Acta Francisci Pp. 675

under subparagraph 1(b) of Article 4 of the Agreement, unless the Reporting HS/VCS Financial Institution:

(1) Obtains a self-certification (which may be on an IRS Form W-8 or similar agreed form) from the Account Holder that it is a certified deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or

(2) In the case of a participating FFI or registered deemed-compliant FFI, verifies the Account Holder's Global Intermediary Identifica- tion Number on the published IRS FFI list.

4. Determine Whether an Account Held by an NFFE Is a U.S. Report- able Account. With respect to an Account Holder of a Preexisting Entity Account that is not identified as either a U.S. Person or a Finan- cial Institution, the Reporting HS/VCS Financial Institution must iden- tify (i) whether the Account Holder has Controlling Persons, (ii) wheth- er the Account Holder is a Passive NFFE, and (iii) whether any of the Controlling Persons of the Account Holder is a U.S. citizen or resident. In making these determinations the Reporting HS/VCS Financial Insti- tution must follow the guidance in subparagraphs D(4)(a) through D(4)(d) of this section in the order most appropriate under the circumstances.

a) For purposes of determining the Controlling Persons of an Account Holder, a Reporting HS/VCS Financial Institution may rely on infor- mation collected and maintained pursuant to AML/KYC Procedures.

b) For purposes of determining whether the Account Holder is a Passive NFFE, the Reporting HS/VCS Financial Institution must obtain a self-certification (which may be on an IRS Form W-8 or W-9, or on a similar agreed form) from the Account Holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the Account Holder is an Active NFFE.

c) For purposes of determining whether a Controlling Person of a Pas- sive NFFE is a U.S. citizen or resident for tax purposes, a Reporting HS/VCS Financial Institution may rely on:

(1) Information collected and maintained pursuant to AML/KYC Procedures in the case of a Preexisting Entity Account held by one or more NFFEs with an account balance or value that does

not exceed $1,000,000; or