IEIM401200 - NRFI: FATCA Only: Owner Documented Financial Institution
NRFI: FATCA Only: Owner Documented Financial Institution
Owner-documented financial institutions (ODFI) can be treated as Non-Reporting Financial Institutions by virtue of the US regulations at §1471-5-(f)(2)(iii).
In general, ODFI classification is intended to apply to closely held passive investment vehicles that are Investment Entities by virtue of being managed by a Financial Institution, where meeting the obligations under the US agreement would be onerous given the size of the entity. The ODFI must provide the Financial Institution reporting on its behalf with all of the required information and documentation to enable that reporting to happen. The ODFI must also agree to notify the other Financial Institution if there is a change in circumstances.
An ODFI must satisfy the following requirements:
• It must not maintain a financial account for any Non-Participating Financial Institution; and
• It must not be owned by, nor be a member of a group of Related Entities with any Financial Institution that is a Depository Institution, Custodial Institution or Specified Insurance Company.
The Financial Institution undertaking obligations on behalf of the ODFI must agree to report the information required on any Specified US Persons but will not need to report on any indirect owner of the owner documented entity that holds its interest through a Participating Foreign Financial Institution, Model 1 Financial Institution, a Deemed Compliant Foreign Financial Institution (other than an ODFI), an entity that is a US person, an Exempt Beneficial Owner, or an excepted NFFE.