1 

Agreement 

 between the United States of America and the Republic of Armenia for Cooperation to 

Facilitate the Implementation of Foreign Account Tax Compliance Act 

Whereas, the United States of America and the Republic of Armenia (each, a “Party,” and 

together, the “Parties”) desire to conclude an agreement to improve their cooperation in 

combating international tax evasion; 

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 Republic of Armenia is supportive of the underlying policy goal of FATCA to 

improve tax compliance; 

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

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

impediments; 

Whereas, interstate cooperation to facilitate FATCA implementation would address these issues 

and reduce burdens for Republic of Armenia financial institutions; 

Whereas, the Parties desire to conclude an agreement to provide for cooperation to facilitate the 

implementation of FATCA based on direct reporting by Republic of Armenia financial 

institutions to the U.S. Internal Revenue Service, supplemented by the exchange of information 

upon request, 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 (the “Agreement”), the following 

terms shall have the meanings set forth below: 

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

thereof, but does not include the U.S. Territories. Any reference to a “State” of the 

United States includes the District of Columbia. 

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

Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or the U.S. 

Virgin Islands. 

(c) The term “IRS” means the U.S. Internal Revenue Service. 
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(d) The term “Republic of Armenia” means the Republic of Armenia. 

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

with the United States to facilitate the implementation of FATCA. The IRS shall 

publish a list identifying all Partner Jurisdictions. 

(f) The term “Competent Authority” means:

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

and 

2) in the case of the Republic of Armenia, the Central Bank of the Republic of 

Armenia. 

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

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

(h) The term “Foreign Reportable Amount” means, in accordance with relevant U.S. 

Treasury Regulations, a payment of fixed or determinable annual or periodical 

income that would be a withholdable payment if it were from sources within the 

United States. 

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

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

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

entity’s gross income attributable to the holding of financial assets and related 

financial services equals or exceeds 20 percent of the entity’s gross income during the 

shorter of: (i) the three-year period that ends on December 31 (or the final day of 

a non-calendar year accounting period) prior to the year in which the determination is 

being made; or (ii) the period during which the entity has been in existence. 

(j) The term “Depository Institution” means any Entity that accepts deposits in the 

ordinary course of a banking or similar business. 

(k) 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. 
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This subparagraph 1(k) 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. 

(l) 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. 

(m) The term “Republic of Armenia Financial Institution” means (i) any Financial 

Institution organized under the laws of the Republic of Armenia, but excluding any 

branch of such Financial Institution that is located outside Republic of Armenia, and 

(ii) any branch of a Financial Institution not organized under the laws of the Republic 

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

(n) 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. 

(o) The term “Reporting Republic of Armenia Financial Institution” means any 

Republic of Armenia Financial Institution that is not a Non-Reporting Republic of 

Armenia Financial Institution. 

(p) The term “Non-Reporting Republic of Armenia Financial Institution” means any 

Republic of Armenia Financial Institution, or other Entity in the Republic of 

Armenia, that is described in Annex II as a Non-Reporting Republic of Armenia 

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

exempt beneficial owner under relevant U.S. Treasury Regulations. 

(q) 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 

Republic of Armenia Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating Financial 

Institution pursuant to paragraph 2 of Article 4 of this Agreement or the 

corresponding provision in an agreement between the United States and a Partner 

Jurisdiction. 

(r) The term “New Account” means a Financial Account opened by a Reporting 

Republic of Armenia Financial Institution on or after July 1, 2014. 

(s) The term “U.S. Account” means a Financial Account maintained by a Reporting 

Republic of Armenia Financial Institution and held by one or more Specified U.S. 

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

Specified U.S. Person. Notwithstanding the foregoing, an account shall not be treated 

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

of the due diligence procedures in Annex I. 
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(t) The term “Non-Consenting U.S. Account” means a Financial Account maintained by 

a Reporting Republic of Armenia Financial Institution as of June 30, 2014 with 

respect to which (i) a Reporting Republic of Armenia Financial Institution has 

determined that it is a U.S. Account in accordance with the due diligence procedures 

in Annex I, (ii) the laws of the Republic of Armenia prohibit the reporting required 

under an FFI Agreement absent consent of the Account Holder, (iii) the Reporting 

Republic of Armenia Financial Institution has sought, but was unable to obtain, the 

required consent to report or the Account Holder’s U.S. TIN; and (iv) the Reporting 

Republic of Armenia Financial Institution has reported, or was required to report, 

aggregate account information to the IRS as prescribed under sections 1471 to 1474 

of the U.S. Internal Revenue Code and relevant U.S. Treasury Regulations. 

(u) The term “Financial Account” has the meaning set forth in relevant U.S. Treasury 

Regulations, but does not include any account that is excluded from the definition of 

Financial Account in Annex II. 

(v) The term “FFI Agreement” means an agreement that sets forth the requirements, 

consistent with this Agreement, for the Reporting Republic of Armenia Financial 

Institution to be treated as complying with the requirements of section 1471(b) of the 

U.S. Internal Revenue Code. 

(w) 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. 

(x) The terms “Cash Value Insurance Contract” and “Annuity Contract” have the 

meanings set forth in relevant U.S. Treasury Regulations. 

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

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

any State thereof, a trust if (i) a court within the United States would have authority 

under applicable law to render orders or judgments concerning substantially all issues 

regarding administration of the trust, and (ii) one or more U.S. persons have the 

authority to control all substantial decisions of the trust, or an estate of a decedent that 
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is a citizen or resident of the United States. This subparagraph 1(y) shall be 

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

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

the stock of which is regularly traded on one or more established securities markets; 

(ii) any corporation that is a member of the same expanded affiliated group, as 

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

described in clause (i); (iii) the United States or any wholly owned agency or 

instrumentality thereof; (iv) any State of the United States, any U.S. Territory, any 

political subdivision of any of the foregoing, or any wholly owned agency or 

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

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

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

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

Code; (vii) any real estate investment trust as defined in section 856 of the U.S. 

Internal Revenue Code; (viii) any regulated investment company as defined in section 

851 of the U.S. Internal Revenue Code or any entity registered with the U.S. 

Securities and Exchange Commission under the Investment Company Act of 1940 

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

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

664(c) of the U.S. Internal Revenue Code or that is described in section 4947(a)(1) of 

the U.S. Internal Revenue Code; (xi) a dealer in securities, commodities, or derivative 

financial instruments (including notional principal contracts, futures, forwards, and 

options) that is registered as such under the laws of the United States or any State; 

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

(xiii) any tax exempt trust under a plan that is described in sections 403(b) or 457(g) 

of the U.S. Internal Revenue Code. 

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

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

(cc) An Entity is a “Related Entity” of another Entity if either Entity controls the other 

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

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

an Entity. Notwithstanding the foregoing, the Republic of Armenia 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. 

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

(ee) The term “Controlling Persons” means the natural persons who exercise control 

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

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

person exercising ultimate effective control over the trust, and in the case of a legal 

arrangement other than a trust, such term means persons in equivalent or similar 
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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 

Reporting and Exchange of Information 

1. Directive to Republic of Armenia Financial Institutions. The Republic of Armenia shall 

direct and enable all Reporting Republic of Armenia Financial Institutions to:

(a) register on the IRS FATCA registration website with the IRS and comply with the 

requirements of an FFI Agreement, including with respect to due diligence, reporting, 

and withholding;

(b) with respect to Financial Accounts maintained by Reporting Republic of Armenia

Financial Institutions as of June 30, 2014 identified as U.S. Accounts,

(i) request from each Account Holder the Account Holder’s U.S. TIN and 

consent to report and simultaneously inform the Account Holder in writing 

that, if the U.S. TIN and consent are not given, (1) aggregate information 

about the account shall be reported to the IRS, (2) information about the 

account may give rise to a group request by the IRS for specific information 

about the account, (3) in such case, the account information shall be 

transmitted to the Republic of Armenia Competent Authority , and (4) the 

Republic of Armenia Competent Authority may exchange this information 

with the IRS in accordance with paragraph 2 of this Article;

(ii) report annually to the IRS, in the time and manner required by an FFI 

Agreement and relevant U.S. Treasury Regulations, the aggregate information 

required with respect to Non-Consenting U.S. Accounts;

(c) with respect to accounts of, or obligations to, Nonparticipating Financial Institutions 

that exist as of June 30, 2014, and in connection with which the Reporting Republic 

of Armenia Financial Institution expects to pay a Foreign Reportable Amount,

(i) with respect to calendar years 2015 and 2016, request from each such 

Nonparticipating Financial Institution the Nonparticipating Financial 

Institution’s consent to report and simultaneously inform the Nonparticipating 

Financial Institution in writing that, if such consent is not given, (1) aggregate 

information about Foreign Reportable Amounts paid to the Nonparticipating 

Financial Institution shall be reported to the IRS, (2) such information may 

give rise to a group request by the IRS for specific information about the 
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account or obligation, (3) in such case, the information about the account or 

obligation shall be transmitted to the Republic of Armenia Competent 

Authority, and (4) the Republic of Armenia Competent Authority may 

exchange this information with the IRS in accordance with paragraph 2 of this 

Article;

(ii) with respect to calendar years 2015 and 2016, report to the IRS the number of 

non-consenting Nonparticipating Financial Institutions to which Foreign 

Reportable Amounts were paid during the year and the aggregate value of all 

such payments no later than March 15 of the year following the year to which 

the information relates;

(d) with respect to New Accounts identified as U.S. Accounts, obtain from each Account 

Holder consent to report, consistent with the requirements of an FFI Agreement, as a 

condition of account opening; and

(e) with respect to new accounts opened by, or obligations entered into with, a 

Nonparticipating Financial Institution on or after July 1, 2014, and in connection with 

which the Reporting Republic of Armenia Financial Institution expects to pay a 

Foreign Reportable Amount, obtain from each such Nonparticipating Financial 

Institution consent to report, consistent with the requirements of an FFI Agreement, 

as a condition of opening the account, or entering into the obligation.

2. Exchange of Information. 

(a) In the context of FATCA implementation, the U.S. Competent Authority may make 

group requests to the Republic of Armenia Competent Authority based on the 

aggregate information reported to the IRS pursuant to the directive described in 

subparagraphs 1(b)(ii) and 1(c)(ii) of this Article, for all the information about NonConsenting U.S. Accounts and Foreign Reportable Amounts paid to Nonparticipating 

Financial Institutions that the Reporting Republic of Armenia Financial Institution 

would have had to report under an FFI Agreement had it obtained consent.

(b) The U.S. Competent Authority may also make follow-up requests to the Republic of 

Armenia Competent Authority for additional information with respect to a NonConsenting U.S. Account, including the account statements prepared in the ordinary 

course of the Reporting Republic of Armenia Financial Institution’s business that 

summarize the activity (including withdrawals, transfer, and closures) of the account. 

(c) The Republic of Armenia Competent Authority shall provide to the U.S. Competent 

Authority the information requested by the U.S. Competent Authority pursuant to 

subparagraphs 2(a) and 2(b) of this Article without regard to whether the Republic of 

Armenia needs such information for its own tax purposes or whether the information 

relates to the investigation of conduct that would constitute a crime under the laws of 

the Republic of Armenia if such conduct occurred in the Republic of Armenia. If the 

information in the possession of the Republic of Armenia Competent Authority is not 

sufficient to enable it to comply with the request for information, the Republic of 
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Armenia Competent Authority shall use all relevant information gathering measures 

to provide the U.S. Competent Authority with the information requested. Privileges 

under the laws and practices of the United States shall not apply in the execution of a 

request by the Republic of Armenia Competent Authority and the availability and 

application of any such privileges shall be solely the responsibility of the United 

States. 

(d) With respect to a group request from the U.S. Competent Authority described in 

subparagraph 2(a) of this Article, the Republic of Armenia Competent Authority 

shall, within six months of the receipt of the group request, provide the U.S. 

Competent Authority with all such requested information in the same format in which 

the information would have been reported if it had been reported directly to the IRS 

by the Reporting Republic of Armenia Financial Institution. The Republic of Armenia 

Competent Authority shall notify the U.S. Competent Authority and the relevant 

Reporting Republic of Armenia Financial Institution if there will be any delay in the 

exchange of the requested information. In such case, the provisions of subparagraph 

2(b) of Article 3 of this Agreement shall apply with respect to the Reporting Republic 

of Armenia Financial Institution, and the Republic of Armenia Competent Authority 

must exchange the requested information with the U.S. Competent Authority as soon 

as possible. 

(e) Notwithstanding subparagraph 2(a) of this Article, the Republic of Armenia 

Competent Authority is not required to obtain and exchange the U.S. TIN of the 

Account Holder of a Non-Consenting U.S. Account if such U.S. TIN is not in the 

records of the Reporting Republic of Armenia Financial Institution. In such a case, 

the Republic of Armenia Competent Authority shall obtain and include in the 

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

Republic of Armenia Financial Institution has such date of birth in its records.

(f) Requests pursuant to subparagraphs 2(a) and 2(b) of this Article shall apply to 

information for the time period beginning on or after the date of signature of this 

Agreement.

Article 3 

Application of FATCA to Republic of Armenia Financial Institutions 

1. Treatment of Reporting Republic of Armenia Financial Institutions. Subject to the 

provisions of paragraph 2 of Article 4 of this Agreement, each Reporting Republic of 

Armenia Financial Institution that registers with the IRS on the IRS FATCA registration 

website and complies with the terms of an FFI Agreement shall be treated as complying with 

the requirements of, and as not subject to withholding under, section 1471 of the U.S. 

Internal Revenue Code.
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2. Suspension of Rules Relating to Non-Consenting U.S. Accounts. 

a) Subject to subparagraph 2(b) of this Article, the United States shall not require a 

Reporting Republic of Armenia Financial Institution to withhold tax under section 1471 

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

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

Code), or to close such account, if: 

(i) the Reporting Republic of Armenia Financial Institution complies with the directives 

in paragraph 1 of Article 2 of this Agreement with respect to the account; and 

(ii) the Republic of Armenia Competent Authority exchanges with the U.S. Competent 

Authority the requested information described in subparagraph 2(a) of Article 2 of 

this Agreement within six months from the date of the receipt of such request. 

b) If the condition of subparagraph 2(a)(ii) of this Article is not fulfilled, the Reporting 

Republic of Armenia Financial Institution shall be required to treat the account as held by 

a recalcitrant account holder as defined in relevant U.S. Treasury Regulations, including 

by withholding tax where required by those U.S. Treasury Regulations, beginning on the 

date that is six months after the date of the receipt of the request described in 

subparagraph 2(a) of Article 2 of this Agreement and ending on the date on which the 

Republic of Armenia Competent Authority exchanges the requested information with the 

U.S. Competent Authority. 

3. Specific Treatment of Republic of Armenia 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, Republic of Armenia retirement 

plans described in Annex II. For this purpose, a Republic of Armenia retirement plan 

includes an Entity established or located in, and regulated by, the Republic of Armenia, or a 

predetermined contractual or legal arrangement, operated to provide pension or retirement 

benefits or earn income for providing such benefits under the laws of the Republic of 

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

and taxation. 

4. Identification and Treatment of Other Deemed Compliant FFIs and Exempt Beneficial 

Owners. The United States shall treat each Non-Reporting Republic of Armenia Financial 

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

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

5. Special Rules Regarding Related Entities and Branches That Are Nonparticipating 

Financial Institutions. If a Republic of Armenia Financial Institution, that otherwise meets 

the requirements described in Article 2 of this Agreement 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 
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U.S. Treasury Regulations, such Republic of Armenia Financial Institution shall continue to 

be treated as a participating FFI, 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 Republic of Armenia Financial Institution treats each such Related Entity or branch as 

a separate Nonparticipating Financial Institution 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 to the IRS 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 Republic of Armenia Financial Institution or any other Related 

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

U.S. Internal Revenue Code, as appropriate.

6. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding Article 1 of 

this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, the Republic of Armenia may use, and may permit Republic 

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

lieu of a corresponding definition in this Agreement, provided that such application would 

not frustrate the purposes of this Agreement.

Article 4 

Verification and Enforcement 

1. Minor and Administrative Errors. Consistent with the terms of an FFI Agreement, the 

U.S. Competent Authority may make an inquiry directly to a Reporting Republic of Armenia 

Financial Institution where it has reason to believe that administrative errors or other minor 

errors may have led to incorrect or incomplete information reporting inconsistent with the 

requirements of an FFI Agreement. 

2. Significant Non-Compliance. The U.S. Competent Authority shall notify the Republic of 

Armenia Competent Authority when the U.S. Competent Authority has determined that there 

is significant non-compliance with the requirements of an FFI Agreement or this Agreement 

with respect to a Reporting Republic of Armenia Financial Institution. If the non- compliance 

is not resolved within a period of 12 months after notification of significant non-compliance 

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

Republic of Armenia Financial Institution as a Nonparticipating Financial Institution 

pursuant to this paragraph 2. 
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3. Competent Authority Agreement or Arrangement. The Competent Authorities of the 

Republic of Armenia and the United States shall enter into an agreement or arrangement 

under the mutual agreement procedure provided for in Article 7 of this Agreement which 

shall:

a) establish the procedures for the exchange of information described in paragraph 2 of 

Article 2 of this Agreement; and

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

4. Reliance on Third Party Service Providers. In accordance with the provisions of an FFI 

Agreement and relevant U.S. Treasury Regulations, Reporting Republic of Armenia Financial 

Institutions may use third party service providers to fulfill the requirements of an FFI 

Agreement, but these requirements shall remain the responsibility of the Reporting Republic of 

Armenia Financial Institutions. 

Article 5 

Consistency in the Application of FATCA to Partner Jurisdictions 

1. The Republic of Armenia shall be granted the benefit of any more favorable terms under 

Article 3 or Annex I of this Agreement relating to the application of FATCA to Republic of 

Armenia Financial Institutions afforded to another Partner Jurisdiction under a signed 

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

same obligations as the Republic of Armenia described in Article 2 of this Agreement, and 

subject to the same terms and conditions as described therein and in Articles 4, 6, 9, and 10 

of this Agreement. 

2. The United States shall notify the Republic of Armenia of any such more favorable terms, 

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

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

agreement incorporating the more favorable terms, unless the Republic of Armenia declines 

in writing the application thereof. 

Article 6 

Mutual Agreement Procedure 

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

application, or interpretation of this Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement. 

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

implementation of this Agreement. 

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

reaching a mutual agreement under this Article. 
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Article 7 

Confidentiality 

1. The Republic of Armenia Competent Authority shall treat any information received from the 

United States pursuant to paragraph 2 of Article 2 and Article 4 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 the Republic of Armenia 

under this Agreement. 

2. Information provided to the U.S. Competent Authority pursuant to paragraph 2 of Article 2 

and Article 4 of this Agreement shall be treated as confidential and may be disclosed only to 

persons or authorities (including courts and administrative bodies) of the United States 

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

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

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

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

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

authority, or jurisdiction. Notwithstanding the foregoing, where the Republic of Armenia 

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 8 

Consultations and Amendments 

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

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

Article 7 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 11 of this Agreement. 

Article 9 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 10 

Term of Agreement 

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

notification to the United States that the Republic of Armenia has completed its necessary 

internal procedures for entry into force of this Agreement. 
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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. If this Agreement is terminated, both Parties shall remain bound by the provisions of Article 

8 of this Agreement with respect to any information obtained under this Agreement. 

In witness whereof, the undersigned, being duly authorized thereto, have signed this Agreement. 

Done at ___________, in duplicate, in the English and Armenian languages, both texts being 

equally authentic, this __ day of ___________, 2018. 

FOR THE UNITED STATES OF 

AMERICA: 

FOR THE REPUBLIC OF 

ARMENIA: 
Annex I – 1

ANNEX I

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON 

U.S. ACCOUNTS AND ON PAYMENTS TO CERTAIN NONPARTICIPATING 

FINANCIAL INSTITUTIONS

I. General. 

A. Reporting Republic of Armenia Financial Institutions must identify U.S. 

Accounts and accounts held by Nonparticipating Financial Institutions in accordance 

with the due diligence procedures contained in this Annex I. 

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 in the case of a 

Cash Value Insurance Contract or an Annuity Contract, as of the last day of 

the calendar year or the most recent contract anniversary date. 

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

account shall be treated as a U.S. Account beginning as of the date it is 

identified as such pursuant to the due diligence procedures in this Annex I. 

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

must 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, 

Reporting Republic of Armenia Financial Institutions may rely on the procedures 

described in relevant U.S. Treasury Regulations to establish whether an account is a 

U.S. Account or an account held by a Nonparticipating Financial Institution, except 

that if an account is treated as held by a recalcitrant account holder under procedures 

described in relevant U.S. Treasury Regulations, such account shall be treated as a 

U.S. Account for purposes of this Agreement. Reporting Republic of Armenia 

Financial Institutions may 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). Except as otherwise provided in an 

FFI Agreement, once a Reporting Republic of Armenia Financial Institution has 

chosen to rely on the procedures in relevant U.S. Treasury Regulations with respect to 

any group of accounts, such Reporting Republic of Armenia Financial Institution 

must continue to apply such procedures consistently in all subsequent years, unless 

there has been a material modification to relevant U.S. Treasury Regulations. 

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

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

(“Preexisting Individual Accounts”). 
Annex I – 2

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

the Reporting Republic of Armenia Financial Institution elects otherwise, either with 

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

clearly identified group of such accounts, the following Preexisting Individual 

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

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

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

of June 30, 2014. 

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

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

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

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

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

Republic of Armenia or the United States effectively prevent the sale of such a 

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

if the relevant Financial Institution does not have the required registration 

under U.S. law, and the law of the Republic of Armenia requires reporting or 

withholding with respect to insurance products held by residents of the 

Republic of Armenia. 

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 Republic of Armenia 

Financial Institution must review electronically searchable data maintained by 

the Reporting Republic of Armenia Financial Institution for any of the 

following U.S. indicia: 

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

or resident; 

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

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

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account 

maintained in the United States; 
Annex I – 3

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 Republic of Armenia Financial Institution has on file for 

the Account Holder. In the case of a Preexisting Individual Account 

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

United States or “hold mail” address shall not be treated as U.S. 

indicia. 

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

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

there is a change in circumstances that results in one or more U.S. indicia 

being associated with the account, or the account becomes a High Value 

Account described in paragraph D of this section. 

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

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

results in one or more U.S. indicia being associated with the account, then the 

Reporting Republic of Armenia Financial Institution must treat the account as 

a U.S. 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 Republic of Armenia Financial Institution is not 

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

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting Republic of Armenia 

Financial 

Institution obtains, or has previously reviewed and maintains a 

record of: 

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

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

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

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

identification evidencing the Account Holder’s citizenship 

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

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

Nationality of the United States or a reasonable explanation 

of: 

(a) The reason the Account Holder does not have such 

a certificate despite relinquishing U.S. citizenship; or 
Annex I – 4

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

b) Where the Account Holder information contains a current U.S.

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

that are the only telephone numbers associated with the account, the

Reporting Republic of Armenia Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

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

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

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

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

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

non-U.S. status. 

c) Where the Account Holder information contains standing

instructions to transfer funds to an account maintained in the United 

States, the Reporting Republic of Armenia Financial Institution 

obtains, or has previously reviewed and maintains a record of: 

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

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

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

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

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

non-U.S. status. 

d) Where the Account Holder information contains a currently

effective power of attorney or signatory authority granted to a person 

with a U.S. address, has an “in-care-of” address or “hold mail” 

address that is the sole address identified for the Account Holder, or 

has one or more U.S. telephone numbers (if a non-U.S. telephone 

number is also associated with the account), the Reporting Republic 

of Armenia Financial Institution obtains, or has previously reviewed 

and maintains a record of: 

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

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

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

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

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

non-U.S. status. 
Annex I – 5

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 Republic of Armenia 

Financial Institution must treat the account as a U.S. 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. Account under this section shall be treated as a U.S. 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 Republic of Armenia 

Financial Institution must review electronically searchable data maintained by 

the Reporting Republic of Armenia Financial Institution for any of the U.S. 

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

2. Paper Record Search. If the Reporting Republic of Armenia Financial

Institution’s electronically searchable databases include fields for, and capture 

all of the information described in, subparagraph D(3) of this section, then no 

further paper record search is required. If the electronic databases do not 

capture all of this information, then with respect to a High Value Account, the 

Reporting Republic of Armenia Financial Institution must also review the 

current customer master file and, to the extent not contained in the current 

customer master file, the following documents associated with the account and 

obtained by the Reporting Republic of Armenia Financial Institution within the 

last five years for any of the U.S. indicia described in subparagraph B(1) of 

this section: 

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the 

Reporting Republic of Armenia Financial Institution pursuant to 

AML/KYC Procedures or for other regulatory purposes; 
Annex I – 6

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 Republic of Armenia Financial Institution is not required to 

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

section if the Reporting Republic of Armenia Financial Institution’s 

electronically searchable information includes the following: 

a) The Account Holder’s nationality or residence status; 

b) The Account Holder’s residence address and mailing 

address currently on file with the Reporting Republic of Armenia 

Financial Institution; 

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

if any, with the Reporting Republic of Armenia Financial Institution; 

d) Whether there are standing instructions to transfer funds in 

the account to another account (including an account at another 

branch of the Reporting Republic of Armenia Financial Institution or 

another Financial Institution); 

e) Whether there is a current “in-care-of” address or “hold 

mail” address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority 

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition to

the electronic and paper record searches described above, the Reporting 

Republic of Armenia Financial Institution must treat as a U.S. 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 
Annex I – 7

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 Republic of Armenia Financial Institution 

must treat the account as a U.S. 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. Account under this section shall be treated as a 

U.S. 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 Republic of Armenia Financial Institution must 

complete the enhanced review procedures described in paragraph D of this 

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

such account is identified as a U.S. Account on or before December 31, 2014, 

the Reporting Republic of Armenia Financial Institution must report the 

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

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

identified as a U.S. Account after December 31, 2014 and on or before June 

30, 2015, the Reporting Republic of Armenia Financial Institution is not 

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

must report information about the account on an annual basis thereafter. 

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

June 30, 2014, but becomes a High Value Account as of the last day of 2015 

or any subsequent calendar year, the Reporting Republic of Armenia Financial 

Institution must complete the enhanced review procedures described in 

paragraph D of this section with respect to such account within six months 

after the last day of the calendar year in which the account becomes a High 

Value Account. If based on this review such account is identified as a U.S. 

Account, the Reporting Republic of Armenia Financial Institution must report 

the required information about such account with respect to the year in which 

it is identified as a U.S. Account and subsequent years on an annual basis, 

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

3. Once a Reporting Republic of Armenia Financial Institution applies 

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

High Value Account, the Reporting Republic of Armenia Financial Institution 

is not required to re-apply such procedures, other than the relationship 

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

High Value Account in any subsequent year. 

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

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

B(1) of this section being associated with the account, then the Reporting 
Annex I – 8

Republic of Armenia Financial Institution must treat the account as a U.S. 

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 Republic of Armenia Financial Institution must implement 

procedures to ensure that a relationship manager identifies any change in 

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

that the Account Holder has a new mailing address in the United States, the 

Reporting Republic of Armenia Financial Institution is required to treat the 

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

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

documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for Certain

Other Purposes. A Reporting Republic of Armenia Financial Institution that has

previously obtained documentation from an Account Holder to establish the Account 

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

obligations under a qualified intermediary, withholding foreign partnership, or 

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

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

procedures described in subparagraph B(1) of this section with respect to Lower 

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

High Value Accounts. 

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

identifying U.S. 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 Republic of Armenia Financial Institution elects otherwise, either 

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

clearly identified group of such accounts, the following New Individual Accounts 

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

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

at the end of any calendar year. 

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

$50,000 at the end of any calendar year. 

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 Republic of Armenia Financial Institution 

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

documentation, that allows the Reporting Republic of Armenia Financial Institution to 

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

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

purposes, even if the Account Holder is also a tax resident of another jurisdiction) and 

confirm the reasonableness of such self-certification based on the information 
Annex I – 9

obtained by the Reporting Republic of Armenia Financial Institution in connection 

with the opening of the account, including any documentation collected pursuant to 

AML/KYC Procedures. 

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

in the United States for tax purposes, the Reporting Republic of Armenia 

Financial Institution must treat the account as a U.S. 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 Republic of Armenia Financial Institution 

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

incorrect or unreliable, the Reporting Republic of Armenia Financial 

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

self-certification that establishes whether the Account Holder is a U.S. citizen 

or resident for U.S. tax purposes. If the Reporting Republic of Armenia 

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

Reporting Republic of Armenia Financial Institution must treat the account as 

a Non-Consenting U.S. Account. 

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

of identifying U.S. 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 Republic of Armenia Financial Institution elects otherwise, 

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

any clearly identified group of such accounts, 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. 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. Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments are required to be reported under an FFI Agreement. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 
Annex I – 10

paragraph B of this section, the Reporting Republic of Armenia Financial Institution 

must apply the following review procedures to determine whether the account is held 

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

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

Financial Institutions: 

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information indicates 

that the Account Holder is a U.S. Person. For this purpose, information 

indicating that the Account Holder is a U.S. Person includes a U.S. 

place of incorporation or organization, or a U.S. address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting Republic of Armenia Financial Institution must 

treat the account as a U.S. Account unless it obtains a self-certification 

from the Account Holder (which may be on an IRS Form W-8 or W-9, 

or a similar agreed form), or reasonably determines based on 

information in its possession or that is publicly available, that the 

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

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

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

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

Financial Institution, or the Reporting Republic of Armenia Financial 

Institution verifies the Account Holder’s Global Intermediary 

Identification Number on the published IRS FFI list, then the account 

is not a U.S. Account. 

3. Determine Whether a Financial Institution Is a 

Nonparticipating Financial Institution Payments to Which Are Subject 

to Aggregate Reporting Consistent with the Requirements of an FFI 

Agreement. 

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

Republic of Armenia Financial Institution may determine that the 

Account Holder is a Republic of Armenia Financial Institution or other 

Partner Jurisdiction Financial Institution if the Reporting Republic of 

Armenia Financial Institution reasonably determines that the Account 

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

Intermediary Identification Number on the published IRS FFI list or 

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

Reporting Republic of Armenia Financial Institution, as applicable. In 
Annex I – 11

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

with respect to the account. 

b) If the Account Holder is a Republic of Armenia Financial 

Institution or other Partner Jurisdiction Financial Institution treated by 

the IRS as a Nonparticipating Financial Institution, then the account is 

not a U.S. Account, but payments to the Account Holder must be 

reported consistent with the requirements of an FFI Agreement. 

c) If the Account Holder is not a Republic of Armenia Financial 

Institution or other Partner Jurisdiction Financial Institution, then the 

Reporting Republic of Armenia Financial Institution must treat the 

Account Holder as a Nonparticipating Financial Institution payments to 

which are reportable consistent with the requirements of an FFI 

Agreement, unless the Reporting Republic of Armenia Financial 

Institution: 

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

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

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

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

Treasury Regulations; or

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

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

Intermediary Identification Number on the published IRS FFI 

list. 

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

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 Republic of Armenia Financial Institution must identify (i) whether 

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

is a Passive NFFE, and (iii) whether any of the Controlling Persons of the 

Account Holder is a U.S. citizen or resident. In making these determinations 

the Reporting Republic of Armenia Financial Institution must follow the 

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

most appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Republic of Armenia Financial 

Institution may rely on information collected and maintained 

pursuant to AML/KYC Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting Republic of Armenia Financial 

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

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

Holder to establish its status, unless it has information in its possession 
Annex I – 12

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 Republic of Armenia Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance or 

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

(2) A self-certification (which may be on an IRS Form W-8 

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

or such Controlling Person in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance or 

value that exceeds $1,000,000. 

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

or resident, the account shall be treated as a U.S. 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 Republic of Armenia Financial 

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

documentation associated with an account is incorrect or unreliable, the 

Reporting Republic of Armenia Financial Institution must redetermine the 

status of the account in accordance with the procedures set forth in paragraph 

D of this section. 

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

identifying U.S. 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 Republic of Armenia Financial Institution elects otherwise, 

either with respect to all New Entity Accounts or, separately, with respect to any 
Annex I – 13

clearly identified group of such accounts, 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 Republic of Armenia Financial Institution 

maintaining such account implements policies and procedures to prevent an account 

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

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

described in paragraph A of this section, the Reporting Republic of Armenia Financial 

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

(ii) a Republic of Armenia Financial Institution or other Partner Jurisdiction Financial 

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

owner, as those terms are defined in relevant U.S. Treasury Regulations; or (iv) an 

Active NFFE or Passive NFFE. 

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

Armenia Financial Institution may determine that the Account Holder is an 

Active NFFE, a Republic of Armenia Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting Republic of Armenia 

Financial Institution reasonably determines that the Account Holder has 

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

Identification Number or other information that is publicly available or in 

the possession of the Reporting Republic of Armenia Financial Institution, 

as applicable. 

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

or other Partner Jurisdiction Financial Institution treated by the IRS as a 

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

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

with the requirements of an FFI Agreement. 

3. In all other cases, a Reporting Republic of Armenia Financial 

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

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

following rules apply: 

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

Reporting Republic of Armenia Financial Institution must treat the 

account as a U.S. Account. 

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

Republic of Armenia Financial Institution must identify the 

Controlling Persons as determined under AML/KYC Procedures, and 

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

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

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

Republic of Armenia Financial Institution must treat the account as a 

U.S. 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 
Annex I – 14

Republic of Armenia Financial Institution or other Partner Jurisdiction 

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

or an exempt beneficial owner, as those terms are defined in relevant 

U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive 

NFFE none of the Controlling Persons of which is a U.S. citizen or 

resident, then the account is not a U.S. Account, and no reporting is 

required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a Republic of Armenia Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the IRS as a 

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

Account, but payments to the Account Holder must be reported 

consistent with the requirements of an FFI 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 Republic of Armenia Financial Institution may not rely on a selfcertification or documentary evidence if the Reporting Republic of Armenia 

Financial Institution knows or has reason to know that the self-certification or 

documentary evidence is incorrect or unreliable. 

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

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

customer due diligence procedures of a Reporting Republic of Armenia 

Financial Institution pursuant to the anti-money laundering or similar 

requirements of the Republic of Armenia to which such Reporting Republic 

of Armenia Financial Institution is subject. 

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

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

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

that is established in the Republic of Armenia 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 
Annex I – 15

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. 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; 

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 
Annex I – 16

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

Financial Institution; 

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

U.S. Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

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

exclusively for religious, charitable, scientific, artistic, 

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

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction 

of residence; 

iii. It has no shareholders or members who have a 

proprietary or beneficial interest in its income or assets; 

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

residence or the NFFE’s formation documents do not permit 

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

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

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

charitable activities, or as payment of reasonable 

compensation for services rendered, or as payment 

representing the fair market value of property which the NFFE 

has purchased; and 

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

residence or the NFFE’s formation documents require that, 

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

distributed to a governmental entity or other non-profit 

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

jurisdiction of residence or any political subdivision thereof. 

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

Account maintained by a Reporting Republic of Armenia Financial Institution 

as of June 30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining the

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

Reporting Republic of Armenia Financial Institution is required to aggregate 

all Financial Accounts maintained by the Reporting Republic of Armenia 
Annex I – 17

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

Reporting Republic of Armenia Financial Institution’s computerized systems 

link the Financial Accounts by reference to a data element such as client 

number or taxpayer identification number, and allow account balances or 

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

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

for purposes of applying the aggregation requirements described in this 

paragraph 1. 

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

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

Reporting Republic of Armenia Financial Institution is required to take into 

account all Financial Accounts that are maintained by the Reporting Republic 

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

that the Reporting Republic of Armenia Financial Institution’s computerized 

systems link the Financial Accounts by reference to a data element such as 

client number or taxpayer identification number, and allow account balances 

or values to be aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of Financial 

Accounts held by a person to determine whether a Financial Account is a 

High Value Account, a Reporting Republic of Armenia Financial 

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

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

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

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

4. Currency Translation Rule. For purposes of determining the balance

or value of Financial Accounts denominated in a currency other than the U.S. 

dollar, a Reporting Republic of Armenia Financial Institution must convert the 

U.S. dollar threshold amounts described in this Annex I into such currency 

using a published spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting Republic of Armenia Financial 

Institution is determining the balance or value. 

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

documentary evidence includes any of the following: 

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 
Annex I – 18

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 Republic of 

Armenia Financial Institution may presume that an individual beneficiary (other 

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

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

Account unless the Reporting Republic of Armenia Financial Institution has actual 

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

Reporting Republic of Armenia Financial Institution has reason to know that a 

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

information collected by the Reporting Republic of Armenia Financial Institution 

and associated with the beneficiary contains U.S. indicia as described in 

subparagraph (B)(1) of section II of this Annex I. If a Reporting Republic of 

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

beneficiary is a Specified U.S. Person, the Reporting Republic of Armenia 

Financial Institution must follow the procedures in subparagraph B(3) of section II 

of this Annex I. 

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

paragraph C of section I of this Annex I, Reporting Republic of Armenia Financial 

Institutions may rely on due diligence procedures performed by third parties, to the 

extent provided in an FFI Agreement and relevant U.S. Treasury Regulations. 

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

Force of this Agreement. 

1. Applicability. If the Republic of Armenia has provided a written 

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

of July 1, 2014, Republic of Armenia lacked the legal authority to direct 

Reporting Republic of Armenia Financial Institutions either: (i) to require 

Account Holders of New Individual Accounts to provide the self-certification 

specified in section III of this Annex I or the consent to report described in 

subparagraph 1(d) of Article 2 of the Agreement, or (ii) to perform all the due 

diligence procedures related to New Entity Accounts specified in section V of 
Annex I – 19

this Annex I or require Account Holders of such accounts to provide the 

consent to report described in subparagraph 1(d) of Article 2 of the Agreement, 

then Reporting Republic of Armenia Financial Institutions may apply the 

alternative procedures described in subparagraph G(2) of this section, as 

applicable, to such New Accounts, in lieu of the procedures otherwise required 

under this Annex I. The alternative procedures described in subparagraph 

G(2) of this section shall be available only for those New Individual Accounts 

or New Entity Accounts, as applicable, opened prior to the earlier of: (i) the 

date the Republic of Armenia has the ability to direct Reporting Republic of 

Armenia Financial Institutions to comply with the due diligence procedures 

described in section III of this Annex I and obtain the consent to report 

described in subparagraph 1(d) of Article 2 of the Agreement with respect to 

New Individual Accounts, or to comply with the due diligence procedures 

described in section V of this Annex I and obtain the consent to report 

described in subparagraph 1(d) of Article 2 of the Agreement with respect to 

New Entity Accounts, which date the Republic of Armenia 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 

Republic of Armenia Financial Institutions must apply the due diligence 

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

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

Nonparticipating Financial Institution and must obtain the consent to report 

described in subparagraph 1(d) of Article 2 of the Agreement. 

2. Alternative Procedures. 

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

Agreement, Reporting Republic of Armenia Financial Institutions 

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

subparagraph G(1) of this section, request the self-certification 

specified in section III of this Annex I and the consent to report 

described in subparagraph 1(d) of Article 2 of the Agreement and 

confirm the reasonableness of such self-certification consistent with the 

procedures described in section III of this Annex I, and (ii) with respect 

to a New Entity Account described in subparagraph G(1) of this 

section, perform the due diligence procedures specified in section V of 

this Annex I and request information as necessary to document the 

account, including any self-certification, required by section V of this 

Annex I and request the consent to report described in subparagraph 

1(d) of Article 2 of the Agreement. 

b) Reporting Republic of Armenia Financial Institutions must 

report on any New Account that is identified pursuant to subparagraph 

G(2)(a) of this section as a U.S. Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, by the date that is 
Annex I – 20

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

identified as a U.S. 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. 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. 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 Republic of Armenia Financial Institutions 

must close any New Account described in subparagraph G(1) of this 

section for which it was unable to collect the required self-certification 

or other documentation or consent to report 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 Republic of Armenia Financial Institutions must: (i) with 

respect to such closed accounts that prior to such closure were New 

Individual Accounts (without regard to whether such accounts were 

High Value Accounts), perform the due diligence procedures specified 

in paragraph D of section II of this Annex I, or (ii) with respect to such 

closed accounts that prior to such closure were New Entity Accounts, 

perform the due diligence procedures specified in section IV of this 

Annex I. 

d) Reporting Republic of Armenia Financial Institutions must 

report on any closed account that is identified pursuant to subparagraph 

G(2)(c) of this section as a U.S. Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, and for which 

consent to report was obtained, by the date that is the later of: (i) 

September 30 next following the date that the account is identified as a 

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

Financial Institution, as applicable, as of the date the account was 

opened. Accounts described in this subparagraph G(2)(d) for which 

consent to report was not obtained must be treated as Non-Consenting 

U.S. Accounts and aggregate information on such accounts must be 

reported as described in subparagraph 1(b)(ii) of Article 2 of the 

Agreement. 

 

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 
Annex I – 21

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, 

Reporting Republic of Armenia Financial Institutions may treat such accounts as 

Preexisting Entity Accounts and apply the due diligence procedures related to 

Preexisting Entity Accounts specified in section IV of this Annex I in lieu of the due 

diligence procedures specified in section V of this Annex I. In this case, the due 

diligence procedures of section IV of this Annex I must be applied without regard to 

the account balance or value threshold specified in paragraph A of section IV of this 

Annex I. 
Annex II – 1 

ANNEX II 

The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFIs, 

as the case may be, and the following accounts are excluded from the definition of Financial 

Accounts. 

This Annex II may be modified by a mutual written decision entered into between the Competent 

Authorities of the Republic of Armenia 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 3 of Article 4 of the Agreement. 

I. Exempt Beneficial Owners other than Funds. The following Entities shall be treated as 

Non-Reporting Republic of Armenia Financial Institutions and as exempt beneficial owners 

for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than with 

respect to a payment that is derived from an obligation held in connection with a commercial 

financial activity of a type engaged in by a Specified Insurance Company, Custodial 

Institution, or Depository Institution. 

A. Governmental Entity. The government of the Republic of Armenia, any political 

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

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

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

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

controlled entities, and political subdivisions of the Republic of Armenia. 

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

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

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

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

Armenia, with no portion inuring to the benefit of any private person. An integral part 

does not include any individual who is a sovereign, official, or administrator acting in 

a private or personal capacity. 

2. A controlled entity means an Entity that is separate in form from the Republic of 

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

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

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

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

or more Republic of Armenia Governmental Entities, with no portion of its 

income inuring to the benefit of any private person; and 

c) The Entity’s assets vest in one or more Republic of Armenia Governmental 

Entities upon dissolution. 

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

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

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

administration of some phase of government. Notwithstanding the foregoing, 

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

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

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

persons. 

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

instrumentality thereof. This category includes any intergovernmental organization 

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

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

Armenia; and (3) the income of which does not inure to the benefit of private persons. 

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

authority, other than the government of the Republic of Armenia itself, issuing 

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

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

or not owned in whole or in part by the Republic of Armenia. 

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

as Non-Reporting Republic of Armenia Financial Institutions and as exempt beneficial 

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

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

to provide retirement, disability, or death benefits, or any combination thereof, to 

beneficiaries that are current or former employees (or persons designated by such 

employees) of one or more employers in consideration for services rendered, provided 

that the fund:

1. Does not have a single beneficiary with a right to more than five percent of the fund’s 

assets; 

2. Is subject to government regulation and provides annual information reporting about 

its beneficiaries to the relevant tax authorities in the Republic of Armenia; and 

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

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

income under the laws of the Republic of Armenia due to its status as a 

retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions (other than transfers 

of assets from other plans described in paragraphs A through C of this section or 

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

V of this Annex II) from the sponsoring employers; 

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

of specified events related to retirement, disability, or death (except rollover 

distributions to other retirement funds described in paragraphs A through C of this 

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

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

made before such specified events; or 

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

to the fund are limited by reference to earned income of the employee or may not 

exceed $50,000 annually, applying the rules set forth in Annex I for account 

aggregation and currency translation. 

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

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

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

in consideration for services rendered, provided that:

1. The fund has fewer than 50 participants; 

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

Passive NFFEs; 

3. The employee and employer contributions to the fund (other than transfers of assets 

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

this Annex II) are limited by reference to earned income and compensation of the 

employee, respectively; 

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

than 20 percent of the fund’s assets; and 

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

reporting about its beneficiaries to the relevant tax authorities in the Republic of 

Armenia. 

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

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

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

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

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

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

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

Republic of Armenia Financial Institution solely because it is an Investment Entity, 

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

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

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

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

The following Financial Institutions are Non-Reporting Republic of Armenia Financial 

Institutions that shall be treated as registered deemed-compliant FFIs or certified deemedcompliant FFIs, as the case may be, for purposes of section 1471 of the U.S. Internal 

Revenue Code. 

A. Registered Financial Institution with a Local Client Base. A Financial Institution 

satisfying the following requirements is a Non-Reporting Republic of Armenia Financial 

Institution treated as a registered deemed-compliant FFI for purposes of section 1471 of 

the U.S. Internal Revenue Code: 

1. The Financial Institution must be licensed and regulated as a financial institution 

under the laws of the Republic of Armenia; 

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

of Armenia. For this purpose, a fixed place of business does not include a location 

that is not advertised to the public and from which the Financial Institution performs 

solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders outside the 

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

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

merely because the Financial Institution (a) operates a website, provided that the 

website does not specifically indicate that the Financial Institution provides Financial 

Accounts or services to nonresidents, and does not otherwise target or solicit U.S. 

customers or Account Holders, or (b) advertises in print media or on a radio or 

television station that is distributed or aired primarily within the Republic of Armenia 

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

advertisement does not specifically indicate that the Financial Institution provides 

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

solicit U.S. customers or Account Holders; 

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

to identify resident Account Holders for purposes of either information reporting or 

withholding of tax with respect to Financial Accounts held by residents or for 

purposes of satisfying the Republic of Armenia’s AML due diligence requirements; 
Annex II – 5 

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

Institution as of the last day of the preceding calendar year must be held by residents 

(including residents that are Entities) of the Republic of Armenia; 

6. By the later of July 1, 2014, or the date it registers pursuant to paragraph C of section 

VI of this Annex II, the Financial Institution must have policies and procedures, 

consistent with those set forth in Annex I, to prevent the Financial Institution from 

providing a Financial Account to any Nonparticipating Financial Institution and to 

monitor whether the Financial Institution opens or maintains a Financial Account for 

any Specified U.S. Person who is not a resident of the Republic of Armenia 

(including a U.S. Person that was a resident of the Republic of Armenia when the 

Financial Account was opened but subsequently ceases to be a resident of the 

Republic of Armenia or any Passive NFFE with Controlling Persons who are U.S. 

residents or U.S. citizens who are not residents of the Republic of Armenia; 

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

Specified U.S. Person who is not a resident of the Republic of Armenia or by a 

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

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

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

were a Reporting Republic of Armenia Financial Institution or close such Financial 

Account; 

8. With respect to a Preexisting Account held by an individual who is not a resident of 

the Republic of Armenia 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. 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 Republic 

of Armenia Financial Institution or close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution must be 

incorporated or organized in the Republic of Armenia 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; 

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

opening or maintaining Financial Accounts for individuals who are Specified U.S. 

Persons and residents of the Republic of Armenia; and 

11. The Financial Institution must satisfy the requirements set forth in paragraph C of 

section VI of this Annex II. 

B. Local Bank. A Financial Institution satisfying the following requirements is a NonReporting Republic of Armenia Financial Institution treated as a certified deemedcompliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code: 
Annex II – 6 

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

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

cooperative credit organization that is operated without profit; 

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

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

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

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

credit organization; 

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

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

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

opening of a Financial Account; 

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

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

do not have more than $500 million in total assets on their consolidated or combined 

balance sheets; and 

5. Any Related Entity must be incorporated or organized in the Republic of Armenia, 

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 Republic of Armenia 

Financial Institution satisfying the following requirements is a Non-Reporting Republic 

of Armenia Financial Institution treated as a certified deemed-compliant FFI for purposes 

of section 1471 of the U.S. Internal Revenue Code: 

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. Registered Qualified Credit Card Issuer. A Republic of Armenia Financial Institution 

satisfying the following requirements is a Non-Reporting Republic of Armenia Financial 
Annex II – 7 

Institution treated as a registered deemed-compliant FFI for purposes of section 1471 of 

the U.S. Internal Revenue Code: 

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; 

2. By the later of July 1, 2014, or the date it registers pursuant to paragraph C of section 

VI of this Annex II, 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; and 

3. The Financial Institution must satisfy the requirements set forth in paragraph C of 

section VI of this Annex II. 

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

The Financial Institutions described in paragraphs A through E of this section are NonReporting Republic of Armenia Financial Institutions that shall be treated as registered 

deemed-compliant FFIs or certified deemed-compliant FFIs, as the case may be, for purposes 

of section 1471 of the U.S. Internal Revenue Code. In addition, paragraph F of this section 

provides special rules applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of the Republic of 

Armenia 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. Accounts of the trust. Such a 

trust is a Non-Reporting Republic of Armenia Financial Institution treated as a certified 

deemed-compliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code. 

B. Registered 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 is a Non-Reporting Republic of Armenia Financial Institution treated as a 

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

Revenue Code. 

1. A Financial Institution is a sponsored investment entity if (a) it is an Investment 

Entity established in the Republic of Armenia that is not a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust pursuant to relevant 

U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial Institution 

to act as a sponsoring entity for the Financial Institution. 
Annex II – 8 

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

Financial Institution is a controlled foreign corporation1

 organized under the laws of 

the Republic of Armenia 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 the requirements of an FFI Agreement; 

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

IRS FATCA registration website; 

c) The sponsoring entity has registered the Financial Institution with the IRS 

pursuant to the registration requirements set forth in paragraph C of section VI of 

this Annex II, except that the sponsoring entity need not have registered the 

Financial Institution prior to December 31, 2016; 

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

due diligence, withholding, reporting, and other requirements (including the 

requirements set forth in paragraph C of section VI of this Annex II) that the 

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

Republic of Armenia Financial Institution; 

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

Financial Institution’s Global Intermediary Identification Number (or GIIN) in all 

reporting completed on the Financial Institution’s behalf; and 

 

1

 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined 

voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such 

corporation, is owned, or is considered as owned, by “United States shareholders” on any day during the taxable 

year of such foreign corporation. The term a “United States shareholder” means, with respect to any foreign 

corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total 

combined voting power of all classes of stock entitled to vote of such foreign corporation. 
Annex II – 9 

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

revoke a sponsoring entity’s status as a sponsor with respect to all sponsored 

Financial Institutions if there is a material failure by the sponsoring entity to 

comply with its obligations described above with respect to any sponsored 

Financial Institution. 

C. Sponsored, Closely Held Investment Vehicle. A Republic of Armenia Financial 

Institution satisfying the following requirements is a Non-Reporting Republic of Armenia 

Financial Institution treated as a certified deemed-compliant FFI for purposes of section 

1471 of the U.S. Internal Revenue Code: 

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 Republic of Armenia Financial Institution; 

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

unrelated parties; 

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

Financial Institution (disregarding debt interests owned by Participating FFIs and 

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

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

Financial Institution described in this paragraph C); and 

5. The sponsoring entity complies with the following requirements: 

 

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

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 Republic of 

Armenia Financial Institution and retains documentation collected with respect to 

the Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution’s behalf; and 
Annex II – 10 

d) The sponsoring entity has not had its status as a sponsor revoked. The IRS may 

revoke a sponsoring entity’s status as a sponsor with respect to all sponsored 

Financial Institutions if there is a material failure by the sponsoring entity to 

comply with its obligations described above with respect to any sponsored 

Financial Institution. 

D. Investment Advisors and Investment Managers. An Investment Entity established in 

the Republic of Armenia 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. Such an Investment Entity is a Non-Reporting 

Republic of Armenia Financial Institution treated as a certified deemed-compliant FFI for 

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

E. Collective Investment Vehicle. An Investment Entity established in the Republic of 

Armenia 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, and the Investment Entity satisfies the requirements set forth in paragraph C 

of section VI of this Annex II. Such an Investment Entity is a Non-Reporting Republic 

of Armenia Financial Institution treated as a registered deemed-compliant FFI for 

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

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; 
Annex II – 11 

the reporting obligations of any Investment Entity that is a Republic of Armenia 

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

collective investment vehicle are held) shall be deemed fulfilled. 

3. With respect to interests in an Investment Entity established in the Republic of 

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

consistent with paragraph 4 of Article 4 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 first-mentioned Investment Entity 

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

Investment Entity or another person. 

 

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

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

A. Certain Savings Accounts. 

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

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

Republic of Armenia. 

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

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

or pension benefits (including disability or death benefits); 

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

be subject to tax under the laws of the Republic of Armenia are deductible or 

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

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

reduced rate); 

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

Armenia with respect to the account; 

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

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

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

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

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

translation. 

2. Non-Retirement Savings Accounts. An account maintained in the Republic of 

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

requirements under the laws of the Republic of Armenia. 
Annex II – 12 

a) The account is subject to regulation as a savings vehicle for purposes other than 

for retirement; 

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

be subject to tax under the laws of the Republic of Armenia are deductible or 

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

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

reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the purpose of 

the savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; and 

d) Annual contributions are limited to $50,000 or less, applying the rules set forth in 

Annex I for account aggregation and currency translation. 

B. Certain Term Life Insurance Contracts. A life insurance contract maintained in the 

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

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

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

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

whichever is shorter; 

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

otherwise) without terminating the contract; 

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

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

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

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

cancellation or termination of the contract; and 

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

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

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

deceased’s will or death certificate. 

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

connection with any of the following: 

1. A court order or judgment. 
Annex II – 13 

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

satisfies the following requirements: 

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

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

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

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

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

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

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

leased property as agreed under the lease; 

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

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

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

exchanged, or surrendered, or the lease terminates; 

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

sale or exchange of a financial asset; and 

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

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

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

related to the real property at a later time. 

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

later time. 

E. Partner Jurisdiction Accounts. An account maintained in the Republic of Armenia 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 and Other Special Rules. The following additional definitions and special rules 

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 
Annex II – 14 

thereof to implement FATCA through reporting by Financial Institutions to such nonU.S. government or agency thereof, followed by automatic exchange of such reported 

information with the IRS. 

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

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

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

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

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

1 FFI. For purposes of this definition, the term FFI Agreement means where relevant, an 

FFI Agreement as defined in Article 1 of the Agreement as well as 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. 

 

C. Registration Requirements for a Financial Institution that Qualifies as a Registered 

Deemed-Compliant FFI. A Financial Institution that qualifies as a registered deemedcompliant FFI must satisfy the following requirements:

1. Register on the IRS FATCA registration website with the IRS pursuant to procedures 

prescribed by the IRS and agree to comply with the terms of its registered deemedcompliant status;

2. Have its responsible officer certify every three years to the IRS, either individually or 

collectively for such Financial Institution and its Related Entities, that all of the 

requirements for the deemed-compliant category claimed by the Financial Institution 

have been satisfied since July 1, 2014;

3. Maintain in its records the confirmation from the IRS of the Financial Institution’s 

registration as a deemed-compliant FFI and the Financial Institution’s Global 

Intermediary Identification Number (or GIIN) or such other information as the IRS 

specifies in forms or other guidance; and

4. Agree to notify the IRS if there is a change in circumstances that would make the 

Financial Institution ineligible for the deemed-compliant status for which it has 

registered, and to do so with six months of the change in circumstances unless the 

Financial Institution is able to resume its eligibility for its registered deemedcompliant status within the six-month notification period.