02.12 – Deemed Compliant Financial Institutions

Deemed Compliant Financial Institutions are UK Financial Institutions within this category in Annex II or ones which otherwise qualify under the US Regulations as:

  • Registered Deemed Compliant Financial Institution
  • Certified Deemed-Compliant Financial Institution,
  • Owner Documented Financial Institutions.

Regarding Deemed-Compliant Financial Institutions, only a Registered Deemed Compliant Financial Institution or in certain circumstances a Local Client Base Financial Institution (See Section 2.13), are required to register with the IRS.

There are two types of entity that can take advantage of this exemption.

i. Non-profit organisations: Under the Agreement these are to be regarded as Deemed Compliant Financial Institutions and will not have any reporting requirements in relation to any Financial Accounts that they may hold. This applies to:

  • Any entity registered as a charity with the Charity Commission of England and Wales
  • Any entity registered with HMRC for charitable tax purposes
  • Any entity registered as a charity with the Office of the Scottish Charity Regulator
  • Any Community Amateur Sports Club if registered as such with HMRC

ii. Financial Institutions with a Local Client Base will have a reduced reporting requirement if they meet the relevant criteria.