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Agreement between the Government of the United States of America and the 

Government of the Turks and Caicos Islands to Improve International Tax Compliance 

and to Implement FATCA

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

and Caicos Islands (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”) provided a copy of a Letter of Entrustment, via diplomatic note 

dated July 29, 2014, to the Government of the United States of America in which the United 

Kingdom entrusts the Government of the Turks and Caicos Islands to negotiate and conclude 

an intergovernmental agreement to improve international tax compliance and implement 

FATCA with the United States of America;

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

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

institutions with respect to certain accounts;

Whereas, the Government of the Turks and Caicos Islands is supportive of the underlying 

policy goal of FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that Turks and Caicos Islands

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

domestic legal impediments;

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

achieving common reporting and due diligence standards for financial institutions;

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

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

of Turks and Caicos Islands financial institutions to avoid duplicative reporting;

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for Turks and Caicos Islands 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 (“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 “Turks and Caicos Islands” means the Turks and Caicos Islands.

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 the Turks and Caicos Islands, Permanent Secretary, 

Finance.

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

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

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

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

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

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

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

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

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

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

period during which the entity has been in existence.

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

the ordinary course of a banking or similar business. 

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

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

following activities or operations for or on behalf of a customer:
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(1) trading in money market instruments (cheques, bills, certificates of 

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

and index instruments; transferable securities; or commodity futures 

trading;

(2) individual and collective portfolio management; or

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

behalf of other persons.

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

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

Action Task Force Recommendations.

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

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

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

Insurance Contract or an Annuity Contract.

l) The term “Turks and Caicos Islands Financial Institution” means (i) any 

Financial Institution organized under the laws of the Turks and Caicos Islands, 

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

the Turks and Caicos Islands, and (ii) any branch of a Financial Institution not

organized under the laws of the Turks and Caicos Islands, if such branch is 

located in the Turks and Caicos Islands.

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 Turks and Caicos Islands Financial Institution”

means any Turks and Caicos Islands Financial Institution that is not a NonReporting Turks and Caicos Islands Financial Institution.

o) The term “Non-Reporting Turks and Caicos Islands Financial Institution”

means any Turks and Caicos Islands Financial Institution, or other Entity 

resident in the Turks and Caicos Islands, that is described in Annex II as a 

Non-Reporting Turks and Caicos Islands Financial Institution or that 

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

under relevant U.S. Treasury Regulations.

p) The term “Nonparticipating Financial Institution” means a nonparticipating 

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

include a Turks and Caicos Islands 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.
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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 noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

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

Annex II.

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

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

Annex II. For purposes of this Agreement, interests are “regularly traded” if 

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

ongoing basis, and an “established securities market” means an exchange that 

is officially recognized and supervised by a governmental authority in which 

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

on the exchange. For purposes 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.
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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 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 
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policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

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

contract or group involved.

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

by a Reporting Turks and Caicos Islands 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) any State of the United 
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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. 

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

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

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

4947(a)(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, the Turks and 

Caicos Islands may treat an Entity as not a Related Entity of another Entity if 

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

defined in section 1471(e)(2) 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”
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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, the Turks and Caicos Islands

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 Turks and Caicos Islands Financial Institution is:

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

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

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

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

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

Specified U.S. Person;

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

number); 

c) the name and identifying number of the Reporting Turks and Caicos Islands

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 Turks and Caicos 
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Islands 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 Turks and Caicos Islands Financial 

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

redemption payments made to the Account Holder during the calendar year or 

other appropriate reporting period.

Article 3

Time and Manner of Exchange of Information

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

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

determined in accordance with the principles of the tax laws of the Turks and Caicos Islands. 

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 Turks and Caicos Islands Financial Institution as of June 

30, 2014, and subject to paragraph 3 of Article 6 of this Agreement, the Turks and Caicos 

Islands 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 Turks and Caicos 

Islands Financial Institution. In such a case, the Turks and Caicos Islands shall obtain and 

include in the exchanged information the date of birth of the relevant person, if the Reporting 

Turks and Caicos Islands Financial Institution has such date of birth in its records.
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5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of 

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

which the information relates. 

6. The Competent Authorities of the Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institutions

1. Treatment of Reporting Turks and Caicos Islands Financial Institutions. Each 

Reporting Turks and Caicos Islands Financial Institution shall be treated as complying with,

and not subject to withholding under, section 1471 of the U.S. Internal Revenue Code if the 

Turks and Caicos Islands complies with its obligations under Articles 2 and 3 of this 

Agreement with respect to such Reporting Turks and Caicos Islands Financial Institution, and 

the Reporting Turks and Caicos Islands Financial Institution:

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

Caicos Islands 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 Turks and Caicos Islands

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 Turks and Caicos Islands Financial Institution is 

(i) acting as a qualified intermediary (for purposes of section 1441 of the U.S. 

Internal Revenue Code) that has elected to assume primary withholding 

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

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

partnership (for purposes of both sections 1441 and 1471 of the U.S. Internal 
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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 Turks and Caicos Islands 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 Turks 

and Caicos Islands 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 Turks and Caicos Islands 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 

Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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, Turks and Caicos 

Islands retirement plans described in Annex II. For this purpose, a Turks and Caicos Islands

retirement plan includes an Entity established or located in, and regulated by, the Turks and 

Caicos Islands, or a predetermined contractual or legal arrangement, operated to provide 

pension or retirement benefits or earn income for providing such benefits under the laws of 

the Turks and Caicos Islands 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 Turks and Caicos 

Islands Financial 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 a Turks and Caicos Islands 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
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limited branches under relevant U.S. Treasury Regulations, such Turks and Caicos Islands

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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institution or any other Related Entity 

to circumvent the obligations under this Agreement or under section 1471 of 

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

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

Agreement: 

a) the Turks and Caicos Islands shall not be obligated to obtain and exchange 

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

with respect to which similar information is required to be reported to the IRS 

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

b) the Turks and Caicos Islands 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, the Turks and Caicos Islands may use, and may permit Turks 

and Caicos Islands 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 Turks and Caicos Islands
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Competent Authority, pursuant to which the Turks and Caicos Islands 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 Turks and 

Caicos Islands 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 

Turks and Caicos Islands 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 

Turks and Caicos Islands 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 Turks and Caicos Islands

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 Turks and Caicos Islands Financial Institution. 

The Turks and Caicos Islands Competent Authority shall apply its domestic 

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

described in the notice. 

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

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

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

Turks and Caicos Islands Financial Institution as a Nonparticipating Financial 

Institution pursuant to this subparagraph 3(b). 

4. Reliance on Third Party Service Providers. The Turks and Caicos Islands may 

allow Reporting Turks and Caicos Islands Financial Institutions to use third party service 

providers to fulfill the obligations imposed on such Reporting Turks and Caicos Islands

Financial Institutions by the Turks and Caicos Islands, as contemplated in this Agreement, but 

these obligations shall remain the responsibility of the Reporting Turks and Caicos Islands

Financial Institutions.

5. Prevention of Avoidance. The Turks and Caicos Islands 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. 
14

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

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

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

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

for financial institutions.

3. Documentation of Accounts Maintained as of June 30, 2014. With respect to U.S. 

Reportable Accounts maintained by a Reporting Turks and Caicos Islands Financial 

Institution as of June 30, 2014, the Turks and Caicos Islands commits to establish, by January 

1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting 

Turks and Caicos Islands Financial Institutions to obtain the U.S. TIN of each Specified U.S. 

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

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions 

1. The Turks and Caicos Islands 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 Turks 

and Caicos Islands Financial Institutions afforded to another Partner Jurisdiction under a 

signed bilateral agreement pursuant to which the other Partner Jurisdiction commits to 

undertake the same obligations as the Turks and Caicos Islands 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 the Turks and Caicos Islands of any such more 

favorable terms, and such more favorable terms shall apply automatically under this 

Agreement as if such terms were specified in this Agreement and effective as of the date of 

signing of the agreement incorporating the more favorable terms, unless the Turks and Caicos 

Islands 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 Turks and Caicos Islands 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 
15

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

related to the performance of the obligations of the Turks and Caicos Islands under this 

Agreement.

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

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

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

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

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

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

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

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

authority, or jurisdiction. Notwithstanding the foregoing, where the Turks and Caicos Islands

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 the Turks and Caicos Islands’ 

written notification to the United States that the Turks and Caicos Islands 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 month 

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

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

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

Agreement. 
16

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 [_____], in duplicate, in the English language, this [__] day of [_____], 20[__].

FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF THE 

TURKS AND CAICOS ISLANDS:
17

ANNEX I

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

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS

I. General.

 

A. The Turks and Caicos Islands shall require that Reporting Turks and Caicos 

Islands 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, 

the Turks and Caicos Islands may permit Reporting Turks and Caicos Islands

Financial Institutions to rely on the procedures described in relevant U.S. Treasury 

Regulations to establish whether an account is a U.S. Reportable Account or an 

account held by a Nonparticipating Financial Institution. The Turks and Caicos 

Islands may permit Reporting Turks and Caicos Islands 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). 
18

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 Turks and Caicos Islands 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 the Turks 

and Caicos Islands 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 the Turks 

and Caicos Islands 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 the Turks and Caicos Islands requires reporting 

or withholding with respect to insurance products held by residents of the 

Turks and Caicos Islands).

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 Turks and Caicos Islands

Financial Institution must review electronically searchable data maintained by 

the Reporting Turks and Caicos Islands 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;
19

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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institution is not 

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

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting Turks and Caicos Islands

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; 
20

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 Turks and Caicos Islands 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 United 

States, the Reporting Turks and Caicos Islands 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 Turks and 

Caicos Islands 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.
21

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 Turks and Caicos Islands Financial 

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

subparagraph B(4) of this section applies.

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

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

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

Account in all 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 Turks and Caicos Islands

Financial Institution must review electronically searchable data maintained by 

the Reporting Turks and Caicos Islands Financial Institution for any of the 

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

2. Paper Record Search. If the Reporting Turks and Caicos Islands

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 Turks and Caicos Islands 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 Turks and Caicos 

Islands 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 

Turks and Caicos Islands Financial Institution pursuant to AML/KYC 

Procedures or for other regulatory purposes;
22

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

effect; and

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

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Turks and Caicos Islands Financial Institution is not required to 

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

if the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands Financial 

Institution;

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

any, with the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 

Turks and Caicos Islands 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.
23

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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks 

and Caicos Islands 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 Turks and Caicos Islands

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 Turks and Caicos Islands Financial 

Institution must report the required information about such account with 

respect to the year in which it is identified as a U.S. Reportable Account and 

subsequent years on an annual basis, unless the Account Holder ceases to be a 

Specified U.S. Person.

3. Once a Reporting Turks and Caicos Islands Financial Institution 

applies the enhanced review procedures described in paragraph D of this 

section to a High Value Account, the Reporting Turks and Caicos Islands

Financial Institution is not required to re-apply such procedures, other than the 
24

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 

Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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”).

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

the Reporting Turks and Caicos Islands Financial Institution elects otherwise, either 

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

identified group of such accounts, where the implementing rules in the Turks and 

Caicos Islands 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 
25

after the end of the calendar year in which the account ceases to be described in 

paragraph A of this section), the Reporting Turks and Caicos Islands Financial 

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

documentation, that allows the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands

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 Turks and Caicos Islands Financial 

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

is incorrect or unreliable, the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands

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

Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institution elects otherwise, 

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

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

Turks and Caicos Islands 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. 
26

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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial 

Institution must apply the following review procedures to determine whether the 

account is held by one or more Specified U.S. Persons, by Passive NFFEs with one or 

more Controlling Persons who are U.S. citizens or residents, or by Nonparticipating 

Financial Institutions:

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

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 Turks and Caicos Islands Financial Institution 

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

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

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

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

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

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 Turks and Caicos Islands

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. 
27

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 

Turks and Caicos Islands Financial Institution may determine that the 

Account Holder is a Turks and Caicos Islands Financial Institution or 

other Partner Jurisdiction Financial Institution if the Reporting Turks 

and Caicos Islands Financial Institution reasonably determines that the 

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

Global Intermediary Identification Number on the published IRS FFI 

list or other information that is publicly available or in the possession 

of the Reporting Turks and Caicos Islands Financial Institution, as 

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

is required with respect to the account.

b) If the Account Holder is a Turks and Caicos Islands 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 a Turks and Caicos Islands

Financial Institution or other Partner Jurisdiction Financial Institution, 

then the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands

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 deemedcompliant FFI, verifies the Account Holder’s Global 

Intermediary Identification Number on the published IRS FFI 

list.

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

Reportable Account. With 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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial 
28

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

of this section in the order most appropriate under the circumstances.

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 

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 Turks and Caicos Islands Financial 

Institution to know, or have reason to know, that the self-certification or other 
29

documentation associated with an account is incorrect or unreliable, the 

Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 the Turks 

and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands

Financial Institution must determine whether the Account Holder is: (i) a Specified 

U.S. Person; (ii) a Turks and Caicos Islands 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 Turks and 

Caicos Islands Financial Institution may determine that the Account Holder is 

an Active NFFE, a Turks and Caicos Islands Financial Institution, or other 

Partner Jurisdiction Financial Institution if the Reporting Turks and Caicos 

Islands 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 Turks and Caicos Islands Financial Institution, as 

applicable. 

2. If the Account Holder is a Turks and Caicos Islands 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 Turks and Caicos Islands 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:

 
30

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

Turks and Caicos Islands Financial Institution must treat the account as 

a U.S. Reportable Account.

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

and Caicos Islands 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 Turks and 

Caicos Islands 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, a Turks and Caicos Islands 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 a Turks and Caicos Islands 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.

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 

Turks and Caicos Islands Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands

Financial Institution pursuant to the anti-money laundering or similar 

requirements of the Turks and Caicos Islands to which such Reporting 

Turks and Caicos Islands 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 
31

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

Entity that is established in the Turks and Caicos Islands or another Partner 

Jurisdiction and that is not a Financial Institution.

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

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

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

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

following criteria:

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

calendar year or other appropriate reporting period is passive 

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

during the preceding calendar year or other appropriate reporting 

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

passive income;

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

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

stock of which is regularly traded on an established securities 

market;

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

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

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

political subdivision of such government (which, for the avoidance 

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

public body performing a function of such government or a 

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

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

Entity wholly owned by one or more of the foregoing; 

e) Substantially all of the activities 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 
32

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

the NFFE;

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

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

intent to continue or recommence operations in a business other 

than that of a Financial Institution;

h) The NFFE primarily engages in financing and hedging transactions 

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

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

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

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

Financial Institution;

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

Treasury Regulations; or

j) The NFFE meets all of the following requirements:

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

exclusively for religious, charitable, scientific, artistic, 

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

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare;

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

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.
33

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

Account maintained by a Reporting Turks and Caicos Islands Financial 

Institution as of June 30, 2014.

C. Account Balance Aggregation and Currency Translation Rules.

1. Aggregation of Individual Accounts. For purposes of determining 

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

Reporting Turks and Caicos Islands Financial Institution is required to 

aggregate all Financial Accounts maintained by the Reporting Turks and 

Caicos Islands Financial Institution, or by a Related Entity, but only to the 

extent that the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institution is required to take 

into account all Financial Accounts that are maintained by the Reporting Turks 

and Caicos Islands Financial Institution, or by a Related Entity, but only to the 

extent that the Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial 

Institution is determining the balance or value.

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

documentary evidence includes any of the following:
34

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 Turks and Caicos 

Islands 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 Turks and Caicos Islands Financial 

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

U.S. Person. A Reporting Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos 

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

beneficiary is a Specified U.S. Person, the Reporting Turks and Caicos Islands

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, the Turks and Caicos Islands may permit 

Reporting Turks and Caicos Islands Financial Institutions to rely on due diligence 

procedures performed by third parties, to the extent provided in relevant U.S. 

Treasury Regulations.
35

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

Force of this Agreement.

1. Applicability. If the Turks and Caicos Islands has provided a written 

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

of July 1, 2014, the Turks and Caicos Islands lacked the legal authority to 

require Reporting Turks and Caicos Islands Financial Institutions either: (i) to 

require Account Holders of New Individual Accounts to provide the selfcertification 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 Turks and Caicos Islands 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 the Turks and Caicos Islands has the ability to 

compel Reporting Turks and Caicos Islands Financial Institutions to comply 

with the due diligence procedures described in section III or section V of this 

Annex I, as applicable, which date the Turks and Caicos Islands 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 Turks and Caicos Islands 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 Turks and Caicos Islands Financial Institutions 

must: (i) with respect to a 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 self-certification, required by section V of this Annex I. 

b) The Turks and Caicos Islands 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) 
36

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 Turks and Caicos Islands Financial 

Institutions must close any New Account described in subparagraph 

G(1) of this section for which it was unable to collect the required selfcertification 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 Turks and Caicos Islands 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) The Turks and Caicos Islands must report on any closed 

account that is identified pursuant to subparagraph G(2)(c) of this 

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

Nonparticipating Financial Institution, as applicable, by the date that is 

the later of: (i) September 30 next following the date that the account is 

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

Nonparticipating Financial Institution, as applicable, or (ii) 90 days

after the account is identified as a U.S. Reportable Account or as an 

account held by a Nonparticipating Financial Institution, as 

applicable. The information required to be reported for such a closed

account is any information that would have been reportable under this 

Agreement 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, 

the Turks and Caicos Islands may permit Reporting Turks and Caicos Islands 

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 
37

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.
38

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 the Turks and Caicos Islands 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 Turks and Caicos Islands 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 the Turks and Caicos Islands, any 

political subdivision of the Turks and Caicos Islands (which, for the avoidance of 

doubt, includes a state, province, county, or municipality), or any wholly owned 

agency or instrumentality of the Turks and Caicos Islands or any one or more of the 

foregoing (each, a “Turks and Caicos Islands Governmental Entity”). This category is 

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

Turks and Caicos Islands.

1. An integral part of the Turks and Caicos Islands means any person, organization, 

agency, bureau, fund, instrumentality, or other body, however designated, that 

constitutes a governing authority of the Turks and Caicos Islands. The net 

earnings of the governing authority must be credited to its own account or to other 

accounts of the Turks and Caicos Islands, with no portion inuring to the benefit of 

any private person. An integral part does not include any individual who is a 

sovereign, official, or administrator acting in a private or personal capacity. 

2. A controlled entity means an Entity that is separate in form from the Turks and 

Caicos Islands or that otherwise constitutes a separate juridical entity, provided 

that:

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

Islands Governmental Entities directly or through one or more controlled 

entities; 
39

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

one or more Turks and Caicos Islands 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 Turks and Caicos Islands

Governmental Entities upon dissolution. 

3. Income does not inure to the benefit of private personsif 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 the 

Turks and Caicos Islands; and (3) the income of which does not inure to the benefit of 

private persons.

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

authority, other than the government of the Turks and Caicos Islands itself, issuing 

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

instrumentality that is separate from the government of the Turks and Caicos Islands, 

whether or not owned in whole or in part by the Turks and Caicos Islands.

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

treated as Non-Reporting Turks and Caicos Islands 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 the Turks and Caicos 

Islands 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 the Turks and Caicos 

Islands; and 

3. Satisfies at least one of the following requirements:
40

a) The fund is generally exempt from tax in the Turks and Caicos Islands on 

investment income under the laws of the Turks and Caicos Islands 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 the Turks and Caicos 

Islands to provide retirement, disability, or death benefits to beneficiaries that are 

current or former employees (or persons designated by such employees) of one or 

more employers in consideration for services rendered, provided that:

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not 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 the Turks and Caicos Islands are not entitled 

to more than 20 percent of the fund’s assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in the Turks and 

Caicos Islands.

C. Pension Fund of an Exempt Beneficial Owner. A fund established in the Turks and 

Caicos Islands 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 
41

participants are in consideration of personal services performed for the exempt 

beneficial owner.

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

a Turks and Caicos Islands Financial Institution solely because it is an Investment 

Entity, provided that each direct holder of an Equity Interest in the Entity is an exempt 

beneficial owner, and each direct holder of a debt interest in such Entity is either a 

Depository Institution (with respect to a loan made to such Entity) or an exempt 

beneficial owner.

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

FFIs. The following Financial Institutions are Non-Reporting Turks and Caicos Islands

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 the Turks and Caicos Islands; 

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

and Caicos Islands. 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 

the Turks and Caicos Islands. For this purpose, a Financial Institution shall not be 

considered to have solicited customers or Account Holders outside the Turks and 

Caicos Islands 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 the Turks and Caicos Islands but is also incidentally distributed or aired in 

other countries, provided that the advertisement does not specifically indicate that 

the Financial Institution provides Financial Accounts or services to nonresidents, 

and does not otherwise target or solicit U.S. customers or Account Holders;

4. The Financial Institution must be required under the laws of the Turks and Caicos 

Islands to identify resident Account Holders for purposes of either information 

reporting or withholding of tax with respect to Financial Accounts held by 

residents or for purposes of satisfying the Turks and Caicos Islands’ 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 the 

Turks and Caicos Islands; 
42

6. Beginning on or before July 1, 2014, the Financial Institution must have policies 

and procedures, consistent with those set forth in Annex I, to prevent the Financial 

Institution from providing a Financial Account to any Nonparticipating Financial 

Institution and to monitor whether the Financial Institution opens or maintains a 

Financial Account for any Specified U.S. Person who is not a resident of the Turks 

and Caicos Islands (including a U.S. Person that was a resident of Turks and 

Caicos Islands when the Financial Account was opened but subsequently ceases to 

be a resident of the Turks and Caicos Islands) or any Passive NFFE with 

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

of the Turks and Caicos Islands; 

7. Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident of the Turks and Caicos Islands or by 

a Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens 

who are not residents of the Turks and Caicos Islands is identified, the Financial 

Institution must report such Financial Account as would be required if the 

Financial Institution were a Reporting Turks and Caicos Islands 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 the Turks and Caicos Islands 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 Turks and Caicos Islands 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 the Turks and Caicos Islands 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 the Turks and Caicos Islands.

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 the Turks and Caicos Islands as) (a) a bank or (b) a credit union or 

similar cooperative credit organization that is operated without profit;
43

2. The Financial Institution’s business consists primarily of receiving deposits from 

and making loans to, with respect to a bank, unrelated retail customers and, with 

respect to a credit union or similar cooperative credit organization, members, 

provided that no member has a greater than five percent interest in such credit 

union or cooperative credit organization;

3. The Financial Institution satisfies the requirements set forth in subparagraphs A(2)

and A(3) of this section, provided that, in addition to the limitations on the website 

described in subparagraph A(3) of this section, the website does not permit the 

opening of a Financial Account;

4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million in total assets on their consolidated 

or combined balance sheets; and

5. Any Related Entity must be incorporated or organized in the Turks and Caicos 

Islands, and any Related Entity that is a Financial Institution, with the exception 

of any Related Entity that is a retirement fund described in paragraphs A through 

C of section II of this Annex II or a Financial Institution with only low-value 

accounts described in paragraph C of this section, must satisfy the requirements 

set forth in this paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A Turks and Caicos Islands

Financial Institution satisfying the following requirements:

1. The Financial Institution is not an Investment Entity;

2. No Financial Account maintained by the Financial Institution or any Related 

Entity has a balance or value in excess of $50,000, applying the rules set forth in 

Annex I for account aggregation and currency translation; and 

3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $50 million in total assets on their consolidated or 

combined balance sheets. 

D. Qualified Credit Card Issuer. A Turks and Caicos Islands Financial Institution 

satisfying the following requirements:

1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in 

excess of a balance due with respect to the card and the overpayment is not 

immediately returned to the customer; and

2. Beginning on or before July 1, 2014, the Financial Institution implements policies 

and procedures to either prevent a customer deposit in excess of $50,000, or to 

ensure that any customer deposit in excess of $50,000, in each case applying the 

rules set forth in Annex I for account aggregation and currency translation, is 

refunded to the customer within 60 days. For this purpose, a customer deposit 
44

does not refer to credit balances to the extent of disputed charges but does include

credit balances resulting from merchandise returns.

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

Rules. The Financial Institutions described in paragraphs A through E of this section are 

Non-Reporting Turks and Caicos Islands Financial Institutions that shall be treated as 

deemed-compliant 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 the Turks and 

Caicos Islands 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 the Turks and Caicos Islands 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 the Turks and Caicos Islands 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 information, customer 

documentation, account balance, and all payments made to the Account Holder or 

payee. 

3. The sponsoring entity complies with the following requirements:

 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.
45

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, 2015 and the date 

that is 90 days after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, 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 Turks and Caicos Islands 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. A Turks and Caicos Islands

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 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 Turks and Caicos Islands 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 
46

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 Turks and Caicos Islands 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 the Turks and Caicos Islands 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 the Turks and 

Caicos Islands that is regulated as a collective investment vehicle, provided that all of 

the interests in the collective investment vehicle (including debt interests in excess of 

$50,000) are held by or through one or more exempt beneficial owners, Active NFFEs 

described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not 

Specified U.S. Persons, or Financial Institutions that are not Nonparticipating 

Financial Institutions. 

F. Special Rules. The following 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
47

b) An Investment Entity that is a qualified collective investment vehicle under 

relevant U.S. Treasury Regulations;

the reporting obligations of any Investment Entity that is a Turks and Caicos 

Islands Financial Institution (other than a Financial Institution through which 

interests in the collective investment vehicle are held) shall be deemed fulfilled.

3. With respect to interests in an Investment Entity established in the Turks and 

Caicos Islands 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 the Turks and Caicos Islands 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; 

b) The collective investment vehicle retires all such shares upon surrender; 

c) The collective investment vehicle (or a Reporting Turks and Caicos Islands

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 

the Turks and Caicos Islands that satisfies the following requirements under the 

laws of the Turks and Caicos Islands.

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);
48

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of the Turks and Caicos Islands are 

deductible or excluded from the gross income of the account holder or taxed at 

a reduced rate, or taxation of investment income from the account is deferred 

or taxed at a reduced rate);

c) Annual information reporting is required to the tax authorities in the Turks and 

Caicos Islands with respect to the account;

d) Withdrawals are conditioned on reaching a specified retirement age, disability, 

or death, or penalties apply to withdrawals made before such specified events; 

and

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of $1,000,000 or less, in 

each case applying the rules set forth in Annex I for account aggregation and 

currency translation. 

2. Non-Retirement Savings Accounts. An account maintained in the Turks and 

Caicos Islands (other than an insurance or Annuity Contract) that satisfies the 

following requirements under the laws of the Turks and Caicos Islands.

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 the Turks and Caicos Islands 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 the 

Turks and Caicos Islands 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;
49

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 the Turks and Caicos Islands

that is held solely by an estate if the documentation for such account includes a copy 

of the deceased’s will or death certificate.

D. Escrow Accounts. An account maintained in the Turks and Caicos Islands

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.
50

E. Partner Jurisdiction Accounts. An account maintained in the Turks and Caicos 

Islands 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.

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 non-U.S. government or one or 

more agencies thereof to implement FATCA through reporting by Financial 

Institutions to such non-U.S. government or agency thereof, followed by automatic 

exchange 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.