(B) Fi Compliance Requirements. A participating IFF, a Reporting Model 1 IFF, or a U.S. financial institution that agrees to establish and maintain a consolidated compliance program and conduct a periodic consolidated review on behalf of one or more FRFIs (the Compliance Group) must agree to identify itself as a compliance IFE and to identify each IFE for which it operates (a selection IFF) to the extent that: required by the IRS as part of the FFI registration process or certification procedures. The agreement between the compliance FI and each voting IFF shall allow the compliance FI or selection IFF to terminate the agreement if the IRS or one of the parties determines that the other party to the agreement is not complying with its obligations under the agreement or is no longer able to meet those obligations. (A) except as otherwise provided in paragraph (e) (3) (v) of this Section, be part of the FFI agreement process of its extended affiliate group to obtain limited FFI status; (iv) period for limited FFI status (transition). A limited IFF will no longer be a limited IFF after December 31, 2016. An IFF also ceases to be a restricted IFF when it becomes a participating IFF or a compliant IFF or at the beginning of the third calendar quarter after the date on which the IFF is no longer prohibited from meeting the requirements of a participating IFF as described in this section. In this case, participating IFFs and compliant IFFs that are members of the same extended affiliate group will retain their status if that IFF enters into an IFF agreement or becomes an applicable IFF registered with the IFF on the date an IFF is no longer a RESTRICTED IFF, unless otherwise provided in an applicable Model 1 or Model 2 IGA. (iv) Defined material defects. A material omission is a failure by the participating IFF to comply with the requirements of the IFF Agreement if the failure was the result of an intentional act of one or more employees of the participating IFF (its representative, sponsor or compliance IF) to circumvent the requirements of the IFF Agreement, or was an error due to a failure of the participating IFF, implement sufficient internal controls for the participating IFF. to meet the requirements of this section. A hardware failure does not constitute a failure event unless such hardware failure occurs in more than limited circumstances when a participating IFF has not substantially complied with the Treasury`s FATCA IGA Resource Center for additional information on model IGAs, signed IGAs, and contact information for trading an IGA.

(iii) Exceptions for certain existing low-value individual accounts – (A) Accounts with one exception. Unless the participating IFF decides otherwise in accordance with subsection (c) (5) (iii) (C) of this Section, a participating IFF is not required to follow the necessary identification and documentation procedures described in paragraph (c) (5) (i) and (iv) of this Section with respect to a pre-existing individual account other than a cash or annuity insurance contract; Execute. whose balance or total value is $50,000 or less, or a pre-existing individual account that is a cash or annuity insurance contract as defined in paragraph 1.1471-5(b)(1)(iv) with a total balance or value of $250,000 or less. For the purposes of these exemptions, the account balance shall be determined at the time of entry into force of the IFF Agreement and the aggregation rules of paragraph (c)(5)(iii)(B) of this Section shall apply. An account that meets any of these exceptions will cease to comply with these exceptions from the end of a subsequent calendar year in which the balance or value of the account exceeds $1,000,000, by applying the aggregation rules in subsection (c) (3) (iii) (B) of this Section or until any other change in circumstances related to the account or an aggregate account with the account. (1) In general. Except as otherwise provided in this paragraph (e)(1) or paragraphs (e)(2) and (e)(3) of this Section, each IFF that is a member of an extended connected group shall have Chapter 4 status of a participating IFF, a deemed compliant IFF or an exempt beneficial owner as a condition for each member of such a group in order to obtain the status of a participating IFF or a registered IFF deemed compliant. Therefore, except as otherwise provided in paragraph (e) (3) (v) of this Section, any FFI that is not a certified FFI-compliant or exempt beneficial owner in an extended connected group must file a registration form with the IRS in the manner required by the IRS to apply for an FFI agreement, registered status as a compliant or limited FFI status as a condition of a member, to become a participating IFF or a IFF registered as a compliant IFF. Except as provided in subsection (e)(2) of this Section, any IFF that is not considered certified to be certified to the IFF or an exempt beneficial owner that is a member of such a group shall also accept all requirements relating to the status to which it applies with respect to all accounts held in all of its branches and offices. and departments. For the retention requirements of a participating IFF with respect to its limited branches and affiliates, which are limited FRFIs, see subsection (b)(5) of this section. Notwithstanding the foregoing, an IFF (or a branch thereof) treated as a participating IFF or as a compliant IFF under a Model 1 IGA or Model 2 IGA will retain such status provided that it meets the conditions for such status under such an agreement.

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