Agreement between the Government of the United States of America 

and the Government of Turkmenistan to Improve International Tax 

Compliance and to Implement FATCA

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

Government of Turkmenistan (each, a “Party,” and together, the “Parties”) 

desire to conclude an agreement to improve international tax compliance;

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 Turkmenistan 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 Turkmenistan may not be able to comply with certain aspects of 

FATCA due to domestic legal impediments; 

Whereas, an intergovernmental approach to FATCA implementation 

would address legal impediments and reduce burdens for financial institutions

of Turkmenistan; 

Whereas, the Parties desire to conclude an agreement to improve 

international tax compliance and provide for the implementation of FATCA 

based on domestic reporting and automatic exchange, subject to the 

confidentiality and other protections provided for herein, including the 

provisions limiting the use of the information exchanged;

Now, therefore, the Parties have agreed as follows:

Article 1

Definitions

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

the following terms shall have the meanings set forth below:

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

including the States thereof, and, when used in a geographical 

sense, means the territory of the United States of America, 

including inland waters, the air space, the territorial sea thereof and 

any maritime area beyond the territorial sea within which the 
2

United States may exercise sovereign rights or jurisdiction in 

accordance with international law; the term, however, 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 “Turkmenistan” means Turkmenistan and, when used in 

a geographical sense, means the territory of Turkmenistan, 

including inland waters, the air space, the territorial sea thereof and 

any maritime area beyond the territorial sea within which 

Turkmenistan may exercise sovereign rights or jurisdiction in 

accordance with international law.

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 Turkmenistan, the Main State Tax Service of 

Turkmenistan or its authorized representative. 

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: 
3

(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;

(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 Turkmenistan” means 

(i) any Financial Institution resident in Turkmenistan or 

organized under the laws of Turkmenistan, but excluding 

any branch of such Financial Institution that is located 

outside Turkmenistan, and
4

(ii) any branch of a Financial Institution not resident in

Turkmenistan or organized under the laws of Turkmenistan,

if such branch is located in Turkmenistan. 

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 of Turkmenistan” 

means any Financial Institution of Turkmenistan that is not a NonReporting Financial Institution of Turkmenistan.

o) The term “Non-Reporting Financial Institution of 

Turkmenistan” means any Financial Institution of Turkmenistan, 

or other Entity resident in Turkmenistan, that is described in Annex 

II as a Non-Reporting Financial Institution of Turkmenistan or that 

otherwise qualifies as a deemed-compliant FFI or an exempt 

beneficial owner under relevant U.S. Treasury Regulations.

p) The term “Nonparticipating Financial Institution” means a 

nonparticipating FFI, as that term is defined in relevant U.S. 

Treasury Regulations, but does not include a Financial Institution

of Turkmenistan or other Partner Jurisdiction Financial Institution 

other than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to subparagraph 3(b) of Article 5 of 

this Agreement or the corresponding provision in an agreement 

between the United States and a Partner Jurisdiction.

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

Financial Institution, and includes:

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

because it is an Investment Entity, any equity or debt interest 

(other than interests that are regularly traded on an 

established securities market) in the Financial Institution; 
5

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

subparagraph 1(q)(1) of this Article, any equity or debt 

interest in the Financial Institution (other than interests that 

are regularly traded on an established securities market), if

(i) the value of the debt or equity interest is determined, 

directly or indirectly, primarily by reference to assets 

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

and 

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

avoiding reporting in accordance with this Agreement; 

and

(3) any Cash Value Insurance Contract and any Annuity 

Contract issued or maintained by a Financial Institution, 

other than a noninvestment-linked, nontransferable 

immediate life annuity that is issued to an individual and 

monetizes a pension or disability benefit provided under an 

account that is excluded from the definition of Financial 

Account in Annex II.

Notwithstanding the foregoing, the term “Financial Account” does 

not include any account that is excluded from the definition of 

Financial Account in Annex II. For purposes of this Agreement, 

interests are “regularly traded” if there is a meaningful volume of 

trading with respect to the interests on an ongoing basis, and an 

“established securities market” means an exchange that is officially 

recognized and supervised by a governmental authority in which 

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

shares traded on the exchange. For purposes of this subparagraph 

1(q), an interest in a Financial Institution is not “regularly traded” 

and shall be treated as a Financial Account if the holder of the 

interest (other than a Financial Institution acting as an 

intermediary) is registered on the books of such Financial 

Institution. The preceding sentence will not apply to interests first 

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

2014, and with respect to interests first registered on the books of 

such Financial Institution on or after July 1, 2014, a Financial 

Institution is not required to apply the preceding sentence prior to 

January 1, 2016.
6

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

checking, savings, time, or thrift account, or an account that is 

evidenced by a certificate of deposit, thrift certificate, investment 

certificate, certificate of indebtedness, or other similar instrument 

maintained by a Financial Institution in the ordinary course of a 

banking or similar business. A Depository Account also includes 

an amount held by an insurance company pursuant to a guaranteed 

investment contract or similar agreement to pay or credit interest 

thereon.

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

Insurance Contract or Annuity Contract) for the benefit of another 

person that holds any financial instrument or contract held for 

investment (including, but not limited to, a share or stock in a 

corporation, a note, bond, debenture, or other evidence of 

indebtedness, a currency or commodity transaction, a credit default 

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

contract, an Insurance Contract or Annuity Contract, and any 

option or other derivative instrument).

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

is a Financial Institution, either a capital or profits interest in the 

partnership. In the case of a trust that is a Financial Institution, an 

Equity Interest is considered to be held by any person treated as a 

settlor or beneficiary of all or a portion of the trust, or any other 

natural person exercising ultimate effective control over the trust. 

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

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

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

mandatory distribution or may receive, directly or indirectly, a 

discretionary distribution from the trust. 

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

Annuity Contract) under which the issuer agrees to pay an amount 

upon the occurrence of a specified contingency involving 

mortality, morbidity, accident, liability, or property risk. 

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

issuer agrees to make payments for a period of time determined in 

whole or in part by reference to the life expectancy of one or more 

individuals. The term also includes a contract that is considered to 

be an Annuity Contract in accordance with the law, regulation, or 

practice of the jurisdiction in which the contract was issued, and 
7

under which the issuer agrees to make payments for a term of 

years. 

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

Contract (other than an indemnity reinsurance contract between 

two insurance companies) that has a Cash Value greater than 

$50,000. 

x) The term “Cash Value” means the greater of 

(i) the amount that the policyholder is entitled to receive upon 

surrender or termination of the contract (determined without 

reduction for any surrender charge or policy loan), and 

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

to the contract. 

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

include an amount payable under an Insurance Contract as:

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

providing indemnification of an economic loss 

incurred upon the occurrence of the event insured 

against; 

(2) a refund to the policyholder of a previously paid 

premium under an Insurance Contract (other than 

under a life insurance contract) due to policy 

cancellation or termination, decrease in risk exposure 

during the effective period of the Insurance Contract, 

or arising from a redetermination of the premium due 

to correction of posting or other similar error; or 

(3) a policyholder dividend based upon the underwriting 

experience of the contract or group involved.

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

maintained by a Reporting Financial Institution of Turkmenistan

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
8

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

diligence procedures in Annex I.

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

as the holder of a Financial Account by the Financial Institution 

that maintains the account. A person, other than a Financial 

Institution, holding a Financial Account for the benefit or account 

of another person as agent, custodian, nominee, signatory, 

investment advisor, or intermediary, is not treated as holding the 

account for purposes of this Agreement, and such other person is 

treated as holding the account. For purposes of the immediately 

preceding sentence, the term “Financial Institution” does not 

include a Financial Institution organized or incorporated in a U.S. 

Territory. In the case of a Cash Value Insurance Contract or an 

Annuity Contract, the Account Holder is any person entitled to 

access the Cash Value or change the beneficiary of the contract. If 

no person can access the Cash Value or change the beneficiary, the 

Account Holder is any person named as the owner in the contract 

and any person with a vested entitlement to payment under the 

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

Insurance Contract or an Annuity Contract, each person entitled to 

receive a payment under the contract is treated as an Account 

Holder.

aa) The term “U.S. Person” means 

(i) a U.S. citizen or resident individual, 

(ii) a partnership or corporation organized in the United States or 

under the laws of the United States or any State thereof, 

(iii) a trust if 

(1) 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 

(2) one or more U.S. persons have the authority to control all 

substantial decisions of the trust, or 

(iv) an estate of a decedent that is a citizen or resident of the United 

States. 
9

This subparagraph 1(aa) shall be interpreted in accordance with the 

U.S. Internal Revenue Code.

bb) The term “Specified U.S. Person” means a U.S. Person, other 

than: 

(i) a corporation the stock of which is regularly traded on one or 

more established securities markets; 

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

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

Internal Revenue Code, as a corporation described in clause 

(i); 

(iii) the United States or any wholly owned agency or 

instrumentality thereof;

(iv) any State of the United 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; 
10

(xi) a dealer in securities, commodities, or derivative financial 

instruments (including notional principal contracts, futures, 

forwards, and options) that is registered as such under the 

laws of the United States or any State; 

(xii) a broker as defined in section 6045(c) of the U.S. Internal 

Revenue Code; or

(xiii) any tax-exempt trust under a plan that is described in section 

403(b) or section 457(g) of the U.S. Internal Revenue Code. 

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

such as a trust.

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

Person.

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

payment of interest (including any original issue discount), 

dividends, rents, salaries, wages, premiums, annuities, 

compensations, remunerations, emoluments, and other fixed or 

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

such payment is from sources within the United States. 

Notwithstanding the foregoing, a U.S. Source Withholdable 

Payment does not include any payment that is not treated as a 

withholdable payment in relevant U.S. Treasury Regulations.

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

controls the other Entity, or the two Entities are under common 

control. For this purpose control includes direct or indirect 

ownership of more than 50 percent of the vote or value in an 

Entity. Notwithstanding the foregoing, Turkmenistan may treat an 

Entity as not a Related Entity of another Entity if the two Entities 

are not members of the same expanded affiliated group as defined 

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

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

number.

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

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

means the settlor, the trustees, the protector (if any), the 
11

beneficiaries or class of beneficiaries, and any other natural person 

exercising ultimate effective control over the trust, and in the case 

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

in equivalent or similar positions. The term “Controlling Persons” 

shall be interpreted in a manner consistent with the Financial 

Action Task Force Recommendations.

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

context otherwise requires or the Competent Authorities agree to a common 

meaning (as permitted by domestic law), have the meaning that it has at that 

time under the law of the Party applying this Agreement, any meaning under the 

applicable tax laws of that Party prevailing over a meaning given to the term 

under other laws of that Party.

Article 2

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

Reportable Accounts

1. Subject to the provisions of Article 3 of this Agreement, Turkmenistan

shall obtain the information specified in paragraph 2 of this Article with respect 

to all U.S. Reportable Accounts and shall annually exchange this information 

with the United States on an automatic basis.

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

Reportable Account of each Reporting Financial Institution of Turkmenistan is:

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

is an Account Holder of such account and, in the case of a NonU.S. Entity that, after application of the due diligence procedures 

set forth in Annex I, is identified as having one or more Controlling 

Persons that is a Specified U.S. Person, the name, address, and 

U.S. TIN (if any) of such entity and each such Specified U.S. 

Person;

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

account number); 

c) the name and identifying number of the Reporting Financial 

Institution of Turkmenistan; 

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

Value Insurance Contract or Annuity Contract, the Cash Value or 

surrender value) as of the end of the relevant calendar year or other 
12

appropriate reporting period or, if the account was closed during 

such year, immediately before closure; 

e) in the case of any Custodial Account: 

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

dividends, and the total gross amount of other income 

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

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

the account) during the calendar year or other appropriate 

reporting period; and 

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

property paid or credited to the account during the calendar 

year or other appropriate reporting period with respect to 

which the Reporting Financial Institution of Turkmenistan 

acted as a custodian, broker, nominee, or otherwise as an 

agent for the Account Holder; 

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

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

other appropriate reporting period; and 

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

2(f) of this Article, the total gross amount paid or credited to the 

Account Holder with respect to the account during the calendar 

year or other appropriate reporting period with respect to which the 

Reporting Financial Institution of Turkmenistan is the obligor or 

debtor, including the aggregate amount of any redemption 

payments made to the Account Holder during the calendar year or 

other appropriate reporting period. 

Article 3

Time and Manner of Exchange of Information

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

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

Reportable Account may be determined in accordance with the principles of the 

tax laws of Turkmenistan. 

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.
13

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

to be obtained and exchanged with respect to 2014 and all subsequent years, 

except that:

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

is only the information described in subparagraphs 2(a) through 

2(d) of Article 2 of this Agreement; 

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

is the information described in subparagraphs 2(a) through 2(g) of 

Article 2 of this Agreement, except for gross proceeds described in 

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

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

and subsequent years is the information described in subparagraphs 

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

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

Reportable Account maintained by a Reporting Financial Institution of 

Turkmenistan as of June 30, 2014, and subject to paragraph 2 of Article 6 of 

this Agreement, Turkmenistan is not required to obtain and include in the 

exchanged information the U.S. TIN of any relevant person if such U.S. TIN is 

not in the records of the Reporting Financial Institution of Turkmenistan. In 

such a case, Turkmenistan shall obtain and include in the exchanged 

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

Institution of Turkmenistan 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 within nine months after the end 

of the calendar year to which the information relates. 

6. The Competent Authorities of Turkmenistan and the United States shall 

enter into an agreement or arrangement under the mutual agreement procedure 

provided for in Article 8 of this Agreement, which shall:

a) establish the procedures for the automatic exchange obligations 

described in Article 2 of this Agreement; 

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

Article 5 of this Agreement; and 
14

c) establish as necessary procedures for the exchange of the 

information reported under subparagraph 1(b) of Article 4 of this 

Agreement.

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

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

provisions limiting the use of the information exchanged.

Article 4

Application of FATCA to Financial Institutions of Turkmenistan

1. Treatment of Reporting Financial Institutions of Turkmenistan. Each 

Reporting Financial Institution of Turkmenistan shall be treated as complying 

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

Revenue Code if Turkmenistan complies with its obligations under Articles 2 

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

Turkmenistan, and the Reporting Financial Institution of Turkmenistan: 

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

Competent Authority of Turkmenistan the information required to 

be reported in paragraph 2 of Article 2 of this Agreement in the 

time and manner described in Article 3 of this Agreement;

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

Authority of Turkmenistan 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 Turkmenistan 

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 
15

(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 Turkmenistan

that is not described in subparagraph 1(d) of this Article and that 

makes a payment of, or acts as an intermediary with respect to, a 

U.S. Source Withholdable Payment to any Nonparticipating 

Financial Institution, the Reporting Financial Institution of 

Turkmenistan 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 

Turkmenistan 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 

Turkmenistan is treated by the IRS as a Nonparticipating Financial Institution 

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

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

States shall not require a Reporting Financial Institution of Turkmenistan to 

withhold tax under section 1471 or 1472 of the U.S. Internal Revenue Code 

with respect to an account held by a recalcitrant account holder (as defined in 

section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such account, 

if the U.S. Competent Authority receives the information set forth in paragraph 

2 of Article 2 of this Agreement, subject to the provisions of Article 3 of this 

Agreement, with respect to such account.

3. Specific Treatment of Turkmenistan Retirement Plans. The United 

States shall treat as deemed-compliant FFIs or exempt beneficial owners, as 

appropriate, for purposes of sections 1471 and 1472 of the U.S. Internal 

Revenue Code, Turkmenistan retirement plans described in Annex II. For this 

purpose, a Turkmenistan retirement plan includes an Entity established or 

located in, and regulated by, Turkmenistan, 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 Turkmenistan and 

regulated with respect to contributions, distributions, reporting, sponsorship, 

and taxation. 
16

4. Identification and Treatment of Other Deemed-Compliant FFIs and 

Exempt Beneficial Owners. The United States shall treat each Non-Reporting 

Financial Institution of Turkmenistan 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 

Turkmenistan, 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 deemedcompliant 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 Turkmenistan 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 Turkmenistan treats each such Related 

Entity or branch as a separate Nonparticipating Financial 

Institution for purposes of all the reporting and withholding 

requirements of this Agreement and each such Related Entity or 

branch identifies itself to withholding agents as a Nonparticipating 

Financial Institution;

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

reports the information with respect to those accounts as required 

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

permitted under the relevant laws pertaining to the Related Entity 

or branch; and

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

accounts held by persons that are not resident in the jurisdiction 

where such Related Entity or branch is located or accounts held by 

Nonparticipating Financial Institutions that are not established in 

the jurisdiction where such Related Entity or branch is located, and 

such Related Entity or branch is not used by the Financial 

Institution of Turkmenistan or any other Related Entity to 
17

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) Turkmenistan shall not be obligated to obtain and exchange 

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

calendar year with respect to which similar information is required 

to be reported to the IRS by participating FFIs pursuant to relevant

U.S. Treasury Regulations; and

b) Turkmenistan shall not be obligated to begin exchanging 

information prior to the date by which participating FFIs are 

required to report similar information to the IRS under relevant 

U.S. Treasury Regulations.

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

Notwithstanding Article 1 of this Agreement and the definitions provided in the 

Annexes to this Agreement, in implementing this Agreement, Turkmenistan

may use, and may permit Financial Institutions of Turkmenistan to use, a 

definition in relevant U.S. Treasury Regulations in lieu of a corresponding 

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

the purposes of this Agreement.

Article 5

Collaboration on Compliance and Enforcement

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

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

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

Competent Authority of Turkmenistan, pursuant to which the Competent 

Authority of Turkmenistan shall obtain and provide additional information with 

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

in the ordinary course of a Reporting Financial Institution of Turkmenistan’s 

business that summarize the activity (including withdrawals, transfers, and 

closures) of the U.S. Reportable Account. 

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

notify the Competent Authority of Turkmenistan when the U.S. Competent 

Authority has reason to believe that administrative errors or other minor errors 

may have led to incorrect or incomplete information reporting or resulted in 

other infringements of this Agreement. The Competent Authority of 
18

Turkmenistan shall apply its domestic law (including applicable penalties) to 

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

of this Agreement.

3. Significant Non-Compliance. 

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

Authority of Turkmenistan when the U.S. Competent Authority has 

determined that there is significant non-compliance with the 

obligations under this Agreement with respect to a Reporting 

Financial Institution of Turkmenistan. The Competent Authority of 

Turkmenistan shall apply its domestic law (including applicable 

penalties) to address the significant non-compliance described in 

the notice. 

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

within a period of 18 months after notification of significant noncompliance is first provided by the U.S. Competent Authority, the 

United States shall treat the Reporting Financial Institution of 

Turkmenistan as a Nonparticipating Financial Institution pursuant 

to this subparagraph 3(b). 

4. Reliance on Third Party Service Providers. Turkmenistan may allow 

Reporting Financial Institutions of Turkmenistan to use third party service 

providers to fulfill the obligations imposed on such Reporting Financial 

Institutions of Turkmenistan by Turkmenistan, as contemplated in this 

Agreement, but these obligations shall remain the responsibility of the 

Reporting Financial Institutions of Turkmenistan. 

5. Prevention of Avoidance. Turkmenistan shall implement as necessary

requirements to prevent Financial Institutions from adopting practices intended 

to circumvent the reporting required under this Agreement.

Article 6

Mutual Commitment to Continue to Enhance the Effectiveness of 

Information Exchange and Transparency

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

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

practical and effective alternative approach to achieve the policy objectives of 

foreign passthru payment and gross proceeds withholding that minimizes 

burden. 
19

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

respect to U.S. Reportable Accounts maintained by a Reporting Financial 

Institution of Turkmenistan as of June 30, 2014, Turkmenistan commits to 

establish, by January 1, 2017, for reporting with respect to 2017 and subsequent 

years, rules requiring Reporting Financial Institutions of Turkmenistan to obtain 

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

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

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions

1. Turkmenistan 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 Turkmenistan afforded to another Partner 

Jurisdiction under a signed bilateral agreement pursuant to which the other 

Partner Jurisdiction commits to undertake the same obligations as Turkmenistan

described in Articles 2 and 3 of this Agreement, and subject to the same terms 

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

Agreement.

2. The United States shall notify Turkmenistan 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 Turkmenistan declines in writing the application thereof.

Article 8

Mutual Agreement Procedure

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

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

Authorities shall endeavor to resolve the matter by mutual agreement.

3. The Competent Authorities may adopt and implement procedures to 

facilitate the implementation of this Agreement.

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

purposes of reaching a mutual agreement under this Article.
20

Article 9

Confidentiality

1. The Competent Authority of Turkmenistan shall treat any information 

received from the United States pursuant to Article 5 of this Agreement as 

confidential and shall only disclose such information as may be necessary to 

carry out its obligations under this Agreement. Such information may be 

disclosed in connection with court proceedings related to the performance of the 

obligations of Turkmenistan under this Agreement.

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

2 and 5 of this Agreement shall be treated as confidential and may be disclosed 

only to persons or authorities (including courts and administrative bodies) of the 

Government of the United States concerned with the assessment, collection, or 

administration of, the enforcement or prosecution in respect of, or the 

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

such functions. Such persons or authorities shall use such information only for 

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

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

any other person, entity, authority, or jurisdiction. Notwithstanding the 

foregoing, where Turkmenistan provides prior, written consent, the information 

may be used for purposes permitted under the provisions of a mutual legal 

assistance treaty in force between the Parties that allows for the exchange of tax 

information.

Article 10

Consultations and Amendments

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

either Party may, independently of the mutual agreement procedure described in 

paragraph 1 of Article 8 of this Agreement, request consultations to develop 

appropriate measures to ensure the fulfillment of this Agreement.

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

Parties. Unless otherwise agreed upon, such an amendment shall enter into 

force through the same procedures as set forth in paragraph 1 of Article 12 of 

this Agreement.

Article 11

Annexes

The Annexes form an integral part of this Agreement.
21

Article 12

Term of Agreement

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

written notification to the United States that Turkmenistan 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.

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

provisions of Article 9 of this Agreement with respect to any information 

obtained under this Agreement.

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

respective Governments, have signed this Agreement. 

Done at _____, in duplicate, in the English and Russian languages, both texts 

being equally authentic, this __ day of _____, 201_. 

FOR THE GOVERNMENT OF

THE UNITED STATES OF 

AMERICA:

FOR THE GOVERNMENT OF

TURKMENISTAN:
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. Turkmenistan shall require that Reporting Financial Institutions of 

Turkmenistan apply the due diligence procedures contained in this Annex 

I to identify U.S. Reportable Accounts and accounts held by 

Nonparticipating Financial Institutions. 

B. For purposes of the Agreement,

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

include the equivalent in other currencies. 

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

an account shall be determined as of the last day of the calendar 

year or other appropriate reporting period.

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

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

shall be determined as of that day or the last day of the reporting 

period ending immediately before June 30, 2014, and where a 

balance or value threshold is to be determined as of the last day of 

a calendar year under this Annex I, the relevant balance or value 

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

appropriate reporting period. 

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

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

of the date it is identified as such pursuant to the due diligence 

procedures in this Annex I.

5. Unless otherwise provided, information with respect to a 

U.S. Reportable Account shall be reported annually in the calendar 

year following the year to which the information relates.

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

Annex I, Turkmenistan may permit Reporting Financial Institutions of 
Turkmenistan 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. 

Turkmenistan may permit Reporting Financial Institutions of 

Turkmenistan to make such election separately for each section of this 

Annex I either with respect to all relevant Financial Accounts or, 

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

(such as by line of business or the location of where the account is 

maintained).

II. Preexisting Individual Accounts. The following rules and procedures 

apply for purposes of identifying U.S. Reportable Accounts among Preexisting 

Accounts held by individuals (“Preexisting Individual Accounts”).

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

Reported. Unless the Reporting Financial Institution of Turkmenistan

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 Turkmenistan provide for 

such an election, the following Preexisting Individual Accounts are not 

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

Accounts:

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

Individual Account with a balance or value that does not exceed 

$50,000 as of June 30, 2014. 

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

Individual Account that is a Cash Value Insurance Contract or an

Annuity Contract with a balance or value of $250,000 or less as of 

June 30, 2014. 

3. A Preexisting Individual Account that is a Cash Value 

Insurance Contract or an Annuity Contract, provided the law or 

regulations of Turkmenistan 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 Turkmenistan requires reporting or withholding with 

respect to insurance products held by residents of Turkmenistan). 

4. A Depository Account with a balance of $50,000 or less.
B. Review Procedures for Preexisting Individual Accounts With a 

Balance or Value as of June 30, 2014, That Exceeds $50,000 

($250,000 for a Cash Value Insurance Contract or Annuity 

Contract), But Does Not Exceed $1,000,000 (“Lower Value 

Accounts”). 

1. Electronic Record Search. The Reporting Financial 

Institution of Turkmenistan must review electronically searchable 

data maintained by the Reporting Financial Institution of 

Turkmenistan for any of the following U.S. indicia:

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

or resident;

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

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

U.S. post office box);

d) Current U.S. telephone number;

e) Standing instructions to transfer funds to an account 

maintained in the United States;

f) Currently effective power of attorney or signatory 

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

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

address the Reporting Financial Institution of Turkmenistan 

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 Turkmenistan 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 Turkmenistan 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 Turkmenistan obtains, or has 

previously reviewed and maintains a record of:

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

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

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

similar agreed form);

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

identification evidencing the Account Holder’s 

citizenship or nationality in a country other than the 

United States; and

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

Loss of Nationality of the United States or a 

reasonable explanation of: 

(a) The reason the Account Holder does not 

have such a certificate despite relinquishing 

U.S. citizenship; or

(b) The reason the Account Holder did not 

obtain U.S. citizenship at birth.

b) Where the Account Holder information contains a 

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

U.S. telephone numbers that are the only telephone 

numbers associated with the account, the Reporting
Financial Institution of Turkmenistan 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 Turkmenistan 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-careof” 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 Turkmenistan obtains, or has previously 

reviewed and maintains a record of:

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

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

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

similar agreed form); or
(2) Documentary evidence, as defined in paragraph 

D of section VI of this Annex I, establishing the 

Account Holder’s non-U.S. status.

C. Additional Procedures Applicable to Preexisting Individual 

Accounts That Are Lower Value Accounts.

1. Review of Preexisting Individual Accounts that are Lower 

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

2016.

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

Preexisting Individual Account that is a Lower Value Account that 

results in one or more U.S. indicia described in subparagraph B(1) 

of this section being associated with the account, then the 

Reporting Financial Institution of Turkmenistan must treat the 

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

this section applies.

3. Except for Depository Accounts described in subparagraph 

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

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

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

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

Person. 

D. Enhanced Review Procedures for Preexisting Individual 

Accounts With a Balance or Value That Exceeds $1,000,000 as of 

June 30, 2014, or December 31 of 2015 or Any Subsequent Year 

(“High Value Accounts”). 

1. Electronic Record Search. The Reporting Financial 

Institution of Turkmenistan must review electronically searchable 

data maintained by the Reporting Financial Institution of 

Turkmenistan 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 Turkmenistan’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 Turkmenistan 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 Turkmenistan 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 Turkmenistan pursuant to 

AML/KYC Procedures or for other regulatory purposes;

d) Any power of attorney or signature authority forms 

currently in effect; and

e) Any standing instructions to transfer funds currently in 

effect.

3. Exception Where Databases Contain Sufficient 

Information. A Reporting Financial Institution of Turkmenistan is 

not required to perform the paper record search described in 

subparagraph D(2) of this section if the Reporting Financial 

Institution of Turkmenistan’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 Turkmenistan; 

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

on file, if any, with the Reporting Financial Institution of 

Turkmenistan; 

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 Turkmenistan 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 Turkmenistan must 

treat as a U.S. Reportable Account any High Value Account 

assigned to a relationship manager (including any Financial 

Accounts aggregated with such High Value Account) if the 

relationship manager has actual knowledge that the Account 

Holder is a Specified U.S. Person.

5. Effect of Finding U.S. Indicia. 

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

of this section are discovered in the enhanced review of High 

Value Accounts described above, and the account is not 

identified as held by a Specified U.S. Person in 

subparagraph D(4) of this section, then no further action is 

required until there is a change in circumstances that results 

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

account.

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

of this section are discovered in the enhanced review of High 

Value Accounts described above, or if there is a subsequent 

change in circumstances that results in one or more U.S. 

indicia being associated with the account, then the Reporting

Financial Institution of Turkmenistan must treat the account 

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

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

in such subparagraph applies with respect to that account.

c) Except for Depository Accounts described in 

subparagraph A(4) of this section, any Preexisting Individual 

Account that has been identified as a U.S. Reportable 

Account under this section shall be treated as a U.S. 
Reportable Account in all subsequent years, unless the 

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

E. Additional Procedures Applicable to High Value Accounts.

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

as of June 30, 2014, the Reporting Financial Institution of 

Turkmenistan must complete the enhanced review procedures 

described in paragraph D of this section with respect to such 

account by June 30, 2015. If based on this review such account is 

identified as a U.S. Reportable Account on or before December 31, 

2014, the Reporting Financial Institution of Turkmenistan must 

report the required information about such account with respect to 

2014 in the first report on the account and on an annual basis 

thereafter. In the case of an account identified as a U.S. Reportable 

Account after December 31, 2014 and on or before June 30, 2015, 

the Reporting Financial Institution of Turkmenistan is not required 

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

must report information about the account on an annual basis 

thereafter.

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

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

as of the last day of 2015 or any subsequent calendar year, the 

Reporting Financial Institution of Turkmenistan 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 Turkmenistan 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 Turkmenistan

applies the enhanced review procedures described in paragraph D 

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

Institution of Turkmenistan is not required to re-apply such 

procedures, other than the relationship manager inquiry described 

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

Account in any subsequent year.
4. If there is a change of circumstances with respect to a High 

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

subparagraph B(1) of this section being associated with the 

account, then the Reporting Financial Institution of Turkmenistan 

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 Turkmenistan 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 Turkmenistan 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 

Turkmenistan that has previously obtained documentation from an 

Account Holder to establish the Account Holder’s status as neither a U.S. 

citizen nor a U.S. resident in order to meet its obligations under a 

qualified intermediary, withholding foreign partnership, or withholding 

foreign trust agreement with the IRS, or to fulfill its obligations under 

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

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

with respect to Lower Value Accounts or subparagraphs D(1) through 

D(3) of this section with respect to High Value Accounts.

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

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

held by individuals and opened on or after July 1, 2014 (“New Individual 

Accounts”).

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

Reported. Unless the Reporting Financial Institution of Turkmenistan

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 Turkmenistan 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 Turkmenistan must obtain a selfcertification, which may be part of the account opening documentation, 

that allows the Reporting Financial Institution of Turkmenistan 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 Turkmenistan 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 Turkmenistan 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 Turkmenistan to know, or have reason to know, that the original 

self-certification is incorrect or unreliable, the Reporting Financial 

Institution of Turkmenistan cannot rely on the original selfcertification 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 

Turkmenistan is unable to obtain a valid self-certification, the 

Reporting Financial Institution of Turkmenistan 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 Turkmenistan

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 Turkmenistan provide for such an 

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

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

reviewed, identified, or reported as a U.S. Reportable Account until the 

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

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

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

2014, and a Preexisting Entity Account that does not exceed $250,000 as 

of June 30, 2014 but the account balance or value of which exceeds 

$1,000,000 as of the last day of 2015 or any subsequent calendar year, 

must be reviewed in accordance with the procedures set forth in 

paragraph D of this section. 

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

With respect to Preexisting Entity Accounts described in paragraph B of 

this section, only accounts that are held by one or more Entities that are 

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

Controlling Persons who are U.S. citizens or residents, shall be treated as 

U.S. Reportable Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for 

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

of the Agreement are reported to the Competent Authority of

Turkmenistan. 

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 Turkmenistan 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 

Turkmenistan 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 W9, 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 Turkmenistan 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 Turkmenistan may 

determine that the Account Holder is a Financial Institution 
of Turkmenistan or other Partner Jurisdiction Financial 

Institution if the Reporting Financial Institution of 

Turkmenistan 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 

Turkmenistan, 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 

Turkmenistan 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 

Turkmenistan or other Partner Jurisdiction Financial 

Institution, then the Reporting Financial Institution of 

Turkmenistan 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 

Turkmenistan: 

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

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

Account Holder that it is a certified deemed-compliant 

FFI, or an exempt beneficial owner, as those terms are 

defined in relevant U.S. Treasury Regulations; or

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

deemed-compliant FFI, verifies the Account Holder’s 

Global Intermediary Identification Number on the 

published IRS FFI list.

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

U.S. Reportable Account. With respect to an Account Holder of 

a Preexisting Entity Account that is not identified as either a U.S. 

Person or a Financial Institution, the Reporting Financial 
Institution of Turkmenistan 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 

Turkmenistan 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 

Turkmenistan 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 Turkmenistan 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 Turkmenistan 

may rely on:

(1) Information collected and maintained pursuant 

to AML/KYC Procedures in the case of a Preexisting 

Entity Account held by one or more NFFEs with an 

account balance or value that does not exceed 

$1,000,000; or 

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

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

the Account Holder or such Controlling Person in the 

case of a Preexisting Entity Account held by one or 

more NFFEs with an account balance or value that 

exceeds $1,000,000. 
d) If any Controlling Person of a Passive NFFE is a U.S. 

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

Reportable Account.

E. Timing of Review and Additional Procedures Applicable to 

Preexisting Entity Accounts.

1. Review of Preexisting Entity Accounts with an account 

balance or value that exceeds $250,000 as of June 30, 2014 must 

be completed by June 30, 2016.

2. Review of Preexisting Entity Accounts with an account 

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

2014, but exceeds $1,000,000 as of December 31 of 2015 or any 

subsequent year, must be completed within six months after the last 

day of the calendar year in which the account balance or value 

exceeds $1,000,000.

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

Preexisting Entity Account that causes the Reporting Financial 

Institution of Turkmenistan 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 Turkmenistan must redetermine the status of the 

account in accordance with the procedures set forth in paragraph D 

of this section.

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

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

Nonparticipating Financial Institutions among Financial Accounts held by 

Entities and opened on or after July 1, 2014 (“New Entity Accounts”). 

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

Reported. Unless the Reporting Financial Institution of Turkmenistan

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 Turkmenistan 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 Turkmenistan 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 Turkmenistan must determine whether the 

Account Holder is: (i) a Specified U.S. Person; (ii) a Financial Institution

of Turkmenistan or other Partner Jurisdiction Financial Institution; (iii) a 

participating FFI, a deemed-compliant FFI, or an exempt beneficial 

owner, as those terms are defined in relevant U.S. Treasury Regulations; 

or (iv) an Active NFFE or Passive NFFE. 

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

Financial Institution of Turkmenistan may determine that the 

Account Holder is an Active NFFE, a Financial Institution of 

Turkmenistan, or other Partner Jurisdiction Financial Institution if 

the Reporting Financial Institution of Turkmenistan 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 Turkmenistan, as 

applicable. 

2. If the Account Holder is a Financial Institution of 

Turkmenistan 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 

Turkmenistan must obtain a self-certification from the Account 

Holder to establish the Account Holder’s status. Based on the selfcertification, the following rules apply:

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

Reporting Financial Institution of Turkmenistan must treat 

the account as a U.S. Reportable Account.

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

Reporting Financial Institution of Turkmenistan 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 Turkmenistan 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 Turkmenistan 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 Turkmenistan

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 Turkmenistan may not rely on a selfcertification or documentary evidence if the Reporting Financial 

Institution of Turkmenistan knows or has reason to know that the selfcertification 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 Turkmenistan pursuant to the anti-money laundering 

or similar requirements of Turkmenistan to which such Reporting

Financial Institution of Turkmenistan 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 Turkmenistan or 

another Partner Jurisdiction and that is not a Financial Institution. 

3. Passive NFFE. A “Passive NFFE” means any NFFE that is 

not (i) an Active NFFE, or (ii) a withholding foreign partnership or 

withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations.

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

meets any of the following criteria:

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

the preceding calendar year or other appropriate reporting 

period is passive income and less than 50 percent of the 

assets held by the NFFE during the preceding calendar year 

or other appropriate reporting period are assets that produce 

or are held for the production of passive income;

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

established securities market or the NFFE is a Related Entity 

of an Entity the stock of which is regularly traded on an 

established securities market;

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

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

Territory;

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

government), a political subdivision of such government 

(which, for the avoidance of doubt, includes a state, 

province, county, or municipality), or a public body 

performing a function of such government or a political 

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

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

or an Entity wholly owned by one or more of the foregoing;

e) Substantially all of the activities of the NFFE consist 

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

providing financing and services to, one or more subsidiaries 

that engage in trades or businesses other than the business of 
a Financial Institution, except that an entity shall not qualify 

for NFFE status if the entity functions (or holds itself out) as 

an investment fund, such as a private equity fund, venture 

capital fund, leveraged buyout fund, or any investment 

vehicle whose purpose is to acquire or fund companies and 

then hold interests in those companies as capital assets for 

investment purposes;

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

prior operating history, but is investing capital into assets 

with the intent to operate a business other than that of a 

Financial Institution, provided that the NFFE shall not 

qualify for this exception after the date that is 24 months 

after the date of the initial organization of the NFFE;

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

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

reorganizing with the intent to continue or recommence 

operations in a business other than that of a Financial 

Institution;

h) The NFFE primarily engages in financing and hedging 

transactions with, or for, Related Entities that are not 

Financial Institutions, and does not provide financing or 

hedging services to any Entity that is not a Related Entity, 

provided that the group of any such Related Entities is 

primarily engaged in a business other than that of a Financial 

Institution;

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

relevant U.S. Treasury Regulations; or

j) The NFFE meets all of the following requirements:

A. 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;
B. It is exempt from income tax in its jurisdiction 

of residence; 

C. It has no shareholders or members who have a 

proprietary or beneficial interest in its income or 

assets;

D. 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

E. 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

of Turkmenistan as of June 30, 2014.

C. Account Balance Aggregation and Currency Translation Rules.

1. Aggregation of Individual Accounts. For purposes of 

determining the aggregate balance or value of Financial Accounts 

held by an individual, a Reporting Financial Institution of 

Turkmenistan is required to aggregate all Financial Accounts 

maintained by the Reporting Financial Institution of Turkmenistan, 

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

Financial Institution of Turkmenistan’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 

Turkmenistan is required to take into account all Financial 

Accounts that are maintained by the Reporting Financial Institution

of Turkmenistan, or by a Related Entity, but only to the extent that 

the Reporting Financial Institution of Turkmenistan’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 Turkmenistan is also required, in the case 

of any Financial Accounts that a relationship manager knows, or 

has reason to know, are directly or indirectly owned, controlled, or 

established (other than in a fiduciary capacity) by the same person, 

to aggregate all such accounts. 

4. Currency Translation Rule. For purposes of determining 

the balance or value of Financial Accounts denominated in a 

currency other than the U.S. dollar, a Reporting Financial 

Institution of Turkmenistan 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 Turkmenistan 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 Turkmenistan 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 Turkmenistan has actual 

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

Person. A Reporting Financial Institution of Turkmenistan 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 Turkmenistan 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 Turkmenistan has actual 

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

Person, the Reporting Financial Institution of Turkmenistan 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, Turkmenistan may 

permit Reporting Financial Institutions of Turkmenistan 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 Turkmenistan has provided a written notice 

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

as of July 1, 2014, Turkmenistan lacked the legal authority to 

require Reporting Financial Institutions of Turkmenistan 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 Turkmenistan 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 

Turkmenistan has the ability to compel Reporting Financial 

Institutions of Turkmenistan to comply with the due diligence 

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

applicable, which date Turkmenistan shall inform the United States 

of in writing by the date of entry into force of this Agreement, or 

(ii) the date of entry into force of this Agreement. If the alternative 

procedures for New Entity Accounts opened on or after July 1, 

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

section are applied with respect to all New Entity Accounts or a

clearly identified group of such accounts, the alternative 

procedures described in this paragraph G may not be applied with 

respect to such New Entity Accounts. For all other New Accounts, 

Reporting Financial Institutions of Turkmenistan 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 

Turkmenistan must: (i) with respect to a New Individual 

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

request the self-certification specified in section III of this 

Annex I and confirm the reasonableness of such selfcertification consistent with the procedures described in 

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

Entity Account described in subparagraph G(1) of this 

section, perform the due diligence procedures specified in 

section V of this Annex I and request information as 

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

b) Turkmenistan 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 

Turkmenistan must close any New Account described in 

subparagraph G(1) of this section for which it was unable to 

collect the required self-certification or other documentation 

pursuant to the procedures described in subparagraph 

G(2)(a) of this section. In addition, by the date that is one 

year after the date of entry into force of this Agreement, 
Reporting Financial Institutions of Turkmenistan 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) Turkmenistan must report on any closed account that 

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

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

Nonparticipating Financial Institution, as applicable, by the 

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

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

Account or as an account held by a Nonparticipating 

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

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

account held by a Nonparticipating Financial Institution, as 

applicable. The information required to be reported for such 

a closed account is any information that would have been 

reportable under this Agreement if the account had been 

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

held by a Nonparticipating Financial Institution, as 

applicable, as of the date the account was opened.

H. Alternative Procedures for New Entity Accounts Opened on or 

after July 1, 2014, and before January 1, 2015. For New Entity 

Accounts opened on or after July 1, 2014, and before January 1, 2015, 

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

to any clearly identified group of such accounts, Turkmenistan may 

permit Reporting Financial Institutions of Turkmenistan 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

The following Entities shall be treated as exempt beneficial owners or deemedcompliant 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 Turkmenistan 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 Turkmenistan 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 Turkmenistan, any political 

subdivision of Turkmenistan (which, for the avoidance of doubt, includes 

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

or instrumentality of Turkmenistan or any one or more of the foregoing 

(each, a “Governmental Entity of Turkmenistan”). This category is 

comprised of the integral parts, controlled entities, and political 

subdivisions of Turkmenistan. 

1. An integral part of Turkmenistan means any person, organization, 

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

designated, that constitutes a governing authority of Turkmenistan.

The net earnings of the governing authority must be credited to its 

own account or to other accounts of Turkmenistan, 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 

Turkmenistan 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 Turkmenistan directly or through one or 

more controlled entities; 

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

accounts of one or more Governmental Entities of Turkmenistan, 

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 

Turkmenistan upon dissolution. 

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

are the intended beneficiaries of a governmental program, and the 

program activities are performed for the general public with respect to 

the common welfare or relate to the administration of some phase of 

government. Notwithstanding the foregoing, however, income is 

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

derived from the use of a governmental entity to conduct a 

commercial business, such as a commercial banking business, that 

provides financial services to private persons.

B. International Organization. Any international organization or wholly 

owned agency or instrumentality thereof. This category includes any 

intergovernmental organization (including a supranational organization):

(1)that is comprised primarily of non-U.S. governments; 

(2)that has in effect a headquarters agreement with Turkmenistan; 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 Turkmenistan itself, 

issuing instruments intended to circulate as currency. Such an institution 

may include an instrumentality that is separate from the government of 

Turkmenistan, whether or not owned in whole or in part by 

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

shall be treated as Non-Reporting Financial Institutions of Turkmenistan and 

as exempt beneficial owners for purposes of sections 1471 and 1472 of the 

U.S. Internal Revenue Code. 

A. Broad Participation Retirement Fund. A fund established in 

Turkmenistan to provide retirement, disability, or death benefits, or any 

combination thereof, to beneficiaries that are current or former employees 

(or persons designated by such employees) of one or more employers in 

consideration for services rendered, provided that the fund:

1. Does not have a single beneficiary with a right to more than five 

percent of the fund’s assets; 

2. Is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in 

Turkmenistan; and

3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in Turkmenistan on 

investment income under the laws of Turkmenistan due to its status 

as a retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions 

(other than transfers of assets from other plans described in 

paragraphs A through C of this section or from retirement and 

pension accounts described in subparagraph A(1) of section V of 

this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon 

the occurrence of specified events related to retirement, disability, 

or death (except rollover distributions to other retirement funds 

described in paragraphs A through C of this section or retirement 

and pension accounts described in subparagraph A(1) of section V 

of this Annex II), or penalties apply to distributions or withdrawals 

made before such specified events; or

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

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

of the employee or may not exceed $50,000 annually, applying the 

rules set forth in Annex I for account aggregation and currency 

translation.
B. Narrow Participation Retirement Fund. A fund established in 

Turkmenistan to provide retirement, disability, or death benefits to 

beneficiaries that are current or former employees (or persons 

designated by such employees) of one or more employers in 

consideration for services rendered, provided that:

1. The fund has fewer than 50 participants; 

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

Investment Entities or Passive NFFEs; 

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

than transfers of assets from retirement and pension accounts 

described in subparagraph A(1) of section V of this Annex II) 

are limited by reference to earned income and compensation of 

the employee, respectively; 

4. Participants that are not residents of Turkmenistan are not 

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

5. The fund is subject to government regulation and provides 

annual information reporting about its beneficiaries to the 

relevant tax authorities in Turkmenistan. 

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

Turkmenistan by an exempt beneficial owner to provide retirement, 

disability, or death benefits to beneficiaries or participants that are current 

or former employees of the exempt beneficial owner (or persons 

designated by such employees), or that are not current or former 

employees, if the benefits provided to such beneficiaries or participants 

are in consideration of personal services performed for the exempt 

beneficial owner.

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

Entity that is a Financial Institution of Turkmenistan solely because it is 

an Investment Entity, provided that each direct holder of an Equity 

Interest in the Entity is an exempt beneficial owner, and each direct 

holder of a debt interest in such Entity is either a Depository Institution 

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

owner.
III.Small or Limited Scope Financial Institutions that Qualify as DeemedCompliant FFIs. The following Financial Institutions are Non-Reporting 

Financial Institutions of Turkmenistan that shall be treated as deemedcompliant 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 Turkmenistan; 

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

of Turkmenistan. 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 Turkmenistan. For this purpose, a Financial 

Institution shall not be considered to have solicited customers or 

Account Holders outside Turkmenistan 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 Turkmenistan but is also incidentally distributed or 

aired in other countries, provided that the advertisement does not 

specifically indicate that the Financial Institution provides Financial 

Accounts or services to nonresidents, and does not otherwise target or 

solicit U.S. customers or Account Holders; 

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

Turkmenistan 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 

Turkmenistan’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 Turkmenistan;
6. Beginning on or before July 1, 2014, the Financial Institution must 

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

I, to prevent the Financial Institution from providing a Financial 

Account to any Nonparticipating Financial Institution and to monitor 

whether the Financial Institution opens or maintains a Financial 

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

Turkmenistan (including a U.S. Person that was a resident of 

Turkmenistan when the Financial Account was opened but 

subsequently ceases to be a resident of Turkmenistan) or any Passive 

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

citizens who are not residents of Turkmenistan; 

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 

Turkmenistan or by a Passive NFFE with Controlling Persons who are 

U.S. residents or U.S. citizens who are not residents of Turkmenistan

is identified, the Financial Institution must report such Financial 

Account as would be required if the Financial Institution were a 

Reporting Financial Institution of Turkmenistan (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 Turkmenistan 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 Turkmenistan (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 Turkmenistan and, 

with the exception of any Related Entity that is a retirement fund 

described in paragraphs A through C of section II of this Annex II, 

satisfy the requirements set forth in this paragraph A; and 

10.The Financial Institution must not have policies or practices that 

discriminate against opening or maintaining Financial Accounts for 

individuals who are Specified U.S. Persons and residents of 

Turkmenistan. 
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 Turkmenistan 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 

Turkmenistan, and any Related Entity that is a Financial Institution, 

with the exception of any Related Entity that is a retirement fund 

described in paragraphs A through C of section II of this Annex II or a 

Financial Institution with only low-value accounts described in 

paragraph C of this section, must satisfy the requirements set forth in 

this paragraph B.

C. Financial Institution with Only Low-Value Accounts. A Financial 

Institution of Turkmenistan satisfying the following requirements:

1. The Financial Institution is not an Investment Entity;

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

Related Entity has a balance or value in excess of $50,000, applying 
the rules set forth in Annex I for account aggregation and currency 

translation; and 

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

assets on its balance sheet, and the Financial Institution and any 

Related Entities, taken together, do not have more than $50 million in 

total assets on their consolidated or combined balance sheets. 

D. Qualified Credit Card Issuer. A Financial Institution of Turkmenistan

satisfying the following requirements:

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

an issuer of credit cards that accepts deposits only when a customer 

makes a payment in excess of a balance due with respect to the card 

and the overpayment is not immediately returned to the customer; and

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

implements policies and procedures to either prevent a customer 

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

excess of $50,000, in each case applying the rules set forth in Annex I 

for account aggregation and currency translation, is refunded to the 

customer within 60 days. For this purpose, a customer deposit does 

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

include credit balances resulting from merchandise returns.

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

Other Special Rules. The Financial Institutions described in paragraphs A 

through E of this section are Non-Reporting Financial Institutions of 

Turkmenistan 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 

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

Financial Institution, Reporting Model 1 FFI, or Participating FFI and 

reports all information required to be reported pursuant to the Agreement 

with respect to all U.S. Reportable Accounts of the trust.

B. Sponsored Investment Entity and Controlled Foreign Corporation. 

A Financial Institution described in subparagraph B(1) or B(2) of this 

section having a sponsoring entity that complies with the requirements of 

subparagraph B(3) of this section. 
1. A Financial Institution is a sponsored investment entity if (a) it is an 

Investment Entity established in Turkmenistan that is not a qualified 

intermediary, withholding foreign partnership, or withholding foreign 

trust pursuant to relevant U.S. Treasury Regulations; and (b) an Entity 

has agreed with the Financial Institution to act as a sponsoring entity 

for the Financial Institution. 

2. A Financial Institution is a sponsored controlled foreign corporation if 

(a) the Financial Institution is a controlled foreign corporation 

organized under the laws of Turkmenistan 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 

Turkmenistan;

e) The sponsoring entity identifies the Financial Institution and 

includes the identifying number of the Financial Institution 

(obtained by following applicable registration requirements on the 

IRS FATCA registration website) in all reporting completed on the

Financial Institution’s behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked.

C. Sponsored, Closely Held Investment Vehicle. A Financial Institution of

Turkmenistan 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 

Turkmenistan; 

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 

Turkmenistan 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 Turkmenistan that is a Financial Institution solely because 

it (1) renders investment advice to, and acts on behalf of, or (2) manages 

portfolios for, and acts on behalf of, a customer for the purposes of 

investing, managing, or administering funds deposited in the name of the 

customer with a Financial Institution other than a Nonparticipating 

Financial Institution.

E. Collective Investment Vehicle. An Investment Entity established in 

Turkmenistan 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 Turkmenistan (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 

Turkmenistan that is not described in paragraph E or subparagraph 

F(2) of this section, consistent with paragraph 4 of Article 5 of the 

Agreement, the reporting obligations of all other Investment Entities 

with respect to such interests shall be deemed fulfilled if the 

information required to be reported by the first-mentioned Investment 

Entity pursuant to the Agreement with respect to such interests is 

reported by such Investment Entity or another person.

4. An Investment Entity established in Turkmenistan that is regulated as 

a collective investment vehicle shall not fail to qualify under 

paragraph E or subparagraph F(2) of this section, or otherwise as a 

deemed-compliant FFI, solely because the collective investment 

vehicle has issued physical shares in bearer form, provided that: 

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

issue, any physical shares in bearer form after December 31, 2012; 

b) The collective investment vehicle retires all such shares upon 

surrender; 

c) The collective investment vehicle (or a Reporting Financial 

Institution of Turkmenistan) 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 Turkmenistan that satisfies the following requirements 

under the laws of Turkmenistan. 

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 Turkmenistan

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 

Turkmenistan with respect to the account;

d) Withdrawals are conditioned on reaching a specified retirement 

age, disability, or death, or penalties apply to withdrawals made 

before such specified events; and

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

there is a maximum lifetime contribution limit to the account of 

$1,000,000 or less, in each case applying the rules set forth in 

Annex I for account aggregation and currency translation. 

2. Non-Retirement Savings Accounts. An account maintained in 

Turkmenistan (other than an insurance or Annuity Contract) that 

satisfies the following requirements under the laws of Turkmenistan. 

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 Turkmenistan
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 Turkmenistan 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 Turkmenistan

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

includes a copy of the deceased’s will or death certificate.

D. Escrow Accounts. An account maintained in Turkmenistan 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 Turkmenistan

and excluded from the definition of Financial Account under an 

agreement between the United States and another Partner Jurisdiction to 

facilitate the implementation of FATCA, provided that such account is 

subject to the same requirements and oversight under the laws of such 

other Partner Jurisdiction as if such account were established in that 

Partner Jurisdiction and maintained by a Partner Jurisdiction Financial 

Institution in that Partner Jurisdiction.
VI.Definitions. The following additional definitions shall apply to the 

descriptions above:

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a 

Financial Institution with respect to which a non-U.S. government or 

agency thereof agrees to obtain and exchange information pursuant to a 

Model 1 IGA, other than a Financial Institution treated as a 

Nonparticipating Financial Institution under the Model 1 IGA. For 

purposes of this definition, the term Model 1 IGA means an arrangement 

between the United States or the Treasury Department and a non-U.S. 

government or one or more agencies thereof to implement FATCA 

through reporting by Financial Institutions to such non-U.S. government 

or agency thereof, followed by automatic exchange of such reported 

information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial 

Institution that has agreed to comply with the requirements of an FFI 

Agreement, including a Financial Institution described in a Model 2 IGA 

that has agreed to comply with the requirements of an FFI Agreement. 

The term Participating FFI also includes a qualified intermediary branch 

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

Reporting Model 1 FFI. For purposes of this definition, the term FFI 

Agreement means an agreement that sets forth the requirements for a 

Financial Institution to be treated as complying with the requirements of 

section 1471(b) of the U.S. Internal Revenue Code. In addition, for 

purposes of this definition, the term Model 2 IGA means an arrangement 

between the United States or the Treasury Department and a non-U.S. 

government or one or more agencies thereof to facilitate the 

implementation of FATCA through reporting by Financial Institutions 

directly to the IRS in accordance with the requirements of an FFI 

Agreement, supplemented by the exchange of information between such 

non-U.S. government or agency thereof and the IRS.