institution pursuant to AMLIKYC Procedures or for 

other regulatory purposes; 

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

effect; and 

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

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Grenada Financial Institution is not required to perform the paper 

20 

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

Grenada Financial Institution's electronically searchable information includes 

the following: 

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

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

currently on file with the Reporting Grenada Financial Institution; 

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

any, with the Reporting Grenada Financial Institution; 

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

account to another account (including an account at another branch of 

the Reporting Grenada Financial Institution or another Financial 

Institution); 

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

address for the Account Holder; and 

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

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition 

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

Grenada Financial Institution must treat as a U.S. Reportable Account any 

High Value Account assigned to a relationship manager (including any 

Financial Accounts aggregated with such High Value Account) if the 

relationship manager has actual knowledge that the Account Holder is a 

Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) Ifnone ofthe U.S. indicia listed in subparagraph B(l) ofthis 

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 

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

b) Ifany ofthe U.S. indicia listed in subparagraph B(l) ofthis 

section are discovered in the enhanced review ofHigh Value Accounts 

described above, or ifthere is a subsequent change in circumstances 

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

account, then the Reporting Grenada Financial Institution must treat 

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

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

subparagraph applies with respect to that account. 

21 
c) · Except for Depository Accounts described in subparagraph 

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

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

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

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

E. Additional Procedures Applicable to High Value Accounts. 

1. Ifa Preexisting Individual Account is a High Value Account as ofJune 

30, 2014, the Reporting Grenada Financial Institution must complete the 

enhanced review procedures described in paragraph D ofthis 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 Grenada Financial Institution must report the required 

information about such account with respect to 2014 in the first report on the 

account and on an annual basis thereafter. In the case ofan account identified 

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

30, 2015, the Reporting Grenada Financial Institution is riot required to report 

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

information about the account on an annual basis thereafter. 

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

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

any subsequent calendar year, the Reporting Grenada Financial Institution 

must complete the enhanced review procedures described in paragraph D of 

this section with respect to such account within six months after the last day of 

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

based on this review such account is identified as. a U.S. Reportable Account, 

the Reporting Grenada Financial Institution must report the required 

information about such account with respect to the year in which it is 

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

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

3. Once a Reporting Grenada Financial Institution applies the enhanced 

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

Account, the Reporting Grenada Financial Institution is not required to reapply such procedures, other than the relationship manager inquiry described 

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

subsequent year. 

4. Ifthere 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 

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

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

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

5. A Reporting Grenada 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 

22 

Account Holder has a new mailing address in the United States, the Reporting 

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

in circumstances and, ifit elects to apply subparagraph B(4) ofthis section, is 

required to obtain the appropriate documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting Grenada 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 ofthe United States Code, is not required to perform the procedures described 

in subparagraph B(l) ofthis section with respect to Lower Value Accounts or 

subparagraphs D{l) through D(3) ofthis section with respect to High Value Accounts. 

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

ofidentifying U.S. Reportable Accounts among Financial Accounts held by individuals and 

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

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

the Reporting Grenada 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 Grenada 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 ofany calendar year or other appropriate reporting period. 

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

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

B. Other New Individual Accounts. 

1. With respect to New Individual Accounts not described in paragraph A 

ofthis section, upon account opening (or within 90 days after the end ofthe 

calendar year in which the account ceases to be described in paragraph A of 

this section), the Reporting Grenada Financial Institution must obtain a selfcertification, which may be part ofthe account opening documentation, that 

allows the Reporting Grenada 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 ifthe Account Holder is also a tax resident ofanother 

jurisdiction) and confirm the reasonableness ofsuch self-certification based on 

the information obtained by the Reporting Grenada Financial Institution in 

connection with the opening ofthe account, including any documentation 

collected pursuant to AML/KYC Procedures. 

2. Ifthe self-certification establishes that the Account Holder is resident 

in the United States for tax purposes, the Reporting Grenada Financial 

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

23 

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

an IRS Form W-9 or other similar agreed form). 

3. Ifthere is a change ofcircumstances with respect to a New Individual 

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

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

unreliable, the Reporting Grenada Financial Institution cannot rely on the 

original self-certification and must obtain a valid self-certification that 

establishes whether the Account Holder is a U.S. citizen or resident for U.S. 

tax purposes. Ifthe Reporting Grenada Financial Institution is unable to 

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

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

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

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

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

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

Unless the Reporting Grenada Financial Institution elects otherwise, either w.ith 

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

identified group ofsuch accounts, where the implementing rules in Grenada provide 

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

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

identified, or reported as a U.S. Reportable Account until the account balance or value 

exceeds $1,000,000. 

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

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

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

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

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

forth in paragraph D ofthis section. 

C. Entity Accounts With Respect to Which Reportine: Is Required. With 

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

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

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

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

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in subparagraph l(b) ofArticle 4 ofthe Agreement 

are reported to the Grenada Competent Authority. 

D. . Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B ofthis section, the Reporting Grenada 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: 

24 

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 

AML/KYC Procedures) to determine whether the information 

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

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

includes a U.S. place ofincorporation or organization, or a U.S.· 

address. 

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

Person, the Reporting Grenada Financial Institution must treat the 

account as a U.S. Reportable Account unless it obtains a selfcertification from the Acc0unt 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 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

b) Ifthe information indicates that the Account Holder is a 

Financial Institution, or the Reporting Grenada Financial Institution 

verifies the Account Holder's Global Intermediary Identification 

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

Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

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

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

Grenada Financial Institution may determine that the Account Holder 

is a Grenada Financial Institution or other Partner Jurisdiction 

Financial Institution ifthe Reporting Grenada Financial Institution 

reasonably determines that the Account Holder has such status on the 

basis ofthe Account Holder's Global Intermediary Identification 

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

publicly available or in the possession ofthe Reporting Grenada 

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

identification, or reporting is required with respect to the account. 

b) Ifthe Account Holder is a Grenada 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 

25 
reported as contemplated in subparagraph l(b) ofArticle 4 ofthe 

Agreement. 

c) Ifthe Account Holder is not a Grenada Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

Grenada Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are 

reportable under subparagraph l(b) ofArticle 4 ofthe Agreement, 

unless the Reporting Grenada Financial Institution: 

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

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

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

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

Treasury Regulations; or 

(2) In the case ofa 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. 

a) With respect to an Account Holder ofa Preexisting Entity 

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

Institution, the Reporting Grenada.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 ofthe 

Controlling Persons ofthe Account Holder is a U.S. citizen or resident. 

In making these determinations, the Reporting Grenada Financial 

Institution must follow the guidance in subparagraphs D(4)(b) through 

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

circumstances. 

b) · For purposes ofdetermining the Controlling Persons ofan 

Account Holder, a Reporting Grenada Financial Institution may rely on 

information collected and maintained pursuant to AML/KYC 

Procedures. 

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

Passive NFFE, the Reporting Grenada 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 thatthe Account Holder ·is 

an Active NFFE. 

26 
d) . For purposes of determining whether a Controlling Person ofa 

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

Reporting Grenada Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case ofa Preexisting Entity 

Account held by one or more NFFEs with an account balance 

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

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

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

or such Controlling Person in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that exceeds $1,000,000. 

e) Ifany Controlling Person of a Passive NFFE is a U.S. citizen or 

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

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts. 

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

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

. 30, 2016. 

2. Review ofPreexisting Entity Accounts with an account balance or 

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

$1,000,000 as ofDecember 31 of2015 or any subsequent year, must be 

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

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

3. Ifthere is a change ofcircumstances with respect to a Preexisting 

Entity Account that causes the Reporting Grenada Financial Institution to 

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

documentation associated with an account is incorrect or unreliable, the 

Reporting Grenada Financial Institution must redetermine the status ofthe 

account in accordance with the procedures set forth in paragraph D ofthis 

section. 

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

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

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

("New Entity Accounts"). 

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

Unless the Reporting Grenada Financial Institution elects otherwise, either with 

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

group ofsuch accounts, where the implementing rules in Grenada 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 

27 

Reporting Grenada 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 Eotitv Accounts. With respect to New Entity Accounts not 

described in paragraph A ofthis section, the Reporting Grenada Financial Institution 

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

Grenada Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a 

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

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

Passive NFFE. 

1. Subject to subparagraph B(2) ofthis section, a Reporting Grenada 

Financial Institution may determine that the Account Holder is an Active 

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

Institution ifthe Reporting Grenada 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 ofthe Reporting Grenada Financial 

Institution, as applicable. 

2. Ifthe Account Holder is a Grenada Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

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

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

contemplated in subparagraph 1 (b) ofArticle 4 of the Agreement. 

3. In all other cases, a Reporting Grenada 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) Ifthe Account Holder is a Specified U.S. Person, the Reporting 

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

Reportable Account. 

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

Grenada Financial Institution must identify the Controlling Persons as 

determined under AML/KYC Procedures, and must determine whether 

any such person is a U.S. citizen or resident on the basis ofa selfcertification from the Account Holder or such person. Ifany such 

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

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

c) Ifthe Account Holder is: (i) a U.S. Person that is not a 

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

section, a Grenada Financial Institution or other Partner Jurisdiction 

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

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

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

NFFE none ofthe Controlling Persons ofwhich is a U.S. citizen or 

28 

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

reporting is required with respect to the account. 

d) Ifthe Account Holder is a Nonparticipating Financial 

Institution (including a Grenada 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 I (b) ofArticle 4 ofthe 

Agreement. 

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

in implementing the due diligence procedures described above: 

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

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

evidence ifthe Reporting Grenada 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 ofthis Annex I. 

L 	 AML/KYC Procedures. "AML/KYC Procedures" means the customer 

due diligence procedures of a Reporting Grenada Financial Institution 

pursuant to the anti-money laundering or similar requirements ofGrenada 

to which such Reporting Grenada Financial Institution is subject. 

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

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

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

Entity that is established in Grenada 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 ofthe 

following criteria: 

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

calendar year or other appropriate reporting period is passive 

income and less than 50 percent ofthe 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 ofthe NFFE is regularly traded on an established 

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

stock ofwhich is regularly traded on an established securities 

market; 

29 

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

the payee are bona fide residents ofthat 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 

ofdoubt, includes a state, province, county, or municipality), or a 

public body performing a function of such government or a 

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

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

Entity wholly owned by one or more ofthe foregoing; 

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

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

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

businesses other than the business ofa Financial Institution, except 

that an entity shall not qualify for NFFE status ifthe entity 

functions (or holds itself out) a,s 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; 

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

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

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

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

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

the NFFE; 

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

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

intent to continue or recommence operations in a business other 

than that of a Financial Institution; 

h) 	 The NFFE primarily engages in financing and hedging transactions 

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

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

not a Related Entity, provided that the group ofany such Related 

Entities is primarily engaged in a business other than that ofa 

Financial Institution; 

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

Treasury Regulations; or 

j) 	 The NFFE meets all ofthe following requirements: 

i. 	 It is 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 

30 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion ofsocial welfare; 

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

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

beneficial interest in its income or assets; 

iv. 	 The applicable laws ofthe NFFE's jurisdiction of residence 

or the NFFE's formation documents do not permit any 

income or assets ofthe NFFE to be distributed to, or applied 

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

other than pursuant to the conduct ofthe NFFE's charitable 

activities, or as payment ofreasonable compensation for 

services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and 

v. 	 The applicable laws ofthe NFFE's jurisdiction ofresidence 

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

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

distributed to a governmental entity or other non-profit 

organization, or escheat to the government ofthe NFFE's 

jurisdiction ofresidence or any political subdivision thereof. 

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

Account maintained by a Reporting Grenada Financial Institution as of 

June 30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes ofdetermining 

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

Reporting Grenada Financial Institution is required to aggregate all Financial · 

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

Related Entity, but only to the extent that the Reporting Grenada 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 ho Ider of a jointly 

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

jointly held Financial Account for purposes ofapplying the aggregation 

requirements described in this subparagraph C(l). 

2. Aggregation of Entity Accounts. For purposes ofdetermining the 

aggregate balance or value ofFinancial Accounts held by an Entity, a 

Reporting Grenada Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting Grenada Financial 

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

Grenada Financial Institution's computerized systems link the Financial 

31 

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 ofdetermining the aggregate balance or value ofFinancial 

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

Value Account, a Reporting Grenada Financial Institution is also required, in 

the case ofany Financial AccoUllts 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 ofFinancial Accounts denominated in a currency other than the U.S. 

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

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

published spot rate determined as ofthe last day ofthe calendar year 

preceding the year in which the Reporting Grenada Financial Institution is 

determining the balance or value. 

D. Documentary Evidence. For purposes ofthis Annex I, acceptable 

documentary evidence includes any ofthe following: 

I. A certificate ofresidence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) ofthe 

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 ofthe 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 bythe IRS in connection 

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

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

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. 

32 

E. Alternative Procedures for Financial Accounts Held by Individual 

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

Institution may presume that an individual beneficiary (other than the owner) ofa 

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 Grenada Financial Institution has ~ctual knowledge, or reason to 

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

Institution has reason to know that a beneficiary o.f a Cash Value Insurance Contract 

is a Specified U.S. Person ifthe information collected by the Reporting Grenada 

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

described in subparagraph 8(1) of section II ofthis Annex I. Ifa Reporting Grenada 

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

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

procedures in subparagraph 8(3) ofsection II ofthis Annex I. 

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

paragraph C ofsection I of this Annex I, Grenada may permit Reporting Grenada 

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

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

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

Force of this Agreement. 

1. Aoolicabilitv. IfGrenada has provided a written notice to the United 

States prior to entry into force ofthis Agreement that, as ofJuly 1, 2014, 

Grenada lacked the legal authority to require Reporting Grenada Financial 

Institutions either: (i) to require Account Holders ofNew Individual Accounts 

to provide the self-certification specified in section III ofthis Annex I, or (ii) 

to perform all the due diligence .procedures related to New Entity Accounts 

specified in section V ofthis Annex I, then Reporting Grenada Financial 

Institutions may apply the alternative procedures described in subparagraph 

G(2) ofthis section, as applicable, to such New Accounts, in lieu ofthe 

procedures otherwise required under this Annex I. The alternative procedures 

described in subparagraph G(2) ofthis section shall be available only for those 

New Individual Accounts or New Entity Accounts, as applicable, opened prior 

to the earlier of: (i) the date Grenada has the ability to compel Reporting 

Grenada Financial Institutions to comply with the due diligence procedures 

described in section III or section V ofthis Annex I, as applicable, which date 

Grenada shall inform the United States of in writing by the date ofentry into 

force ofthis Agreement, or (ii) the date ofentry into force ofthis Agreement. 

Ifthe alternative procedures for New Entity Accounts opened on or after July 

1, 2014, and before January 1, 2015, described in paragraph Hofthis section 

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

group ofsuch accounts, the alternative procedures described in this paragraph 

G may not be applied with respect to such New Entity Accounts. For all other 

New Accounts, Reporting Grenada Financial Institutions must apply the due 

diligence procedures described in section III or section V ofthis Annex I, as 

applicable, to determine ifthe account is a U.S. Reportable Account or an 

account held by a Nonparticipating Financial Institution. 

33 

2. Alternative Procedures. 

a) Within one year after the date of entry into force ofthis 

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

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

ofthis section, request the self-certification specified in section III of 

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

consistent with the procedures described in section III ofthis Annex I, 

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

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

procedures specified in section V ofthis Annex I and request 

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

b) Grenada must report on any New Account that is identified 

pursuant to subparagraph G(2)(a) ofthis section as a U.S. Reportable 

Account or as an account held by a Nonparticipating Financial 

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

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

Reportable Account or as an account held by a Nonparticipating 

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

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

Nonparticipating Financial Institution, as applicable. The information 

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

information that would have been reportable under this Agreement if 

the New Account had been identified as a U.S. Reportable Account or 

as an account held by a Nonparticipating Financial Institution, as 

applicable, as ofthe date the account was opened. 

c) By the date that is one year after the date ofentry into force of 

this Agreement, Reporting Grenada Financial Institutions must close 

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

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

documentation pursuant to the procedures described in subparagraph 

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

the date ofentry into force ofthis Agreement, Reporting Grenada 

Financial Institutions must: (i) with respect to such closed accounts 

that prior to such closure were New Individual Accounts (without 

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

the due diligence procedures specified in paragraph D ofsection II of 

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

such closure were New Entity Accounts, perform the due diligence 

procedures specified in section IV ofthis Annex I. 

d) Grenada must report on any closed account that is identified 

pursuant to subparagraph G(2)(c) ofthis section as a U.S. Reportable 

Account or as an account held by a Nonparticipating Financial 

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

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

34 

Reportable Account or as an account held by a Nonparticipating 

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

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

Nonparticipating Financial Institution, as applicable. The information 

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

that would have been reportable under this Agreement ifthe account 

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

by a Nonparticipating Financial Institution, as applicable, as ofthe date 

the account was opened. 

H. Alternative Procedures for New Entity Accounts Opened on or after July 

1, 2014, and before January l, 2015. For New Entity Accounts opened on or after 

July 1, 2014, and before January 1, 2015, either with respect to all New Entity 

Accounts or, separately, with respect to any clearly identified group ofsuch accounts, 

Grenada may permit Reporting Grenada Financial Institutions to treat such accounts 

as Preexisting Entity Accounts and apply the due diligence procedures related to 

Preexisting Entity Accounts specified in section IV ofthis Annex I in lieu ofthe due 

diligence procedures specified in section V ofthis Annex I. In this case, the due 

diligence procedures ofsection IV ofthis Annex I must be applied without regard to 

the account balance or value threshold specified in paragraph A ofsection IV ofthis 

Annex I. 

35 

ANNEX II 

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

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

Financial Accounts. 

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

Competent Authorities ofGrenada and the United States: (1) to include additional Entities 

and accounts that present a low risk ofbeing used by U.S. Persons to evade U.S. tax and that 

have similar characteristics to the Entities and accounts described in this Annex II as ofthe 

date ofsignature ofthe Agreement; or (2) to remove Entities and accounts that, due to 

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

evade U.S. tax. Any such addition or removal shall be effective on the date ofsignature of 

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

mutual decision may be included in the mutual agreement or arrangement described in 

paragraph 6 ofArticle 3 ofthe Agreement. 	 · 

I. Exempt Beneficial Owners other than Funds. 

A. 	The following Entities shall be treated as Non-Reporting Grenada Financial 

Institutions and as exempt beneficial owners for purposes of sections 14 71 and 1472 

ofthe U.S. Internal Revenue Code, other than with respect to a payment that is 

derived from an obligation held in connection with a commercial financial activity of 

a type engaged in by a Specified Insurance Company, Custodial Institution, or 

Depository Institution. 

B. 	Governmental Entity. 

1. 	 The government ofGrenada, any political subdivision ofGrenada (which, for the 

avoidance ofdoubt, includes a state, province, county, or municipality), or any 

wholly owned agency or instrumentality ofGrenada or any one or more ofthe 

foregoing (each, a "Grenada Governmental Entity"). This category is comprised 

ofthe integral parts, controlled entities, and political subdivisions of Grenada. 

2. 	 An integral part ofGrenada means any person, organization, agency, bureau, fund, 

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

authority of Grenada. The net earnings ofthe governing authority must be 

credited to its own account or to other accounts of Grenada, with no portion 

inuring to the benefit of any private person. An integral part does not include any 

individual who is a sovereign, official, or administrator acting in a private or 

personal capacity. 

3. 	 A controlled entity means an Entity that is separate in form from Grenada or that 

otherwise constitutes a separate juridical entity, provided that: 

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

Governmental Entities directly or through one or more controlled entities; 

36 

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

one or more Grenada Governmental Entities, with no portion ofits income 

inuring to the benefit ofany private person; and 

c) 	 The Entity's assets vest in one or more Grenada Governmental Entities upon 

disso]ution. 

4. 	 Income does not inure to the benefit ofprivate persons ifsuch persons are the 

intended beneficiaries. ofa governmental program, and the program activities are 

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

the administration ofsome phase of government. Notwithstanding the foregoing, 

however, income is considered to inure to the benefit ofprivate persons ifthe 

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

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

to private persons. 

C. 	International Organization. Any international organization or wholly owned 

agency or instrumentality thereof. This category includes any intergovernmental 

organization (including a supranational organization) (l) that is comprised primarily 

of non-U.S. governments; (2) that has in effect a headquarters agreement with 

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

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

authority, other than the government ofGrenada itself, issuing instruments intended to 

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

separate from the government ofGrenada, whether or not owned in whole or in part 

by Grenada. 

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

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

for purposes ofsections 1471and1472 ofthe U.S. Internal Revenue Code: 

A. 	Broad Participation Retirement Fund. A fund established in Grenada 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 ofthe 

fund's assets; 

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

about its beneficiaries to the relevant tax authorities in Grenada; and 

3. 	 Satisfies at least one ofthe following requirements: 

a) 	 The fund is generally exempt from tax in Grenada on investment income 

under the laws ofGrenada due to its status as a retirement or pension plan; 

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

transfers of assets from other plans described in paragraphs A through C of 

37 

this section or from retirement and pension accounts described in 

subparagraph A(1) ofsection V ofthis 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, disa}>ility, or death (except 

rollover distributions to other retirement funds described in paragraphs A 

through C ofthis section or retirement and pension accounts described in 

subparagraph A(l) of section V ofthis Annex II), or penalties apply to 

distributions or withdrawals made before such specified events; or 

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

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

employee or may not exceed $50,000 annually, applying the rules set forth in 

Annex I for account aggregation and currency translation; 

B. 	Narrow Participation Retirement Fund. A fund established in Grenada to provide 

retirement, disability, or death benefits to beneficiaries that are current or former 

employees (or persons designated by such employees) ofone or more employers in 

consideration for services rendered, provided that: 

I. 	 The fund has fewer than 50 participants; 

2. 	 The fund is sponsored by one or more employers that are not Investment Entities 

or Passive NFFEs; 

3. 	 The employee and employer contributions to the fund (other than transfers of 

assets from retirement and pension accounts described in subparagraph A(1) of 

section V ofthis Annex II) are limited by reference to earned incom~ and 

compensation ofthe employee, respectively; 

4. 	 Participants that are not residents ofGrenada are not entitled to more than 20 

percent ofthe 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 Grenada; 

C. 	 Pension Fund of an Exempt Beneficial Owner. A fund established in Grenada by 

an exempt beneficial owner to provide retirement, disability, or death benefits to 

beneficiaries or participants that are current or former employees ofthe exempt 

beneficial owner (or persons designated by such employees), or that are not current or 

former employees, ifthe benefits provided to such beneficiaries or participants are in 

consideration of personal services performed for the exempt beneficial owner; 

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

a Grenada Financial Institution solely because it is an Investment Entity, provided that 

each direct holder ofan Equity Interest in the Entity is an exempt beneficial owner, 

and each direct holder ofa debt interest in such Entity is either a Depository 

Institution (with respect to a loan made to such Entity) or an exempt beneficial owner. 

38 

Ill. 	 Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant 

FFis. The following Financial Institutions are Non-Reporting Grenada Financial 

Institutions that shall be treated as deemed-compliant FF Is for purposes ofsection 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 ofGrenada; 

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

For this purpose, a fixed place ofbusiness does not include a location that is not 

advertised to the public and from which the Financial Institution performs solely 

adminiStrative support functions; 

3. 	 The Financial Institution must not solicit customers or Account Holders outside 

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

solicited customers or Account Holders outside Grenada merely because the 

Financial Institution (a) operates a website, provided that the website does not 

specifically indicate that the Financial Institution provides Financial Accounts or 

services to nonresidents, and does not otherwise target or solicit U.S. customers or 

Account Holders, or (b) advertises in print media or on a radio or television 

station that is distributed or aired primarily within Grenada 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 ofGrenada to identify 

resident Account Holders for purposes ofeither information reporting or 

withholding oftax with respect to Financial Accounts held by residents or for 

purposes ofsatisfying Grenada'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 

Grenada; 

6. 	 By July 1, 2014 or the date that the Financial Institution claims treatment as a 

deemed-compliant FFI pursuant to this paragraph A, whichever is later, 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 ofGrenada (including a U.S. Person that was a 

resident ofGrenada when the Financial Account was opened but subsequently 

ceases to be a resident of Grenada) or any Passive NFFE with Controlling Persons 

who are U.S. residents or U.S. citizens who are not residents of Grenada; 

39 
7. 	 Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident ofGrenada or by a Passive NFFE with 

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

ofGrenada is identified, the Financial Institution must report such Financial 

Account as would be required ifthe Financial Institution were a Reporting 

Grenada Financial Institution (including by following the applicable registration 

requirements on the IRS FATCA registration website) or close such Financial 

Account; 

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

ofGrenada or by an Entity, the Financial Institution must review those Preexisting 

Accounts in accordance with the procedures set forth in Annex I applicable to 

Preexisting Accounts to identify any U.S. Reportable Account or Financial 

Account held by a Nonparticipating Financial Institution, and must report such 

Financial Account as would be required ifthe Financial Institution were a 

Reporting Grenada Financial Institution (including by following the applicable 

registration requirements on the IRS FATCA registration website) or close such 

Financial Account; 

9. 	 Each Related Entity ofthe Financial Institution that is a Financial Institution 

must be incorporated or organized in Grenada and, with the exception of any 

Related Entity that is a retirement fund described in paragraphs A through C of 

section II ofthis 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 ofGre_nada. 

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 ofGrenada as) (a) a bank or (b) a credit union or similar cooperative 

credit organization that is operated without profit; 

2. 	 The Financial Institution's business consists primarily ofreceiving deposits from 

and making loans to, with respect to a bank, unrelated retail customers and, with 

respect to a. credit union or similar cooperative credit organization, members, 

provided that no member has a greater than five percent interest in such credit 

union or cooperative credit organization; 

3. 	 The Financial Institution satisfies the requirements set forth in subparagraphs A(2) 

and A(3) ofthis section, provided that, in addition to the limitations on the website 

described in subparagraph A(3) ofthis section, the website does not permit the 

opening of a Financial Account; 

4. 	 The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million in total assets on their consolidated 

or combined balance sheets; and 

40 

5. 	 Any Related Entity must be incorporated or organized in Grenada, and any 

Related Entity that is a Financial Institution, with the exception ofany Related 

Entity that is a retirement fund described in paragraphs A through C of section II 

ofthis Annex II or a Financial Institution with only low-value accounts described 

in paragraph C ofthis section, must satisfy the requirements set forth in this 

paragraph B. 

C. 	 Financial Institution with Only Low-Value Accounts. A Financial Institution with 

only Low-Value Accounts is a Grenada 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 Grenada Financial Institution satisfying the 

following requirements: 

1. 	 The Financial Institution fs a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in 

excess of a balance due with respect to the card and the overpayment is not 

immediately returned to the customer; and · 

2. 	 By July 1, 2014 or the date that the Financial Institution claims treatment as a 

deemed-compliant FFI pursuant to this paragraph D, whichever is later, 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 

ofdisputed 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 ofthis section are 

Non-Reporting Grenada Financial Institutions that shall be treated as deemed-compliant 

FFls for purposes ofsection 1471 ofthe U.S. Internal Revenue Code. In addition, 

paragraph F ofthis section provides special rules applicable to an Investment Entity: 

A. 	Trustee-Documented Trust. A trust established under the laws ofGrenada to the 

exten(that the trustee ofthe trust is a Reporting U.S. Financial Institution, Reporting 

41 
Model 1 FFI, or Participating FFI and reports all information required to be reported 

pursuant to the Agreement with respect to all U.S. Reportable Accounts ofthe trust; 

B. 	 Sponsored Investment Entity and Controlled Foreign Corporation. A Financial 

Institution described in subparagraph B(l) or B(2) of this section having a sponsoring 

entity that complies with the requirements ofsubparagraph B(3) ofthis section, as 

follows: 

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

Entity established in Grenada that is not a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust pursuant to relevant U.S. 

Treasury Regulations; and (b) an Entity has agreed with the Financial Institution 

to act as a sponsoring entity for the Financial Institution. 

2. 	 A Financial Institution is a sponsored controlled foreign corporation if(a) the 

Financial Institution is a controlled foreign corporation1 organized under the laws 

ofGrenada that is not a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the 

Financial Institution is wholly owned, directly or indirectly, by a Reporting U.S. 

Financial Institution that agrees to act, or requires an affiliate ofthe 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 ofthe Financial Institution and to access all account and 

customer information maintained by the Financial Institution including, but not 

limited to, customer identification information, customer documentation, account 

balance, and all payments made to the Account Holder or payee. 

3. 	 The sponsoring entity complies with the following requirements: 

a) 	 The sponsoring entity is authorized to act on behalf ofthe Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS FATCA registration 

website; 

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

IRS FATCA registration website; 

c) 	 Ifthe sponsoring entity identifies any U.S. Reportable Accounts with respect 

to the Financial Institution, the sponsoring entity registers the Financial 

Institution pursuant to applicable registration requirements on the IRS FATCA 

registration website on or before the later ofDecember 31, 2015 and the date 

that is 90 days after such a U.S. Reportable Account is first identified; 

1 	 A "controlled foreign corporation" means any foreign corporation if more than 50 percent ofthe total 

combined voting power of all classes ofstock of such corporation entitled to vote, or the total value ofthe 

stock of such corporation, is owned, or is considered as owned, by "United States shareholders" on any day 

during the taxable year of such foreign corporation. The tenn a "United States shareholder" means, with 

respect to any foreign corporation, a United States person who owns, or is considered as owning, 10 percent 

or more ofthe total combined voting power of all classes ofstock entitled to vote ofsuch foreign corporation. 

42 

d) 	 The sponsoring entity agrees to perform,· on behalf ofthe Financial Institution, 

all due diligence, withholding, reporting, and other requirements that the 

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

Reportfo.g Gren<1;da Financial Institution; 

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

identifying number ofthe Financial Institution (obtained by following 

applicable registration requirements on the IRS FATCA registration website) 

in all reporting completed on the Financial Institution's behalf; and 

f) 	 The sponsoring entity has not had its status as a sponsor revoked; 

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

satisfying the following requirements: 

l. 	The Financial Institution is a Financial Institution solely because it is an 

Investment Entity and is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; 

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

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to 

perform, on behalf ofthe 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 Grenada 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 ofthe debt interests and Equity Interests in 

the Financial Institution (disregarding debt interests owned by Participating FFis 

and deemed-compliant FFis and Equity Interests owned by an Entity ifthat Entity 

owns l 00 percent ofthe Equity Interests in the Financial Institution and is itself a 

sponsored Financial Institution described in this paragraph C); and 

5. 	 The sponsoring entity complies with the following requirements: 

a) 	 The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

b) 	 The sponsoring entity agrees to perform, on behalf ofthe Financial Institution, 

all due diligence, withholding, reporting, and other requirements that the 

Financial Institution would have been required to perform ifit were a 

Reporting Grenada Financial Institution and retains documentation collected 

with respect to the Financial Institution for a period ofsix years; 

c) 	 The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution's behalf; and 

43 

d) 	 The sponsoring entity has not had its status as a sponsor revoked; 

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

ill Grenada that is a Financial Institution solely because it (1) renders investment 

advice to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a 

customer for the purposes of investing, managing, or administering funds deposited in 

the name ofthe customer with a Financial Institution other than a Nonparticipating 

Financial Institution; 

E. 	 Collective Investment Vehicle. An Investment Entity established in Grenada that is 

regulated as a collective investment vehicle, provided that all ofthe interests in the 

collective investment vehicle (including debt interests in excess of$50,000) are held 

by or through one or more exempt beneficial owners, Active NFFEs described in 

subparagraph B(4) ofsection 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 ofthis section, the reporting obligations ofany 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

2. 	 With respect to interests in: 

a) 	 An Investment Entity established in a Partner Jurisdiction that is regulated as a 

collective investment vehicle, all ofthe 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 

ofAnnex I, U.S. Persons that are not Specified U.S. Persons, or Financial 

Institutions that are not Nonparticipating Financial Institutions; or 

b) 	 An Investment Entity that is a qualified collective investment vehicle under 

relevant U.S. Treasury ·Regulations; 

the reporting obligations of any Investment Entity that is a Grenada 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 Grenada that is not 

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

paragraph 3 ofArticle 5 ofthe Agreement, the reporting obligations ofall other 

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

information required to be reported by the first~mentioned Investment Entity 

pursuant to the Agreement with respect to such interests is reported by such 

Investment Entity or another person. 

4. 	 An Investment Entity established in Grenada that is regulated as a collective 

investment vehicle shall not fail to qualify under paragraph E or subparagraph 

F(2) ofthis section, or otherwise as a deemed-compliant FFI, solely because the 

44 

collective investment vehicle has issued physical shares in bearer form, provided 

that: 

a) 	 The collective investment vehicle has not issued, and does not issue, any 

physical shares in bearer form after December 31, 2012; 

b) 	 The collective investment vehicle retires all such shares upon surrender; 

c) 	 The collective investment vehicle (or a Reporting Grenada Financial 

Institution) performs the due diligence procedures set forth in Annex I and 

reports any information required to be reported with respect to any such shares 

when such shares are presented for redemption or other payment; and 

d) 	 The collective investment vehicle has in place policies and procedures to 

ensure that such shares are redeemed or immobilized as soon as possible, and 

in any event prior to January I, 2017. 

V. 	 Accounts Excluded from Financial Accounts. The following accounts are excluded 

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

Reportable Accounts: 

A. 	Certain Savings Accounts. 

1. 	 Retirement and Pension Account. A retirement or pension account maintained in 

Grenada that satisfies the following requirements under the laws ofGrenada.. 

a) 	 The account is subject to regulation as a personal retirement account or is part 

ofa 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 ofGrenada are deductible or 

excluded from the gross income ofthe 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 Grenada 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. 

45 

2. 	 Non-Retirement S4avings Accounts. An account maintained in Grenada (other 

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

under the laws ofGrenada: 

a) 	 The account is subject to regulation as a savings vehicle for purposes other 

than for retirement; 

b) 	 The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws ofGrenada are deductible or 

excluded from the gross income ofthe account holder or taxed at a reduced 

rate, or taxation ofinvestment income from the account is deferred or taxed at 

a reduced rate); 

c) 	 Withdrawals are conditioned on meeting specific criteria related to the purpose 

ofthe savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; 

and 

d) 	 Annual contributions are limited to $50,000 or less, applying the rules set 

forth in Annex I for account aggregation and currency translation. 

B. 	Certain Term Life Insurance Contracts. A life insurance contract maintained in 

Grenada 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 

ofthe contract cannot exceed the aggregate premiums paid for the contract, less 

the sum ofmortality, morbidity, and expense charges (whether or not actually 

imposed) for the period or periods ofthe contract's existence and any amounts 

paid prior to the cancellation or termination ofthe contract; and 

4. 	 The contract is not held by a transferee for value. 

C. 	Account Held By an Estate. An account maintained in Grenada that is held solely 

by an estate if the documentation for such account includes a copy ofthe deceased's 

will or death certificate. 

D. 	Escrow Accounts. An account maintained in Grenada established in connection with 

any ofthe following: 

1. 	 A court order or judgment. 

46 

2. 	 A sale, exchange, or lease ofreal 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 ofthe 

property; 

b) 	 The account is established and used solely to secure the obligation ofthe 

purchaser to pay the purchase price for the property, for the seller to pay any 

contingent liability, or for the lessor or lessee to pay for any damages relating 

to the leased property as agreed under the lease; 

c) 	 The assets ofthe account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit ofthe purchaser, seller, lessor, or lessee 

(including to satisfy such person's obligation) when the property is sold, 

exchanged, or surrendered, or the lease terminates; 

d) 	 The account is not a margin or similar account established in connection with 

a sale or exchange of a financial asset; and 

e) 	 The account is not associated with a credit card account. 

3. 	 An obligation of a Financial Institution servicing a loan secured by real property 

to set aside a portion ofa payment solely to facilitate the payment oftaxes or 

insurance related to the real property at a later time. 

4. 	 An obligation of a Financial Institution solely to facilitate the payment oftaxes at 

a later time. 

E. 	 Partner Jurisdiction Accounts. An account maintained in Grenada and excluded 

from the definition ofFinancial Account under an agreement between the United 

S~tes and another Partner Jurisdiction to facilitate the implementation ofFATCA, 

provided that such account is subject to the same requirements and oversight under 

the laws of such other Partner Jurisdiction as ifsuch account were established in that 

Partner Jurisdiction and maintained by a Partner Jurisdiction Financial Institution in 

that Partner Jurisdiction. 

VI. Definitions. The following additional definitions shall apply to the descriptions above: 

A. 	Reporting Model 1 FFI. The term Reporting Model I FFI means a Financial 

Institution with respect to which a non-U.S. government or agency thereof agrees to 

obtain and exchange information pursuant to a Model I IGA, other than a Financial 

Institution treated as a Nonparticipating Financial Institution under the Model 1 IGA. 

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

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

more agencies thereof to implement FATCA through reporting by Financial 

Institutions to such non-U.S. government or agency thereof, followed by automatic 

exchange ofsuch reported information with the IRS. 

47 

B. 	Participating FFI. The term Participating FFI means a Financial Institution that has 

agreed to comply with the requirements ofan FFI Agreement, including a Financial 

Institution described in a Model 2 IGA that has agreed to comply with the 

requirements of an FFI Agreement. ·The term Participating FFI also includes a 

qualified intermediary branch of a Reporting U.S. Financial Institution, unless such 

branch is a Reporting Model 1 FFI. For purposes ofthis definition, the term FFI 

Agreement means an agreement that sets forth the requirements for a Financial 

Institution to be treated as complying with the requirements of section 147l(b) ofthe 

U.S. Internal Revenue Code. In addition, for purposes ofthis definition, the term 

Model 2 IGA means an arrangement between the United States or the Treasury 

Department and a non-U.S. government or one or more agencies thereof to facilitate 

the implementation ofFATCA through reporting by Financial Institutions directly to 

the IRS in accordance with the requirements of an FFI Agreement, supplemented by 

the exchange of information between such non-U.S. government or agency thereof 

and the IRS. 

48