Owner-documented FFI

https://haydonperryman.com/courses/

Screenshot 2016-06-08 09.47.33

FATCA

This status only applies if the U.S. financial institution or participating FFI to which this form is given has agreed that it will treat the FFI as an owner-documented FFI.

An Owner-Documented FFI

  • Does not act as an intermediary;
  • Does not accept deposits in the ordinary course of a banking or similar business;
  • Does not hold, as a substantial portion of its business, financial assets for the account of others;
  • Is not an insurance company (or the holding company of an insurance company) that issues or is obligated to make payments with respect to a financial account;
  • Is not owned by or in an expanded affiliated group with an entity that accepts deposits in the ordinary course of a banking or similar business, holds, as a substantial portion of its business, financial assets for the account of others, or is an insurance company (or the holding company of an insurance company) that issues or is obligated to make payments with respect to a financial account; and
  • Does not maintain a financial account for any nonparticipating FFI.
  • Has provided, or will provide, an FFI owner reporting statement that contains:
  • The name, address, TIN (if any), chapter 4 status, and type of documentation provided (if required) of every individual and specified U.S. person that owns a direct or indirect equity interest in the owner-documented FFI (looking through all entities other than specified U.S. persons);
  • The name, address, TIN (if any), chapter 4 status, and type of documentation provided (if required) of every individual and specified U.S. person that owns a debt interest in the owner-documented FFI (including any indirect debt interest, which includes debt interests in any entity that directly or indirectly owns the payee or any direct or indirect equity interest in a debt holder of the payee) that constitutes a financial account in excess of $50,000 (disregarding all such debt interests owned by participating FFIs, registered deemed-compliant FFIs, certified deemed-compliant FFIs, excepted NFFEs, exempt beneficial owners, or U.S. persons other than specified U.S. persons); and
  • Any additional information the withholding agent requests in order to fulfill its obligations with respect to the entity.
  • OR the OD-FFI has provided, or will provide, an auditor’s letter, signed within four years of the date of payment, from an independent accounting firm or legal representative with a location in the United States stating that the firm or representative has reviewed the FFI’s documentation with respect to all of its owners and debt holders identified in §1.1471-3(d)(6)(iv)(A)(2), and that the FFI meets all the requirements to be an owner-documented FFI. The FFI identified in Part I has also provided, or will provide, an FFI owner reporting statement of its owners that are specified U.S. persons and Form(s) W-9, with applicable waivers.

• OR the is a trust that does not have any contingent beneficiaries or designated classes with unidentified beneficiaries.

UK Guidance: AEIM100930

3 thoughts on “Owner-documented FFI

  1. Sorry but on the ODFFI auditors letter: you writing off the instructions to the W8, which is not law & which was drafted in a rush and used the proposed regs as reference.

    The auditor’s letter provision was changed in the final regs:

    ….provide a letter from an auditor or an attorney that is LICENSED in the United States OR whose firm has a location in the United States.

    This allows any lawyer with an active US bar membership to produce the letter.

    Auditor’s letter substitute [§1.1471-3(d)(6)(ii)]
    A payee may, in lieu of providing an FFI owner reporting statement and
    documentation for each owner of the FFI as described in paragraphs
    (d)(6)(i)(C) and (D) of this section, provide a letter from an auditor or an
    attorney that is licensed in the United States or whose firm has a location in the
    United States, signed no more than four years prior to the date of the payment,
    that certifies that the firm or representative has reviewed the payee’s
    documentation with respect to all of its owners and debt holders described in
    paragraph (d)(6)(iv) of this section in accordance with §1.1471-4(c)and that the
    payee meets the requirements of §1.1471-5(f)(3).The payee must also provide
    an FFI owner reporting statement and a Form W-9, with any applicable waiver,
    for each specified U.S. person that owns a direct or indirect interest in the
    payee or that holds debt interests described in paragraph (d)(6)(iv) of this
    section. A withholding agent may rely upon the letter described in this
    paragraph (d)(6)(ii) if it does not know or have reason to know that any of the
    information contained in the letter in unreliable or incorrect

  2. Keep up the great work as only recently finding your site, it is rare to be able to find experienced commentary on what is such a horribly rolled-out regime as FATCA/IGAs, at the end of the day it is experience that will serve clients best in navigating them to a sustainable FATCA compliance position.

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