FATCA and CRS Compliance Policy

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The Blacksmith Fund LP​

2025

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I. Introduction

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The Blacksmith Fund LP​ (“the Firm”) is committed to complying with all applicable regulations related to the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS), as part of its obligations to combat international tax evasion and ensure that its investors are in compliance with relevant U.S. and international tax laws.

This policy outlines the Firm’s approach to FATCA and CRS compliance, detailing the procedures for identifying and reporting certain financial accounts and transactions held by foreign individuals or entities.

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II. Overview of FATCA

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The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law aimed at preventing tax evasion by U.S. taxpayers holding accounts and other financial assets offshore. FATCA requires foreign financial institutions (FFIs) and certain non-financial foreign entities (NFFEs) to report information about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers have a substantial ownership interest.

The Firm, as a U.S.-based financial services provider, must ensure that it complies with FATCA by:

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• Identifying U.S. persons (U.S. citizens, residents, or entities)

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• Reporting certain accounts held by U.S. persons

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• Implementing procedures to identify U.S. persons among its investors and clients.

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III. Overview of CRS

The Common Reporting Standard (CRS) is an international standard for the automatic exchange of financial account information between governments, designed to combat global tax evasion. The CRS requires financial institutions to identify and report the financial accounts of foreign tax residents to the tax authorities in their jurisdiction, who then exchange the information with the tax authorities of the account holder’s country of tax residence.

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As a financial services provider, the Firm must comply with CRS by:

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• Identifying the tax residence of its investors

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• Collecting and verifying relevant tax identification information for investors

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• Reporting the information on financial accounts to the appropriate tax authorities under CRS requirements.

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IV. FATCA and CRS Compliance Procedures

The Firm has established the following procedures to ensure compliance with FATCA and CRS:

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1. Investor Identification and Classification

The Firm will collect and verify information on its investors to determine their FATCA and CRS status. This will include identifying whether investors are U.S. persons or foreign persons and determining their tax residency status for CRS reporting purposes.

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• FATCA: The Firm will determine whether an investor is a U.S. person by collecting a W-9 form (for U.S. individuals or entities) or a W-8BEN (for foreign individuals) or W-8BEN-E (for foreign entities).

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• CRS: The Firm will collect information to determine the investor’s tax residency status using a Self-Certification Form, in which investors will disclose their tax residency and tax identification number (TIN).

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2. Due Diligence Procedures

The Firm will conduct due diligence to ensure that it is gathering accurate and complete information from investors for FATCA and CRS reporting. This includes:

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• Reviewing all new investor accounts to ensure that proper forms (W-9, W-8BEN, Self-Certification, etc.) are completed and validated.

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• Monitoring existing investors for changes in their tax residency status, FATCA status, or other circumstances that might require updated information.

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• Risk-based approach: In cases where the information provided is incomplete or inconsistent, the Firm will request additional documentation or clarification.

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3. Reporting Requirements

Under both FATCA and CRS, the Firm is required to report certain information to the appropriate tax authorities:

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• FATCA Reporting: The Firm will report any U.S. account holders and foreign entities with substantial U.S. ownership to the U.S. Internal Revenue Service (IRS) via Form 8966 (FATCA Report).

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• CRS Reporting: The Firm will report information about foreign account holders and their financial accounts to the local tax authority, which will then exchange the information with other jurisdictions

that participate in CRS.

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The Firm will make these reports on an annual basis, consistent with the applicable deadlines set by the IRS and the local tax authority.

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4. Record-Keeping

The Firm will maintain records of all FATCA and CRS compliance documentation, including:

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• Investor Self-Certification Forms

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• Copies of W-9, W-8BEN, and W-8BEN-E forms

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• Documentation supporting the investor’s tax residency status

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• Reports filed with tax authorities

These records will be retained for a minimum of five years and will be available for inspection upon request by the relevant tax authorities.

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V. FATCA and CRS Compliance Officer

The Firm will designate a FATCA and CRS Compliance Officer who will be responsible for overseeing the implementation of these policies and procedures, ensuring compliance, and acting as the point of contact for FATCA and CRS reporting requirements.

Responsibilities of the FATCA and CRS Compliance Officer include:

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• Ensuring that all necessary due diligence is completed on investors

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• Overseeing the completion and submission of FATCA and CRS reports to the appropriate tax authorities

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• Monitoring changes to FATCA and CRS regulations and ensuring that the Firm’s policies are updated as necessary

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• Providing training to staff regarding FATCA and CRS compliance obligations

VI. Training and Awareness

The Firm will provide regular training to its employees to ensure that they are aware of FATCA and CRS compliance requirements. The training will include the following topics:

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• Overview of FATCA and CRS and their importance in the fight against tax evasion

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• Identifying and classifying U.S. persons and foreign tax residents

 

• Proper completion and submission of FATCA and CRS documentation

 

• Understanding the Firm’s reporting and record-keeping obligations

The training will be conducted at least annually and will be tailored to the relevant employees involved in investor onboarding and reporting.

 

VII. Penalties for Non-Compliance

Non-compliance with FATCA and CRS requirements may result in significant penalties, both for the Firm and its investors. The potential penalties include:

 

• FATCA: Penalties for failing to comply with FATCA may include withholding taxes, fines, and loss of eligibility to receive certain U.S. tax treaty benefits.

 

• CRS: Failure to comply with CRS may result in financial penalties and reputational damage to the Firm.

The Firm is committed to taking all necessary steps to ensure compliance with FATCA and CRS regulations and will take appropriate actions to address any instances of non-compliance.

 

VIII. Conclusion

The Firm’s FATCA and CRS Compliance Policy ensures that it meets all regulatory obligations with respect to the identification, reporting, and due diligence of investors in compliance with U.S. and international tax regulations. The Firm will continue to monitor regulatory developments and update this policy as needed to maintain compliance with applicable laws.