3. 3
Clearstream Banking status
Under FATCA
Clearstream Banking S.A. (CBL) and Clearstream Banking AG (CBF)
incorporated in Luxembourg and Germany respectively (both Model I IGA)
registered on the IRS FATCA portal as "Registered Deemed Compliant FFI - Model I
Reporting FI"
Global Intermediary Identification Number (GIIN), as follows:
Clearstream Banking S.A.: N1V1GJ.00000.LE.442
Clearstream Banking AG: N1V1GJ.00002.ME.276
The above-mentioned GIINs are included in the list of FATCA-compliant financial
institutions, published by the IRS website.
February 2015
4. 4
Clearstream Banking status
Under QI
Clearstream Banking S.A. (CBL) and Clearstream Banking AG (CBF)
QI agreement renewed with the IRS
Clearstream Banking will therefore endorse FATCA withholding responsibilities
whenever applicable as well as primary NRA and back-up withholding
responsibilities along with 1042s/1099 reporting obligations.
February 2015
6. 6
What is Clearstream timeline?
FATCA came into effect 1 July 2014
As Clearstream must comply to IGA Model 1, the deadlines in relation to «pre-existing»
accounts are as follows:
As of 1 July 2014, must withhold FATCA penalty tax on all withholdable payments
credited to accounts that have been certified by customers as being FATCA non-
compliant (whether for its own assets or for non-compliant third-party assets);
As of 1 July 2014 until 30 June 2016, must complete the due diligence exercise and
renewal of all account certification;
As 1 July 2016, must apply the FATCA presumption rule to all undocumented
accounts, treat them as FATCA non-compliant and apply FATCA withholding tax on all
withholdable payments.
February 2015
7. 7
How will it affect customer
procedures?
February 2015
8. 8
How will it affect customers procedures?
February 2015
FATCA adds a new dimension to the current QI regime
Additional information and requirements must be taken into consideration for withholding and
reporting purposes
Account structures adapted and new structures developed to meet these requirements in the
most efficient way
Certification for US tax purposes will have to be renewed accordingly:
Withholding Statement*
IRS Forms (latest version) whenever applicable
* CBF (Cascade and 6xxxx accounts) or CBL version, as appropriate
9. 9
How will it affect customers procedures?
February 2015
First phase of certification renewal (A14071)
Customers invited to renew their certification to include FATCA requirements are
Foreign account holder (own assets) being FATCA compliant or FATCA exempted
U.S. account holder
Qualified Intermediary type A
Second phase of certification renewal (A15030)
Customers being FATCA compliant account holders acting on behalf of third parties, and that are
either
Qualified Intermediary type B – endorsing primary withholding responsibilities but not backup
withholding and 1099 reporting
Qualified Intermediary type C – neither endorsing primary withholding responsibilities nor backup
withholding and 1099 reporting
Non-Qualified Intermediary - neither endorsing primary withholding and 1042s reporting
responsibilities nor backup withholding and 1099 reporting
10. 10
Account structure and certification renewal
February 2015
As a general statement,
Account structure
remains as similar as possible to what we have been working with, adapted to incorporate the
additional FATCA layer
new account structure developped whenever
aims at keeping it as simple as possible and offer a «one-time» FATCA certification at the account
level whenever possible
offers an omnibus account structure for customers holding for FATCA non-compliant recipients, or
being unable to segregate before payment its underlying recipients according to their FATCA
status.
! Burden and risk related to “per payment” allocation for both FATCA and QI purposes
11. 11
Account structure and certification renewal
February 2015
To be taken into consideration at account level whenever applicable,
on top of the Chapter 3 requirements that remain in effect:
FATCA recipient code and FATCA exemption codes
• For reporting purposes, will have to be provided whenever applicable
• “One-time” certification within the Withholding Statement, offered whenever possible
• “Per payment” FATCA allocation available
12. 12
Account structure and certification renewal
February 2015
U.S. payee pool
• Aim: avoid duplicate reporting between (1) FATCA “U.S. specified persons” reporting (Form 8966
or equivalent sent to local tax authorities of IGA countries) and (2) Chapter 61 reporting (Form
1099) to U.S. non-exempt recipients
• PFFIs1 or RDCFFIs2 eligible under certain conditions to include documented U.S. non-exempt
recipients in a “U.S. payee pool”.
such FFI that does not endorse backup withholding and 1099 reporting responsibilities no longer
has to provide payee specific information to the upstream withholding agent;
these U.S. recipients must no longer be segregated on a designated account,
election to perform U.S. payee pool reporting must be selected in the IRS Form W-8IMY provided
1. Participating Foreign Financial Institutions
2. Registered-deemed compliant Foreign Financial Institutions
13. 13
Account structure and certification renewal
February 2015
U.S. payee specific
• Recipients that are US specified persons for whom 1099 reporting is due
Must be segregated on a specific account (no mix with any other type of recipients)
W-9 IRS Form must be provided with all necessary information
14. 14
Account structure and certification renewal
February 2015
Certification matrix is available within the announcement A15030
http://www.clearstream.com/blob/70402/9440507549fd85491ee6c61a95f8085b/fatca-data.pdf
15. 15
Third party assets – FFI – QIB
February 2015
QIB endorsing primary withholding responsibilites but not back-up and 1099 reporting
BO = all remaining:
FATCA non compliant and/or FATCA compliant
Non-US / US exempt / US specified in US payee pool
BO = US specified – payee specific
1 single BO Multiple BO
WS FFI-QIB seg payee specific
QIB W-8IMY
BO W-9
WS FFI-QIB seg payee specific
QIB W-8IMY
BO W-9
Per payment allocation
WS FFI-QIB FATCA
omnibus
QIB W-8IMY
WS FFI-QIB seg payee specific : Withholding Statement – FFI – QIB – Segregated account for FATCA compliant recipients being
U.S. specified persons for which specific 1099 reporting is requested.
WS FFI-QIB FATCA omnibus: Withholding Statement - FFI – QIB – Omnibus account for both FATCA non-compliant and compliant recipients being non-U.S. beneficial owners, U.S.
exempt recipients and U.S. specified persons in a U.S. payee pool
16. 16
Third party assets – FFI – QIC (1)
February 2015
QIC neither endorsing primary withholding responsibilites nor back-up and 1099 reporting
BO = FATCA compliant exclusively
BO = Non-US / US exempt / US specified in US payee poolBO = US specified – payee specific
1 single BO Multiple BO
WS FFI-QIC seg payee specific
QIC W-8IMY
BO W-9
WS FFI-QIC seg payee specific
QIC W-8IMY
BO W-9
per payment allocation
See following slide
WS FFI-QIC seg payee specific: Withholding Statement - FFI – QIC – Segregated account for FATCA compliant recipients being
U.S. specified persons for which specific 1099 reporting is requested
17. 17
Third party assets – FFI – QIC (2)
February 2015
QIC neither endorsing primary withholding responsibilites nor back-up and 1099 reporting
BO = FATCA compliant exclusively
BO = Non-US
WS FFI-QIC FATCA
compliant exclusively
(segregate by
withholding tax pool)
QIC W-8IMY
BO = US Specified in US payee pool BO = mix*BO = US exempt
WS FFI-QIC FATCA
compliant exclusively
(omnibus)
QIC W-8IMY
FATCA and QI per
payment allocation
WS FFI-QIC FATCA
compliant exclusively
(segregate by
withholding tax pool)
QIC W-8IMY
WS FFI-QIC FATCA
compliant exclusively
(segregate by
withholding tax pool)
QIC W-8IMY
BO = US exempt and US Specified in US payee pool
WS FFI-QIC FATCA compliant exclusively
QIC W-8IMY
FATCA per payment allocation
* Always excluding US specified for which payee specific is due
WS FFI-QIC FATCA compliant exclusively: Withholding Statement -FFI – QIC – Account for exclusively FATCA compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool.
18. 18
Third party assets – FFI – QIC (3)
February 2015
QIC neither endorsing primary withholding responsibilites nor back-up and 1099 reporting
BO = mix FATCA non compliant and FATCA compliant
Non-US / US exempt / US specified in US payee pool
WS FFI-QIC FATCA omnibus
QIC W-8IMY
FATCA and QI per payment allocation
WS FFI-QIC FATCA omnibus: Withholding Statement - FFI – QIC – Omnibus account for both FATCA non-compliant and compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
19. 19
Third party assets – FFI – QIC (4)
February 2015
QIC neither endorsing primary withholding responsibilites nor back-up and 1099 reporting
BO = FATCA non-compliant exclusively
BO = different FATCA classificationBO = all under the same FATCA classification
WS FFI-QIC FATCA omnibus
Standing Instruction
QIC W-8IMY
WS FFI-QIC FATCA omnibus
QIC W-8IMY
FATCA per payment allocation
WS FFI-QIC FATCA omnibus: Withholding Statement - FFI – QIC – Omnibus account for both FATCA non-compliant and compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
20. 20
Third party assets – FFI – NQI (1)
February 2015
NQI
BO = Non-US / US exempt / US specified in US payee poolBO = US specified – payee specific
1 single BO Multiple BO
BO = FATCA compliant exclusively
WS FFI-NQI seg payee specific
NQI W-8IMY
BO W-9
WS FFI-NQI seg payee specific
NQI W-8IMY
BO W-9
per payment allocation
See following slide
WS FFI-NQI seg payee specific: Withholding Statement – FFI – NQI – Segregated account for FATCA compliant recipients being
U.S. specified persons for which specific 1099 reporting is requested
21. 21
Third party assets – FFI – NQI (2)
February 2015
NQI
BO = FATCA compliant exclusively; 1 single BO
BO = Non-US
WS FFI-NQI FATCA
compliant exclusively
(Annex A - segregate)
NQI W-8IMY
BO W-8BEN, W-
8BEN-E, W-8EXP or
W-8ECI
BO = US Specified in US payee poolBO = US exempt
WS FFI-NQI FATCA
compliant exclusively
(Annex A - segregate in
withholding tax pool)
NQI W-8IMY
WS FFI-NQI FATCA
compliant exclusively
(Annex A - segregate)
NQI W-8IMY
WS FFI-NQI FATCA compliant exclusively: Withholding Statement – FFI – NQI – Account for exclusively FATCA compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
22. 22
Third party assets – FFI – NQI (3)
February 2015
NQI
BO = FATCA compliant exclusively; multiple BO
BO = Non-US
WS FFI-NQI FATCA
compliant exclusively
(Annex A - segregate by
withholding tax pool)
NQI W-8IMY
BO W-8BEN, W-8BEN-E,
W-8EXP, W-8ECI
FATCA and QI per
payment allocation
WS FFI-NQI FATCA
compliant exclusively
(Annex A - omnibus)
NQI W-8IMY
BO W-8BEN, W-8BEN-E,
W-8EXP, W-8ECI
FATCA and QI per
payment allocation
BO = US exempt
WS FFI-NQI FATCA
compliant exclusively
(Annex A – segregate)
NQI W-8IMY
BO = US spcified in US payee pool
WS FFI-NQI FATCA
compliant exclusively
(Annex A – segregate)
NQI W-8IMY
BO = Non-US / US exempt / US specified in US payee pool
WS FFI-NQI FATCA compliant exclusively: Withholding Statement – FFI – NQI – Account for exclusively FATCA compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
23. 23
Third party assets – FFI – NQI (4)
February 2015
BO = mix FATCA non compliant and FATCA compliant
Non-US / US exempt / US specified in US payee pool
WS FFI- NQI FATCA omnibus
NQI W-8IMY
BO W-8BEN, W-8BEN-E, W-8EXP,
W-8ECI
FATCA and QI per payment allocation
NQI
WS FFI- NQI FATCA omnibus: Withholding Statement - FFI – NQI – Omnibus account for both FATCA non-compliant and compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
24. 24
Third party assets – FFI – NQI (5)
February 2015
NQI
BO = FATCA non-compliant exclusively
BO = different FATCA classificationBO = all under the same FATCA classification
WS FFI-NQIFATCA omnibus
Standing Instruction
NQI W-8IMY
WS FFI-NQI FATCA omnibus
NQI W-8IMY
FATCA per payment allocation
WS FFI- NQI FATCA omnibus: Withholding Statement - FFI – NQI – Omnibus account for both FATCA non-compliant and compliant recipients being
non-U.S. beneficial owners, U.S. exempt recipients and U.S. specified persons in a U.S. payee pool
26. 26
Clearstream Banking
Announcement A15030 - U.S.A.: FATCA: Getting ready for FATCA: account structures
and related certification for intermediaries
http://www.clearstream.com/clearstream-en/products-and-services/asset-services/tax-and-
certification/u-s-a---fatca--getting-ready-for-fatca--account-structures-and-related-certification-for-
intermediaries/70400
February 2015
30. Disclaimer
The content in this presentation is prepared for general information purposes only. It is not intended to
provide professional legal advice and should not be relied upon in that regard. Readers should seek
appropriate professional advice where necessary before taking any action based on the information
contained in the presentation.
Clearstream Banking makes no guarantees, representations or warranties and accepts no responsibility or
liability as to the accuracy or completeness of the presentation, and under no circumstances will it be liable
for any loss or damage caused by reliance on any opinion, advice or statement made in this document.
Information in this document is subject to change without notice.
