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The FATCA GIIN list analyzed by IGA and by countries

Posted by William Byrnes on June 8, 2014


free chapter download here —> http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2457671   Number of Pages in PDF File: 58

The June 2nd FATCA GIIN list included 77,354 financial institutions from 205 countries and jurisdictions (give or take 1), nearly 75% of which are covered by Model 1 IGA.  As of June 8, 2014, only 70 IGAs have been signed or treated as if signed.  Below is a list of 100 country and jurisdiction FFI registrations, and the Deemed Compliant FFI registration by IGA Model 1.  (see follow up June 16 article with more countries and analysis of FFI registrations: https://profwilliambyrnes.com/2014/06/16/list-of-ffi-registrations-by-country/)

Do 180 More Countries and Jurisdictions Need IGAs?

The USA recognizes 196 independent states in the world (the IRS recognizes Palestine as a State according to the FATCA list, otherwise the State Department only recognizes 195 – see my June 2nd article here), 67 dependencies of states, and has contacts with Taiwan.  But 14 of the dependencies are administered by the United States.  So with Taiwan and Palestine counted, 54 jurisdictions have financial institutions that probably must register for FATCA.

I have previously written that not each of these 54 dependencies probably requires an IGA.  My estimate was that approximately 16 dependencies of the 54 have both local responsibility with regard to tax policy and more than de minimis US source income exposure, such as investments in US Treasuries, for the local authorities to seek an IGA. Such dependencies include by example Bermuda, Cayman Islands, and Hong Kong.

A host of dependencies, such as Antarctica and various atolls, have no (current) global economic relevance.  Yet, even the British Indian Ocean Territory, Falkland Islands, French Southern Territories, and Christmas Island have a registered FATCA financial firm each.  In that the French Southern Territories does not have a permanent population, being scientific research stations on uninhabited Islands by Madagascar, it is curious that the financial firm DBSBV Holding Sci registered there (I cannot find any information on this company?  Any readers want to help me on this one?).   Just as curious is the Russian Bank’s AK BARS Investments Corporation registering in the British Indian Ocean Territory, which is an insignificant  British and American military outpost with a couple hundred military staff, Mauritius and Philippine foreign-contract workers.  Christmas Island with its population of 2,000 entertains the FFI registration of Everbright Equity Advantage Fund (I wonder if anyone within these four extremely small dependencies has even heard of FATCA).

Thus, based on the GIIN list of registrations from dependent jurisdictions and multiple reader emails, I acknowledge underestimating the amount of dependent “jurisdictions”  that will require an IGA, at least a Model 2.  I thought that such minor dependencies FFIs would generally fall under registration exceptions and instead only require W-8BEN-E documentation (e.g. “Certified Deemed-Compliant Nonregistering Local Bank”, “Certified Deemed-Compliant FFI with Only Low-Value Accounts”).

Going forward in my articles, my previous estimate of 212 states and jurisdictions that probably could benefit from an IGA (Model 2 for jurisdictions without populations) will be replaced by the full number of countries and jurisdictions recognized by the US for FATCA, which is 250, accommodating even the economically insignificant territories like British Indian Ocean Territory and French Southern Territories, and the contentious ones such as Palestine and Taiwan.  Therefore, as of June 8th, 180 countries and jurisdictions are without IGAs that could benefit from one – substantially more than previously estimated.

FFI Registration Among Model 1 IGAs and the Rest

Did all the FFIs that are in the 180 countries and jurisdictions that do not have an IGA register for a GIIN by the final June 3rd deadline to be included in the July GIIN list?  Not even close.

Only 77,353 registered from 205 countries and jurisdictions by the initial May 5th extended deadline for the June 2nd GIIN list.  Of those, 74% (57,170) are from Model 1 IGAs (signed and recognized) and thus Deemed Compliant FFIs (reporting to their respective revenue authorities pursuant to local regulations, not directly to the IRS).[1]  These DCFFIs had until the end of the year to register, withholding only beginning for payments from January 1st. Only Kosovo, as a Model 1 IGA country, did not have a single FFI registration.

The remaining 10,260 registered FFIs are from 136 of the 205 countries on the GIIN list.  Thus, of 180 non-IGA countries and jurisdictions, 44 of them did not have any FFI registrations yet,  for which withholding begins upon withholdable payments to non compliant FFIs from July 1st.

Approximately 20% of the total registered FFIs are Cayman Islands firms (14,836) (see my article of June 2nd). 

There is not one reliable number of how many financial entities in the world qualify as a financial institution requiring FATCA registration.  The list of FFIs requiring registration includes, by example, trusts companies, certain trusts, life insurance companies, investment funds, banks.  The IRS has said that “At this time, the full FFI list is expected to be less than 500,000 records.” Thus, the IRS must plan that as many as another 420,000 still need to register, even if the final number is only half that.

BRIC Registration

Brazil leads the BRIC countries with 2,258 FFI registered, followed by Russia (514), India (246) with China only having 211.  Based on this list, it does not appear that India and China have wide spread acceptance for FATCA yet. Will Crimea financial firms register under the Ukraine or Russia (probably Russia)?  Will the IRS recognize such registration?

NAFTA Registrations

2,264 FFIs registered from Canada and Mexico at 418.

Major OECD Countries Registrations

The United Kingdom (6,263) Revenue has recently announced that it will not adopt the IRS issued six-month extension (until December 31, 2014) for entity accounts (see my articles of May 5th and 2nd).  Thus, from July 1st, UK FFIs must document all personal and entity accounts under the requirements for “new” accounts as opposed as to “pre-existing” account due diligence procedures.

Australia (1,864), France (2,290), Germany (2,254), Ireland (1,756) and Netherlands (2,053).

European Financial Centers Registrations

Switzerland (4,040), Luxembourg (3,560), Austria (2,978), Lichtenstein (239).

Guernsey (2,395), Jersey (1,618), Isle of Man (312) and Gibraltar (96).

Caribbean Financial Centers Registrations

BVI (1,837), Bahamas (610), Bermuda (1,242) and Panama (450).

State of Palestine Registrations

23 FFIs registered with the IRS, listed as from the State of Palestine.  Primarily MENA banks and a branch of HSBC Middle East Bank.  As I wrote June 2,  I suspect that this will be a contentious issue between the US and Israel because while “the State of Palestine” is not yet recognized by the State Department (it’s still the Palestinian Territories), this new IRS recognition may be an ‘under the radar screen’ Administration initiative.  It may have just been a contract programmer providing his/her own sentiments to the registration list.

North Korean Registrations

I listed North Korean because, as you are probably aware, it is a sanctioned country by OFAC (see http://www.treasury.gov/resource-center/sanctions/Programs/pages/nkorea.aspx) with a FINCEN AML update available at http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-A005.pdf

So who registered from North Korea? Branches of Bank or America, Wells Fargo, and Deutsche Bank (search the first part of the GIIN until you find the ultimate party for it).

It is possible to receive exceptions to the OFAC sanctions for certain activities. Like I assume that US Aid to North Korea (a.k.a. nuke-mail shakedown funds) has to be transferred there by the US government somehow. I had assumed this occurred through approved intermediary South Korea banks, but now that I have reviewed the GIIN list, it appears that maybe some funds are transferred directly between countries.

“Other” Registrations

23 financial firms listed “other” as the country / jurisdiction.  I am not sure why, given that it appears by my glance over – each has a country in which to register.  Harneys Nevis by example should probably register under Nevis (or where it is incorporated, if not Nevis)?  Why is the Austrian insurance group, Sigal Life UNIQA group Austria,  registered under “Other”?  Perhaps the July 1st list will have movement from “Other” to actual countries?

Model 1 IGA – 29 (followed by number of registered FFIs)

  1. Australia (4-28-2014): 1,864
  2. Belgium (4-23-2014): 249
  3. Canada (2-5-2014): 2,264
  4. Cayman Islands (11-29-2013): 14,836
  5. Costa Rica (11-26-2013): 122
  6. Denmark (11-19-2012): 186
  7. Estonia (4-11-2014): 26
  8. Finland (3-5-2014): 466
  9. France (11-14-2013): 2,290
  10. Germany (5-31-2013): 2,554
  11. Gibraltar (5-8-2014): 96
  12. Guernsey (12-13-2013): 2,395
  13. Hungary (2-4-2014): 101
  14. Honduras (3-31-2014): 47
  15. Ireland (1-23-2013): 1,756
  16. Isle of Man (12-13-2013): 312
  17. Italy (1-10-2014): 456
  18. Jamaica (5-1-2014): 41
  19. Jersey (12-13-2013): 1,618
  20. Liechtenstein (5-19-2014): 239
  21. Luxembourg (3-28-2014): 3,560
  22. Malta (12-16-2013): 235
  23. Mauritius (12-27-2013): 727
  24. Mexico (4-9-2014): 418
  25. Netherlands (12-18-2013): 2,053
  26. Norway (4-15-2013): 312
  27. Slovenia (6-2-2014): 20
  28. Spain (5-14-2013): 1,187
  29. United Kingdom (9-12-2012): 6,263

Model 2 IGA – 5

  1. Austria (4-29-2014)
  2. Bermuda (12-19-2013)
  3. Chile (3-5-2014)
  4. Japan (6-11-2013)
  5. Switzerland (2-14-2013)

Jurisdictions that have reached agreements in substance:

Model 1 IGA – 33 (followed by number of registered FFIs)

  1. Azerbaijan (5-16-2014): 16
  2. Bahamas (4-17-2014): 610
  3. Barbados (5-27-2014): 123
  4. Brazil (4-2-2014): 2,258
  5. British Virgin Islands (4-2-2014): 1,837
  6. Bulgaria (4-23-2014): 72
  7. Colombia (4-23-2014): 172
  8. Croatia (4-2-2014): 50
  9. Curaçao (4-30-2014): 173
  10. Czech Republic (4-2-2014): 92
  11. Cyprus (4-22-2014): 279
  12. India (4-11-2014): 246
  13. Indonesia (5-4-2014): 307
  14. Israel (4-28-2014): 321
  15. Kosovo (4-2-2014) – nil
  16. Kuwait (5-1-2014): 77
  17. Latvia (4-2-2014): 40
  18. Lithuania (4-2-2014): 21
  19. New Zealand (4-2-2014): 334
  20. Panama (5-1-2014): 450
  21. Peru (5-1-2014): 164
  22. Poland (4-2-2014): 164
  23. Portugal (4-2-2014): 255
  24. Qatar (4-2-2014): 46
  25. Romania (4-2-2014): 109
  26. Seychelles (5-28-2014): 37
  27. Singapore (5-5-2014): 783
  28. Slovak Republic (4-11-2014): 54
  29. South Africa (4-2-2014): 317
  30. South Korea (4-2-2014): 396
  31. Sweden (4-24-2014): 312
  32. Turkey (6-3-2014): 65
  33. Turks and Caicos Islands (5-12-2014): 27
  34. United Arab Emirates (5-23-2014): 135

Model 2 IGA – 2

  1. Armenia (5-8-2014)
  2. Hong Kong (5-9-2014)

FFIs registered by a selection of 100 of 205 countries and jurisdictions.

  1. Afghanistan: 7
  2. Andorra: 33
  3. Anguilla: 70
  4. Antigua & Barbuda: 35
  5. Argentina: 269
  6. Armenia: 27
  7. Aruba: 13
  8. Australia: 1,864
  9. Austria: 2,978
  10. Azerbaijan: 16
  11. Bahamas: 610
  12. Barbados: 123
  13. Belgium: 249
  14. Belize: 122
  15. Bermuda: 1,242
  16. Brazil: 2,258
  17. Bulgaria: 72
  18. BVI: 1,837
  19. Canada: 2,264
  20. Cayman Islands: 14,836
  21. China: 211
  22. Christmas Island: 1 (Everbright Equity Advantage Fund)
  23. Colombia: 172
  24. Comoros Is.: 1
  25. Costa Rica: 122
  26. Cook Is.: 72
  27. Croatia: 50
  28. Curacao: 173
  29. Cyprus: 279
  30. Czech Republic: 92
  31. Denmark: 186
  32. Estonia: 26
  33. Falkland Islands: 1
  34. Finland: 466
  35. France: 2,290
  36. French Southern Territories: 1
  37. Germany: 2,554
  38. Gibraltar: 96
  39. Greenland: 1
  40. Guernsey: 2,395
  41. Honduras: 47
  42. Hong Kong: 1,539
  43. Hungary: 101
  44. Iceland: 5
  45. India: 246
  46. Indonesia: 307
  47. Ireland: 1,756
  48. Isle of Man: 312
  49. Israel: 321
  50. Italy: 456
  51. Jamaica: 41
  52. Japan: 3,251
  53. Jersey: 1,618
  54. North Korea: 4
  55. South Korea: 396
  56. Kuwait: 77
  57. Latvia: 40
  58. Lichtenstein: 239
  59. Lithuania: 21
  60. Luxembourg: 3,560
  61. Macao: 36
  62. Malta: 235
  63. Mauritius: 727
  64. Mexico: 418
  65. Monaco: 98
  66. Netherlands: 2,053
  67. New Zealand: 334
  68. Norway: 312
  69. Other: 22
  70. Panama: 450
  71. Peru: 164
  72. Poland: 164
  73. Portugal: 255
  74. Qatar: 46
  75. Romania: 109
  76. Russia: 514
  77. St Kitts & Nevis: 70
  78. St Lucia: 60
  79. Saint Pierre & Miquelon: 1
  80. San Marino: 14
  81. Saudi Arabia: 17
  82. Seychelles: 37
  83. Singapore: 783
  84. South Africa: 317
  85. Spain: 1,187
  86. Slovakia: 54
  87. Slovenia:  20
  88. St Vincent & the Grenadines: 104
  89. Sweden: 312
  90. Switzerland: 4,040
  91. Taiwan: 408
  92. Turkey: 65
  93. Turks & Caicos: 27
  94. Ukraine: 105
  95. United Arab Emirates: 135
  96. United Kingdom: 6,263
  97. USA: 562
  98. Uruguay: 131
  99. Venezuela: 29
  100. Wallis & Fortuna: 1

[1] Model 1 IGA FFIs with a GIIN are classified as “Registered Deemed-Compliant Foreign Financial Institutions” (RDCFFI) on the new W8-BEN-E (see previous article) instead of as Participating Foreign Financial Institutions (PFFIs) pursuant to the regular FATCA FFI agreement and Model 2 IGA.

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  • Chapter 1A The International Financial System and FATCA
  • Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
  • Chapter 2A FATCA Internal Policy
  • Chapter 3 FATCA Compliance and Integration of Information Technology
  • Chapter 4 Financial Institution Account Remediation
  • Chapter 4A FATCA Customer Outreach
  • Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
  • Chapter 6 Determining U.S. Ownership of Foreign Entities
  • Chapter 7 Foreign Financial Institutions
  • Chapter 7A Account reporting under FATCA
  • Chapter 8 Non-Financial Foreign Entities
  • Chapter 9 FATCA and the Offshore Trust Industry
  • Chapter 10 FATCA and the Insurance Industry
  • Chapter 11 Withholding and Qualified Intermediary
  • Chapter 12 FATCA Withholding Compliance
  • Chapter 13 “Withholdable” Payments
  • Chapter 13A Reporting Payments
  • Chapter 14 Determining and Documenting the Payee
  • Chapter 14A W8 Equivalents
  • Chapter 15 Framework of Intergovernmental Agreements
  • Chapter 16 Analysis of Current Intergovernmental Agreements
  • Chapter 17 European Union Cross Border Information Reporting
  • Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
  • Chapter 19 Germany
  • Chapter 20 Ireland
  • Chapter 21 Japan
  • Chapter 22 Mexico
  • Chapter 23 Switzerland
  • Chapter 24 United Kingdom
  • Chapter 25 Brazil
  • Chapter 26 British Virgin Islands
  • Chapter 27 Canada
  • Chapter 28 Spain
  • Chapter 29 China
  • Chapter 30 Netherlands
  • Chapter 31 Luxembourg
  • Chapter 32 Russia
  • Chapter 33 Turkey
  • Chapter 34 India
  • Chapter 35 Argentina
  • Chapter 36 Aruba
  • Chapter 37 Australia
  • Chapter 38 Bermuda
  • Chapter 39 Colombia
  • Chapter 40 Cyprus
  • Chapter 41 Hong Kong
  • Chapter 42 Macau
  • Chapter 43 Portugal
  • Chapter 44 South Africa
  • Chapter 45 France
  • Chapter 46 Gibraltar
  • Chapter 47 Guernsey
  • Chapter 48 Italy

17 Responses to “The FATCA GIIN list analyzed by IGA and by countries”

  1. John L said

    Have you been following this one? Planned lawsuit to overturn FATCA.:

    update on FATCA and the Republicans Overseas-related lawsuit challenging the Constitutionality of the FATCA law.

    Best regards,
    John

    Like

    • The Florida and Texas Bankers Associations challenged the US Treasury’s implementation of US financial institutions reporting of foreign account holders. The case link is Florida Bankers Association, et al., v. United States Department Of Treasury, et al., District Court For The District Of Columbia (January 13, 2014) is on my blog back in January. In early 2014, the Court upheld the reporting requirements. Thus, the US Treasury is able to collect some types of financial information to be able to reciprocate in the future.

      The US Treasury does not now collect from US financial institutions the same types of information that it is requesting that foreign institutions and foreign governments provide. However, it is at least foreseeable that in the future such additional types of information, such as account balance, will be collectable. While many pundits state that such information is not currently collected because of lack of political will, I personally think it is more to do with the current information collection and management capacity of treasury. Industry has the information, such as end-year account balances of all customers, but Treasury forms and protocols must be established to provide that information, and Treasury needs to evolve its information system to collect, manage and route the information.

      The Texas Bankers Association have since reported that $500 million of foreign deposits has expatriated from Texas banks, and the Texas Bankers Association has filed an Appeal to this decision. See http://www.texasbankers.com/tabc/TABCNews/Florida_and_Texas_Bankers_Associations_to_Continue_Efforts_to_Protect_Foreign_Depositors.aspx

      Like

  2. […] The FATCA GIIN list broken down by IGA and countries […]

    Like

  3. lagomzen said

    I read that Swedish corporates like Anticimex and Candy King (Even Swedish Export Credit Corp.) are now FFIs. Why is that? None are typical depository/account registry operations.

    Like

    • I am trying to determine the answer to this question. My first guess is that these companies run some type of treasury management that does not fall into a non-registration category.

      Like

  4. munishwar said

    Is the “DBSBV” (in French Southern Territory) related to the Asian – DBS Bank? The Asian bank has a different set of FATCA ID’s.

    Like

    • Thank you for pointing out that DBSBV is not part of the DBS group. While my google searching of DBSBV only turns up DBS (the Asian) bank – the GIIN first 6 numbers are different. These should be the same if DBSBV is part of the DBS group. Yet, I can not find anything online about a distinct entity “DBSBV”.

      I assume the “BV” stands for “besloten vennootschap” – which is a Dutch company.

      Now I am even more curious to uncover this mysterious registration. I know that French Southern Territories is not a mistaken country listing in place of Reunion because Reunion has its own jurisdiction listing on the GIIN list.

      The French Southern Islands have less than 50 scientists each stationed at a local base. But I guess I could reach out to someone in Reunion, like the Treasury, to attempt to determine what type of FATCA categorization DBSBV is.

      Like

  5. K Anderson said

    Other could include North Cyprus, where it is unclear whether it would fall under the Cypriot or Turkish IGA, or be a completely separate nation.

    Like

    • Interesting point – will the Turk-Cypriot FFIs register as Cyprus, North Cyprus (not recognized by US but neither is Palestine), or Turkey?

      Thank you for this comment.

      Like

  6. […] mentioned in the June 8th article about the passing of the July GIIN List inclusion deadline, the estimate of states and […]

    Like

  7. Edelweiss said

    I would be curious to get your take on why Nestle Suisse SA found it necessary to register as an FFI. Is this to avoid confiscation of 30% of principal and interest on the repayment of intercompany loans from a US subsidiary? Is it because it’s a finance subsidiary and they have US source income from bonds? Is there an elaborate tax evasion scheme involving Kit Kat bars?
    I spent a reasonable amount of time looking through the UK list and a bit more broadly. A few observations:
    – About 1% of the global sign-ups are affiliated with AXA SA, the French financial services firm.
    – For some reason, the large UK retailers Marks and Spencer (a plc) and John Lewis (a co-operative) found it necessary to register. M&S offers a savings account (which presumably explains why) but John Lewis doesn’t. Could it be credit card related? Also present is Alliance-Boots, the UK’s largest pharmacy. They have 16 entities in the UK and Ireland (under AB Acquisition and Alliance Boots) though I assume this is because they are part owned by KKR.
    – The UK list is dominated by fund management firms and their various funds, private equity and the plethora of feeder funds investment trusts and quite a few trusts. Bridgepoint, a small UK private equity firm, has 72 entities (globally), while 3i, a similarly small UK private equity firm, has 45 entities (globally).
    – There are quite a few entities that appear to have names suggesting they are part of a private equity holding company structure. I presume they have an affiliation with a US private equity shareholder. Globally, there are 26 mentions of “Bidco”, 157 of “Holdco”, 37 “Midco”, 44 “Topco”, 144 “Acquisition”, 156 “Mezzanine” (not exclusively private equity, also specialty finance like mezz funds).
    – I found 321 instances of “LLP” and “265″ instances of partnership
    – I found 16 “deceased” and 33 “will trust”
    The 6,263 entities for the UK compares to the HMRC estimate of 75,000 impacted FFIs (http://www.hmrc.gov.uk/fatca/itc-regs-2013.pdf – page 4) (down from 300,000 prior to the IGA) suggesting that less than 10% of UK FFIs have received a GIIN.

    Like

  8. […] Of a possible 250 countries and jurisdictions recognized by the US State Department and IRS (not including the 14 US dependencies for which FATCA withholding does not apply), 45 do not yet have an FFI registration.  But of the 205 countries and jurisdictions with FFI registrations, 20% of the total registered FFIs are Cayman Islands firms (14,836) (see my article of June 8).  […]

    Like

  9. […] mentioned in the June 8th article, the USA recognizes 196 independent states in the world (the IRS recognizes the State of […]

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  10. […] subject of the IRS versus State department include my June 17 State Department listing and my June 8 discussion of the FFI GIIN List of […]

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  11. […] I have been undertaking (and publishing) the leading, same-day, analysis of the previous June 2nd  and the July 1st  of the FATCA FFI GIIN list by country, by IGA, by EAG, as well as exploring […]

    Like

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