United States Financial Institution
Type
Entity
Jurisdiction
U.S.
Description
A United States Financial Institution (USFI) is a Financial Institution (FI) doing business in the U.S. An FI is any entity that (i) accepts deposits in the ordinary course of a banking or similar business, (ii) holds financial assets for the account of others as a substantial portion of its business, or (iii) is engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading securities, partnership interests, commodities or similar financial instruments.
Key Facts
It is subject to audit by the IRS , in the case of a Qualified Intermediary (QI) that appropriately amends its QI agreement with the IRS, by an external auditor.