AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF 

AMERICA AND THE GOVERNMENT OF ANGUILLA TO IMPROVE 

INTERNATIONAL TAX COMPLIANCE AND TO IMPLEMENT THE FOREIGN 

ACCOUNT TAX COMPLIANCE ACT 

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

Anguilla (each, a “Party,” and together, the “Parties”) desire to conclude an agreement to 

improve international tax compliance; 

Noting that the Government of the United Kingdom of Great Britain and Northern 

Ireland (the “United Kingdom”) informed the Government of the United States of 

America by providing a copy of a Letter of Entrustment, via diplomatic note no. 20/03/14 

of 26th day of March 2014 to the Government of the United States of America, that the 

Government of the United Kingdom of Great Britain and Northern Ireland has entrusted 

the Government of Anguilla to negotiate and conclude a tax agreement with the 

Government of the United States of America on information exchange to facilitate 

implementation of the Foreign Account Tax Compliance Act; 

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

Foreign Account Tax Compliance Act (“FATCA”), which introduce a reporting regime 

for financial institutions with respect to certain accounts; 

Whereas, the Government of Anguilla is supportive of the underlying policy goal of 

FATCA to improve tax compliance; 

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

institutions may not be able to comply with certain aspects of FATCA due to domestic 

legal impediments; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for Anguilla financial institutions; 

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

compliance and provide for the implementation of FATCA based on domestic reporting 

and automatic exchange, subject to the confidentiality and other protections provided for 

herein, including the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 
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Article 1 

Definitions 

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

following terms shall have the meanings set forth below: 

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

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

to a “State” of the United States includes the District of Columbia. 

b) The term “U.S. Territory” means American Samoa, the Commonwealth 

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

Rico, or the U.S. Virgin Islands. 

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

d) The term “Anguilla” means Anguilla. 

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

agreement with the United States to facilitate the implementation of 

FATCA. The IRS shall publish a list identifying all Partner Jurisdictions. 

f) The term “Competent Authority” means: 

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

delegate; and 

(2) in the case of Anguilla, the Comptroller of Inland Revenue or his 

delegate. 

g) The term “Financial Institution” means a Custodial Institution, a 

Depository Institution, an Investment Entity, or a Specified Insurance 

Company.

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

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

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

substantial portion of its business if the entity’s gross income attributable 

to the holding of financial assets and related financial services equals or 

exceeds 20 percent of the entity’s gross income during the shorter of: (i) 

the three-year period that ends on December 31 (or the final day of a noncalendar 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. 
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i) The term “Depository Institution” means any Entity that accepts deposits 

in the ordinary course of a banking or similar business.

j) The term “Investment Entity” means any Entity that conducts as a 

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

more of the following activities or operations for or on behalf of a 

customer: 

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

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

and index instruments; transferable securities; or commodity 

futures trading; 

(2) individual and collective portfolio management; or 

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

on behalf of other persons. 

This subparagraph 1(j) shall be interpreted in a manner consistent with 

similar language set forth in the definition of “financial institution” in the 

Financial Action Task Force Recommendations. 

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

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

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

Insurance Contract or an Annuity Contract. 

l) The term “Anguilla Financial Institution” means (i) any Financial 

Institution organized under the laws of Anguilla, but excluding any branch 

of such Financial Institution that is located outside Anguilla, and (ii) any 

branch of a Financial Institution not organized under the laws of Anguilla, 

if such branch is located in Anguilla.

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

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

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

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

n) The term “Reporting Anguilla Financial Institution” means any Anguilla 

Financial Institution that is not a Non-Reporting Anguilla Financial 

Institution. 
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o) The term “Non-Reporting Anguilla Financial Institution” means any 

Anguilla Financial Institution, or other Entity in Anguilla, that is described 

in Annex II as a Non-Reporting Anguilla 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 an Anguilla Financial Institution or other 

Partner Jurisdiction Financial Institution other than a Financial Institution 

treated as a Nonparticipating Financial Institution pursuant to subparagraph 

3(b) of Article 5 of this Agreement or the corresponding provision in an 

agreement between the United States and a Partner Jurisdiction. 

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

Financial Institution, and includes: 

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

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

interests that are regularly traded on an established securities 

market) in the Financial Institution; 

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

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

Institution (other than interests that are regularly traded on an 

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

interest is determined, directly or indirectly, primarily by reference 

to assets that give rise to U.S. Source Withholdable Payments, and 

(ii) the class of interests was established with a purpose of 

avoiding reporting in accordance with this Agreement; and 

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

issued or maintained by a Financial Institution, other than a 

noninvestment-linked, nontransferable immediate life annuity that 

is issued to an individual and monetizes a pension or disability 

benefit provided under an account that is excluded from the 

definition of Financial Account in Annex II. 

Notwithstanding the foregoing, the term “Financial Account” does not 

include any account that is excluded from the definition of Financial 

Account in Annex II. For purposes of this Agreement, interests are 

“regularly traded” if there is a meaningful volume of trading with respect 
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to the interests on an ongoing basis, and an “established securities market” 

means an exchange that is officially recognized and supervised by a 

governmental authority in which the market is located and that has a 

meaningful annual value of shares traded on the exchange. For purposes of 

this subparagraph 1(q), an interest in a Financial Institution is not 

“regularly traded” and shall be treated as a Financial Account if the holder 

of the interest (other than a Financial Institution acting as an intermediary) 

is registered on the books of such Financial Institution. The preceding 

sentence will not apply to interests first registered on the books of such 

Financial Institution prior to July 1, 2014, and with respect to interests first 

registered on the books of such Financial Institution on or after July 1, 

2014, a Financial Institution is not required to apply the preceding 

sentence prior to January 1, 2016. 

r) The term “Depository Account” includes any commercial, checking, 

savings, time, or thrift account, or an account that is evidenced by a 

certificate of deposit, thrift certificate, investment certificate, certificate of 

indebtedness, or other similar instrument maintained by a Financial 

Institution in the ordinary course of a banking or similar business. A 

Depository Account also includes an amount held by an insurance company 

pursuant to a guaranteed investment contract or similar agreement to pay or 

credit interest thereon. 

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

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

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

limited to, a share or stock in a corporation, a note, bond, debenture, or 

other evidence of indebtedness, a currency or commodity transaction, a 

credit default swap, a swap based upon a nonfinancial index, a notional 

principal contract, an Insurance Contract or Annuity Contract, and any 

option or other derivative instrument). 

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

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

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

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

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

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

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

right to receive directly or indirectly (for example, through a nominee) a 
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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 of a specified contingency involving mortality, morbidity, 

accident, liability, or property risk. 

v) The term “Annuity Contract” means a contract under which the issuer 

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

part by reference to the life expectancy of one or more individuals. The 

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

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

the contract was issued, and under which the issuer agrees to make 

payments for a term of years. 

w) The term “Cash Value Insurance Contract” means an Insurance Contract 

(other than an indemnity reinsurance contract between two insurance 

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

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

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or policy 

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

to the contract. Notwithstanding the foregoing, the term “Cash Value” does 

not include an amount payable under an Insurance Contract as: 

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

indemnification of an economic loss incurred upon the occurrence 

of the event insured against; 

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

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

to policy cancellation or termination, decrease in risk exposure 

during the effective period of the Insurance Contract, or arising 

from a redetermination of the premium due to correction of posting 

or other similar error; or 

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

the contract or group involved. 
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y) The term “U.S. Reportable Account” means a Financial Account 

maintained by a Reporting Anguilla Financial Institution and held by one or 

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

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

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

such account is not identified as a U.S. Reportable Account after 

application of the due diligence procedures in Annex I. 

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

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

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

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

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

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

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

preceding sentence, the term “Financial Institution” does not include a 

Financial Institution organized or incorporated in a U.S. Territory. In the 

case of a Cash Value Insurance Contract or an Annuity Contract, the 

Account Holder is any person entitled to access the Cash Value or change 

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

change the beneficiary, the Account Holder is any person named as the 

owner in the contract and any person with a vested entitlement to payment 

under the terms of the contract. Upon the maturity of a Cash Value 

Insurance Contract or an Annuity Contract, each person entitled to receive 

a payment under the contract is treated as an Account Holder. 

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

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

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

United States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of 

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

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

or resident of the United States. This subparagraph 1(aa) shall be 

interpreted in accordance with the U.S. Internal Revenue Code. 

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

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

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

same expanded affiliated group, as defined in section 1471(e)(2) 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) 
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any State of the United States, any U.S. Territory, any political subdivision 

of any of the foregoing, or any wholly owned agency or instrumentality of 

any one or more of the foregoing; (v) any organization exempt from 

taxation under section 501(a) of the U.S. Internal Revenue Code or an 

individual retirement plan as defined in section 7701(a)(37) of the U.S. 

Internal Revenue Code; (vi) any bank as defined in section 581 of the U.S. 

Internal Revenue Code; (vii) any real estate investment trust as defined in 

section 856 of the U.S. Internal Revenue Code; (viii) any regulated 

investment company as defined in section 851 of the U.S. Internal Revenue 

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

Commission under the Investment Company Act of 1940 (15 U.S.C. 80a64); (ix) any common trust fund as defined in section 584(a) of the U.S. 

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

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

4947(a)(1) of the U.S. Internal Revenue Code; (xi) a dealer in securities, 

commodities, or derivative financial instruments (including notional 

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

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

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

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

the U.S. Internal Revenue Code. 

cc) The term “Entity” means a legal person or a legal arrangement such as a 

trust. 

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

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

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

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

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

income, if such payment is from sources within the United States. 

Notwithstanding the foregoing, a U.S. Source Withholdable Payment does 

not include any payment that is not treated as a withholdable payment in 

relevant U.S. Treasury Regulations. 

ff) An Entity is a “Related Entity” of another Entity if either Entity controls 

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

purpose control includes direct or indirect ownership of more than 50 

percent of the vote or value in an Entity. Notwithstanding the foregoing, 

Anguilla may treat an Entity as not a Related Entity of another Entity if the 
9 

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

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

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

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

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

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

beneficiaries, and any other natural person exercising ultimate effective 

control over the trust, and in the case of a legal arrangement other than a 

trust, such term means persons in equivalent or similar positions. The term 

“Controlling Persons” shall be interpreted in a manner consistent with the 

Financial Action Task Force Recommendations. 

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

otherwise requires or the Competent Authorities agree to a common meaning (as 

permitted by domestic law), have the meaning that it has at that time under the 

law of the Party applying this Agreement, any meaning under the applicable tax 

laws of that Party prevailing over a meaning given to the term under other laws of 

that Party. 

Article 2 

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

Accounts 

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

information specified in paragraph 2 of this 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 of each Reporting Anguilla Financial Institution is: 

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

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

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

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

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

each such Specified U.S. Person; 
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b) the account number (or functional equivalent in the absence of an account 

number); 

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

Institution; 

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

Insurance Contract or Annuity Contract, the Cash Value or surrender 

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

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

immediately before closure; 

e) in the case of any Custodial Account: 

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

dividends, and the total gross amount of other income generated 

with respect to the assets held in the account, in each case paid or 

credited to the account (or with respect to the account) during the 

calendar year or other appropriate reporting period; and 

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

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

appropriate reporting period with respect to which the Reporting 

Anguilla Financial Institution acted as a custodian, broker, 

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

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

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

appropriate reporting period; and 

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

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

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

reporting period with respect to which the Reporting Anguilla Financial 

Institution is the obligor or debtor, including the aggregate amount of any 

redemption payments made to the Account Holder during the calendar 

year or other appropriate reporting period. 
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Article 3 

Time and Manner of Exchange of Information 

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

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

may be determined in accordance with the principles of the tax laws of Anguilla. 

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

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

denominated. 

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

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

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

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

of this Agreement; 

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

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

this Agreement, except for gross proceeds described in subparagraph 

2(e)(2) of Article 2 of this Agreement; and 

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

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

through 2(g) of Article 2 of this Agreement. 

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

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

and subject to paragraph 2 of Article 6 of this Agreement, Anguilla is not required to 

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

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

such a case, Anguilla shall obtain and include in the exchanged information the date of 

birth of the relevant person, if the Reporting Anguilla Financial Institution has such date 

of birth in its records. 

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

2 of this Agreement shall be exchanged by the later of nine months after the end of the 

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

agreement enters into force. 
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6. The Competent Authorities of Anguilla and the United States shall enter into an 

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

8 of this Agreement, which shall: 

a) establish the procedures for the automatic exchange obligations described 

in Article 2 of this Agreement; 

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

of this Agreement; and 

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

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

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

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

the use of the information exchanged. 

Article 4 

Application of FATCA to Anguilla Financial Institutions 

1. Treatment of Reporting Anguilla Financial Institutions. Each Reporting 

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

withholding under, section 1471 of the U.S. Internal Revenue Code if Anguilla complies 

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

Reporting Anguilla Financial Institution, and the Reporting Anguilla Financial 

Institution: 

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

Competent Authority the information required to be reported in paragraph 

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

Article 3 of this Agreement; 

b) for each of 2015 and 2016, reports annually to the Anguillian Competent 

Authority the name of each Nonparticipating Financial Institution to 

which it has made payments and the aggregate amount of such payments; 

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

registration website; 

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

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

Revenue Code) that has elected to assume primary withholding 
13 

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

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

foreign partnership (for purposes of both sections 1441 and 1471 of the 

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

as a withholding foreign trust (for purposes of both sections 1441 and 

1471 of the U.S. Internal Revenue Code), withholds 30 percent of any 

U.S. Source Withholdable Payment to any Nonparticipating Financial 

Institution; and 

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

described in subparagraph 1(d) of this Article and that makes a payment 

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

Payment to any Nonparticipating Financial Institution, the Reporting 

Anguilla 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 Anguilla Financial Institution with respect to 

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

withholding under section 1471 of the U.S. Internal Revenue Code unless such Reporting 

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

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

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

shall not require a Reporting Anguilla Financial Institution to withhold tax under section 

1471 or 1472 of the U.S. Internal Revenue Code with respect to an account held by a 

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

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

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

3 of this Agreement, with respect to such account. 

3. Specific Treatment of Anguillian Retirement Plans. The United States shall 

treat as deemed-compliant FFIs or exempt beneficial owners, as appropriate, for purposes 

of sections 1471 and 1472 of the U.S. Internal Revenue Code, Anguillian retirement 

plans described in Annex II. For this purpose, an Anguillian retirement plan includes an 

Entity established or located in, and regulated by, Anguilla, 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 Anguilla 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 Anguilla Financial 
14 

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

for purposes of section 1471 of the U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If an Anguilla Financial Institution, that 

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

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

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

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

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

Nonparticipating Financial Institution solely due to the expiration of the transitional rule 

for limited FFIs and limited branches under relevant U.S. Treasury Regulations, such 

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

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

beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal 

Revenue Code, provided that: 

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

as a separate Nonparticipating Financial Institution for purposes of all the 

reporting and withholding requirements of this Agreement and each such 

Related Entity or branch identifies itself to withholding agents as a 

Nonparticipating Financial Institution; 

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

the information with respect to those accounts as required under section 

1471 of the U.S. Internal Revenue Code to the extent permitted under the 

relevant laws pertaining to the Related Entity or branch; and 

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

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

Entity or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

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

by the Anguilla Financial Institution or any other Related Entity to 

circumvent the obligations under this Agreement or under section 1471 of 

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

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

Agreement: 

a) Anguilla 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 
15 

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

participating FFIs pursuant to relevant U.S. Treasury Regulations; and 

b) Anguilla shall not be obligated to begin exchanging information prior to 

the date by which participating FFIs are required to report similar 

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

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

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

Agreement, in implementing this Agreement, Anguilla may use, and may permit Anguilla 

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

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

frustrate the purposes of this Agreement. 

Article 5 

Collaboration on Compliance and Enforcement 

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

authority agreement concluded pursuant to paragraph 6 of Article 3 of this Agreement, 

the U.S. Competent Authority may make follow-up requests to the Anguillian Competent 

Authority, pursuant to which the Anguillian 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 Anguilla Financial 

Institution’s business that summarize the activity (including withdrawals, transfers, and 

closures) of the U.S. Reportable Account. 

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

the Anguillian Competent Authority when the U.S. Competent Authority has reason to 

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

incomplete information reporting or resulted in other infringements of this Agreement. 

The Anguillian 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 Anguillian 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 Anguilla Financial Institution. The Anguillian 

Competent Authority shall apply its domestic law (including applicable 
16 

penalties) to address the significant non-compliance described in the 

notice. 

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

period of 18 months after notification of significant non-compliance is 

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

treat the Reporting Anguilla Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 3(b). 

4. Reliance on Third Party Service Providers. Anguilla may allow Reporting 

Anguilla Financial Institutions to use third party service providers to fulfill the 

obligations imposed on such Reporting Anguilla Financial Institutions by Anguilla, as 

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

the Reporting Anguilla Financial Institutions. 

5. Prevention of Avoidance. Anguilla shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the 

reporting required under this Agreement. 

Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

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

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

effective alternative approach to achieve the policy objectives of foreign passthru 

payment and gross proceeds withholding that minimizes burden. 

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

U.S. Reportable Accounts maintained by a Reporting Anguilla Financial Institution as of 

June 30, 2014, Anguilla commits to establish, by January 1, 2017, for reporting with 

respect to 2017 and subsequent years, rules requiring Reporting Anguilla Financial 

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

subparagraph 2(a) of Article 2 of this Agreement. 
17 

Article 7 

Consistency in the Application of FATCA to Partner Jurisdictions 

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

Annex I of this Agreement relating to the application of FATCA to Anguilla 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 Anguilla described in Articles 2 and 3 of this Agreement, and subject to the 

same terms and conditions as described therein and in Articles 5, 6, 7, 10 and 11 of this 

Agreement. 

2. The United States shall notify Anguilla of any such more favorable terms, and such 

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

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

incorporating the more favorable terms, unless Anguilla declines in writing the 

application thereof. 

Article 8 

Mutual Agreement Procedure 

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

implementation, application, or interpretation of this Agreement, the Competent 

Authorities shall endeavor to resolve the matter by mutual agreement. 

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

implementation of this Agreement. 

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

purposes of reaching a mutual agreement under this Article. 

Article 9 

Confidentiality 

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

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

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

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

related to the performance of the obligations of Anguilla under this Agreement. 
18 

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

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

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

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

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

taxes, or the oversight of such functions. Such persons or authorities shall use such 

information only for such purposes. Such persons may disclose the information in public 

court proceedings or in judicial decisions. The information may not be disclosed to any 

other person, entity, authority, or jurisdiction. Notwithstanding the foregoing, where 

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

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

Parties that allows for the exchange of tax information. 

Article 10 

Consultations and Amendments 

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

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

Article 8 of this Agreement, request consultations to develop appropriate measures to 

ensure the fulfillment of this Agreement. 

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

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

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

Article 11 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 12 

Term of Agreement 

1. This Agreement shall enter into force on the date of Anguilla’s written 

notification to the United States that Anguilla has completed its necessary internal 

procedures for entry into force of this Agreement. 

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

writing to the other Party. Such termination shall become effective on the first day of the 
19 

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

termination. 

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

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

this Agreement. 

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

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

Agreement. 

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

Governments, have signed this Agreement. 

Done at ________, the __ day of ________, 20__, and at _________, the __ day of 

________, 20__, in duplicate, in the English language. 

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF 

ANGUILLA: 
20 

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. Anguilla shall require that Reporting Anguilla Financial Institutions apply 

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

Accounts and accounts held by Nonparticipating Financial Institutions. 

B. For purposes of the Agreement, 

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

the equivalent in other currencies. 

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

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

appropriate reporting period. 

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

30, 2014 under this Annex I, the relevant balance or value shall be 

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

immediately before June 30, 2014, and where a balance or value threshold 

is to be determined as of the last day of a calendar year under this Annex I, 

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

calendar year or other appropriate reporting period. 

4. Subject to subparagraph E(1) of section II of this Annex I, an 

account shall be treated as a U.S. Reportable Account beginning as of the 

date it is identified as such pursuant to the due diligence procedures in this 

Annex I. 

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

Reportable Account shall be reported annually in the calendar year 

following the year to which the information relates. 

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

I, Anguilla may permit Reporting Anguilla 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 
21 

Financial Institution. Anguilla may permit Reporting Anguilla Financial 

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

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

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

location of where the account is maintained). 

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

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

individuals (“Preexisting Individual Accounts”). 

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

Unless the Reporting Anguilla Financial Institution elects otherwise, either with 

respect to all Preexisting Individual Accounts or, separately, with respect to any 

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

Anguilla provide for such an election, the following Preexisting Individual 

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

Reportable Accounts: 

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

Individual Account with a balance or value that does not exceed $50,000 

as of June 30, 2014. 

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

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

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

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

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

Anguilla or the United States effectively prevent the sale of such a Cash 

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

the relevant Financial Institution does not have the required registration 

under U.S. law, and the law of Anguilla requires reporting or withholding 

with respect to insurance products held by residents of Anguilla). 

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

B. Review Procedures for Preexisting Individual Accounts With a 

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

Cash Value Insurance Contract or Annuity Contract), But Does Not Exceed 

$1,000,000 (“Lower Value Accounts”).

1. Electronic Record Search. The Reporting Anguilla Financial 

Institution must review electronically searchable data maintained by the 
22 

Reporting Anguilla Financial Institution for any of the following U.S. 

indicia: 

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

resident; 

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

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

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account 

maintained in the United States; 

f) Currently effective power of attorney or signatory authority 

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

g) An “in-care-of” or “hold mail” address that is the sole

address the Reporting Anguilla Financial Institution has on file for 

the Account Holder. In the case of a Preexisting Individual 

Account that is a Lower Value Account, an “in-care-of” address 

outside the United States or “hold mail” address shall not be 

treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph B(1) of this 

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

required until there is a change in circumstances that results in one or 

more U.S. indicia being associated with the account, or the account 

becomes a High Value Account described in paragraph D of this section. 

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

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

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

with the account, then the Reporting Anguilla Financial Institution must 

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

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

subparagraph applies with respect to that account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph B(1) 

of this section, a Reporting Anguilla Financial Institution is not required to 

treat an account as a U.S. Reportable Account if: 
23 

a) Where the Account Holder information unambiguously 

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

Institution obtains, or has previously reviewed and maintains a 

record of: 

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax purposes 

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

form); 

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

identification evidencing the Account Holder’s citizenship 

or nationality in a country other than the United States; and

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

of Nationality of the United States or a reasonable 

explanation of: 

(a) The reason the Account Holder does not 

have such a certificate despite relinquishing U.S. 

citizenship; or

(b) The reason the Account Holder did not 

obtain U.S. citizenship at birth. 

b) Where the Account Holder information contains a current

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

numbers that are the only telephone numbers associated with the 

account, the Reporting Anguilla Financial Institution obtains, or 

has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax purposes 

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

form); and

(2) Documentary evidence, as defined in paragraph D 

of section VI of this Annex I, establishing the Account 

Holder’s non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the 
24 

United States, the Reporting Anguilla Financial Institution obtains, 

or has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax purposes 

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

form); and

(2) Documentary evidence, as defined in paragraph D 

of section VI of this Annex I, establishing the Account 

Holder’s non-U.S. status. 

d) Where the Account Holder information contains a 

currently effective power of attorney or signatory authority 

granted to a person with a U.S. address, has an “in-care-of” 

address or “hold mail” address that is the sole address identified 

for the Account Holder, or has one or more U.S. telephone 

numbers (if a non-U.S. telephone number is also associated with 

the account), the Reporting Anguilla Financial Institution obtains, 

or has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax purposes 

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

form); or

(2) Documentary evidence, as defined in paragraph D 

of section VI of this Annex I, establishing the Account 

Holder’s non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts.

1. Review of Preexisting Individual Accounts that are Lower Value 

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

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

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

more U.S. indicia described in subparagraph B(1) of this section being 

associated with the account, then the Reporting Anguilla Financial 

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

subparagraph B(4) of this section applies. 
25 

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

this section, any Preexisting Individual Account that has been identified as 

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

Reportable Account in all subsequent years, unless the Account Holder 

ceases to be a Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts 

With a Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or 

December 31 of 2015 or Any Subsequent Year (“High Value Accounts”). 

1. Electronic Record Search. The Reporting Anguilla Financial 

Institution must review electronically searchable data maintained by the 

Reporting Anguilla Financial Institution for any of the U.S. indicia 

described in subparagraph B(1) of this section. 

2. Paper Record Search. If the Reporting Anguilla Financial 

Institution’s electronically searchable databases include fields for, and 

capture all of the information described in, subparagraph D(3) of this 

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

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

High Value Account, the Reporting Anguilla 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 Anguilla 

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

described in subparagraph B(1) of this section: 

a) The most recent documentary evidence collected with 

respect to the account; 

b) The most recent account opening contract or 

documentation; 

c) The most recent documentation obtained by the Reporting 

Anguilla Financial Institution pursuant to AML/KYC Procedures 

or for other regulatory purposes; 

d) Any power of attorney or signature authority forms 

currently in effect; and 

e) Any standing instructions to transfer funds currently in 

effect. 
26 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Anguilla Financial Institution is not required to perform the 

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

Reporting Anguilla 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 Anguilla Financial 

Institution; 

c) The Account Holder’s telephone number(s) currently on 

file, if any, with the Reporting Anguilla 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 Anguilla 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 Anguilla Financial Institution must treat as a U.S. Reportable 

Account any High Value Account assigned to a relationship manager 

(including any Financial Accounts aggregated with such High Value 

Account) if the relationship manager has actual knowledge that the 

Account Holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia.

a) If none of the U.S. indicia listed in subparagraph B(1) of 

this section are discovered in the enhanced review of High Value 

Accounts described above, and the account is not identified as held 

by a Specified U.S. Person in subparagraph D(4) of this section, 

then no 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. 
27 

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

section are discovered in the enhanced review of High Value 

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

circumstances that results in one or more U.S. indicia being 

associated with the account, then the Reporting Anguilla Financial 

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

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

of the exceptions in such subparagraph applies with respect to that 

account. 

c) Except for Depository Accounts described in subparagraph 

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

been identified as a U.S. Reportable Account under this section 

shall be treated as a U.S. Reportable Account in all subsequent 

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

Person. 

E. Additional Procedures Applicable to High Value Accounts.

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

June 30, 2014, the Reporting Anguilla Financial Institution must complete 

the enhanced review procedures described in paragraph D of this section 

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

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

December 31, 2014, the Reporting Anguilla Financial Institution must 

report the required information about such account with respect to 2014 in 

the first report on the account and on an annual basis thereafter. In the 

case of an account identified as a U.S. Reportable Account after December 

31, 2014 and on or before June 30, 2015, the Reporting Anguilla Financial 

Institution is not required to report information about such account with 

respect to 2014, but must report information about the account on an 

annual basis thereafter. 

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

of June 30, 2014, but becomes a High Value Account as of the last day of 

2015 or any subsequent calendar year, the Reporting Anguilla 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 Anguilla Financial Institution 

must report the required information about such account with respect to 
28 

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 Anguilla Financial Institution applies the 

enhanced review procedures described in paragraph D of this section to a 

High Value Account, the Reporting Anguilla Financial Institution is not 

required to re-apply such procedures, other than the relationship manager 

inquiry described in subparagraph D(4) of this section, to the same High 

Value Account in any subsequent year. 

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

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

B(1) of this section being associated with the account, then the Reporting 

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

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

of the exceptions in such subparagraph applies with respect to that 

account. 

5. A Reporting Anguilla Financial Institution must implement 

procedures to ensure that a relationship manager identifies any change in 

circumstances of an account. For example, if a relationship manager is 

notified that the Account Holder has a new mailing address in the United 

States, the Reporting Anguilla Financial Institution is required to treat the 

new address as a change in circumstances and, if it elects to apply 

subparagraph B(4) of this section, is required to obtain the appropriate 

documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for 

Certain Other Purposes. A Reporting Anguilla Financial Institution that has 

previously obtained documentation from an Account Holder to establish the 

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

meet its obligations under a qualified intermediary, withholding foreign 

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

obligations under chapter 61 of Title 26 of the United States Code, is not required 

to perform the procedures described in subparagraph B(1) of this section with 

respect to Lower Value Accounts or subparagraphs D(1) through D(3) of this 

section with respect to High Value Accounts. 

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

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

individuals and opened on or after July 1, 2014 (“New Individual Accounts”). 
29 

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

Unless the Reporting Anguilla 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 Anguilla 

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

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

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

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

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

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

period. 

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

Accounts not described in paragraph A of this section, upon account opening (or 

within 90 days after the end of the calendar year in which the account ceases to be 

described in paragraph A of this section), the Reporting Anguilla Financial 

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

opening documentation, that allows the Reporting Anguilla Financial Institution 

to determine whether the Account Holder is resident in the United States for tax 

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

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

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

based on the information obtained by the Reporting Anguilla Financial Institution 

in connection with the opening of the account, including any documentation 

collected pursuant to AML/KYC Procedures. 

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

resident in the United States for tax purposes, the Reporting Anguilla 

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

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

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

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

Individual Account that causes the Reporting Anguilla Financial 

Institution to know, or have reason to know, that the original selfcertification is incorrect or unreliable, the Reporting Anguilla Financial 

Institution cannot rely on the original self-certification and must obtain a 

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

U.S. citizen or resident for U.S. tax purposes. If the Reporting Anguilla 

Financial Institution is unable to obtain a valid self-certification, the 
30 

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

Reportable Account. 

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

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

Financial Institutions among Preexisting Accounts held by Entities (“Preexisting Entity 

Accounts”). 

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

Unless the Reporting Anguilla Financial Institution elects otherwise, either with 

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

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

Anguilla provide for such an election, a Preexisting Entity Account with an 

account balance or value that does not exceed $250,000 as of June 30, 2014, is not 

required to be reviewed, identified, or reported as a U.S. Reportable Account until 

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

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

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

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

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

2015 or any subsequent calendar year, must be reviewed in accordance with the 

procedures set forth in paragraph D of this section. 

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

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

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

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

citizens or residents, shall be treated as U.S. Reportable Accounts. In addition, 

accounts held by Nonparticipating Financial Institutions shall be treated as 

accounts for which aggregate payments as described in subparagraph 1(b) of 

Article 4 of the Agreement are reported to the Anguillian Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting Anguilla 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: 
31 

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 of incorporation or organization, or a 

U.S. address. 

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

U.S. Person, the Reporting Anguilla Financial Institution must treat 

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

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

determines based on information in its possession or that is 

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

Person. 

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

Institution.

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

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

Financial Institution, or the Reporting Anguilla 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 1(b) of Article 4 

of the Agreement. 

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

Reporting Anguilla Financial Institution may determine that the 

Account Holder is an Anguilla Financial Institution or other 

Partner Jurisdiction Financial Institution if the Reporting Anguilla 

Financial Institution reasonably determines that the Account 
32 

Holder has such status on the basis of the Account Holder’s Global 

Intermediary Identification Number on the published IRS FFI list 

or other information that is publicly available or in the possession 

of the Reporting Anguilla Financial Institution, as applicable. In 

such case, no further review, identification, or reporting is required 

with respect to the account. 

b) If the Account Holder is an Anguilla Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the IRS 

as a Nonparticipating Financial Institution, then the account is not 

a U.S. Reportable Account, but payments to the Account Holder 

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

of the Agreement. 

c) If the Account Holder is not an Anguilla Financial 

Institution or other Partner Jurisdiction Financial Institution, then 

the Reporting Anguilla Financial Institution must treat the Account 

Holder as a Nonparticipating Financial Institution payments to 

which are reportable under subparagraph 1(b) of Article 4 of the 

Agreement, unless the Reporting Anguilla Financial Institution: 

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

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

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

exempt beneficial owner, as those terms are defined in 

relevant U.S. Treasury Regulations; or

(2) In the case of a participating FFI or registered 

deemed-compliant FFI, verifies the Account Holder’s 

Global Intermediary Identification Number on the 

published IRS FFI list. 

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

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

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

Institution, the Reporting Anguilla Financial Institution must identify (i) 

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

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

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

making these determinations the Reporting Anguilla Financial Institution 

must follow the guidance in subparagraphs D(4)(a) through D(4)(d) of this 

section in the order most appropriate under the circumstances. 
33 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Anguilla Financial Institution may 

rely on information collected and maintained pursuant to 

AML/KYC Procedures. 

b) For purposes of determining whether the Account Holder is 

a Passive NFFE, the Reporting Anguilla Financial Institution must 

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

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

establish its status, unless it has information in its possession or 

that is publicly available, based on which it can reasonably 

determine that the Account Holder is an Active NFFE. 

c) For purposes of determining whether a Controlling Person 

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

Reporting Anguilla Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account 

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

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

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

Holder or such Controlling Person in the case of a 

Preexisting Entity Account held by one or more NFFEs 

with an account balance or value that exceeds $1,000,000. 

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

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

Account. 

E. Timing of Review and Additional Procedures Applicable to 

Preexisting Entity Accounts.

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

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

June 30, 2016. 

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

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

$1,000,000 as of December 31 of 2015 or any subsequent year, must be 
34 

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

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

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

Entity Account that causes the Reporting Anguilla 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 Anguilla Financial Institution must redetermine the status of the 

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

section. 

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

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

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

2014 (“New Entity Accounts”). 

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

Unless the Reporting Anguilla Financial Institution elects otherwise, either with 

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

identified group of such accounts, where the implementing rules in Anguilla 

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

treated as a New Entity Account is not required to be reviewed, identified, or 

reported, provided that the Reporting Anguilla Financial Institution maintaining 

such account implements policies and procedures to prevent an account balance 

owed to the Account Holder that exceeds $50,000. 

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

described in paragraph A of this section, the Reporting Anguilla Financial 

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

Person; (ii) an Anguilla Financial Institution or other Partner Jurisdiction 

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

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

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

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

Financial Institution may determine that the Account Holder is an Active 

NFFE, an Anguilla Financial Institution, or other Partner Jurisdiction 

Financial Institution if the Reporting Anguilla Financial Institution 

reasonably determines that the Account Holder has such status on the 

basis of the Account Holder’s Global Intermediary Identification 

Number or other information that is publicly available or in the 

possession of the Reporting Anguilla Financial Institution, as applicable. 
35 

2. If the Account Holder is an Anguilla Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

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

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

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

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

obtain a self-certification from the Account Holder to establish the 

Account Holder’s status. Based on the self-certification, the following 

rules apply: 

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

Reporting Anguilla Financial Institution must treat the account as a 

U.S. Reportable Account. 

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

Anguilla Financial Institution must identify the Controlling 

Persons as determined under AML/KYC Procedures, and must 

determine whether any such person is a U.S. citizen or resident on 

the basis of a self-certification from the Account Holder or such 

person. If any such person is a U.S. citizen or resident, the 

Reporting Anguilla Financial Institution must treat the account as a 

U.S. Reportable Account. 

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

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

section, an Anguilla Financial Institution or other Partner 

Jurisdiction Financial Institution; (iii) a participating FFI, a 

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

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

Active NFFE; or (v) a Passive NFFE none of the Controlling 

Persons of which is a U.S. citizen or resident, then the account is 

not a U.S. Reportable Account, and no reporting is required with 

respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including an Anguilla Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a 

U.S. Reportable Account, but payments to the Account Holder 

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

of the Agreement. 
36 

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 Anguilla Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting Anguilla Financial Institution knows or 

has reason to know that the self-certification or documentary evidence is incorrect 

or unreliable. 

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

1. AML/KYC Procedures. “AML/KYC Procedures” means the 

customer due diligence procedures of a Reporting Anguilla Financial 

Institution pursuant to the anti-money laundering or similar requirements 

of Anguilla to which such Reporting Anguilla Financial Institution is 

subject. 

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

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

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

Entity that is established in Anguilla or another Partner Jurisdiction and 

that is not a Financial Institution. 

3. Passive NFFE. A “Passive NFFE” means any NFFE that is not (i) 

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

foreign trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An “Active NFFE” means any NFFE that meets 

any of the following criteria: 

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

preceding calendar year or other appropriate reporting period is 

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

NFFE during the preceding calendar year or other appropriate 

reporting period are assets that produce or are held for the 

production of passive income; 

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

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

stock of which is regularly traded on an established securities 

market; 

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

owners of the payee are bona fide residents of that U.S. Territory; 
37 

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

government), a political subdivision of such government (which, 

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

municipality), or a public body performing a function of such 

government or a political subdivision thereof, a government of a 

U.S. Territory, an international organization, a non-U.S. central 

bank of issue, or an Entity wholly owned by one or more of the 

foregoing; 

e) Substantially all of the activities of the NFFE consist of 

holding (in whole or in part) the outstanding stock of, or providing 

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

trades or businesses other than the business of a Financial 

Institution, except that an entity shall not qualify for NFFE status if 

the entity functions (or holds itself out) as an investment fund, such 

as a private equity fund, venture capital fund, leveraged buyout 

fund, or any investment vehicle whose purpose is to acquire or 

fund companies and then hold interests in those companies as 

capital assets for investment purposes; 

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

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

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

provided that the NFFE shall not qualify for this exception after 

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

of the NFFE; 

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

years, and is in the process of liquidating its assets or is 

reorganizing with the intent to continue or recommence operations 

in a business other than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging 

transactions with, or for, Related Entities that are not Financial 

Institutions, and does not provide financing or hedging services to 

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

any such Related Entities is primarily engaged in a business other 

than that of a Financial Institution; 

i) The NFFE is an “excepted NFFE” as described in relevant 

U.S. Treasury Regulations; or

j) The NFFE meets all of the following requirements: 
38 

i. It is established and operated in its jurisdiction of 

residence exclusively for religious, charitable, 

scientific, artistic, cultural, athletic, or educational 

purposes; or it is established and operated in its 

jurisdiction of residence and it is a professional 

organization, business league, chamber of 

commerce, labor organization, agricultural or 

horticultural organization, civic league or an 

organization operated exclusively for the promotion 

of social welfare; 

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

residence; 

iii. It has no shareholders or members who have a 

proprietary or beneficial interest in its income or 

assets; 

iv. The applicable laws of the NFFE’s jurisdiction of 

residence or the NFFE’s formation documents do 

not permit any income or assets of the NFFE to be 

distributed to, or applied for the benefit of, a private 

person or non-charitable Entity other than pursuant 

to the conduct of the NFFE’s charitable activities, 

or as payment of reasonable compensation for 

services rendered, or as payment representing the 

fair market value of property which the NFFE has 

purchased; and 

v. The applicable laws of the NFFE’s jurisdiction of 

residence or the NFFE’s formation documents 

require that, upon the NFFE’s liquidation or 

dissolution, all of its assets be distributed to a 

governmental entity or other non-profit 

organization, or escheat to the government of the 

NFFE’s jurisdiction of residence or any political 

subdivision thereof. 

5. Preexisting Account. A “Preexisting Account” means a Financial 

Account maintained by a Reporting Anguilla Financial Institution as of 

June 30, 2014. 
39 

C. Account Balance Aggregation and Currency Translation Rules.

1. Aggregation of Individual Accounts. For purposes of 

determining the aggregate balance or value of Financial Accounts held by 

an individual, a Reporting Anguilla Financial Institution is required to 

aggregate all Financial Accounts maintained by the Reporting Anguilla 

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

Reporting Anguilla Financial Institution’s computerized systems link the 

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

taxpayer identification number, and allow account balances or values to be 

aggregated. Each holder of a jointly held Financial Account shall be 

attributed the entire balance or value of the jointly held Financial Account 

for purposes of applying the aggregation requirements described in this 

paragraph 1. 

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

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

Reporting Anguilla Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting Anguilla 

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

Reporting Anguilla Financial Institution’s computerized systems link the 

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

taxpayer identification number, and allow account balances or values to be 

aggregated. 

3. Special Aggregation Rule Applicable to Relationship 

Managers. For purposes of determining the aggregate balance or value of 

Financial Accounts held by a person to determine whether a Financial 

Account is a High Value Account, a Reporting Anguilla Financial 

Institution is also required, in the case of any Financial Accounts that a 

relationship manager knows, or has reason to know, are directly or 

indirectly owned, controlled, or established (other than in a fiduciary 

capacity) by the same person, to aggregate all such accounts.

4. Currency Translation Rule. For purposes of determining the 

balance or value of Financial Accounts denominated in a currency other 

than the U.S. dollar, a Reporting Anguilla Financial Institution must 

convert the U.S. dollar threshold amounts described in this Annex I into 

such currency using a published spot rate determined as of the last day of 

the calendar year preceding the year in which the Reporting Anguilla 

Financial Institution is determining the balance or value.
40 

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

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

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

jurisdiction in which the payee claims to be a resident. 

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

authorized government body (for example, a government or agency 

thereof, or a municipality), that includes the individual’s name and is 

typically used for identification purposes. 

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

authorized government body (for example, a government or agency 

thereof, or a municipality) that includes the name of the Entity and either 

the address of its principal office in the jurisdiction (or U.S. Territory) in 

which it claims to be a resident or the jurisdiction (or U.S. Territory) in 

which the Entity was incorporated or organized. 

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

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

connection with a QI agreement (as described in relevant U.S. Treasury 

Regulations), any of the documents, other than a Form W-8 or W-9, 

referenced in the jurisdiction’s attachment to the QI agreement for 

identifying individuals or Entities. 

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

filing, or U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting Anguilla 

Financial Institution may presume that an individual beneficiary (other than the 

owner) of a Cash Value Insurance Contract receiving a death benefit is not a 

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

Reportable Account unless the Reporting Anguilla Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person. A 

Reporting Anguilla Financial Institution has reason to know that a beneficiary of a 

Cash Value Insurance Contract is a Specified U.S. Person if the information 

collected by the Reporting Anguilla Financial Institution and associated with the 

beneficiary contains U.S. indicia as described in subparagraph (B)(1) of section II 

of this Annex I. If a Reporting Anguilla Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person, the 
41 

Reporting Anguilla Financial Institution must follow the procedures in 

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

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

under paragraph C of section I of this Annex I, Anguilla may permit Reporting 

Anguilla 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. Applicability. If Anguilla has provided a written notice to the United States 

prior to entry into force of this Agreement that, as of July 1, 2014, Anguilla 

lacked the legal authority to require Reporting Anguilla Financial Institutions 

either: (i) to require Account Holders of New Individual Accounts to provide 

the self-certification specified in section III of this Annex I, or (ii) to perform 

all the due diligence procedures related to New Entity Accounts specified in 

section V of this Annex I, then Reporting Anguilla Financial Institutions may 

apply the alternative procedures described in subparagraph G(2) of this 

section, as applicable, to such New Accounts, in lieu of the procedures 

otherwise required under this Annex I. The alternative procedures described 

in subparagraph G(2) of this section shall be available only for those New 

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

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

Anguilla Financial Institutions to comply with the due diligence procedures 

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

Anguilla shall inform the United States of in writing by the date of entry into 

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

If the alternative procedures for New Entity Accounts opened on or after July 

1, 2014, and before January 1, 2015, described in paragraph H of this section 

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

group of such accounts, the alternative procedures described in this paragraph 

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

New Accounts, Reporting Anguilla Financial Institutions must apply the due 

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

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

account held by a Nonparticipating Financial Institution. 

2. Alternative Procedures. 

a) Within one year after the date of entry into force of this Agreement, 

Reporting Anguilla Financial Institutions must: (i) with respect to a 
42 

New Individual Account described in subparagraph G(1) of this 

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

Annex I and confirm the reasonableness of such self-certification 

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

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

subparagraph G(1) of this section, perform the due diligence 

procedures specified in section V of this Annex I and request 

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

b) Anguilla must report on any New Account that is identified pursuant 

to subparagraph G(2)(a) of this section as a U.S. Reportable Account 

or as an account held by a Nonparticipating Financial Institution, as 

applicable, by the date that is the later of: (i) September 30 next 

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

Account or as an account held by a Nonparticipating Financial 

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

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

Nonparticipating Financial Institution, as applicable. The information 

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

information that would have been reportable under this Agreement 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 of the date the account was opened. 

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

Agreement, Reporting Anguilla Financial Institutions must close any 

New Account described in subparagraph G(1) of this section for which 

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

documentation pursuant to the procedures described in subparagraph 

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

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

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

that prior to such closure were New Individual Accounts (without 

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

the due diligence procedures specified in paragraph D of section II 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 of this Annex I. 

d) Anguilla must report on any closed account that is identified pursuant 

to subparagraph G(2)(c) of this section as a U.S. Reportable Account 
43 

or as an account held by a Nonparticipating Financial Institution, as 

applicable, by the date that is the later of: (i) September 30 next 

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

Account or as an account held by a Nonparticipating Financial 

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

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

Nonparticipating Financial Institution, as applicable. The information 

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

that would have been reportable under this Agreement if the account 

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

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

date the account was opened. 

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

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

or after July 1, 2014, and before January 1, 2015, either with respect to all 

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

group of such accounts, Anguilla may permit Reporting Anguilla Financial 

Institutions to treat such accounts as Preexisting Entity Accounts and apply 

the due diligence procedures related to Preexisting Entity Accounts specified 

in section IV of this Annex I in lieu of the due diligence procedures specified 

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

section IV of this Annex I must be applied without regard to the account 

balance or value threshold specified in paragraph A of section IV of this 

Annex I. 
44 

ANNEX II 

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

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

Financial Accounts. 

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

Competent Authorities of Anguilla and the United States: (1) to include additional 

Entities and accounts that present a low risk of being used by U.S. Persons to evade U.S. 

tax and that have similar characteristics to the Entities and accounts described in this 

Annex II as of the date of signature of the Agreement; or (2) to remove Entities and 

accounts that, due to changes in circumstances, no longer present a low risk of being used 

by U.S. Persons to evade U.S. tax. Any such addition or removal shall be effective on the 

date of signature of the mutual decision, unless otherwise provided therein. Procedures 

for reaching such a mutual decision may be included in the mutual agreement or 

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

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

treated as Non-Reporting Anguilla Financial Institutions and as exempt beneficial 

owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue 

Code, other than with respect to a payment that is derived from an obligation 

held in connection with a commercial financial activity of a type engaged in by a 

Specified Insurance Company, Custodial Institution, or Depository Institution.

A. Governmental Entity. The government of Anguilla, any political 

subdivision of Anguilla (which, for the avoidance of doubt, includes a state, 

province, county, or municipality), or any wholly owned agency or 

instrumentality of Anguilla or any one or more of the foregoing (each, an 

“Anguillian Governmental Entity”). This category is comprised of the 

integral parts, controlled entities, and political subdivisions of Anguilla. 

1. An integral part of Anguilla means any person, organization, agency, 

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

constitutes a governing authority of Anguilla. The net earnings of the 

governing authority must be credited to its own account or to other 

accounts of Anguilla, 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. 
45 

2. A controlled entity means an Entity that is separate in form from 

Anguilla or that otherwise constitutes a separate juridical entity, 

provided that: 

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

Anguillian Governmental Entities directly or through one or more 

controlled entities; 

b) The Entity’s net earnings are credited to its own account or to the 

accounts of one or more Anguillian Governmental Entities, with no 

portion of its income inuring to the benefit of any private person; 

and 

c) The Entity’s assets vest in one or more Anguillian Governmental 

Entities upon dissolution. 

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

are the intended beneficiaries of a governmental program, and the 

program activities are performed for the general public with respect to 

the common welfare or relate to the administration of some phase of 

government. Notwithstanding the foregoing, however, income is 

considered to inure to the benefit of private persons if the income is 

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

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

services to private persons. 

B. International Organization. Any international organization or wholly owned 

agency or instrumentality thereof. This category includes any intergovernmental 

organization (including a supranational organization) (1) that is comprised 

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

agreement with Anguilla; and (3) the income of which does not inure to the 

benefit of private persons. 

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

authority, other than the government of Anguilla itself, issuing instruments 

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

instrumentality that is separate from the government of Anguilla, whether or not 

owned in whole or in part by Anguilla. 
46 

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

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

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

A. Broad Participation Retirement Fund. A fund established in Anguilla to 

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

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

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

provided that the fund: 

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

the fund’s assets; 

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

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

3. Satisfies at least one of the following requirements: 

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

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

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

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

of this section or from retirement and pension accounts described in 

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

employers; 

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

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

(except rollover distributions to other retirement funds described in 

paragraphs A through C of this section or retirement and pension accounts 

described in subparagraph A(1) of section V of this Annex II), or penalties 

apply to distributions or withdrawals made before such specified events; 

or 

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

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

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

in Annex I for account aggregation and currency translation. 

B. Narrow Participation Retirement Fund. A fund established in Anguilla to 

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

former employees (or persons designated by such employees) of one or more 

employers in consideration for services rendered, provided that: 
47 

1. The fund has fewer than 50 participants; 

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

Entities or Passive NFFEs; 

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

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

of section V of this Annex II) are limited by reference to earned income and 

compensation of the employee, respectively; 

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

percent of the fund’s assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in Anguilla. 

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

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

to beneficiaries or participants that are current or former employees of the exempt 

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

current or former employees, if the benefits provided to such beneficiaries or 

participants are in consideration of personal services performed for the exempt 

beneficial owner. 

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

that is an Anguilla Financial Institution solely because it is an Investment Entity, 

provided that each direct holder of an Equity Interest in the Entity is an exempt 

beneficial owner, and each direct holder of a debt interest in such Entity is either a 

Depository Institution (with respect to a loan made to such Entity) or an exempt 

beneficial owner. 

III. Small or Limited Scope Financial Institutions that Qualify as DeemedCompliant FFIs. The following Financial Institutions are Non-Reporting Anguilla 

Financial Institutions that shall be treated as deemed-compliant FFIs for purposes of 

section 1471 of the U.S. Internal Revenue Code. 

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

satisfying the following requirements: 

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

institution under the laws of Anguilla; 
48 

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

Anguilla. For this purpose, a fixed place of business does not include a 

location that is not advertised to the public and from which the Financial 

Institution performs solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders 

outside Anguilla. For this purpose, a Financial Institution shall not be 

considered to have solicited customers or Account Holders outside Anguilla 

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 Anguilla but is also incidentally distributed or aired 

in other countries, provided that the advertisement does not specifically 

indicate that the Financial Institution provides Financial Accounts or services 

to nonresidents, and does not otherwise target or solicit U.S. customers or 

Account Holders; 

4. The Financial Institution must be required under the laws of Anguilla to 

identify resident Account Holders for purposes of either information reporting 

or withholding of tax with respect to Financial Accounts held by residents or 

for purposes of satisfying Anguilla’s AML due diligence requirements; 

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

Financial Institution must be held by residents (including residents that are 

Entities) of Anguilla; 

6. By the later of July 1, 2014, or the date that the Financial Institution claims 

treatment as a deemed-compliant FFI pursuant to this paragraph A, the 

Financial Institution must have policies and procedures, consistent with those 

set forth in Annex I, to prevent the Financial Institution from providing a 

Financial Account to any Nonparticipating Financial Institution and to 

monitor whether the Financial Institution opens or maintains a Financial 

Account for any Specified U.S. Person who is not a resident of Anguilla 

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

Account was opened but subsequently ceases to be a resident of Anguilla) or 

any Passive NFFE with Controlling Persons who are U.S. residents or U.S. 

citizens who are not residents of Anguilla; 

7. Such policies and procedures must provide that if any Financial Account held 

by a Specified U.S. Person who is not a resident of Anguilla or by a Passive 
49 

NFFE with Controlling Persons who are U.S. residents or U.S. citizens who 

are not residents of Anguilla is identified, the Financial Institution must report 

such Financial Account as would be required if the Financial Institution were 

a Reporting Anguilla 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 of Anguilla or by an Entity, the Financial Institution must review 

those Preexisting Accounts in accordance with the procedures set forth in 

Annex I applicable to Preexisting Accounts to identify any U.S. Reportable 

Account or Financial Account held by a Nonparticipating Financial 

Institution, and must report such Financial Account as would be required if 

the Financial Institution were a Reporting Anguilla Financial Institution 

(including by following the applicable registration requirements on the IRS 

FATCA registration website) or close such Financial Account; 

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

must be incorporated or organized in Anguilla and, with the exception of any 

Related Entity that is a retirement fund described in paragraphs A through C 

of section II of this Annex II, satisfy the requirements set forth in this 

paragraph A; and 

10. The Financial Institution must not have policies or practices that discriminate 

against opening or maintaining Financial Accounts for individuals who are 

Specified U.S. Persons and residents of Anguilla. 

B. Local Bank. A Financial Institution satisfying the following requirements: 

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

under the laws of Anguilla as) (a) a bank or (b) a credit union or similar 

cooperative credit organization that is operated without profit; 

2. The Financial Institution’s business consists primarily of receiving deposits 

from and making loans to, with respect to a bank, unrelated retail customers 

and, with respect to a credit union or similar cooperative credit organization, 

members, provided that no member has a greater than five percent interest in 

such credit union or cooperative credit organization; 

3. The Financial Institution satisfies the requirements set forth in subparagraphs 

A(2) and A(3) of this section, provided that, in addition to the limitations on 

the website described in subparagraph A(3) of this section, the website does 

not permit the opening of a Financial Account; 
50 

4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million in total assets on their 

consolidated or combined balance sheets; and 

5. Any Related Entity must be incorporated or organized in Anguilla, and any 

Related Entity that is a Financial Institution, with the exception of any Related 

Entity that is a retirement fund described in paragraphs A through C of section 

II of this Annex II or a Financial Institution with only low-value accounts 

described in paragraph C of this section, must satisfy the requirements set 

forth in this paragraph B. 

C. Financial Institution with Only Low-Value Accounts. An Anguilla 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. An Anguilla Financial Institution satisfying the 

following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer 

of credit cards that accepts deposits only when a customer makes a payment in 

excess of a balance due with respect to the card and the overpayment is not 

immediately returned to the customer; and 

2. By the later of July 1, 2014, or the date that the Financial Institution claims 

treatment as a deemed-compliant FFI pursuant to this paragraph D, the 

Financial Institution implements policies and procedures to either prevent a 

customer deposit in excess of $50,000, or to ensure that any customer deposit 

in excess of $50,000, in each case applying the rules set forth in Annex I for 

account aggregation and currency translation, is refunded to the customer 

within 60 days. For this purpose, a customer deposit does not refer to credit 

balances to the extent of disputed charges but does include credit balances 

resulting from merchandise returns. 
51 

IV. Investment Entities that Qualify as Deemed-Compliant FFIs and Other 

Special Rules. The Financial Institutions described in paragraphs A through E of this 

section are Non-Reporting Anguilla Financial Institutions that shall be treated as deemedcompliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. In 

addition, paragraph F of this section provides special rules applicable to an Investment 

Entity. 

A. Trustee-Documented Trust. A trust established under the laws of Anguilla to 

the extent that the trustee of the trust is a Reporting U.S. Financial Institution, 

Reporting Model 1 FFI, or Participating FFI and reports all information required 

to be reported pursuant to the Agreement with respect to all U.S. Reportable 

Accounts of the trust. 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A 

Financial Institution described in subparagraph B(1) or B(2) of this section having 

a sponsoring entity that complies with the requirements of subparagraph B(3) of 

this section. 

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

Investment Entity established in Anguilla 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 of Anguilla that is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned, directly or 

indirectly, by a Reporting U.S. Financial Institution that agrees to act, or 

requires an affiliate of the Financial Institution to act, as a sponsoring entity 

for the Financial Institution; and (c) the Financial Institution shares a common 

electronic account system with the sponsoring entity that enables the 

sponsoring entity to identify all Account Holders and payees of the Financial 

Institution and to access all account and customer information maintained by 

the Financial Institution including, but not limited to, customer identification 

 

1

 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total 

combined voting power of all classes of stock of such corporation entitled to vote, or the total value of 

the stock of such corporation, is owned, or is considered as owned, by “United States shareholders” on 

any day during the taxable year of such foreign corporation. The term a “United States shareholder” 

means, with respect to any foreign corporation, a United States person who owns, or is considered as 

owning, 10 percent or more of the total combined voting power of all classes of stock entitled to vote of 

such foreign corporation. 
52 

information, customer documentation, account balance, and all payments 

made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial 

Institution (such as a fund manager, trustee, corporate director, or 

managing partner) to fulfill applicable registration requirements on the 

IRS FATCA registration website; 

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

the IRS FATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with 

respect to the Financial Institution, the sponsoring entity registers the 

Financial Institution pursuant to applicable registration requirements on 

the IRS FATCA registration website on or before the later of December 

31, 2016 and the date that is 90 days after such a U.S. Reportable Account 

is first identified; 

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

Institution, all due diligence, withholding, reporting, and other 

requirements that the Financial Institution would have been required to 

perform if it were a Reporting Anguilla Financial Institution; 

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

identifying number of the Financial Institution (obtained by following 

applicable registration requirements on the IRS 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. An Anguilla Financial Institution 

satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an 

Investment Entity and is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; 

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

Model 1 FFI, or Participating FFI, is authorized to act on behalf of the 

Financial Institution (such as a professional manager, trustee, or managing 
53 

partner), and agrees to perform, on behalf of the Financial Institution, all due 

diligence, withholding, reporting, and other requirements that the Financial 

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

Anguilla Financial Institution; 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests 

in the Financial Institution (disregarding debt interests owned by Participating 

FFIs and deemed-compliant FFIs and Equity Interests owned by an Entity if 

that Entity owns 100 percent of the Equity Interests in the Financial Institution 

and is itself a sponsored Financial Institution described in this paragraph C); 

and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with the IRS on 

the IRS FATCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the Financial 

Institution, all due diligence, withholding, reporting, and other 

requirements that the Financial Institution would have been required to 

perform if it were a Reporting Anguilla Financial Institution and retains 

documentation collected with respect to the Financial Institution for a 

period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution’s behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity 

established in Anguilla that is a Financial Institution solely because it (1) renders 

investment advice to, and acts on behalf of, or (2) manages portfolios for, and acts 

on behalf of, a customer for the purposes of investing, managing, or administering 

funds deposited in the name of the customer with a Financial Institution other 

than a Nonparticipating Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in Anguilla 

that is regulated as a collective investment vehicle, provided that all of the 

interests in the collective investment vehicle (including debt interests in excess of 

$50,000) are held by or through one or more exempt beneficial owners, Active 

NFFEs described in subparagraph B(4) of section VI of Annex I, U.S. Persons 
54 

that are not Specified U.S. Persons, or Financial Institutions that are not 

Nonparticipating Financial Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of 

any Investment Entity (other than a Financial Institution through which 

interests in the collective investment vehicle are held) shall be deemed 

fulfilled. 

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated 

as a collective investment vehicle, all of the interests in which (including 

debt interests in excess of $50,000) are held by or through one or more 

exempt beneficial owners, Active NFFEs described in subparagraph B(4) 

of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, 

or Financial Institutions that are not Nonparticipating Financial 

Institutions; or 

b) An Investment Entity that is a qualified collective investment vehicle 

under relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is an Anguilla 

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 Anguilla that is 

not described in paragraph E or subparagraph F(2) of this section, consistent 

with paragraph 4 of Article 5 of the Agreement, the reporting obligations of 

all other Investment Entities with respect to such interests shall be deemed 

fulfilled if the information required to be reported by the first-mentioned 

Investment Entity pursuant to the Agreement with respect to such interests is 

reported by such Investment Entity or another person. 

4. An Investment Entity established in Anguilla that is regulated as a collective 

investment vehicle shall not fail to qualify under paragraph E or subparagraph 

F(2) of this section, or otherwise as a deemed-compliant FFI, solely because 

the 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; 
55 

b) The collective investment vehicle retires all such shares upon surrender; 

c) The collective investment vehicle (or a Reporting Anguilla 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 1, 2017. 

V. Accounts Excluded from Financial Accounts. The following accounts are 

excluded from the definition of Financial Accounts and therefore shall not be treated 

as U.S. Reportable Accounts.

A. Certain Savings Accounts.

1. Retirement and Pension Account. A retirement or pension account 

maintained in Anguilla that satisfies the following requirements under the 

laws of Anguilla. 

a) The account is subject to regulation as a personal retirement account or is 

part of a registered or regulated retirement or pension plan for the 

provision of retirement or pension benefits (including disability or death 

benefits); 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of Anguilla are deductible or 

excluded from the gross income of the account holder or taxed at a 

reduced rate, or taxation of investment income from the account is 

deferred or taxed at a reduced rate); 

c) Annual information reporting is required to the tax authorities in Anguilla 

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. 
56 

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

than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of Anguilla. 

a) The account is subject to regulation as a savings vehicle for purposes other 

than for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of Anguilla are deductible or 

excluded from the gross income of the account holder or taxed at a 

reduced rate, or taxation of investment income from the account is 

deferred or taxed at a reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the 

purpose of the savings account (for example, the provision of educational 

or medical benefits), or penalties apply to withdrawals made before such 

criteria are met; and 

d) Annual contributions are limited to $50,000 or less, applying the rules set 

forth in Annex I for account aggregation and currency translation. 

B. Certain Term Life Insurance Contracts. A life insurance contract maintained 

in Anguilla with a coverage period that will end before the insured individual 

attains age 90, provided that the contract satisfies the following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at least 

annually during the period the contract is in existence or until the insured 

attains age 90, whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, 

loan, or otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or 

termination of the contract cannot exceed the aggregate premiums paid for the 

contract, less the sum of mortality, morbidity, and expense charges (whether 

or not actually imposed) for the period or periods of the contract’s existence 

and any amounts paid prior to the cancellation or termination of the contract; 

and 

4. The contract is not held by a transferee for value. 

C. Account Held By an Estate. An account maintained in Anguilla that is held 

solely by an estate if the documentation for such account includes a copy of the 

deceased’s will or death certificate. 
57 

D. Escrow Accounts. An account maintained in Anguilla established in connection 

with any of the following: 

1. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the 

account satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit 

in an amount appropriate to secure an obligation directly related to the 

transaction, or a similar payment, or is funded with a financial asset that is 

deposited in the account in connection with the sale, exchange, or lease of 

the property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating 

to the leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be 

paid or otherwise distributed for the benefit of the purchaser, seller, lessor, 

or lessee (including to satisfy such person’s obligation) when the property 

is sold, exchanged, or surrendered, or the lease terminates; 

d) The account is not a margin or similar account established in connection 

with a sale or exchange of a financial asset; and 

e) The account is not associated with a credit card account. 

3. An obligation of a Financial Institution servicing a loan secured by real 

property to set aside a portion of a payment solely to facilitate the payment of 

taxes or insurance related to the real property at a later time. 

4. An obligation of a Financial Institution solely to facilitate the payment of 

taxes at a later time. 

E. Partner Jurisdiction Accounts. An account maintained in Anguilla and 

excluded from the definition of Financial Account under an agreement between 

the United States and another Partner Jurisdiction to facilitate the implementation 

of FATCA, provided that such account is subject to the same requirements and 

oversight under the laws of such other Partner Jurisdiction as if such account were 

established in that Partner Jurisdiction and maintained by a Partner Jurisdiction 

Financial Institution in that Partner Jurisdiction. 
58 

VI. Definitions. The following additional definitions shall apply to the descriptions 

above: 

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial 

Institution with respect to which a non-U.S. government or agency thereof agrees 

to obtain and exchange information pursuant to a Model 1 IGA, other than a 

Financial Institution treated as a Nonparticipating Financial Institution under the 

Model 1 IGA. For purposes of this definition, the term Model 1 IGA means an 

arrangement between the United States or the Treasury Department and a nonU.S. government or one or more agencies thereof to implement FATCA through 

reporting by Financial Institutions to such non-U.S. government or agency 

thereof, followed by automatic exchange of such reported information with the 

IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that 

has agreed to comply with the requirements of an FFI Agreement, including a 

Financial Institution described in a Model 2 IGA that has agreed to comply with 

the requirements of an FFI Agreement. The term Participating FFI also includes a 

qualified intermediary branch of a Reporting U.S. Financial Institution, unless 

such branch is a Reporting Model 1 FFI. For purposes of this definition, the term 

FFI Agreement means an agreement that sets forth the requirements for a 

Financial Institution to be treated as complying with the requirements of section 

1471(b) of the U.S. Internal Revenue Code. In addition, for purposes of this 

definition, the term Model 2 IGA means an arrangement between the United 

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

agencies thereof to facilitate the implementation of FATCA 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.