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

Government of the Republic of Kazakhstan to Improve International Tax Compliance 

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

Republic of Kazakhstan (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 26 of the Convention between the Government of the United States of

America and the Government of the Republic of Kazakhstan for the Avoidance of Double

Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,

with Protocol, done at Almaty on October 24, 1993 (“Convention”), 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 Republic of Kazakhstan is supportive of the underlying 

policy goal of FATCA to improve tax compliance;

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

Republic of Kazakhstan 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 Republic of 

Kazakhstan and is committed to exchanging such information with the Government of the 

Republic of Kazakhstan 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 financial institutions of the Republic of Kazakhstan;

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 Convention, and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the information 

exchanged under the Convention; 

Now, therefore, the Parties have agreed as follows:

Article 1

Definitions

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

terms shall have the meanings set forth below:
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a) The term “United States” means the United States of America, including the 

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

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

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

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

the U.S. Virgin Islands.

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

d) The term “Republic of Kazakhstan” means the Republic of Kazakhstan.

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 Republic of Kazakhstan, the Minister of Finance 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 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;
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(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 “Financial Institution of the Republic of Kazakhstan” means (i) 

any Financial Institution organized under the laws of the Republic of

Kazakhstan, but excluding any branch of such Financial Institution that is

located outside of the Republic of Kazakhstan, and (ii) any branch of a 

Financial Institution not organized under the laws of the Republic of

Kazakhstan, if such branch is located in the Republic of Kazakhstan. 

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 Financial 

Institution of the Republic of Kazakhstan or a Reporting U.S. Financial 

Institution, as the context requires.

o) The term “Reporting Financial Institution of the Republic of Kazakhstan”

means any Financial Institution of the Republic of Kazakhstan that is not a 

Non-Reporting Financial Institution of the Republic of Kazakhstan. 

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 Financial Institution of the Republic of 

Kazakhstan” means any Financial Institution of the Republic of Kazakhstan,

or other Entity in the Republic of Kazakhstan, that is described in Annex II as 

a Non-Reporting Financial Institution of the Republic of Kazakhstan or that 

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

under relevant U.S. Treasury Regulations.
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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 Financial Institution of the Republic of Kazakhstan 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

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

maintained by a Financial Institution, other than a noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

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

Annex II.

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

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

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

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

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

is officially recognized and supervised by a governmental authority in which 

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

on the exchange. For purposes of this subparagraph 1(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.
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t) The term “Depository Account” includes any commercial, checking, savings, 

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

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

other similar instrument maintained by a Financial Institution in the ordinary 

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

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

contract or similar agreement to pay or credit interest thereon.

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

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

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

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

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

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

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

instrument).

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

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

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

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

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

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

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

receive directly or indirectly (for example, through a nominee) a mandatory 

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

from the trust. 

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

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

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

property risk.

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

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

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

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

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

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

years. 

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

(other than an indemnity reinsurance contract between two insurance 

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

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 
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include an amount payable under an Insurance Contract as: 

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

indemnification of an economic loss incurred upon the occurrence of 

the event insured against; 

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

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

policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

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

contract or group involved.

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

Reportable Account of the Republic of Kazakhstan, as the context requires.

bb) The term “Reportable Account of the Republic of Kazakhstan” 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 Republic of Kazakhstan 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 Republic of Kazakhstan, including an Entity that certifies that it is resident 

in the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan 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 
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Account Holder is any person named as the owner in the contract and any 

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

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

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

Account Holder.

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

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

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

States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of the 

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

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

resident of the United States. This subparagraph 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.

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 
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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 Republic of 

Kazakhstan 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 “Republic of Kazakhstan TIN” means a Republic of Kazakhstan

taxpayer identifying 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.

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 26 of the Convention. 

2. The information to be obtained and exchanged is:

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

Account of each Reporting Financial Institution of the Republic of

Kazakhstan:

(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. 
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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 Financial Institution

of the Republic of Kazakhstan; 

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

Insurance Contract or Annuity Contract, the Cash Value or surrender 

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

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

immediately before closure; 

(5) in the case of any Custodial Account: 

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

dividends, and the total gross amount of other income 

generated with respect to the assets held in the account, in each 

case paid or credited to the account (or with respect to the 

account) during the calendar year or other appropriate reporting 

period; and 

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

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

appropriate reporting period with respect to which the 

Reporting Financial Institution of the Republic of Kazakhstan

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 

Financial Institution of the Republic of Kazakhstan 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 Reportable Account of 

the Republic of Kazakhstan of each Reporting U.S. Financial Institution:

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

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

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

of the Republic of Kazakhstan 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 Republic of Kazakhstan: 

(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;
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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 the Determination Date, 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 Republic of Kazakhstan 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 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 Republic of Kazakhstan and the United States shall

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

in Article 25 of the Convention, 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 Convention, 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 Competent Authority of 
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the Republic of Kazakhstan 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 Republic of Kazakhstan has 

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

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

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

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

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 Financial Institutions of the Republic of Kazakhstan

1. Treatment of Reporting Financial Institutions of the Republic of Kazakhstan.

Each Reporting Financial Institution of the Republic of Kazakhstan shall be treated as 

complying with, and not subject to withholding under, section 1471 of the U.S. Internal 

Revenue Code if the Republic of Kazakhstan complies with its obligations under Articles 2 

and 3 of this Agreement with respect to such Reporting Financial Institution of the Republic 

of Kazakhstan, and the Reporting Financial Institution of the Republic of Kazakhstan: 

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

Authority of the Republic of Kazakhstan 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 Competent Authority of the 

Republic of Kazakhstan 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 Financial Institution of the Republic of 

Kazakhstan 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 Financial Institution of the Republic of Kazakhstan

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 
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Reporting Financial Institution of the Republic of Kazakhstan provides to any 

immediate payor of such U.S. Source Withholdable Payment the information 

required for withholding and reporting to occur with respect to such payment.

Notwithstanding the foregoing, a Reporting Financial Institution of the Republic of 

Kazakhstan 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 Financial Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan 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 Retirement Plans of the Republic of Kazakhstan. 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,

retirement plans of the Republic of Kazakhstan described in Annex II. For this purpose, a 

retirement plan of the Republic of Kazakhstan includes an Entity established or located in,

and regulated by, the Republic of Kazakhstan, 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 Republic of Kazakhstan 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 Financial Institution of 

the Republic of Kazakhstan 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 Financial Institution of the Republic of

Kazakhstan, 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 Financial Institution of the 

Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan treats each such 

Related Entity or branch as a separate Nonparticipating Financial Institution 

for purposes of all the reporting and withholding requirements of this 
14

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 Financial Institution of the Republic of Kazakhstan 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 Republic of Kazakhstan 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 Republic of Kazakhstan 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 Republic of Kazakhstan is required to obtain and 

exchange information; and

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

to the date by which the Republic of Kazakhstan 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 Republic of Kazakhstan may use, and may permit the

Financial Institutions of the Republic of Kazakhstan 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 
15

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 Financial Institution of the Republic of 

Kazakhstan, 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 Financial 

Institution of the Republic of Kazakhstan 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.

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 Republic of 

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

transparency and enhance the exchange relationship with the Republic of Kazakhstan 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 the Determination Date. With 

respect to Reportable Accounts maintained by a Reporting Financial Institution as of the 

Determination Date:
16

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 Republic of Kazakhstan TIN of each 

Account Holder of a Reportable Account of the Republic of Kazakhstan as 

required pursuant to subparagraph 2(b)(1) of Article 2 of this Agreement; and

b) The Republic of Kazakhstan commits to establish, by January 1, 2017, for 

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

Financial Institutions of the Republic of Kazakhstan 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 Republic of Kazakhstan 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 

Financial Institutions of the Republic of Kazakhstan 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 Republic of Kazakhstan described in Articles 2 and 3 

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

Articles 5 through 9 of this Agreement. 

2. The United States shall notify the Republic of Kazakhstan 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 Republic of Kazakhstan

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 written notification from the 
17

Republic of Kazakhstan to the United States that the Republic of Kazakhstan 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.

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

Governments, have signed this Agreement.

Done at _____________, in duplicate, in the English, Kazakh, and Russian languages, all 

three texts being equally authentic, this __ day of ___________, 20__.

FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF THE 

REPUBLIC OF KAZAKHSTAN:
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 Republic of Kazakhstan shall require that Reporting Financial Institutions

of the Republic of Kazakhstan 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 the 

Determination Date 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 the Determination Date, 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 Republic of Kazakhstan may permit Reporting Financial Institutions of the

Republic of Kazakhstan 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 Republic of Kazakhstan

may permit Reporting Financial Institutions of the Republic of Kazakhstan 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 
Annex I – 2

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 Financial Institution of the Republic of Kazakhstan 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 

Republic of Kazakhstan 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 the 

Determination Date.

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 the Determination Date.

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

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

Republic of Kazakhstan 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 Republic of Kazakhstan

requires reporting or withholding with respect to insurance products held by 

residents of the Republic of Kazakhstan). 

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 the Determination Date, that Exceeds $50,000 ($250,000 for a Cash 

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

(“Lower Value Accounts”).

1. Electronic Record Search. The Reporting Financial Institution of the 

Republic of Kazakhstan must review electronically searchable data maintained 

by the Reporting Financial Institution of the Republic of Kazakhstan 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;
Annex I – 3

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 Financial Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan must treat 

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

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

subparagraph applies with respect to that account.

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

this section, a Reporting Financial Institution of the Republic of Kazakhstan 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 Financial Institution of 

the Republic of Kazakhstan 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
Annex I – 4

(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 Financial Institution of the Republic of Kazakhstan obtains,

or has previously reviewed and maintains a record of:

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

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

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

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

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

non-U.S. status.

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting Financial Institution of the Republic of 

Kazakhstan 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 Financial 

Institution of the Republic of Kazakhstan 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 – 5

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed within two years from the 

Determination Date. 

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 Financial Institution of the Republic of 

Kazakhstan 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 the Determination Date, or 

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

1. Electronic Record Search. The Reporting Financial Institution of the 

Republic of Kazakhstan must review electronically searchable data maintained 

by the Reporting Financial Institution of the Republic of Kazakhstan for any 

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

2. Paper Record Search. If the Reporting Financial Institution of the 

Republic of Kazakhstan’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 Financial Institution of the Republic of 

Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan within the last five years 

for any of the U.S. indicia described in subparagraph B(1) of this section:

a) The most recent documentary evidence collected with respect 

to the account;

b) The most recent account opening contract or documentation;

c) The most recent documentation obtained by the Reporting 

Financial Institution of the Republic of Kazakhstan pursuant to 

AML/KYC Procedures or for other regulatory purposes;

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

effect; and
Annex I – 6

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

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Financial Institution of the Republic of Kazakhstan is not required 

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

section if the Reporting Financial Institution of the Republic of Kazakhstan’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 Financial Institution of the 

Republic of Kazakhstan;

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

any, with the Reporting Financial Institution of the Republic of

Kazakhstan; 

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

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

the Reporting Financial Institution of the Republic of Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan 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 
Annex I – 7

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

account, then the Reporting Financial Institution of the Republic of

Kazakhstan 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 the 

Determination Date, the Reporting Financial Institution of the Republic of 

Kazakhstan must complete the enhanced review procedures described in 

paragraph D of this section with respect to such account within one year from 

the Determination Date. If based on this review such account is identified as a 

U.S. Reportable Account on or before December 31, 2014, the Reporting 

Financial Institution of the Republic of Kazakhstan must report the required 

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

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

as a U.S. Reportable Account after December 31, 2014, the Reporting 

Financial Institution of the Republic of Kazakhstan 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 

the Determination Date, but becomes a High Value Account as of the last day 

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

the Republic of Kazakhstan 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 Financial Institution of 

the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan

applies the enhanced review procedures described in paragraph D of this 

section to a High Value Account, the Reporting Financial Institution of the 

Republic of Kazakhstan 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 
Annex I – 8

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

Financial Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan is

required to treat the new address as a change in circumstances and, if it elects 

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

appropriate documentation from the Account Holder.

F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting Financial Institution of the Republic of Kazakhstan

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 after the Determination Date (“New Individual Accounts”).

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

the Reporting Financial Institution of the Republic of Kazakhstan 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 

Republic of Kazakhstan 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 Financial Institution of the Republic of 

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

documentation, that allows the Reporting Financial Institution of the Republic of 
Annex I – 9

Kazakhstan to determine whether the Account Holder is resident in the United States 

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

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

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

on the information obtained by the Reporting Financial Institution of the Republic of

Kazakhstan 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 Financial Institution of the 

Republic of Kazakhstan 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 Financial Institution of the Republic of

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

the Republic of Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan is unable to obtain a valid 

self-certification, the Reporting Financial Institution of the Republic of

Kazakhstan 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 Financial Institution of the Republic of Kazakhstan 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 Republic of Kazakhstan provide for such an election, a Preexisting Entity 

Account with an account balance or value that does not exceed $250,000 as of the 

Determination Date, 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 the Determination Date, and 

a Preexisting Entity Account that does not exceed $250,000 as of the Determination 

Date 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 
Annex I – 10

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 Competent Authority of the Republic of Kazakhstan.

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 Financial Institution of the Republic of

Kazakhstan 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 Financial Institution of the Republic of

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

it obtains a self-certification from the Account Holder (which may be 

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

determines based on information in its possession or that is publicly 

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

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution.

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

Financial Institution, or the Reporting Financial Institution of the 

Republic of Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan may determine that

the Account Holder is a Financial Institution of the Republic of 
Annex I – 11

Kazakhstan or other Partner Jurisdiction Financial Institution if the 

Reporting Financial Institution of the Republic of Kazakhstan

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 Financial 

Institution of the Republic of Kazakhstan, 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 Financial Institution of the Republic 

of Kazakhstan 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 Financial Institution of the 

Republic of Kazakhstan or other Partner Jurisdiction Financial 

Institution, then the Reporting Financial Institution of the Republic of 

Kazakhstan must treat the Account Holder as a Nonparticipating 

Financial Institution payments to which are reportable under 

subparagraph 1(b) of Article 4 of the Agreement, unless the Reporting 

Financial Institution of the Republic of Kazakhstan:

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

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

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

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

Treasury Regulations; or

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

Intermediary Identification Number on the published IRS FFI 

list.

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

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

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

Institution, the Reporting Financial Institution of the Republic of Kazakhstan

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 Financial Institution of the 

Republic of Kazakhstan 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 Financial Institution of the Republic of
Annex I – 12

Kazakhstan 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 Financial Institution of the Republic of

Kazakhstan must obtain a self-certification (which may be on an IRS 

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

Holder to establish its status, unless it has information in its possession 

or that is publicly available, based on which it can reasonably 

determine that the Account Holder is an Active NFFE.

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

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

Reporting Financial Institution of the Republic of Kazakhstan 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 the Determination Date must be completed 

within two years from the Determination Date.

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

value that does not exceed $250,000 as of the Determination Date, 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 Financial Institution of the Republic 

of Kazakhstan to know, or have reason to know, that the self-certification or 

other documentation associated with an account is incorrect or unreliable, the 

Reporting Financial Institution of the Republic of Kazakhstan must 

redetermine the status of the account in accordance with the procedures set 

forth in paragraph D of this section.
Annex I – 13

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

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

Institutions among Financial Accounts held by Entities and opened after the Determination 

Date (“New Entity Accounts”). 

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

Unless the Reporting Financial Institution of the Republic of Kazakhstan 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 

Republic of Kazakhstan 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 Financial Institution of the 

Republic of Kazakhstan 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 Financial Institution of the 

Republic of Kazakhstan must determine whether the Account Holder is: (i) a 

Specified U.S. Person; (ii) a Financial Institution of the Republic of Kazakhstan 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; or (iv) an Active NFFE or Passive NFFE. 

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

Institution of the Republic of Kazakhstan may determine that the Account 

Holder is an Active NFFE, a Financial Institution of the Republic of 

Kazakhstan, or other Partner Jurisdiction Financial Institution if the Reporting 

Financial Institution of the Republic of Kazakhstan 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 Financial Institution of

the Republic of Kazakhstan, as applicable. 

2. If the Account Holder is a Financial Institution of the Republic of

Kazakhstan 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 Financial Institution of the Republic of 

Kazakhstan must obtain a self-certification from the Account Holder to 

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

following rules apply:

 

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

Financial Institution of the Republic of Kazakhstan must treat the 

account as a U.S. Reportable Account.
Annex I – 14

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

Financial Institution of the Republic of Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan or other 

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

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

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

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

is a U.S. citizen or resident, then the account is not a U.S. Reportable 

Account, and no reporting is required with respect to the account.

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a Financial Institution of the Republic of

Kazakhstan 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 

Financial Institution of the Republic of Kazakhstan may not rely on a self-certification 

or documentary evidence if the Reporting Financial Institution of the Republic of

Kazakhstan knows or has reason to know that the self-certification or documentary 

evidence is incorrect or unreliable.

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

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

due diligence procedures of a Reporting Financial Institution of the 

Republic of Kazakhstan pursuant to the anti-money laundering or similar 

requirements of the Republic of Kazakhstan to which such Reporting 

Financial Institution of the Republic of Kazakhstan 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 Republic of Kazakhstan or another Partner 

Jurisdiction and that is not a Financial Institution.
Annex I – 15

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

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

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

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

following criteria:

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

calendar year or other appropriate reporting period is passive 

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

during the preceding calendar year or other appropriate reporting 

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

passive income;

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

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

stock of which is regularly traded on an established securities 

market;

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

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

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

political subdivision of such government (which, for the avoidance 

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

public body performing a function of such government or a 

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

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

Entity wholly owned by one or more of the foregoing; 

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

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

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

businesses other than the business of a Financial Institution, except 

that an entity shall not qualify for NFFE status if the entity

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

private equity fund, venture capital fund, leveraged buyout fund, or 

any investment vehicle whose purpose is to acquire or fund 

companies and then hold interests in those companies as capital 

assets for investment purposes;

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

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

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

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

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 
Annex I – 16

intent to continue or recommence operations in a business other 

than that of a Financial Institution;

h) The NFFE primarily engages in financing and hedging transactions 

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

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

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

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

Financial Institution;

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

Treasury Regulations; or

j) The NFFE meets all of the following requirements:

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

exclusively for religious, charitable, scientific, artistic, 

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

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare;

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

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

beneficial interest in its income or assets;

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

or the NFFE’s formation documents do not permit any 

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

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

other than pursuant to the conduct of the NFFE’s charitable 

activities, or as payment of reasonable compensation for 

services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and

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

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

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

distributed to a governmental entity or other non-profit 

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

jurisdiction of residence or any political subdivision thereof.

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

Account maintained by a Reporting Financial Institution as of the 

Determination Date.

6. Determination Date. The “Determination Date” means the date, which 

may be prior to entry into force of this Agreement, on which the Treasury 
Annex I – 17

Department determines not to apply withholding under section 1471 of the 

U.S. Internal Revenue Code to Financial Institutions of the Republic of

Kazakhstan. That date is: (a) June 30, 2014, in the case of (i) a jurisdiction 

that signed an agreement with the United States to implement FATCA or 

facilitate FATCA implementation on or before June 30, 2014, or (ii) a 

jurisdiction that the Treasury Department determined reached such an 

agreement in substance on or before June 30, 2014, and is included on the 

Treasury Department list of such jurisdictions, (b) November 30, 2014, in 

the case of a jurisdiction that the Treasury Department determined reached 

such an agreement in substance on or after July 1, 2014, and on or before 

November 30, 2014, and is included on the Treasury Department list of 

such jurisdictions, or (c) the date of signature of such an agreement, in the 

case of any other jurisdiction. The Determination Date for the Republic of

Kazakhstan is November 30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules.

1. Aggregation of Individual Accounts. For purposes of determining 

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

Reporting Financial Institution of the Republic of Kazakhstan is required to 

aggregate all Financial Accounts maintained by the Reporting Financial 

Institution of the Republic of Kazakhstan, or by a Related Entity, but only to 

the extent that the Reporting Financial Institution of the Republic of 

Kazakhstan’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 Financial Institution of the Republic of Kazakhstan is required to 

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

Financial Institution of the Republic of Kazakhstan, or by a Related Entity, but 

only to the extent that the Reporting Financial Institution of the Republic of 

Kazakhstan’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 Financial Institution of the Republic of

Kazakhstan 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.
Annex I – 18

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 Financial Institution of the Republic of Kazakhstan 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 Financial Institution 

of the Republic of Kazakhstan is determining the balance or value.

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

documentary evidence includes any of the following:

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

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

jurisdiction in which the payee claims to be a resident.

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

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

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

identification purposes.

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

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

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

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

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

incorporated or organized.

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

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

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

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

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

Entities.

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

U.S. Securities and Exchange Commission report.

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting Financial 

Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of 

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

Specified U.S. Person. A Reporting Financial Institution of the Republic of

Kazakhstan 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 Financial 

Institution of the Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan has actual knowledge, 
Annex I – 19

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

Financial Institution of the Republic of Kazakhstan 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 Republic of Kazakhstan may permit 

Reporting Financial Institutions of the Republic of Kazakhstan 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 Republic of Kazakhstan has provided a written 

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

of the Determination Date, the Republic of Kazakhstan lacked the legal 

authority to require Reporting Financial Institutions of the Republic of 

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

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

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

specified in section V of this Annex I, then Reporting Financial Institutions of 

the Republic of Kazakhstan 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 Republic of 

Kazakhstan has the ability to compel Reporting Financial Institutions of the 

Republic of Kazakhstan to comply with the due diligence procedures 

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

the Republic of Kazakhstan 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 

after the Determination Date, 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 Financial 

Institutions of the Republic of Kazakhstan must apply the due diligence 

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

to determine if the account is a U.S. Reportable Account or an account held by 

a Nonparticipating Financial Institution.

2. Alternative Procedures. 

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

Agreement, Reporting Financial Institutions of the Republic of

Kazakhstan must: (i) with respect to a New Individual Account 

described in subparagraph G(1) of this section, request the selfcertification specified in section III of this Annex I and confirm the 
Annex I – 20

reasonableness of such self-certification consistent with the procedures 

described in section III of this Annex I, and (ii) with respect to a New 

Entity Account described in subparagraph G(1) of this section, perform 

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

request information as necessary to document the account, including 

any self-certification, required by section V of this Annex I. 

b) The Republic of Kazakhstan 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 Financial Institutions of the Republic of

Kazakhstan must close any New Account described in subparagraph 

G(1) of this section for which it was unable to collect the required selfcertification or other documentation pursuant to the procedures 

described in subparagraph G(2)(a) of this section. In addition, by the 

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

Agreement, Reporting Financial Institutions of the Republic of 

Kazakhstan 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 Republic of Kazakhstan 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 
Annex I – 21

by a Nonparticipating Financial Institution, as applicable, as of the date 

the account was opened.

H. Alternative Procedures for New Entity Accounts Opened after the 

Determination Date, and before January 1, 2015. For New Entity Accounts 

opened after the Determination Date, 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 Republic of Kazakhstan may permit Reporting Financial 

Institutions of the Republic of Kazakhstan 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 Republic of Kazakhstan 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 Financial Institutions of the Republic of Kazakhstan 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 Republic of Kazakhstan, any political 

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

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

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

“Governmental Entity of the Republic of Kazakhstan”). This category is comprised of

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

Kazakhstan.

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

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

constitutes a governing authority of the Republic of Kazakhstan. The net earnings of 

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

the Republic of Kazakhstan, 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 Republic of

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

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

of the Republic of Kazakhstan 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 Governmental Entities of the Republic of Kazakhstan, 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 Governmental Entities of the Republic of 

Kazakhstan upon dissolution. 

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

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

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

administration of some phase of government. Notwithstanding the foregoing, 

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

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

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

persons.

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

instrumentality thereof. This category includes any intergovernmental organization 

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

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

Kazakhstan; 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 Republic of Kazakhstan itself, issuing 

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

instrumentality that is separate from the government of the Republic of Kazakhstan,

whether or not owned in whole or in part by the Republic of Kazakhstan. 

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

as Non-Reporting Financial Institutions of the Republic of Kazakhstan and as exempt 

beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code.

A. Treaty-Qualified Retirement Fund. A fund established in the Republic of Kazakhstan,

provided that the fund is entitled to benefits under an income tax treaty between the 

Republic of Kazakhstan and the United States on income that it derives from sources 

within the United States (or would be entitled to such benefits if it derived any such 

income) as a resident of the Republic of Kazakhstan that satisfies any applicable 

limitation on benefits requirement, and is operated principally to administer or provide 

pension or retirement benefits.

B. Broad Participation Retirement Fund. A fund established in the Republic of

Kazakhstan 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:
Annex II – 3

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 information reporting to the tax 

authorities in the Republic of Kazakhstan; and 

3. Satisfies at least one of the following requirements:

a) The fund is generally exempt from tax in the Republic of Kazakhstan on 

investment income under the laws of the Republic of Kazakhstan 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 D 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 D 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.

C. Narrow Participation Retirement Fund. A fund established in the Republic of

Kazakhstan 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 treaty-qualified retirement funds described in paragraph A of this section or 

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; 
Annex II – 4

4. Participants that are not residents of the Republic of Kazakhstan are not entitled to 

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

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

the tax authorities in the Republic of Kazakhstan. 

D. Pension Fund of an Exempt Beneficial Owner. A fund established in the Republic of

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

benefits to beneficiaries or participants that are current or former employees of the 

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

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

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

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

Financial Institution of the Republic of Kazakhstan 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 Financial Institutions of the Republic 

of Kazakhstan 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 Republic of Kazakhstan;

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

of Kazakhstan. 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 

Republic of Kazakhstan. For this purpose, a Financial Institution shall not be 

considered to have solicited customers or Account Holders outside the Republic of

Kazakhstan 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 Republic of

Kazakhstan but is also incidentally distributed or aired in other countries, provided 

that the advertisement does not specifically indicate that the Financial Institution 
Annex II – 5

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 Republic of

Kazakhstan 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 Republic of Kazakhstan’s AML due diligence 

requirements;

5. At least 98 percent of the Financial Accounts by value maintained by the Financial 

Institution must be held by residents (including residents that are Entities) of the 

Republic of Kazakhstan; 

6. By the later of the Determination Date, 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 Republic of Kazakhstan (including a U.S. Person 

that was a resident of the Republic of Kazakhstan when the Financial Account was 

opened but subsequently ceases to be a resident of the Republic of Kazakhstan) or 

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

who are not residents of the Republic of Kazakhstan;

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 Republic of Kazakhstan or by a 

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

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

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

were a Reporting Financial Institution of the Republic of Kazakhstan (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 Republic of Kazakhstan 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 Financial Institution of the Republic of Kazakhstan (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 Republic of Kazakhstan and, with the exception of 
Annex II – 6

any Related Entity that is a retirement fund described in paragraphs A through D 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 Republic of Kazakhstan. 

B. Local Bank. A Financial Institution satisfying the following requirements:

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

laws of the Republic of Kazakhstan 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 Republic of

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

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

of section II 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 Financial Institution of the 

Republic of Kazakhstan 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 
Annex II – 7

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 Financial Institution of the Republic of Kazakhstan

satisfying the following requirements:

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

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

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

returned to the customer; and

2. By the later of the Determination Date, 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 Financial Institutions of the Republic of Kazakhstan 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 Republic of

Kazakhstan to the extent that the trustee of the trust is a Reporting U.S. Financial 

Institution, Reporting Model 1 FFI, or Participating FFI and the trustee reports all 

information required to be reported pursuant to the Agreement as would be required if the 

trust were a Reporting Financial Institution of the Republic of Kazakhstan (including by 

following the applicable registration requirements on the IRS FATCA registration 

website).

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 Republic of Kazakhstan 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. 
Annex II – 8

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 Republic of Kazakhstan that is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned, directly or indirectly, by a 

Reporting U.S. Financial Institution that agrees to act, or requires an affiliate of the 

Financial Institution to act, as a sponsoring entity for the Financial Institution; and (c) 

the Financial Institution shares a common electronic account system with the 

sponsoring entity that enables the sponsoring entity to identify all Account Holders 

and payees of the Financial Institution and to access all account and customer 

information maintained by the Financial Institution including, but not limited to, 

customer identification information, customer documentation, account balance, and 

all payments made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements:

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 Financial 

Institution of the Republic of Kazakhstan;

e) The sponsoring entity identifies the Financial Institution and includes the 

identifying number of the Financial Institution (obtained by following applicable 

 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 – 9

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 Financial Institution of the Republic of

Kazakhstan satisfying the following requirements:

1. The Financial Institution is a Financial Institution solely because it is an Investment 

Entity and is not a qualified intermediary, withholding foreign partnership, or 

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

2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1 

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to perform, 

on behalf of the Financial Institution, all due diligence, withholding, reporting, and 

other requirements that the Financial Institution would have been required to perform 

if it were a Reporting Financial Institution of the Republic of Kazakhstan;

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 Financial 

Institution of the Republic of Kazakhstan 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 Republic of Kazakhstan that is a Financial Institution solely because it (1) renders
Annex II – 10

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 Republic of

Kazakhstan that is regulated as a collective investment vehicle, provided that all of the 

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

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

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

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

Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

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

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

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

collective investment vehicle are held) shall be deemed fulfilled.

2. With respect to interests in: 

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

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

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

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

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

not Nonparticipating Financial Institutions; or

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 Financial Institution of the 

Republic of Kazakhstan (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 Republic of

Kazakhstan 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.

4. An Investment Entity established in the Republic of Kazakhstan that is regulated as a 

collective investment vehicle shall not fail to qualify under paragraph E or 
Annex II – 11

subparagraph F(2) of this section, or otherwise as a deemed-compliant FFI, solely 

because the collective investment vehicle has issued physical shares in bearer form, 

provided that: 

a) The collective investment vehicle has not issued, and does not issue, any physical 

shares in bearer form after December 31, 2012; 

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

c) The collective investment vehicle (or a Reporting Financial Institution of the 

Republic of Kazakhstan) performs the due diligence procedures set forth in 

Annex I and reports any information required to be reported with respect to any 

such shares when such shares are presented for redemption or other payment; and 

d) The collective investment vehicle has in place policies and procedures to ensure 

that such shares are redeemed or immobilized as soon as possible, and in any 

event prior to January 1, 2017.

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

the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable 

Accounts.

A. Certain Savings Accounts.

1. Retirement and Pension Account. A retirement or pension account maintained in the 

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

the Republic of Kazakhstan. 

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 Republic of Kazakhstan are deductible or 

excluded from the gross income of the account holder or taxed at a reduced rate, 

or taxation of investment income from the account is deferred or taxed at a 

reduced rate);

c) Annual information reporting is required to the tax authorities in the Republic of

Kazakhstan 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 
Annex II – 12

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 Republic of

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

requirements under the laws of the Republic of Kazakhstan. 

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 Republic of Kazakhstan 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 

Republic of Kazakhstan with a coverage period that will end before the insured 

individual attains age 90, provided that the contract satisfies the following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the contract is in existence or until the insured attains age 90, 

whichever is shorter;

2. The contract has no contract value that any person can access (by withdrawal, loan, or 

otherwise) without terminating the contract;

3. The amount (other than a death benefit) payable upon cancellation or termination of 

the contract cannot exceed the aggregate premiums paid for the contract, less the sum 

of mortality, morbidity, and expense charges (whether or not actually imposed) for 

the period or periods of the contract’s existence and any amounts paid prior to the 

cancellation or termination of the contract; and

4. The contract is not held by a transferee for value.

C. Account Held By an Estate. An account maintained in the Republic of Kazakhstan that 

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

deceased’s will or death certificate.
Annex II – 13

D. Escrow Accounts. An account maintained in the Republic of Kazakhstan established in 

connection with any of the following: 

1. A court order or judgment.

2. A sale, exchange, or lease of real or personal property, provided that the account 

satisfies the following requirements:

a) The account is funded solely with a down payment, earnest money, deposit in an 

amount appropriate to secure an obligation directly related to the transaction, or a 

similar payment, or is funded with a financial asset that is deposited in the 

account in connection with the sale, exchange, or lease of the property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating to the 

leased property as agreed under the lease;

c) The assets of the account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee 

(including to satisfy such person’s obligation) when the property is sold, 

exchanged, or surrendered, or the lease terminates;

d) The account is not a margin or similar account established in connection with a 

sale or exchange of a financial asset; and

e) The account is not associated with a credit card account. 

3. An obligation of a Financial Institution servicing a loan secured by real property to 

set aside a portion of a payment solely to facilitate the payment of taxes or insurance 

related to the real property at a later time.

4. An obligation of a Financial Institution solely to facilitate the payment of taxes at a 

later time.

E. Partner Jurisdiction Accounts. An account maintained in the Republic of Kazakhstan

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 
Annex II – 14

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.