With respect to Registered Deemed Compliant FFIs:
A Registered Deemed Compliant FFI, under FATCA, has a GIIN but does not have a reporting obligation.
When registering a Deemed Compliant FFI, the RFI is declaring that they do not have a reporting obligation.
In case the RFI does not meet this exemption, they are required to change the entity classification type in order to report their financial accounts.
Incorrect declaration may lead to penalties by the Regulatory Authority.