FATCA: Small / Limited Scope UAE Financial Institutions (FI) Exempt From Reporting*

FI TYPE 

QUALIFYING CRITERIA FOR REPORTING-EXEMPT SMALL OR LIMITED SCOPE FIs UNDER FATCA 

FI WITH A LOCAL CLIENT BASE* 

• Licensed & regulated in UAE.  

• Fixed places of business are all in UAE, except locations which only carry out administrative support functions.  

• Does not solicit Customers/Accountholders outside UAE (excludes operating a website or media advertising primarily in UAE, that incidentally airs in other countries AND where the publication does not specifically state that the FI provides financial services to nonresidents or otherwise target U.S customers).  

• Subject to mandatory UAE laws requiring identification of UAE resident Accountholders for purposes of (a) information reporting or withholding tax for financial accounts or (b) UAE AML laws. 

 • At least 98% of financial accounts by value are held by UAE residents (individuals and/or entities). This includes accounts held by US Persons resident in UAE. 

 • Mandatory due diligence policies and procedures are in place to (a) prevent NPFIs from establishing Financial Accounts and (b) monitor Financial Accounts of US Specified Persons who are not UAE residents (including US Citizens or US Tax Residents that are Controlling Persons of a Passive NFFE). This includes monitoring any US Person that was a UAE resident at the time the Financial Account was opened, but who subsequently ceases to be such a resident. Where Accountholders in (a) and/or (b) are found, the accounts are closed, or reported to UAE MOF in accordance with obligations governing RFIs including any mandated registration on IRS FATCA website. 

 • Satisfies obligations for identification and reporting on Pre-existing Accounts, where applicable. 

 • Policies & practices do not discriminate against individuals that are Specified US Persons who are also UAE residents, opening/maintaining Financial Accounts. 

 • Related Entities are incorporated and organized in UAE, AND each satisfies the same qualifying criteria above that is applicable to the FI (except where the Related Entity is an exempt Pension Fund described in UAE/USA IGA at Annex II, Section II, Paragraphs A, B or C) 

LOCAL BANK 

• Licensed & regulated in UAE. 

• Bank or Credit Union (CU) or similar Cooperative Credit Organization (CCO) that operates without profit. 

• Business activity consists primarily of receiving deposits and making loans to (a) unrelated retail customers (in the case of a Bank); and (b) members, provided the no single holds an interest in the CU/CCO that is greater than 5% (in the case of CUs/similar CCOs). 

 • Fixed places of business are all in UAE, except locations that only carry out administrative support functions and which are not advertised to the public. 

 • Policies and procedures are in place that prohibit soliciting of Customers/Accountholders outside UAE. This prohibition does not include operating a website, or media advertising primarily in UAE which also incidentally airs in other countries) provided the publication does not specifically state that the FI provides financial services to nonresidents or otherwise targets U.S Customers; AND (in the case of a website) it does not allow Financial Accounts to be opened. 

 • Total Assets on the balance sheet do not exceed USD175M. 

 • Total Assets on consolidated & combined balance sheets with any Related Entities (taken together) do not exceed USD500M. 

 • Related Entities are incorporated and organized in UAE. 

 • Any Related Entity that is a FI also satisfies the requirements listed above for a Local Bank (except where the Related Entity FI is an exempt Pension Fund described in UAE/USA IGA at Annex II, Section II, Paragraphs A, B or C). 

FI WITH LOW VALUE ACCOUNTS 

• Is not an Investment Entity  

• The balance or value of each Financial Account maintained (including by any Related Entities) does not exceed USD50K (applying the rules of Account Aggregation and Currency Translation). 

 • Maximum USD50M in assets on (a) its own balance sheet, and (b) the consolidated & combined balance sheets with any Related entities when taken together. 

QUALIFIED CREDIT CARD ISSUER** 

• The Card Issuer is only a FI because it accepts payments in excess of the balance due on the card at the time of payment, and the overpayment is not immediately refunded to the Customer.  

• Policies and Procedures are in place to (a) prevent a customer deposit in excess of USD50K, or (b) refund any deposit in excess of USD50K within 60 days (after applying account aggregation and currency translation rules). NOTE: Customer deposit credit balances resulting from merchandise returns are included except credit balances to the extent of disputed charges.