Paragraaf IV Investment Entities that Qualify as...

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

The Financial Institutions described in paragraphs A through E of this section are Non-Reporting Curaçao Financial Institutions that shall be treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. In addition, paragraph F of this section provides special rules applicable to an Investment Entity.

• A)Trustee-Documented Trust. A trust established under the laws of Curaçao to the extent that the trustee of the trust is a Reporting U.S. Financial Institution, Reporting Model 1 FFI, or Participating FFI and reports all information required to be reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust.
• B)Sponsored Investment Entity and Controlled Foreign Corporation. A Financial Institution described in subparagraph B(1) or B(2) of this section having a sponsoring entity that complies with the requirements of subparagraph B(3) of this section.
• 1.A Financial Institution is a sponsored investment entity if (a) it is an Investment Entity established in Curaçao that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial Institution to act as a sponsoring entity for the Financial Institution.
• 2.A Financial Institution is a sponsored controlled foreign corporation if (a) the Financial Institution is a controlled foreign corporation organized under the laws of Curaçao 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, foundation board member, or managing partner) to fulfill applicable registration requirements on the IRS FATCA registration website;
• b)The sponsoring entity has registered as a sponsoring entity with the IRS on the IRS FATCA registration website;
• c)If the sponsoring entity identifies any U.S. Reportable Accounts with respect to the Financial Institution, the sponsoring entity registers the Financial Institution pursuant to applicable registration requirements on the IRS FATCA registration website on or before the later of December 31, 2015 and the date that is 90 days after such a U.S. Reportable Account is first identified;
• d)The sponsoring entity agrees to perform, on behalf of the Financial Institution, all due diligence, withholding, reporting, and other requirements that the Financial Institution would have been required to perform if it were a Reporting Curaçao Financial Institution;
• e)The sponsoring entity identifies the Financial Institution and includes the identifying number of the Financial Institution (obtained by following applicable registration requirements on the IRS FATCA registration website) in all reporting completed on the Financial Institution’s behalf; and
• f)The sponsoring entity has not had its status as a sponsor revoked.
• C) Sponsored, Closely Held Investment Vehicle. A Curaçao Financial Institution satisfying the following requirements:
• 1.The Financial Institution is a Financial Institution solely because it is an Investment Entity and is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations;
• 2.The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1 FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution (such as a professional manager, trustee, corporate director, foundation board member, 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 Curaçao Financial Institution;
• 3.The Financial Institution does not hold itself out as an investment vehicle for unrelated parties;
• 4.Twenty or fewer individuals own all of the debt interests and Equity Interests in the Financial Institution (disregarding debt interests owned by Participating FFIs and deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns 100 percent of the Equity Interests in the Financial Institution and is itself a sponsored Financial Institution described in this paragraph C); and
• 5.The sponsoring entity complies with the following requirements:
• a)The sponsoring entity has registered as a sponsoring entity with the IRS on the IRS FATCA registration website;
• b)The sponsoring entity agrees to perform, on behalf of the Financial Institution, all due diligence, withholding, reporting, and other requirements that the Financial Institution would have been required to perform if it were a Reporting Curaçao Financial Institution and retains documentation collected with respect to the Financial Institution for a period of six years;
• c)The sponsoring entity identifies the Financial Institution in all reporting completed on the Financial Institution’s behalf; and
• d)The sponsoring entity has not had its status as a sponsor revoked.
• D)Investment Advisors and Investment Managers. An Investment Entity resident in Curaçao the sole activity of which is (1) to render investment advice to, and act on behalf of, or (2) to manage portfolios for, a customer based on a power of attorney or similar instrument (e.g., an investment authority) issued by the holder of a Financial Account or based on investment powers in a directorship capacity for the purposes of investing, managing, or administering funds deposited in the name of the person or Entity granting the power or issuing the similar instrument with a Financial Institution other than a Nonparticipating Financial Institution.
• E)Certain Collective Investment Vehicles. An Investment Entity established in Curaçao that is regulated as a collective investment vehicle, provided that all of the interests in the collective investment vehicle (including debt interests in excess of $50,000) are held by or through one or more exempt beneficial owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are not Nonparticipating Financial Institutions.
• F)Special Rules. The following rules apply to an Investment Entity:
• 1.With respect to interests in an Investment Entity that is a collective investment vehicle described in paragraph E of this section, the reporting obligations of any Investment Entity (other than a Financial Institution through which interests in the collective investment vehicle are held) shall be deemed fulfilled.
• 2.With respect to interests in:
• a)An Investment Entity that is regulated as a collective investment vehicle under the laws of a Partner Jurisdiction, all of the interests in which (including debt interests in excess of $50,000) are held by or through one or more exempt beneficial owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are not Nonparticipating Financial Institutions; or
• b)An Investment Entity that is a qualified collective investment vehicle under relevant U.S. Treasury Regulations;the reporting obligations of any Investment Entity that is a Curaçao 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 that is a collective investment vehicle resident in Curaçao not described in paragraph E or subparagraph F(2) of this section, consistent with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all other Investment Entities with respect to such interests shall be deemed fulfilled if the information required to be reported by the first-mentioned Investment Entity pursuant to the Agreement with respect to such interests is reported by such Investment Entity or another person.
• 4.An Investment Entity established in Curaçao that is regulated as a collective investment vehicle shall not fail to qualify under paragraph E or subparagraph F(2) of this section, or otherwise as a deemed-compliant FFI, solely because the collective investment vehicle has issued physical shares in bearer form, provided that:
• a)The collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after December 31, 2012;
• b)The collective investment vehicle retires all such shares upon surrender;
• c)The collective investment vehicle (or a Reporting Curaçao Financial Institution) performs the due diligence procedures set forth in Annex I and reports any information required to be reported with respect to any such shares when such shares are presented for redemption or other payment; and
• d)The collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilized as soon as possible, and in any event prior to January 1, 2017.