678 Acta Apostolicae Sedis - Commentarium Officiale

c) If the Account Holder is: (i) a U.S. Person that is not a Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this section, a HS/VCS Financial Institution or other Partner Jurisdiction Financial Institu- tion; (iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive NFFE none of the Controlling Persons of which is a U.S. citizen or resident, then the ac- count is not a U.S. Reportable Account, and no reporting is required with respect to the account.

d) If the Account Holder is a Nonparticipating Financial Institution (in- cluding a HS/VCS Financial Institution or other Partner Jurisdiction Financial Institution treated by the IRS as a Nonparticipating Finan- cial Institution), then the account is not a U.S. Reportable Account, but payments to the Account Holder must be reported as contemplat- ed in subparagraph 1(b) of Article 4 of the Agreement.

VI. Special Rules and Definitions. The following additional rules and definitions apply in implementing the due diligence procedures described above:

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting HS/VCS Financial Institution may not rely on a self-certification or docu- mentary evidence if the Reporting HS/VCS Financial Institution knows or has reason to know that the self-certification or documentary evidence is incorrect or unreliable.

B. Definitions. The following definitions apply for purposes of this Annex I.

1. AML/KYC Procedures. "AML/KYC Procedures" means the customer due diligence procedures of a Reporting HS/VCS Financial Institution pursuant to the anti-money laundering or similar requirements of the Holy See or the Vatican City State to which such Reporting HS/VCS Financial Institution is subject.

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI as defined in relevant U.S. Treasury Regulations or is an Entity described in subparagraph B(4)(j) of this section, and also includes any Non-U.S. Entity that is established in the Holy See or the Vatican City State or another Partner Jurisdiction and that is not a Financial Institution.

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not (i) an

Active NFFE, or (ii) a withholding foreign partnership or withholding

foreign trust pursuant to relevant U.S. Treasury Regulations.