The following accounts are excluded from the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable Accounts.
- A)Certain Savings Accounts.
- 1.Retirement and Pension Account. A retirement or pension account maintained in Curaçao that satisfies the following requirements under the laws of Curaçao.
- 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 Curaçao 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 Curaçao 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 Curaçao (other than an insurance or Annuity Contract) that satisfies the following requirements under the laws of Curaçao.
- 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 Curaçao 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 Curaçao 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 Curaçao 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 Curaçao established in connection with any of the following:
- 1.A court order or judgment.
- 2.A sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements:
- a)The account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a financial asset that is deposited in the account in connection with the sale, exchange, or lease of the property;
- b)The account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease;
- c)The assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee (including to satisfy such person’s obligation) when the property is sold, exchanged, or surrendered, or the lease terminates;
- d)The account is not a margin or similar account established in connection with a sale or exchange of a financial asset; and
- e)The account is not associated with a credit card account.
- 3.An obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a payment solely to facilitate the payment of taxes or insurance related to the real property at a later time.
- 4.An obligation of a Financial Institution solely to facilitate the payment of taxes at a later time.
- E) Partner Jurisdiction Accounts. An account maintained in Curaçao 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.
