1

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

Government of the Dominican Republic to Improve International Tax Compliance 

and to Implement FATCA

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

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

agreement to improve international tax compliance through mutual assistance in tax matters 

based on an effective infrastructure for the automatic exchange of information; 

Whereas, Article 4 of the Agreement for the Exchange of Information with Respect to 

Taxes between the United States of America and the Dominican Republic, done at Santo 

Domingo on August 7, 1989 (the “TIEA”), authorizes the exchange of information for tax 

purposes, including on an automatic basis;

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

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

financial institutions with respect to certain accounts; 

Whereas, the Government of the Dominican Republic is supportive of the underlying 

policy goal of FATCA to improve tax compliance;

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

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

legal impediments;

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

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

Dominican Republic and is committed to exchanging such information with the 

Government of the Dominican Republic and pursuing equivalent levels of exchange, 

provided that the appropriate safeguards and infrastructure for an effective exchange

relationship are in place; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for Dominican 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 reciprocal automatic exchange pursuant to the TIEA, and subject to the confidentiality 

and other protections provided for therein, including the provisions limiting the use of the 

information exchanged under the TIEA;
2

Now, therefore, the Parties have agreed as follows:

Article 1

Definitions

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

following terms shall have the meanings set forth below:

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

States thereof and the District of Columbia, but does not include the U.S. 

Territories.

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 “Dominican Republic” means the Dominican Republic, including its 

provinces and the National District. 

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

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 Dominican Republic, the Minister of Treasury or his 

delegate.

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

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

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

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

holds financial assets for the account of others as a substantial portion of its 

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

assets and related financial services equals or exceeds 20 percent of the entity’s 

gross income during the shorter of: (i) the three-year period that ends on 

December 31 (or the final day of a non-calendar year accounting period) prior to 
3

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

which the entity has been in existence.

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

the ordinary course of a banking or similar business.

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

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

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

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

derivatives, etc.); foreign exchange; exchange, interest rate and index 

instruments; transferable securities; or commodity futures trading;

(2) individual and collective portfolio management; or

(3) 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 “Dominican Financial Institution” means (i) any Financial 

Institution resident in the Dominican Republic, but excluding any branch of 

such Financial Institution that is located outside the Dominican Republic, and 

(ii) any branch of a Financial Institution not resident in the Dominican Republic, 

if such branch is located in the Dominican Republic.

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 Financial Institution” means a Reporting Dominican 

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

requires.
4

o) The term “Reporting Dominican Financial Institution” means any 

Dominican Financial Institution that is not a Non-Reporting Dominican 

Financial Institution.

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

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

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

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

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

control, receipt, or custody of income with respect to which information is 

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

Agreement.

q) The term “Non-Reporting Dominican Financial Institution” means any 

Dominican Financial Institution or other Entity resident in the Dominican 

Republic that is described in Annex II as a Non-Reporting Dominican Financial 

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

beneficial owner under relevant U.S. Treasury Regulations.

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

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

include a Dominican Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

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

Agreement or the corresponding provision in an agreement between the United 

States and a Partner Jurisdiction.

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

Institution, and includes: 

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

Investment Entity, any equity or debt interest (other than interests that are 

regularly traded on an established securities market) in the Financial 

Institution;

(2) in the case of a Financial Institution not described in subparagraph 1(s)(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
5

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

maintained by a Financial Institution, other than a noninvestment-linked, 

nontransferable immediate life annuity that is issued to an individual and 

monetizes a pension or disability benefit provided under an account that is 

excluded from the definition of Financial Account in Annex II.

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

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

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

there is a meaningful volume of trading with respect 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(s), an interest in a Financial 

Institution is not “regularly traded” and shall be treated as a Financial Account if 

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

intermediary) is registered on the books of such Financial Institution. The 

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

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

registered on the books of such Financial Institution on or after July 1, 2014, a 

Financial Institution is not required to apply the preceding sentence prior to 

January 1, 2016.

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

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

thrift certificate, investment certificate, certificate of indebtedness, or other 

similar instrument maintained by a Financial Institution in the ordinary course 

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

amount held by an insurance company pursuant to a guaranteed investment 

contract or similar agreement to pay or credit interest thereon.

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

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

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

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

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

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

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

instrument). 
6

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

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

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

be held by any person treated as a settlor or beneficiary of all or a portion of the 

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

trust. A Specified U.S. Person shall be treated as being a beneficiary of a 

foreign trust if such Specified U.S. Person has the right to receive directly or 

indirectly (for example, through a nominee) a mandatory distribution or may 

receive, directly or indirectly, a discretionary distribution from the trust.

w) The term “Insurance Contract” means a contract (other than an Annuity 

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

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

property risk.

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

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

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

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

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

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

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

(other than an indemnity reinsurance contract between two insurance 

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

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

policyholder is entitled to receive upon surrender or termination of the contract 

(determined without reduction for any surrender charge or policy loan), and (ii) 

the amount the policyholder can borrow under or with regard to the contract. 

Notwithstanding the foregoing, the term “Cash Value” does not include an 

amount payable under an Insurance Contract as:

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

indemnification of an economic loss incurred upon the occurrence of the 

event insured against;

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

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

cancellation or termination, decrease in risk exposure during the effective 

period of the Insurance Contract, or arising from a redetermination of the 

premium due to correction of posting or other similar error; or 
7

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

contract or group involved.

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

Dominican Reportable Account, as the context requires.

bb) The term “Dominican Reportable Account” means a Financial Account 

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

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

Dominican Republic and more than $10 of interest is paid to such account in 

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

Depository Account, the Account Holder is a resident of the Dominican 

Republic, including an Entity that certifies that it is resident in the Dominican 

Republic for tax purposes, with respect to which U.S. source income that is 

subject to reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of 

the U.S. Internal Revenue Code is paid or credited.

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

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

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

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

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

identified as a U.S. Reportable Account after application of the due diligence 

procedures in Annex I.

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

of a Financial Account by the Financial Institution that maintains the account. 

A person, other than a Financial Institution, holding a Financial Account for the 

benefit or account of another person as agent, custodian, 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.
8

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

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

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

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

concerning substantially all issues regarding administration of the trust, and (ii) 

one or more U.S. persons have the authority to control all substantial decisions 

of the trust, or an estate of a decedent that is a citizen or resident of the United 

States. This subparagraph 1(ee) shall be interpreted in accordance with the U.S. 

Internal Revenue Code.

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

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

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

affiliated group, as defined in section 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 

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.

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

hh) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person.
9

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

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

premiums, annuities, compensations, remunerations, emoluments, and other 

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

payment is from sources within the United States. Notwithstanding the 

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

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

Regulations.

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

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

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

or value in an Entity. Notwithstanding the foregoing, the Dominican Republic 

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.

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

ll) The term “Dominican TIN” means, in the case of a natural person, the identity 

and voter card number, or in the case of a legal person, the national register 

of taxpayers number.

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

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

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

other natural person exercising ultimate effective control over the trust, and in 

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

equivalent or similar positions. The term “Controlling Persons” shall be 

interpreted in a manner consistent with the Financial Action Task Force 

Recommendations.

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

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

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

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

prevailing over a meaning given to the term under other laws of that Party.
10

Article 2

Obligations to Obtain and Exchange Information with Respect to Reportable 

Accounts

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

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

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

pursuant to the provisions of Article 4 of the TIEA.

2. The information to be obtained and exchanged is:

a) In the case of the Dominican Republic with respect to each U.S. Reportable 

Account of each Reporting Dominican Financial Institution:

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

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

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

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

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

such Specified U.S. Person; 

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

number);

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

Institution.

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

Insurance Contract or Annuity Contract, the Cash Value or surrender value) 

as of the end of the relevant calendar year or other appropriate reporting 

period or, if the account was closed during such year, immediately before 

closure; 

(5) in the case of any Custodial Account:

A. the total gross amount of interest, the total gross amount of dividends, 

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

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

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

reporting period; and 
11

B. the total gross proceeds from the sale or redemption of property paid or 

credited to the account during the calendar year or other appropriate 

reporting period with respect to which the Reporting Dominican 

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

as an agent for the Account Holder;

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

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

reporting period; and 

(7) in the case of any account not described in subparagraph 2(a)(5) or 2(a)(6) 

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

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

reporting period with respect to which the Reporting Dominican 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.

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

Account of each Reporting U.S. Financial Institution:

(1) the name, address, and Dominican TIN of any person that is a resident of the 

Dominican Republic and is an Account Holder of the account; 

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

account number);

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

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

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

and 

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

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

chapter 61 of subtitle F of the U.S. Internal Revenue Code.

Article 3

Time and Manner of Exchange of Information

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

and characterization of payments made with respect to a U.S. Reportable Account may be 
12

determined in accordance with the principles of the tax laws of the Dominican Republic, 

and the amount and characterization of payments made with respect to a Dominican 

Reportable Account may be determined in accordance with principles of U.S. federal 

income tax law. 

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

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

denominated.

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

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

a) In the case of the Dominican Republic:

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

the information described in subparagraphs 2(a)(1) through 2(a)(4) of 

Article 2 of this Agreement; 

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

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

of this Agreement, except for gross proceeds described in subparagraph 

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

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

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

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

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

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

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

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

Account that is maintained by a Reporting Financial Institution as of June 30, 2014, and 

subject to paragraph 3 of Article 6 of this Agreement, the Parties are not required to obtain 

and include in the exchanged information the Dominican TIN or the U.S. TIN, as 

applicable, of any relevant person if such taxpayer identifying number is not in the records 

of the Reporting Financial Institution. In such a case, the Parties shall obtain and include in 

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

Financial Institution has such date of birth in its records.

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

of this Agreement shall be exchanged by the later of nine months after the end of the 
13

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

obligation of the Party to exchange information under Article 2 takes effect. 

6. The Competent Authorities of the Dominican Republic and the United States shall 

enter into an agreement or arrangement under the mutual agreement procedure provided for 

in Article 6 of the TIEA, 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 the TIEA, including the provisions limiting the use of the 

information exchanged.

8. Following entry into force of this Agreement, each Competent Authority shall 

provide written notification to the other Competent Authority when it is satisfied that the 

jurisdiction of the other Competent Authority has in place (i) appropriate safeguards to 

ensure that the information received pursuant to this Agreement shall remain confidential 

and be used solely for tax purposes, and (ii) the infrastructure for an effective exchange 

relationship (including established processes for ensuring timely, accurate, and confidential 

information exchanges, effective and reliable communications, and demonstrated 

capabilities to promptly resolve questions and concerns about exchanges or requests for 

exchanges and to administer the provisions of Article 5 of this Agreement). The 

Competent Authorities shall endeavor in good faith to meet to establish that each 

jurisdiction has such safeguards and infrastructure in place. 

9. The obligations of the Parties to obtain and exchange information under Article 2 of 

this Agreement shall take effect on the date of the later of the written notifications 

described in paragraph 8 of this Article. Notwithstanding the foregoing, if the Dominican 

Republic Competent Authority is satisfied that the United States has the safeguards and 

infrastructure described in paragraph 8 of this Article in place, but additional time is 

necessary for the U.S. Competent Authority to establish that the Dominican Republic has 

such safeguards and infrastructure in place, the obligation of the Dominican Republic to 

obtain and exchange information under Article 2 of this Agreement shall take effect on the 

date of the written notification provided by the Dominican Republic Competent Authority 

to the U.S. Competent Authority pursuant to paragraph 8 of this Article. 
14

10. This Agreement shall terminate 12 months following entry into force, if Article 2 of 

this Agreement is not in effect for either Party pursuant to paragraph 9 of this Article by 

that date. 

Article 4

Application of FATCA to Dominican Financial Institutions

1. Treatment of Reporting Dominican Financial Institutions. Each Reporting 

Dominican 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 Dominican 

Republic complies with its obligations under Articles 2 and 3 of this Agreement with 

respect to such Reporting Dominican Financial Institution, and the Reporting Dominican 

Financial Institution:

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

Republic Competent Authority the information required to be reported in 

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

described in Article 3 of this Agreement;

b) for each of 2015 and 2016, reports annually to the Dominican Republic

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 Dominican 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 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 Dominican 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 Dominican Financial 

Institution provides to any immediate payor of such U.S. Source Withholdable 
15

Payment the information required for withholding and reporting to occur with 

respect to such payment.

Notwithstanding the foregoing, a Reporting Dominican 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 Dominican Financial Institution is treated by the IRS as a 

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

this Agreement.

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

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

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

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

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

subparagraph 2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of 

this Agreement, with respect to such account.

3. Specific Treatment of Dominican 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, Dominican retirement plans 

described in Annex II. For this purpose, a Dominican retirement plan includes an Entity 

established or located in, and regulated by, the Dominican Republic, 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 Dominican Republic 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 Dominican 

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 Dominican Financial Institution, that 

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

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

that prevents such Related Entity or branch from fulfilling the requirements of a 

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

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

Financial Institution solely due to the expiration of the transitional rule for limited FFIs and 

limited branches under relevant U.S. Treasury Regulations, such Dominican Financial 
16

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 Dominican 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 Dominican 

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 Dominican Republic 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;

b) the Dominican Republic shall not be obligated to begin exchanging information 

prior to the date by which participating FFIs are required to report similar 

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

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

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

which the Dominican Republic is required to obtain and exchange information; 

and 
17

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

the date by which the Dominican Republic is required to begin exchanging 

information.

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 Dominican Republic may use, and may permit 

Dominican 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. Minor and Administrative Errors. A Competent Authority shall notify the 

Competent Authority of the other Party when the first-mentioned Competent Authority has 

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

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

The Competent Authority of such other Party shall apply its domestic law (including 

applicable penalties) to obtain corrected and/or complete information or to resolve other 

infringements of this Agreement.

2. Significant Non-Compliance.

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

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

significant non-compliance with the obligations under this Agreement with 

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

Competent Authority of such other Party shall apply its domestic law (including 

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

notice. 

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

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

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

shall treat the Reporting Dominican Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 2(b). 

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

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

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

these obligations shall remain the responsibility of the Reporting Financial Institutions.
18

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

to prevent Financial Institutions from adopting practices intended to circumvent the 

reporting required under this Agreement.

Article 6

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency

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

achieve equivalent levels of reciprocal automatic information exchange with the Dominican 

Republic. The Government of the United States is committed to further improve 

transparency and enhance the exchange relationship with the Dominican Republic by 

pursuing the adoption of regulations and advocating and supporting relevant legislation to 

achieve such equivalent levels of reciprocal automatic information exchange. 

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

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

effective alternative approach to achieve the policy objectives of foreign passthru payment 

and gross proceeds withholding that minimizes burden.

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

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

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

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

Institutions to obtain and report the Dominican TIN of each Account Holder of a 

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

Article 2 of this Agreement; and 

b) The Dominican Republic commits to establish, by January 1, 2017, for reporting 

with respect to 2017 and subsequent years, rules requiring Reporting Dominican 

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

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

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions

1. The Dominican Republic 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 

Dominican 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 Dominican Republic described in Articles 2 and 3 of this 
19

Agreement, and subject to the same terms and conditions as described therein and in

Articles 5 through 9 of this Agreement. 

2. The United States shall notify the Dominican Republic 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 Dominican Republic declines 

in writing the application thereof.

Article 8

Consultations and Amendments

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

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

Agreement.

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

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

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

Article 9

Annexes

The Annexes form an integral part of this Agreement.

Article 10

Term of Agreement

1. This Agreement shall enter into force on the date of the Dominican Republic’s 

written notification to the United States that the Dominican Republic 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, 2018, consult in good faith to amend this 

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

Agreement.
20

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

Governments, have signed this Agreement.

Done at _______, in duplicate, in the English and Spanish languages, both texts being 

equally authentic, this __ day of _______, 20__.

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF THE 

DOMINICAN REPUBLIC:
Annex I – 1

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 Dominican Republic shall require that Reporting Dominican 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 Dominican Republic may permit Reporting Dominican 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 Dominican Republic may permit 
Annex I – 2

Reporting Dominican Financial Institutions to make such election separately for 

each section of this Annex I either with respect to all relevant Financial Accounts 

or, separately, with respect to any clearly identified group of such accounts (such as 

by line of business or the location of where the account is maintained). 

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

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

individuals (“Preexisting Individual Accounts”).

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

the Reporting Dominican 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 Dominican 

Republic 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 

Dominican Republic 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 Dominican Republic 

requires reporting or withholding with respect to insurance products held 

by residents of the Dominican Republic).

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”).
Annex I – 3

1. Electronic Record Search. The Reporting Dominican Financial 

Institution must review electronically searchable data maintained by the 

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

indicia:

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

resident;

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

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

post office box);

d) Current U.S. telephone number;

e) Standing instructions to transfer funds to an account 

maintained in the United States;

f) Currently effective power of attorney or signatory authority

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

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

the Reporting Dominican 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 Dominican Financial Institution must treat 

the account as a U.S. Reportable Account unless it elects to apply 
Annex I – 4

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 Dominican 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 Dominican Financial 

Institution obtains, or has previously reviewed and maintains a 

record of:

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

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

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

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

identification evidencing the Account Holder ’s citizenship 

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

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

Nationality of the United States or a reasonable explanation 

of:

(a) The reason the Account Holder does not have

such a certificate despite relinquishing U.S. 

citizenship; or

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth.

b) Where the Account Holder information contains a current 

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

numbers that are the only telephone numbers associated with the 

account, the Reporting Dominican 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); 
Annex I – 5

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 Dominican 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 Dominican Financial Institution obtains, or has previously 

reviewed and maintains a record of:

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

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

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

or

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

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

non-U.S. status.

C. Additional Procedures Applicable to Preexisting Individual Accounts

That Are Lower Value Accounts.
Annex I – 6

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 Dominican 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 Dominican Financial

Institution must review electronically searchable data maintained by the

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

described in subparagraph B(1) of this section.

2. Paper Record Search. If the Reporting Dominican 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 Dominican 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 Dominican 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;
Annex I – 7

b) The most recent account opening contract or documentation;

c) The most recent documentation obtained by the Reporting

Dominican Financial Institution pursuant to AML/KYC Procedures 

or for other regulatory purposes;

d) Any power of attorney or signature authority forms currently 

in effect; and

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

3. Exception Where Databases Contain Sufficient Information. A

Reporting Dominican Financial Institution is not required to perform the

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

Reporting Dominican 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 Dominican Financial Institution;

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

if any, with the Reporting Dominican 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 Dominican 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 
Annex I – 8

Dominican 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.

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 Dominican 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 Dominican 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 Dominican Financial Institution must 
Annex I – 9

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 Dominican 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 Dominican 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 Dominican 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 Dominican Financial Institution applies the 

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

High Value Account, the Reporting Dominican Financial Institution is not 

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

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

Value Account in any subsequent year.

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

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

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

Dominican 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 Dominican 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 Dominican Financial Institution is required to treat the 
Annex I – 10

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 Dominican 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 Dominican 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 Dominican Republic 

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

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

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

end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds $50,000 at 

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

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

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

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

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

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

opening documentation, that allows the Reporting Dominican Financial Institution 

to determine whether the Account Holder is resident in the United States for tax 
Annex I – 11

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 Dominican 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 Dominican 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 Dominican Financial 

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

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

Reporting Dominican 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 Dominican 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 Dominican 

Republic 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
Annex I – 12

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

the account balance or value of which exceeds $1,000,000 as of the last day of 2015 

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

procedures set forth in paragraph D of this section. 

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

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

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

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

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

by Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in subparagraph 1(b) of Article 4 of the 

Agreement are reported to the Dominican Republic 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 Dominican 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 Dominican Financial Institution must treat the 

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

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

determines based on information in its possession or that is publicly 

available, that the Account Holder is not a Specified U.S. Person.
Annex I – 13

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 Dominican Financial 

Institution verifies the Account Holder’s Global Intermediary 

Identification Number on the published IRS FFI list, then the 

account is not a U.S. Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate

Reporting Under Subparagraph 1(b) of Article 4 of the Agreement.

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

Dominican Financial Institution may determine that the Account 

Holder is a Dominican Financial Institution or other Partner

Jurisdiction Financial Institution if the Reporting Dominican

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 Dominican 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 Dominican 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 Dominican Financial 

Institution or other Partner Jurisdiction Financial Institution, then the 

Reporting Dominican Financial Institution must treat the Account 

Holder as a Nonparticipating Financial Institution payments to 
Annex I – 14

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

Agreement, unless the Reporting Dominican Financial Institution:

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

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

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

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

Treasury Regulations; or

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

deemed-compliant FFI, verifies the Account Holder’s Global 

Intermediary Identification Number on the published IRS 

FFI list.

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

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

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

Institution, the Reporting Dominican 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 Dominican Financial Institution must follow

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

order most appropriate under the circumstances.

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Dominican 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 Dominican Financial Institution must

obtain a self-certification (which may be on an IRS Form W-8 or W9, 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
Annex I – 15

Reporting Dominican 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 Dominican Financial Institution to

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

documentation associated with an account is incorrect or unreliable, the

Reporting Dominican 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
Annex I – 16

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 Dominican 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 Dominican 

Republic 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 Dominican 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 Dominican Financial 

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

Person; (ii) a Dominican 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 Dominican 

Financial Institution may determine that the Account Holder is an Active 

NFFE, a Dominican Financial Institution, or other Partner Jurisdiction 

Financial Institution if the Reporting Dominican 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 Dominican Financial Institution, as applicable.

2. If the Account Holder is a Dominican 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 Dominican 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:
Annex I – 17

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

Reporting Dominican Financial Institution must treat the account as 

a U.S. Reportable Account.

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

Dominican 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 Dominican 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 Dominican Financial Institution or other Partner 

Jurisdiction Financial Institution; (iii) a participating FFI, a deemedcompliant 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 Dominican 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 Dominican Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting Dominican Financial Institution knows or 

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

or unreliable.
Annex I – 18

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 Dominican Financial Institution

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

Dominican Republic to which such Reporting Dominican Financial 

Institution is subject.

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

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

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

Entity that is established in the Dominican Republic 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 
Annex I – 19

government or a political subdivision thereof, a government of a 

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

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

foregoing;

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

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

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

trades or businesses other than the business of a Financial 

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

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

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

buyout fund, or any investment vehicle whose purpose is to 

acquire or fund companies and then hold interests in those 

companies as capital assets for investment purposes;

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

operating history, but is investing capital into assets with the 

intent to operate a business other than that of a Financial 

Institution, provided that the NFFE shall not qualify for this 

exception after the date that is 24 months after the date of the 

initial organization of the NFFE;

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

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

with the intent to continue or recommence operations in a 

business other than that of a Financial Institution;

h) The NFFE primarily engages in financing and hedging 

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

Institutions, and does not provide financing or hedging services 

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

of any such Related Entities is primarily engaged in a business 

other than that of a Financial Institution;

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

Treasury Regulations; or

j) The NFFE meets all of the following requirements:
Annex I – 20

i. It is established and operated in its jurisdiction of 

residence exclusively for religious, charitable, scientific, 

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

established and operated in its jurisdiction of residence 

and it is a professional organization, business league, 

chamber of commerce, labor organization, agricultural or 

horticultural organization, civic league or an organization 

operated exclusively for the promotion of social welfare;

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

residence; 

iii. It has no shareholders or members who have a 

proprietary or beneficial interest in its income or assets; 

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

residence or the NFFE’s formation documents do not 

permit any income or assets of the NFFE to be 

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

person or non-charitable Entity other than pursuant to the 

conduct of the NFFE’s charitable activities, or as 

payment of reasonable compensation for services 

rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and

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

residence or the NFFE’s formation documents require 

that, upon the NFFE’s liquidation or dissolution, all of its 

assets be distributed to a governmental entity or other 

non-profit organization, or escheat to the government of 

the NFFE’s jurisdiction of residence or any political 

subdivision thereof.

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

Account maintained by a Reporting 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, 
Annex I – 21

a Reporting Dominican Financial Institution is required to aggregate all 

Financial Accounts maintained by the Reporting Dominican Financial 

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

Dominican 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 Dominican Financial Institution is required to take into account 

all Financial Accounts that are maintained by the Reporting Dominican 

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

Reporting Dominican 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 Dominican 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 Dominican 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 Dominican 

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:
Annex I – 22

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 Dominican 

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 Dominican Financial Institution has 

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

Person. A Reporting Dominican 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 Dominican 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 Dominican Financial Institution 

has actual knowledge, or reason to know, that the beneficiary is a Specified U.S. 
Annex I – 23

Person, the Reporting Dominican 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 Dominican Republic may permit 

Reporting Dominican Financial Institutions to rely on due diligence procedures 

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

Regulations.

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

Force of this Agreement.

1. Applicability. If the Dominican Republic has provided a written 

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

as of July 1, 2014, the Dominican Republic lacked the legal authority to 

require Reporting Dominican 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 Dominican 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 Dominican Republic has the 

ability to compel Reporting Dominican 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 Dominican Republic 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 Dominican 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. 
Annex I – 24

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 Dominican 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 selfcertification 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 Dominican Republic must report on any New Account 

that is identified pursuant to subparagraph G(2)(a) of this section as 

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

Nonparticipating Financial Institution, as applicable, by the date that 

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

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

held by a Nonparticipating Financial Institution, as applicable, or (ii) 

90 days after the account is identified as a U.S. Reportable Account

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

applicable. The information required to be reported with respect to 

such a New Account is any information that would have been 

reportable under this Agreement if the New Account had been 

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

Nonparticipating Financial Institution, as applicable, as of the date 

the account was opened.

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

of this Agreement, Reporting Dominican 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 
Annex I – 25

Agreement, Reporting Dominican 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 Dominican Republic 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 Dominican Republic may permit Reporting Dominican Financial 

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

diligence procedures related to Preexisting Entity Accounts specified in section IV 

of this Annex I in lieu of the due diligence procedures specified in section V of this 

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

must be applied without regard to the account balance or value threshold specified 

in paragraph A of section IV of this Annex I.
Annex II – 1

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 Dominican Republic 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 Dominican 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 Dominican Republic, any political 

subdivision of the Dominican Republic (which, for the avoidance of doubt, includes a 

state, province, county, or municipality), or any wholly owned agency or instrumentality 

of the Dominican Republic or any one or more of the foregoing (each, a “Dominican 

Republic Governmental Entity”). This category is comprised of the integral parts, 

controlled entities, and political subdivisions of the Dominican Republic.

1. An integral part of the Dominican Republic means any person, organization, agency, 

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

governing authority of the Dominican Republic. The net earnings of the governing 

authority must be credited to its own account or to other accounts of the Dominican 

Republic, 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 Dominican 

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

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

Governmental Entities directly or through one or more controlled entities; 
Annex II – 2

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

or more Dominican Republic 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 Dominican Republic Governmental 

Entities upon dissolution. 

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

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

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

administration of some phase of government. Notwithstanding the foregoing, 

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

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

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

persons.

B. International Organization. Any international organization or wholly owned agency or 

instrumentality thereof. This category includes any intergovernmental organization 

(including a supranational organization) (1) that is comprised primarily of non-U.S. 

governments; (2) that has in effect a headquarters agreement with the Dominican 

Republic; 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 Dominican Republic itself, issuing 

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

instrumentality that is separate from the government of the Dominican Republic, whether 

or not owned in whole or in part by the Dominican Republic.

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

as Non-Reporting Dominican 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 Dominican Republic

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 Dominican Republic; and 

3. Satisfies at least one of the following requirements:
Annex II – 3

a) The fund is generally exempt from tax in the Dominican Republic on investment 

income under the laws of the Dominican Republic 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 Dominican 

Republic 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 Dominican Republic 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 Dominican 

Republic.

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

Republic by an exempt beneficial owner to provide retirement, disability, or death 

benefits to beneficiaries or participants that are current or former employees of the 
Annex II – 4

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

current or former employees, if the benefits provided to such beneficiaries or participants 

are in consideration of personal services performed for the exempt beneficial owner.

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

Dominican 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 Dominican 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 Dominican Republic;

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

Dominican Republic. 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 

Dominican Republic. For this purpose, a Financial Institution shall not be considered 

to have solicited customers or Account Holders outside the Dominican Republic

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 Dominican Republic

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 Dominican Republic

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 Dominican Republic’s AML due diligence requirements;
Annex II – 5

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 

Dominican Republic; 

6. By the later of July 1, 2014, or the date that the Financial Institution claims treatment 

as a deemed-compliant FFI pursuant to this paragraph A, the Financial Institution

must have policies and procedures, consistent with those set forth in Annex I, to

prevent the Financial Institution from providing a Financial Account to any 

Nonparticipating Financial Institution and to monitor whether the Financial 

Institution opens or maintains a Financial Account for any Specified U.S. Person who 

is not a resident of the Dominican Republic (including a U.S. Person that was a 

resident of the Dominican Republic when the Financial Account was opened but 

subsequently ceases to be a resident of the Dominican Republic) or any Passive 

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

residents of the Dominican Republic ; 

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 Dominican Republic or by a 

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

are not residents of the Dominican Republic is identified, the Financial Institution 

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

were a Reporting Dominican 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 Dominican Republic 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 Dominican 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 Dominican Republic 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 Dominican Republic.

B. Local Bank. A Financial Institution satisfying the following requirements:
Annex II – 6

1. The Financial Institution operates solely as (and is licensed and regulated under the 

laws of the Dominican Republic as) (a) a bank or (b) a credit union or similar 

cooperative credit organization that is operated without profit;

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

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

to a credit union or similar cooperative credit organization, members, provided that 

no member has a greater than five percent interest in such credit union or cooperative 

credit organization;

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

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

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

opening of a Financial Account;

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 Dominican Republic,

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 Dominican 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 Dominican 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 
Annex II – 7

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

returned to the customer; and

2. By the later of July 1, 2014, or the date that the Financial Institution claims treatment 

as a deemed-compliant FFI pursuant to this paragraph D, the Financial Institution

implements policies and procedures to either prevent a customer deposit in excess of 

$50,000, or to ensure that any customer deposit in excess of $50,000, in each case 

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

translation, is refunded to the customer within 60 days. For this purpose, a customer 

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

include credit balances resulting from merchandise returns.

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

The Financial Institutions described in paragraphs A through E of this section are NonReporting Dominican 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 Dominican 

Republic 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 Dominican Republic 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 Dominican Republic 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 

 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.
Annex II – 8

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:

a) The sponsoring entity is authorized to act on behalf of the Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS FATCA registration 

website; 

b) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with respect to 

the Financial Institution, the sponsoring entity registers the Financial Institution

pursuant to applicable registration requirements on the IRS FATCA registration 

website on or before the later of December 31, 2016 and the date that is 90 days 

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

d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting Dominican 

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 Dominican 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 
Annex II – 9

(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 Dominican Financial Institution;

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests in the 

Financial Institution (disregarding debt interests owned by Participating FFIs and 

deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns 

100 percent of the Equity Interests in the Financial Institution and is itself a sponsored 

Financial Institution described in this paragraph C); and

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting Dominican 

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 Dominican Republic 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 Dominican 

Republic 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: 
Annex II – 10

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled.

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated as a 

collective investment vehicle, all of the interests in which (including debt interests 

in excess of $50,000) are held by or through one or more exempt beneficial 

owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, 

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

not Nonparticipating Financial Institutions; or

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

relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a Dominican 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 Dominican 

Republic that is not described in paragraph E or subparagraph F(2) of this section, 

consistent with paragraph 3 of Article 5 of the Agreement, the reporting obligations 

of all other Investment Entities with respect to such interests shall be deemed fulfilled 

if the information required to be reported by the first-mentioned Investment Entity

pursuant to the Agreement with respect to such interests is reported by such 

Investment Entity or another person.

V. Accounts Excluded from Financial Accounts. The following accounts are excluded from 

the definition 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 

Dominican Republic that satisfies the following requirements under the laws of the 

Dominican Republic.

a) The account is subject to regulation as a personal retirement account or is part of a 

registered or regulated retirement or pension plan for the provision of retirement 

or pension benefits (including disability or death benefits);

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

be subject to tax under the laws of the Dominican Republic are deductible or 
Annex II – 11

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 Dominican 

Republic 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 Dominican 

Republic (other than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of the Dominican Republic.

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 Dominican Republic 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 

Dominican Republic 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;
Annex II – 12

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 Dominican Republic 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 Dominican Republic 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.
Annex II – 13

E. Partner Jurisdiction Accounts. An account maintained in the Dominican Republic 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 nonU.S. government or agency thereof, followed by automatic exchange of such reported 

information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that has 

agreed to comply with the requirements of an FFI Agreement, including a Financial 

Institution described in a Model 2 IGA that has agreed to comply with the requirements 

of an FFI Agreement. The term Participating FFI also includes a qualified intermediary 

branch of a Reporting U.S. Financial Institution, unless such branch is a Reporting Model 

1 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.