CIBC Mellon - Our Clients and FATCA

Foreign Account Tax Compliance Act (FATCA)

March 2016

CIBC Mellon and many of its clients are required to take action by the U.S. Department of the Treasury and U.S. Internal Revenue Service (IRS) and now the Canadian government (through the legislation introducing the Canada: U.S. Intergovernmental Agreement) (the "IGA") with respect to implementing the provisions of the Foreign Account Tax Compliance Act (FATCA).

CIBC Mellon lists below some of the background and previous information that we (and our U.S. parent BNY Mellon) have provided on the topic of FATCA. However, as every client's situation is different and in any event and as CIBC Mellon does not provide tax, legal or compliance advice, clients are encouraged to consult with their individual tax advisors.

FATCA Background
FATCA Resources from CIBC Mellon
FATCA Resources from the IRS
CIBC Mellon's intentions and responsibilities under FATCA
CIBC Mellon's expectations of clients: actions and decisions required
Key FATCA Dates
FATCA: Frequently Asked Questions (as at January 29, 2014)
FATCA: Frequently Asked Questions (as at May 23, 2014)
FATCA: Frequently Asked Questions (as at October 15, 2014)

1. FATCA Background

FATCA was enacted into U.S. law in March 2010 as part of the U.S. government's efforts to discover U.S. taxpayers who were allegedly attempting to shield their income from U.S. taxation by investing and earning income through non-U.S. institutions. Under FATCA, certain types of financial institutions are required to register with the IRS or face a very significant penalty of 30 per cent withholding tax on certain U.S.-source income payments and gross proceeds.

What started as a U.S. initiative has grown into a major global exercise through a series of intergovernmental agreements that have been signed or are being negotiated between various countries, including Canada, and the U.S. Additional tax compliance initiatives have also been undertaken in response to FATCA by international organizations such as the Organisation for Economic Co-operation and Development (OECD). There has therefore been a substantial increase both in the complexity of the global tax environment and in related disclosure requirements. As a result of FATCA's influence, service providers like CIBC Mellon and institutional investors including many of our clients, are required to determine, in consultation with their respective tax advisors, the impacts of the new requirements to their individual business. In short, given the significant importance and impact to these tax requirements, CIBC Mellon clients will need to consult their tax advisors to determine what is required with respect to FATCA and the IGA.

2. FATCA Resources from CIBC Mellon

CIBC Mellon has provided clients with a series of communications related to FATCA. These communications were based on the information available at the time that they were distributed, and therefore may not represent the latest FATCA details. Information provided has included:

Straight Talk, December 1, 2015: IRS Releases FATCA Online Registration Application for Sponsored Entities to Obtain a GIIN
Straight Talk, November 17, 2015: Update on the 4th FATCA and Global Tax Compliance Forum
Straight Talk November 3, 2015: CIBC Mellon's Simon Lee to Speak on Ways to Clarify FATCA Regulations at a Global Forum in New York
Straight Talk, September 22, 2015 FATCA - IRS Extends the Application of Certain Transitional Rules
Straight Talk, June 9, 2015: FATCA: IRS update on the status of sponsored entities
Straight Talk, November 21, 2014: FATCA Compliance for U.S. Accountholders: IRS releases Draft W-9 Form
Straight Talk, November 7, 2014: U.S.A. - IRS releases updated Forms W-8 instructions
Straight Talk, June 11, 2014: IRS Launches FATCA List Search and Download Tool on its Website
Straight Talk, May 14, 2014: The Internal Revenue Service (IRS) releases several major announcements regarding FATCA
Straight Talk, May 5, 2014: U.S.A. - IRS Form W-8IMY Updated
Straight Talk, April 10, 2014: The Internal Revenue Service Extends Initial FATCA Registration Deadline to May 5, 2014
Straight Talk, April 03, 2014: Internal Revenue Agency (IRS) Releases Form W-8BEN-E on March 29, 2014
Straight Talk, March 28, 2014: U.S.A. - Forms W-8BEN and W-8ECI Updated
Straight Talk, February 7, 2014: Canada and U.S. Sign Intergovernmental Agreement Outlining FATCA Requirements Including Specific Exemptions for Canadian Entities

November 22, 2013, September 22, 2013 and June 1, 2013 - A CIBC Mellon information circular on FATCA was updated on these dates and available via relationship managers. If you would like a copy of one of these documents, please contact us.

Trade Talk, October 2012: An update on FATCA
Trade Talk, February 2012: FATCA update: U.S. releases proposed regulations
Trade Talk, October 2010: FATCA: New U.S. tax rules to compel disclosure of U.S. account holder information to the IRS

3. FATCA Resources from the IRS

For the latest information about FATCA, please refer to the information page for Foreign Financial Institutions on the IRS website.

FATCA forms from the IRS
Form	Instructions	Mandatory Payee
W-8BEN	Instructions for W-8BEN	The Form W-8BEN must be completed by individuals to certify their status as foreign beneficial owners.
W-8BEN-E	Instructions for W-8BEN-E	The Form W-8BEN-E must be completed by non-individuals (i.e. entities) to certify their status as foreign beneficial owners.
W-8ECI	Instructions for W-8ECI	The Form W-8ECI must be completed by non-individuals to certify their status as foreign beneficial owners of effectively connected income.
W-8EXP	Instructions for W-8EXP	The Form W-8EXP must be completed by foreign governments, foreign tax exempt organizations, etc. to certify their status as foreign beneficial owners.
W-8IMY	Instructions for W-8IMY	The Form W-8IMY must be completed by foreign intermediaries or flow-through entities.
W-9	Instructions for the Requester of the Form W-9	The Form W-9 must be completed by US persons to certify their US taxpayer identification number (TIN).

4. CIBC Mellon's intentions and responsibilities under FATCA

As a custodian
As a unitholder recordkeeper
As a trustee

a) As a custodian

CIBC Mellon has registered as a Registered Deemed-Compliant Foreign Financial Institution (RDCFFI) under FATCA, and is fully compliant with FATCA. As a RDCFFI under FATCA, CIBC Mellon has four key responsibilities:

To register with the U.S. IRS.
To document and classify account holders.
To withhold 30 per cent on certain U.S. source income and gross proceeds of those non-participating financial institutions (NPFIs) identified by the IRS.
To report on U.S. Reportable Accounts and NPFIs, such as those of clients who are not registered as required.

b) As a unitholder recordkeeper

As a service agent providing unitholder recordkeeping services (URK), CIBC Mellon does not have a legal responsibility to provide FATCA services to its institutional clients, as those clients are ultimately responsible to the tax authorities. While responsibility for compliance with know-your-client obligations, account set-up and trade instructions lies with our URK clients and/or their dealers, we are nonetheless undertaking certain process changes in order to support our clients. We are updating our URK systems so that we can receive and store residency information based on U.S. indicia, as well as receive and store from clients the FATCA classification of underlying investors. We are also developing new reporting designed to assist clients with their reporting to the Canada Revenue Agency (CRA). Payments made to the underlying investors from the accounts are considered Canadian-source income, and thus are not eligible for FATCA withholding until such time that Pass-through Payment legislation is enacted, no earlier than 2017. CIBC Mellon will continue to monitor the impact this legislation will have on the URK line of business.

c) As a trustee

As Trustee, we require you to apprise us of your trust's FATCA compliance status. If CIBC Mellon acts as Trustee of one or more of your entities, you should have received a Trustee Compliance Confirmation Form in early May asking you to confirm the FATCA registration status of each trust for which CIBC Mellon acts as Trustee. We asked that you please return the Compliance Confirmation Form to us prior to June 2, 2014. The form contains all necessary instructions.

If you did not receive this form, please contact your CIBC Mellon Relationship Manager and they will ensure a new copy is provided to you immediately. We have followed up in early July with all clients that have not provided the required response.

Before the end of 2014, CIBC Mellon will also ask our Trustee clients to confirm that they have in place the due diligence, withholding and reporting procedures identified in the Canada-U.S. IGA (if applicable). This confirmation will not be required from clients that have confirmed to CIBC Mellon their status as exempt from FATCA.

5. CIBC Mellon's expectations of clients: actions and decisions required

Work with tax, legal and compliance advisors
Identify FATCA IRS classification
Complete the FATCA registration portal (if required)
For unitholder recordkeeping clients, collect and provide client data to CIBC Mellon
Complete FATCA W-8BEN, notably where CIBC Mellon acts as Trustee
Special note to clients of pension benefit payments services - Client roles and responsibilities
Compliance Confirmation form (if required)
W-Series forms and legislative updates

a) Work with tax, legal and compliance advisors

The complexity involved in determining FATCA classifications and the detailed nature of the new information required under FATCA (such as on the registration portal and in revised IRS Forms) mean that there are a number of questions in relation to each client's business which only clients themselves can answer. Regulators in Canada and around the world are substantially expanding their expectations related to disclosure and compliance. We urge clients to speak with tax, legal and compliance advisors to help determine FATCA responsibilities and registration requirements for each of their entities. As CIBC Mellon is not able to provide tax, financial or legal advice, the client's advisors are best suited to answer these questions and to advise on the decisions that must be made based on their organizational structure and FATCA classification.

b) Identify FATCA IRS classification

Each client must correctly identify the FATCA classification required for each of its legal entities as this is absolutely critical to determining the entities' specific obligations under FATCA. There are approximately 30 FATCA classifications, each of which involve very different obligations under FATCA. For example, if an entity is classified as an Exempt Beneficial Owner, the entity will have minimal FATCA obligations. However, if the entity is classified as a Foreign Financial Institution (FFI) - the definition of which appears to be much broader than the name would imply - the entity may be required to identify and document account holders, withhold certain taxes, and report certain information to either the IRS or the local tax authority (depending on the status of an intergovernmental agreement between the IRS and the nation in which the entity is resident).

As noted above, CIBC Mellon is obligated to take certain withholding and reporting actions depending on the FATCA classification that our clients note in the revised IRS Forms that they provide to CIBC Mellon in respect to each of their entities. Therefore, as the FATCA classification will have a significant impact on the client's obligations as well as those of CIBC Mellon, we have asked clients to review and confirm FATCA classification and requirements for each of their entities with their tax, financial and legal advisors as soon as possible, and in any event prior to July 1, 2014.

c) Complete the FATCA registration portal (if required)

The IRS secure online portal for certain FIs to register under FATCA opened in August 2013 to allow registrants to investigate and assess the tool. The portal now permits registration. Following discussions with tax and legal advisors, if a CIBC Mellon client is required to register, FATCA registration can be accomplished most efficiently and effectively through the electronic online registration process. Registration is possible via paper forms, however you may experience delays in receiving notice of registration acceptance and obtaining the "Global Intermediary Identification Number" (GIIN) needed to demonstrate FATCA compliance.

The IRS intends to review each registration and then issue approvals; each approved FI will receive a GIIN. The names and GIINs of approved FIs - those not subject to 30 per cent withholding - will be posted on the IRS website on June 2, 2014 and thereafter updated on a monthly basis. The deadline to register so as to ensure inclusion on the opening list was April 25, 2014. Certain financial institutions will not be required to provide proof of registration prior to January 1, 2015.

In respect of trusts for which CIBC Mellon acts as Trustee, the settlor or administrator of the trust must confirm to CIBC Mellon by July 1, 2014 whether or not the trust is required to register with the IRS, noting the basis for the determination. If registration is required, the client must provide CIBC Mellon with a GIIN as soon as it's received from the IRS.

Registration requires information, decisions, actions and certifications that only clients can provide CIBC Mellon on behalf of their organization. Therefore, CIBC Mellon is unable to complete FATCA registration on the client's behalf. If one or more of your entities are required to register and fails to do so by the applicable IRS deadline, the IRS may treat it or them as an NPFI and CIBC Mellon will then be obliged to withhold 30 per cent tax on certain US-source income payments and gross proceeds. For more information, please refer to the IRS's FATCA website for FFIs.

d) For unitholder recordkeeping clients, collect and provide client data to CIBC Mellon

Responsibility for compliance with know-your-client obligations lies with the entities with direct relationships with a given individual or entity. As a result, CIBC Mellon clients who utilize dealer networks are responsible for gathering information about underlying unitholders, and for providing this data to CIBC Mellon to input into our unitholder recordkeeping systems. CIBC Mellon is not responsible for gathering unitholder information: clients with their dealers hold this responsibility.

e) Complete FATCA W-8BEN, notably where CIBC Mellon acts as Trustee

Under FATCA, Form W-8BEN has been significantly expanded. It is much more complex and now requires substantially more detail. Prior to FATCA, this form comprised four segments contained on a single page. In most cases, CIBC Mellon had access to all or most of the information necessary to complete the form for clients Under FATCA, however, Form W-8BEN has now been divided into two separate forms, one for individuals and one for entities. The new Form W-8BEN-E for entities is eight pages and 30 parts covering approximately 30 FATCA classifications and related certifications. Significant new information will be required that CIBC Mellon does not have and that only a client can provide. A number of certifications and assurances are also required from CIBC Mellon clients directly. As Trustee, CIBC Mellon will continue to sign W-8 forms on behalf of trusts. In order to do so, we will need clients to supply us with all the necessary information as well as appropriate certifications as to its accuracy. Upon receipt of the information and certifications, CIBC Mellon will process W-8BEN-E forms.

f) Special note to clients of pension benefit payments services - Client roles and responsibilities

With respect to pension benefit payment services, CIBC Mellon does not have any regulatory obligation under FATCA in respect of periodic or lump sum payments which we are directed to disperse to our clients' plan members.

Clients with plans that are considered Reporting Financial Institutions may need to collect U.S. documentation such as W-8 or W-9 from plan participants. Such plans are required to report relevant FATCA data beginning in May 2015. Under the Canada-U.S. IGA, CIBC Mellon understands that there is no withholding at an individual level.

We recommend that clients work directly with their tax, legal and compliance advisors to help determine their FATCA responsibilities for each plan.

g) Compliance Confirmation form (if required)

As Trustee, we require you to apprise us of your trust's FATCA compliance status.

If CIBC Mellon acts as Trustee of one or more of your entities, you should have received a Trustee Compliance Confirmation Form in early May asking you to confirm the FATCA registration status of each trust for which CIBC Mellon acts as Trustee. We have asked that you please return the Compliance Confirmation Form to us prior to June 2, 2014. The form contains all necessary instructions.

If you did not receive this form, please contact your CIBC Mellon Relationship Manager and they will ensure a new copy is provided to you immediately. CIBC Mellon followed up in early July 2014 with clients that had not provided the required response.

h) W-Series forms and legislative updates (as at May 24, 2014)

As CIBC Mellon moves forward with implementation of FATCA and the IGA, we will require you to fill out a W-series form for each of your legal entities. It is your responsibility to understand which form(s) you are required to complete, and we recommend that you talk to your tax advisors to determine which form(s) applies to you.

The IRS has released finalized versions of Forms W-9, W-8BEN, W-8ECI, W-8IMY, W-8BEN-E and W-8EXP, and has released instructions for completing these forms.

The U.S. Department of the Treasury and the IRS have also provided regulations on the harmonization of Qualified Intermediary (QI) (Chapter 3) and FATCA (Chapter 4) rules on February 20, 2014 and an updated QI agreement.

6. Key FATCA Dates:

January 1, 2019: Withholding on “passthru payments” will become effective the later of January 1, 2019 or the date of publication of the final regulations defining the term “passthru payment."
January 1, 2019: Withholding on gross proceeds will start January 1, 2019.
January 1, 2017: The final regulations under Section 871(m), which generally apply to transactions issued on or after January 1, 2017, impose U.S. withholding tax on certain amounts arising in derivative transactions over U.S. equities when those amounts are paid to a non-U.S. person.
December 31, 2016: Sponsored entities that are Model 1 Financial Institutions (FIs) such as Canadian FIs must register by the later of December 31, 2016 or 90 days after a U.S. reportable account is identified.
December 31, 2016: All existing Qualified Intermediary (QI) agreements expire and the Internal Revenue Service (IRS) is working on an updated version.
September 30, 2015: For a Model 1 Intergovernmental Agreement (IGA) that is in effect such as Canada's IGA, the IRS will treat FIs as compliant even if the jurisdiction, such as Canada, does not exchange 2014 information by September 30, 2015, so long as the jurisdiction notifies the U.S. Competent Authority prior to that date and assures the U.S. Competent Authority that the jurisdiction is making good faith efforts to exchange the information as soon as possible.
July 1, 2014: FATCA withholding requirements go into effect. CIBC Mellon will begin withholding 30 per cent tax on certain U.S. source income paid to FFIs that are treated by the IRS as NPFIs.
April 25, 2014: Last date to register under the FATCA Portal in order to receive a Global Intermediary Identification Number (GIIN) and be included in the opening list of FATCA-compliant FFIs.
July 1, 2014: Clients that are required to register with the IRS under FATCA should confirm an intent to do so to CIBC Mellon.
January 1, 2014: FATCA portal opened for registration.
August 19, 2013: FATCA registration portal opened for investigation.

Contacting CIBC Mellon

CIBC Mellon's project team remains available to assist clients with understanding FATCA regulations and requirements. Our project team has taken a very active role as the financial industry endeavours to understand and assess the regulations and provide input for changes to make the requirements more workable. While CIBC Mellon does not provide tax, legal or compliance advice, members of our project team are nonetheless available to discuss FATCA and its potential implications. We would be pleased to assist clients in developing the list of questions to raise with advisors in assessing FATCA requirements. Should you wish to speak with a member of our FATCA project team, or if you have any additional questions, please contact your CIBC Mellon relationship manager.

7. FATCA: Frequently Asked Questions (as at January 29, 2014)

Q1: Will CIBC Mellon complete the new Form W-8BEN-E on my behalf?

A1: Currently for Chapter 3 (QI) purposes, CIBC Mellon completes and signs a single page Form W-8BEN on behalf of those clients where CIBC Mellon acts as Trustee. CIBC Mellon does not complete any U.S. tax documentation on behalf of those clients not engaging CIBC Mellon as Trustee.

With the introduction of Chapter 4 (FATCA) requirements, each form in the W-8 series has undergone a revision. The new eight-page draft Form W-8BEN-E, used for beneficial owner entity accounts requires an entity to select among approximately 30 FATCA classifications. Depending on the selected classification, the entity may then be asked to complete one of 22 new FATCA certifications. CIBC Mellon generally does not have access to the required information and is therefore not in a position to confirm specific FATCA classifications of each entity in your organization or to make FATCA elections on your behalf. You must complete the FATCA certification in cooperation with your tax advisors.

When acting as Trustee, CIBC Mellon will now sign Form W-8BEN-E on behalf of the Trust. You will need to cooperate with CIBC Mellon and your tax advisor(s) to gather the necessary information and to identify the appropriate certifications needed for your organization's specific FATCA classification(s) and to provide the information and certifications as to its accuracy to CIBC Mellon.

Q2: Can CIBC Mellon register my company on the IRS-FATCA registration portal?

A2: No, CIBC Mellon cannot register your company on the IRS-FATCA registration portal. CIBC Mellon encourages all clients required to complete the online FATCA registration with the help of their tax, financial or legal advisors. The registration process requires a financial institution (FI) - which is defined in the regulations or intergovernmental agreement (IGA) - to select their FATCA classification. The decision as to an FI's FATCA classification can only be made through a detailed review of the regulations, any applicable IGA, guidance and the FI's legal structure. Your tax advisors will be best positioned to assess the legal structure of your entity or entities and determine the FATCA classification.

The registration process also requires an FI to identify a Responsible Officer who certifies that the FI will comply with its FATCA obligations in accordance with the terms and conditions reflected in regulations, any applicable IGA, and other administrative guidance to the extent applicable to the FI based on its status in each jurisdiction in which it operates. This Responsible Officer may act as the main point of contact for the IRS on all FATCA related matters. Your tax, financial or legal advisors are best placed to assist you in understanding the duties of the Responsible Officer and in offering guidance as to the appropriate individual to serve in this important role.

Q3: Can CIBC Mellon take care of FATCA obligations on clients' behalf?

A3: No, CIBC Mellon cannot take care of clients' FATCA obligations. Each client needs to undertake a thorough review of each entity's legal structure to fully understand its FATCA classification and need for FATCA registration. As an example, it is our understanding that a Canadian FI with a "Local Client Base" would belong to the 7 "Deemed-Compliant Financial Institution" classifications only if it satisfied 10 defined requirements laid out in Annex II of the Model 1a IGA. The entity's legal, tax or compliance advisor would be best positioned to discuss these specific requirements.

The complexity involved in determining FATCA classification and the unique nature of the information required on the registration portal mean that there are a number of questions in relation to your business which must be answered. Your tax, legal and compliance advisors are best suited to answer these questions and advise you as to the relevant decisions.

Q4: Will CIBC Mellon offer FATCA services as a Sponsoring FFI?

A4: No, CIBC Mellon is not offering FATCA services as a Sponsoring FFI. The consequences attached to non-compliance with FATCA regulations are very significant, and will likely become more significant as additional tax jurisdictions look to take part in the exchange of tax information which is at the heart of certain intergovernmental agreements. Starting July 1, 2014, non-compliance with FATCA could, for some clients, lead to 30 per cent withholding on certain U.S.-source income, including certain sources not currently covered under QI legislation (such as debt obligations). Assuming that the US-Canada IGA is signed, our understanding is that reporting on U.S. Reportable Accounts and Non-Participating FI's will be made by Reporting Canadian FIs to the CRA which will exchange this information with the IRS. Thus, Non-Participating FIs could be subject to repercussions from both tax authorities in the future.

Due to the complexity of FATCA, the information required to register and the substantially increased risk associated with incomplete or incorrect filings, CIBC Mellon will not undertake the duties of a Sponsoring FFI. CIBC Mellon encourages all clients to speak with their tax, legal and compliance advisors to help determine FATCA responsibilities and registration requirements. The complexity involved in determining FATCA classification and the unique nature of the information required on the registration portal mean that there are a number of questions in relation to your business which must be answered. Your tax, legal or financial advisors are best able to assist you in assessing your organization's requirements under FATCA.

Q5: What FATCA services can CIBC Mellon provide to me?

A5: At this time, CIBC Mellon does not plan to provide services to its clients related to FATCA registration, documentation, withholding or reporting. We are nonetheless ready and willing to assist you in understanding FATCA requirements. CIBC Mellon has taken an active role in the Canadian financial industry's efforts to understand and assess FATCA requirements. Our project team is available to discuss FATCA and its potential implications upon request.

Q6: What is the first step CIBC Mellon is suggesting that I (as a client) should take?

A6: The first step is to speak to your advisors and determine the FATCA status of each of your entities. Each entity's responsibility under FATCA is dictated by its FATCA classification. If your advisors suggest that you register with the IRS for FATCA, then you will want to begin analyzing the FATCA registration portal and gathering the information you will require to complete registration on the portal.

Q7: What are CIBC Mellon's expectations of me as a client?

A7: (1) For trusts that are required to register with the IRS:

For the trusts where CIBC Mellon acts as Trustee, we require you to confirm by July 1, 2014 whether or not you are required to register with the IRS, noting the basis for this determination. If registration is required, you will need to register and provide CIBC Mellon with your GIIN when you receive it from the IRS.

(2) For new entity accounts for both new and existing clients:

Starting July 1, 2014, for any new account opened for a new entity, CIBC Mellon will request documentation of revised W-8/W-9 forms showing FATCA status. Included in this documentation, if required, will be the Global Intermediary Identification Number (GIIN) received upon approval of the registration process.

(3) For existing entity accounts for existing clients:

Between July 1, 2014 and June 30, 2016, CIBC Mellon will request revised documentation of W-8/W-9 forms showing FATCA status for each existing entity account. Consistent with the normal renewal process, this request will be made prior to the expiration of your current W-8 forms, but no later than June 30, 2016 by which time CIBC Mellon must have received FATCA documentation for all accounts.

8. FATCA: Frequently Asked Questions (as at May 23, 2014)

A number of clients have asked for clarification on various aspects of FATCA and the registration process. While we are not permitted to provide advice on U.S. tax legislation in any way, we are able to answer our clients' administrative questions with respect to helping them complete their filing.

Below is a list of the most frequently asked questions we have received to date, along with a few additional questions we anticipate you may have moving forward.

Q1: Since our accounts have no investments in U.S. assets, does FATCA apply to us?

A1: It is the legal structure of the entity which determines its FATCA classification and obligations and not its holdings. CIBC Mellon encourages you to review the U.S. Treasury Regulations or the IGA, whichever is applicable to you, and to consult with your tax advisor.

Q2: Where in the Canada-U.S. Intergovernmental Agreement (IGA) can we find information pertaining to Canadian pension plans?

A2: Information pertaining to retirement plans can be found in subparagraph C(1) of section II (page 39) and section IV (page 45) of Annex II of the IGA. Canadian pension plans which meet certain requirements may have some or all of their accounts classified as "Exempt Beneficial Owners" under FATCA and have minimal FATCA obligations. CIBC Mellon encourages you to review Annex II of the IGA with your tax advisor. Here is a link to the Canada-U.S. Intergovernmental Agreement.

Q3: Where in the IGA can we find information pertaining to registered charities or government entities?

A3: Information pertaining to registered charities or government entities can be found in subparagraphs B(4)(d) and B(4)(j) of section VI of Annex I (pages 34-35), and paragraph I of section III of Annex II (page 44) of the IGA. CIBC Mellon encourages you to review the IGA with your tax advisor. Here is a link to the Canada-U.S. Intergovernmental Agreement.

Q4: What does CIBC Mellon require of us as an existing client to confirm our FATCA classification?

Q4a: Where CIBC Mellon is acting as the Trustee:

A4a: CIBC Mellon reached out in May to ask you to confirm your FATCA classification and registration status prior to July 1, 2014. We urge you to speak with your tax, legal and compliance advisors to help determine your FATCA classification and registration requirements. If you are required to register with the IRS, you will be responsible for completing such registration.

As Trustee, CIBC Mellon completes the current version of Form W-8BEN on your behalf; however, significant new information will be required to complete the revised Form W-8BEN that only you can provide. Upon expiry of your current W-8BEN, we will require you to provide us with all the necessary information as well as appropriate certifications as mandated on the new Form W-8BEN-E.

Q4b: Where CIBC Mellon acts solely as your Custodian:

A4b: CIBC Mellon requires custody clients to submit a completed Form W-8 at the time their current document expires identifying the client's FATCA classification, and if applicable, their Global Intermediary Identification Number (GIIN).

Q5: What is the current status of the FATCA legislative landscape? When can we expect to receive everything needed to implement FATCA?

A5: The Canada-U.S. IGA was released on February 5, 2014 and is a signed and completed document. Draft guidance was released to the Canadian financial industry associations by the CRA in March for review in order to provide comments to the CRA. The industry's consolidated comments on the CRA draft guidance were provided to the CRA on April 4, 2014. The CRA is now expected to review these comments and provide final guidance, we hope by early June. In the interim, the CRA has indicated that it will provide verbal updates when possible.

On March 29, 2014, the IRS released the final version of Form W-8BEN-E. The instructions for this form were not released at that time. The IRS has also released finalized versions of Form W-9 and the remaining W-8 forms. Instructions are still outstanding for Forms W-8BEN-E, W-8IMY and W-8EXP.

Q6: Will CIBC Mellon act as Sponsoring Entity on our behalf?

A6: CIBC Mellon will not take on the role of Sponsoring Entity on your behalf. This was not an easy decision on our part; however, we understand that our decision is in line with decisions of the other custodians in the Canadian market. The sponsoring entity undertakes the responsibility of providing all FATCA services on behalf of another Financial Institution (FI). When looking at the FATCA status and registration obligations of the FI, CIBC Mellon does not have the information on file to make these decisions on behalf of our clients.

With regards to the documentation and classification of the underlying beneficiaries of your accounts, CIBC Mellon does not have the direct relationship required to solicit information and documentation from your account holders in order to complete this exercise.

Q7: Will CIBC Mellon be FATCA compliant?

A7: CIBC Mellon has registered with the IRS as a Registered Deemed-Compliant Foreign Financial Institution (RDCFFI), termed a Reporting Model 1 IGA Financial Institution in the Canada-U.S. IGA. As a RDCFFI, CIBC Mellon has committed to being compliant with the terms of the Canada-U.S. IGA and the CRA guidance, including all due diligence, withholding and reporting requirements on our account holders.

Q8: Are Retirement Compensation Arrangements (RCA) considered exempt under the Canada-U.S. IGA?

A8: CIBC Mellon is not able to provide tax, financial or legal advice. Clients' tax advisors are best suited to answer this question. From what we understand, the financial industry has requested that the CRA provide guidance on how to classify RCAs. Canadian financial institutions including CIBC Mellon are waiting for this guidance.

Q9: What is the FATCA registration deadline for Canadian financial institutions?

A9: The deadline for Canadian financial institutions to register with the IRS in order to be included on the first IRS FFI list was extended to May 5, 2014. However, under the registration guidance released by the IRS, many Model 1 IGA Financial Institutions are not required to register and receive a Global Intermediary Identification Number (GIIN) prior to January 1, 2015. In order to be included on the list for January 1, 2015, a financial institution must register prior to December 22, 2014.

Q10: Where can I go to get more information on FATCA and the FATCA requirements?

A10: Please see below for important links to FATCA-related information:

9.FATCA: Frequently Asked Questions (as at October 15, 2014)

Q1. Where can I go to get more information on the CRA guidance?

A1: The CRA released its FATCA guiding document before the end of June 2014. Please see below the link to this document:

Guidance on enhanced financial accounts information reporting

Q2. Has the CRA provided any guidance on how to classify RCAs?

A2: The CRA responded to the financial industry associations on September 23, 2014 that they have approached their Rulings department and are seeking to provide additional guidance before December 31, 2014.