TREATIES AND OTHER INTERNATIONAL ACTS SERIES 14-626

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and MALTA

Signed at Valletta December 16, 2013 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 MALTA 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at Valletta December 16, 2013;

 Entered into force June 26, 2014.

 With annexes.
Agreement between the Government of the United States of America and the 

Government of the Republic of Malta to Improve International Tax Compliance and to 

Implement FATCA 

Whereas, the Government of the United States of America and the Government of the 

Republic of Malta (each, a "Party," and together, the "Parties") desire to conclude an 

agreement to improve international tax compliance through mutual assistance in tax matters 

based on an effective infrastructure for the automatic exchange of information; 

Whereas, Article 26 of the Convention between the Government of the United States of 

America and the Government of Malta for the A voidance of Double Taxation and the 

Prevention of Fiscal Evasion with Respect to Taxes on Income, done at Valletta on August 8, 

2008 ("the Convention"), authorises the exchange of information for tax purposes, including 

on an automatic basis; 

Whereas, the United States of America enacted provisions commonly known as the Foreign 

Account Tax Compliance Act ("FA TCA"), which introduce a reporting regime for financial 

institutions with respect to certain accounts; 

Whereas, the Government of the Republic of Malta is supportive of the underlying policy 

goal ofFATCA to improve tax compliance; 

Whereas, FA TCA has raised a number of issues, including that Malta financial institutions 

may not be able to comply with certain aspects of FA TCA due to domestic legal 

impediments; 

Whereas, the Government of the United States of America collects information regarding 

certain accounts maintained by U.S. financial institutions held by Malta residents and is 

committed to exchanging such information with the Government of the Republic of Malta 

and pursuing equivalent levels of exchange, provided that the appropriate safeguards and 

infrastructure for an effective exchange relationship are in place; 

Whereas, the Parties are committed to working together over the longer term towards 

achieving common reporting and due diligence standards for financial institutions; 

Whereas, the Government of the United States of America acknowledges the need to 

coordinate the reporting obligations under FATCA with other U.S. tax reporting obligations 

of Malta financial institutions to avoid duplicative reporting; 

Whereas, an intergovernmental approach to F ATCA implementation would address legal 

impediments and reduce burdens for Malta financial institutions; 

Whereas, the Parties desire to conclude an agreement to improve international tax compliance 

and provide for the implementation of F ATCA based on domestic reporting and reciprocal 

automatic exchange pursuant to the Convention and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the information 

exchanged under the Convention; 

Now, therefore, the Parties have agreed as follows: 
ARTICLE 1 

Definitions 

1. For purposes of this agreement and any annexes thereto ("Agreement"), the following 

terms shall have the meanings set forth below: 

a) The term "United States" means the United States of America, including the 

States thereof, and, when used in a geographical sense, means the land 

territory of the United States of America, including inland waters, and the air 

space, the territorial sea thereof and any maritime area beyond the territorial 

sea within which the United States of America may exercise sovereign rights 

or jurisdiction in accordance with international law; the term, however, does 

not include the U.S. Territories. Any reference to a "State" of the United 

States includes the District of Columbia. 

b) The term "U.S. Territory" means American Samoa, the Commonwealth of 

the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or 

the U.S. Virgin Islands. 

c) The term "IRS" means the U.S. Internal Revenue Service. 

d) The term "Malta" means the Republic of Malta and, when used in a 

geographical sense, means the Island of Malta, the Island of Gozo and the 

other islands of the Maltese archipelago including the territorial sea thereof as 

well as any area of the sea-bed, its sub-soil and the superjacent water column 

adjacent to the territorial sea, where Malta exercises sovereign rights and 

jurisdiction in accordance with international law. 

e) The term "Partner Jurisdiction" means a jurisdiction that has in effect an 

agreement with the United States to facilitate the implementation ofF A TCA. 

The IRS shall publish a list identifying all Partner Jurisdictions. 

f) The term "Competent Authority" means: 

(1) in the case of the United States, the Secretary of the Treasury or his 

delegate; and 

(2) in the case of Malta, the Minister responsible for finance or his 

authorised representative. 

g) The term "Financial Institution" means a Custodial Institution, a Depository 

Institution, an Investment Entity, or a Specified Insurance Company. 

h) The term "Custodial Institution" means any Entity that holds, as a 

substantial portion of its business, financial assets for the account of others. 

An entity holds financial assets for the account of others as a substantial 

portion of its business if the entity's gross income attributable to the holding 

of financial assets and related financial services equals or exceeds 20 percent 

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of the entity's gross income during the shorter of: (i) the three-year period that 

ends on December 31 (or the final day of a non-calendar year accounting 

period) prior to the year in which the determination is being made; or (ii) the 

period during which the entity has been in existence. 

i) The term "Depository Institution" means any Entity that accepts deposits in 

the ordinary course of a banking or similar business. 

j) The term "Investment Entity" means any Entity that conducts as a business 

(or is managed by an entity that conducts as a business) one or more of the 

following activities or operations for or on behalf of a customer: 

( 1) trading in money market instruments (cheques, bills, certificates of 

deposit, derivatives, etc.); foreign exchange; exchange, interest rate 

and index instruments; transferable securities; or commodity futures 

trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or money on 

behalf of other persons. 

This subparagraph 1 G) shall be interpreted in a manner consistent with similar 

language set forth in the definition of "financial institution" in the Financial 

Action Task Force Recommendations. 

k) The term "Specified Insurance Company" means any Entity that is an 

insurance company (or the holding company of an insurance company) that 

issues, or is obligated to make payments with respect to, a Cash Value 

Insurance Contract or an Annuity Contract. 

1) The term "Malta Financial Institution" means (i) any Financial Institution 

resident in Malta, but excluding any branch of such Financial Institution that is 

located outside Malta, and (ii) any branch of a Financial Institution not 

resident in Malta, if such branch is located in Malta. 

m) The term "Partner Jurisdiction Financial Institution" means (i) any 

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

Jurisdiction, and (ii) any branch of a Financial Institution not established in the 

Partner Jurisdiction, if such branch is located in the Partner Jurisdiction. 

n) The term "Reporting Financial Institution" means a Reporting Malta 

Financial Institution or a Reporting U.S. Financial Institution, as the context 

requires. 

o) The term "Reporting Malta Financial Institution" means any Malta 

Financial Institution that is not a Non-Reporting Malta Financial Institution. 

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p) The term "Reporting U.S. Financial Institution" means (i) any Financial 

Institution that is resident in the United States, but excluding any branch of 

such Financial Institution that is located outside the United States, and (ii) any 

branch of a Financial Institution not resident in the United States, if such 

branch is located in the United States, provided that the Financial Institution or 

branch has control, receipt, or custody of income with respect to which 

information is required to be exchanged under subparagraph (2)(b) of Article 2 

of this Agreement. 

q) The term "Non-Reporting Malta Financial Institution" means any Malta 

Financial Institution, or other Entity resident in Malta that is described in 

Annex II as a Non-Reporting Malta Financial Institution or that otherwise 

qualifies as a deemed-compliant FFI or an exempt beneficial owner under 

relevant U.S. Treasury Regulations. 

r) The term "Nonparticipating Financial Institution" means a nonparticipating 

FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not 

include a Malta Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to subparagraph 2(b) of Article 5 of this 

Agreement or the corresponding provision in an agreement between the 

United States and a Partner Jurisdiction. 

s) The term "Financial Account" means an account maintained by a Financial 

Institution, and includes: 

(1) in the case of an Entity that is a Financial Institution solely because it 

is an Investment Entity, any equity or debt interest (other than inter<:(sts 

that are regularly traded on an established securities market) in the 

Financial Institution; 

(2) in the case of a Financial Institution not described in subparagraph 

l(s)(l) of this Article, any equity or debt interest in the Financial 

Institution (other than interests that are regularly traded on an 

established securities market), if (i) the value of the debt or equity 

interest is determined, directly or indirectly, primarily by reference to 

assets that give rise to U.S. Source Withholdable Payments, and (ii) the 

class of interests was established with a purpose of avoiding reporting 

in accordance with this Agreement; and 

(3) any Cash Value Insurance Contract and any-Annuity Contract issued or 

maintained by a Financial Institution, other than a noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

an account, product, or arrangement that is excluded from the 

definition of Financial Account in Annex II. 

Notwithstanding the foregoing, the term "Financial Account" does not include 

any account that is excluded from the definition of Financial Account in 

Annex II. For purposes of this Agreement, interests are "regularly traded" if 

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there is a meaningful volume of trading with respect to the interests on an 

ongoing basis, and an "established securities market" means an exchange that 

is officially recognized and supervised by a governmental authority in which 

the market is located and that has a meaningful annual value of shares traded 

on the exchange. For purposes of this subparagraph 1(s), an interest in a 

Financial Institution is not "regularly traded" and shall be treated as a 

Financial Account if the holder of the interest (other than a Financial 

Institution acting as an intermediary) is registered on the books of such 

Financial Institution. The preceding sentence will not apply to interests first 

registered on the books of such Financial Institution prior to July 1, 2014, and 

with respect to interests first registered on the books of such Financial 

Institution on or after July 1, 2014, a Financial Institution is not required to 

apply the preceding sentence prior to January 1, 2016. 

t) The term "Depository Account" includes any commercial, checking, savings, 

time, or thrift account, or an account that is evidenced by a certificate of 

deposit, thrift certificate, investment certificate, certificate of indebtedness, or 

other similar instrument maintained by a Financial Institution in the ordinary 

course of a banking or similar business. A Depository Account also includes 

an amount held by an insurance company pursuant to a guaranteed investment 

contract or similar agreement to pay or credit interest thereon. 

u) The term "Custodial Account" means an account (other than an Insurance 

Contract or Annuity Contract) for the benefit of another person that holds any 

financial instrument or contract held for investment (including, but not limited 

to, a share or stock in a corporation, a note, bond, debenture, or other evidence 

of indebtedness, a currency or commodity transaction, a credit default swap, a 

swap based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other derivative 

instrument). 

v) The term "Equity Interest" means, in the case of a partnership that is a 

Financial Institution, either a capital or profits interest in the partnership. In 

the case of a trust that is a Financial Institution, an Equity Interest is 

considered to be held by any person treated as a settlor or beneficiary of all or 

a portion of the trust, or any other natural person exercising ultimate effective 

control over the trust. A Specified U.S. Person shall be treated as being a 

beneficiary of a foreign trust if such Specified U.S. Person has the right to 

receive directly or indirectly (for example, through a nominee) a mandatory 

distribution or may receive, directly or indirectly, a discretionary distribution 

from the trust. 

w) The term "Insurance Contract" means a contract (other than an Annuity 

Contract) under which the issuer agrees to pay an amount upon the occurrence 

of a specified contingency involving mortality, morbidity, accident, liability, 

or property risk. 

x) The term "Annuity Contract" means a contract under which the issuer agrees 

to make payments for a period of time determined in whole or in part by 

reference to the life expectancy of one or more individuals. The term also 

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includes a contract that is considered to be an Annuity Contract in accordance 

with the law, regulation, or practice of the jurisdiction in which the contract 

was issued, and under which the issuer agrees to make payments for a term of 

years. 

y) The term "Cash Value Insurance Contract" means an Insurance Contract 

(other than an indemnity reinsurance contract between two insurance 

companies) that has a Cash Value greater than $50,000. 

z) The term "Cash Value" means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or policy 

loan), and (ii) the amount the policyholder can borrow under or with regard to 

the contract. Notwithstanding the foregoing, the term "Cash Value" does not 

include an amount payable under an Insurance Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the occurrence of 

the event insured against; 

(2) a refund to the policyholder of a previously paid premium under an 

Insurance Contract (other than under a life insurance contract) due to 

policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

(3) a policyholder dividend based upon the underwriting experience of the 

contract or group involved. 

aa) The term "Reportable Account" means a U.S. Reportable Account or a 

Malta Reportable Account, as the context requires. 

bb) The term "Malta Reportable Account" means a Financial Account 

maintained by a Reporting U.S. Financial Institution if: (i) in the case of a 

Depository Account, the account is held by an individual resident in Malta and 

more than $10 of interest is paid to such account in any given calendar year; or 

(ii) in the case of a Financial Account other than a Depository Account, the 

Account Holder is a resident of Malta, including an Entity that certifies that it 

is resident in Malta for tax purposes, with respect to which U.S. source income 

that is subject to reporting under chapter 3 of subtitle A or chapter 61 of 

subtitle F of the U.S. Internal Revenue Code is paid or credited. 

cc) The term "U.S. Reportable Account" means a Financial Account maintained 

by a Reporting Malta Financial Institution and held by one or more Specified 

U.S. Persons or by a Non-U.S. Entity with one or more Controlling Persons 

that is a Specified U.S. Person. Notwithstanding the foregoing, an account 

shall not be treated as a U.S. Reportable Account if such account is not 

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identified as a U.S. Reportable Account after application of the due diligence 

procedures in Annex I. 

dd) The term "Account Holder" means the person listed or identified as the 

holder of a Financial Account by the Financial Institution that maintains the 

account. A person, other than a Financial Institution, holding a Financial 

Account for the benefit or account of another person as agent, custodian, 

nominee, signatory, investment advisor, or intermediary, is not treated as 

holding the account for purposes of this Agreement, and such other person is 

treated as holding the account. For purposes of the immediately preceding 

sentence, the term "Financial Institution" does not include a Financial 

Institution organized or incorporated in a U.S. Territory. In the case of a Cash 

Value Insurance Contract or an Annuity Contract, the Account Holder is any 

person entitled to access the Cash Value or change the beneficiary of the 

contract. If no person can access the Cash Value or change the beneficiary, the 

Account Holder is any person named as the owner in the contract and any 

person with a vested entitlement to payment under the terms of the contract. 

Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, 

each person entitled to receive a payment under the contract is treated as an 

Account Holder. 

ee) The term "U.S. Person" means a U.S. citizen or resident individual, a 

partnership or corporation organized in the United States or under the laws of 

the United States or any State thereof, a trust if (i) a court within the United 

States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of the 

trust, and (ii) one or more U.S. persons have the authority to control all 

substantial decisions of the trust, or an estate of a decedent that is a citizen or 

resident of the United States. This subparagraph 1 ( ee) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

ff) The term "Specified U.S. Person" means a U.S. Person, other than: (i) a 

corporation the stock of which is regularly traded on one or more established 

securities markets; (ii) any corporation that is a member of the same expanded 

affiliated group, as defined in section 1471(e)(2) of the U.S. Internal Revenue 

Code, as a corporation. described in clause (i); (iii) the United States or any 

wholly owned agency or instrumentality thereof; (iv) any State of the United 

States, any U.S. Territory, any political subdivision of any of the foregoing, or 

any wholly owned agency or instrumentality of any one or more of the 

foregoing; (v) any organization exempt from taxation under section 501(a) of 

the U.S. Internal Revenue Code or an individual retirement plan as defined in 

section 7701(a)(37) of the U.S. Internal Revenue Code; (vi) any bank as 

defined in section 581 ofthe U.S. Internal Revenue Code; (vii) any real estate 

investment trust as defined in section 856 of the U.S. Internal Revenue Code; 

(viii) any regulated investment company as defined in section 851 of the U.S. 

Internal Revenue Code or any entity registered with the U.S. Securities and 

Exchange Commission under the Investment Company Act of 1940 (15 

U.S.C. 80a-64); (ix) any common trust fund as defined in section 584(a) ofthe 

U.S. Internal Revenue Code; (x) any trust that is exempt from tax under 

section 664(c) of the U.S. Internal Revenue Code or that is described in 

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section 4947(a)(l) of the U.S. Internal Revenue Code; (xi) a dealer in 

securities, commodities, or derivative financial instruments (including notional 

principal contracts, futures, forwards, and options) that is registered as such 

under the laws of the United States or any State; (xii) a broker as defined in 

section 6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt 

trust under a plan that is described in section 403(b) or section 457(b) of the 

U.S. Internal Revenue Code. 

gg) The term "Entity" means a legal person or a legal arrangement such as a trust. 

hh) The term "Non-U.S. Entity" means an Entity that is not a U.S. Person. 

ii) The term "U.S. Source Withholdable Payment" means any payment of 

interest (including any original issue discount), dividends, rents, salaries, 

wages, premiums, annuities, compensations, remunerations, emoluments, and 

other fixed or determinable annual or periodical gains, profits, and income, if 

such payment is from sources within the United States. Notwithstanding the 

foregoing, a U.S. Source Withholdable Payment does not include any payment 

that is not treated as a withholdable payment in relevant U.S. Treasury 

Regulations. 

jj) An Entity is a "Related Entity" of another Entity if either Entity controls the 

other Entity, or the two Entities are under common control. For this purpose 

control includes direct or indirect ownership of more than 50 percent of the 

vote or value in an Entity. Notwithstanding the foregoing, the Malta 

Competent Authority may treat an Entity as not a Related Entity of another 

Entity if the two Entities are not members of the same expanded affiliated 

group as defined in section 1471(e)(2) ofthe U.S. Internal Revenue Code. 

kk) The term "U.S. TIN" means a U.S. federal taxpayer identifying number. 

ll) The term "Malta TIN" means a Malta taxpayer identifying number. 

mm) The term "Controlling Persons" means the natural persons who exercise 

control over an Entity. In the case of a trust, such term means the settlor, the 

trustees, the protector (if any), the beneficiaries or class of beneficiaries, and 

any other natural person exercising ultimate effective control over the trust, 

and in the case of a legal arrangement other than a trust, such term means 

persons in equivalent or similar positions. The term "Controlling Persons" 

shall be interpreted in a manner consistent with the Financial Action Task 

Force Recommendations. 

2. Any term not otherwise defined in this Agreement shall, unless the context otherwise 

requires or the Competent Authorities agree to a common meaning (as permitted by domestic 

law), have the meaning that it has at that time under the law of the Party applying this 

Agreement, any meaning under the applicable tax laws of that Party prevailing over a 

meaning given to the term under other laws of that Party. 

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ARTICLE2 

Obligations to Obtain and Exchange Information with Respect to Reportable 

Accounts 

1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the 

information specified in paragraph 2 of this Article with respect to all Reportable Accounts 

and shall annually exchange this information with the other Party on an automatic basis 

pursuant to the provisions of Article 26 of the Convention. 

2. The information to be obtained and exchanged is: 

a) In the case of Malta with respect to each U.S. Reportable Account of each 

Reporting Malta Financial Institution: 

(1) the name, address, and U.S. TIN of each Specified U.S. Person that is 

an Account Holder of such account and, in the case of a Non-U.S. 

Entity that, after application of the due diligence procedures set forth in 

Annex I, is identified as having one or more Controlling Persons that is 

a Specified U.S. Person, the name, address, and U.S. TIN (if any) of 

such entity and each such Specified U.S. Person; 

(2) the account number (or functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting Malta Financial 

Institution; 

(4) the account balance or value (including, in the case of a Cash Value 

Insurance Contract or Annuity Contract, the Cash Value or surrender 

value) as of the end of the relevant calendar year or other appropriate 

reporting period or, if the account was closed during such year, 

immediately before closure; 

(5) in the case of any Custodial Account: 

(A) the total gross amount of interest, the total gross amount of 

dividends, and the total gross amount of other income 

generated with respect to the assets held in the account, in each 

case paid or credited to the account (or with respect to the 

account) during the calendar year or other appropriate reporting 

period; and 

(B) the total gross proceeds from the sale or redemption of property 

paid or credited to the account during the calendar year or other 

appropriate reporting period with respect to which the 

Reporting Malta Financial Institution acted as a custodian, 

broker, nominee, or otherwise as an agent for the Account 

Holder; 

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( 6) in the case of any Depository Account, the total gross amount of 

interest paid or credited to the account during the calendar year or 

other appropriate reporting period; and 

(7) in the case of any account not described in subparagraph 2(a)(5) or 

2(a)(6) of this Article, the total gross amount paid or credited to the 

Account Holder with respect to the account during the calendar year or 

other appropriate reporting period with respect to which the Reporting 

Malta Financial Institution is the obligor or debtor, including the 

aggregate amount of any redemption payments made to the Account 

Holder during the calendar year or other appropriate reporting period. 

b) In the case of the United States, with respect to each Malta Reportable 

Account of each Reporting U.S. Financial Institution: 

ARTICLE 3 

(1) the name, address, and Malta TIN of any person that is a resident of 

Malta and is an Account Holder of the account; 

(2) the account number (or the functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting U.S. Financial 

Institution; 

(4) the gross amount of interest paid on a Depository Account; 

(5) the gross amount of U.S. source dividends paid or credited to the 

account; and 

(6) the gross amount of other U.S. source income paid or credited to the 

account, to the extent subject to reporting under chapter 3 of subtitle A 

or chapter 61 of subtitle F of the U.S. Internal Revenue Code. 

Time and Manner of Exchange of Information 

1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount 

and characterization of payments made with respect to a U.S. Reportable Account may be 

determined in accordance with the principles of Malta's tax laws, and the amount and 

characterization of payments made with respect to a Malta Reportable Account may be 

determined in accordance with principles of U.S. federal income tax law. 

2. For purposes of the exchange obligation in Article 2 of this Agreement, the 

information exchanged shall identify the currency in which each relevant amount is 

denominated. 

3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be 

obtained and exchanged with respect to 2014 and all subsequent years, except that: 

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a) In the case ofMalta: 

(1) the information to be obtained and exchanged with respect to 2014 is 

only the information described in subparagraphs 2(a)(l) through 

2(a)(4) of Article 2 ofthis Agreement; 

(2) the information to be obtained and exchanged with respect to 2015 is 

the information described in subparagraphs 2(a)(l) through 2(a)(7) of 

Article 2 of this Agreement, except for gross proceeds described in 

subparagraph 2(a)(5)(B) of Article 2 ofthis Agreement; and 

(3) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2(a)(l) 

through 2(a)(7) of Article 2 of this Agreement; 

b) In the case of the United States, the information to be obtained and exchanged 

with respect to 20 14 and subsequent years is all of the information identified 

in subparagraph 2(b) of Article 2 of this Agreement. 

4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account 

that is maintained by a Reporting Financial Institution as of June 30, 2014, and subject to 

paragraph 4 of Article 6 of this Agreement, the Parties are not required to obtain and include 

in the exchanged information the Malta TIN or the U.S. TIN, as applicable, of any relevant 

person if such taxpayer identifying number is not in the records of the Reporting Financial 

Institution. In such case, the Parties shall obtain and include in the exchanged information the 

date of birth of the relevant person, if the Reporting Financial Institution has such date of birth 

in its records. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of 

this Agreement shall be exchanged within nine months after the end of the calendar year to 

which the information relates. 

6. The Competent Authorities of Malta and the United States shall enter into an 

agreement under the mutual agreement procedure provided for in Article 25 of the 

Convention, which shall: 

a) establish the procedures for the automatic exchange obligations described in 

Article 2 of this Agreement; 

b) prescribe rules and procedures as may be necessary to implement Article 5 of 

this Agreement; and 

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1 (b) of Article 4 of this Agreement. 

7. All information exchanged shall be subject to the confidentiality and other protections 

provided for in the Convention, including the provisions limiting the use of the information 

exchanged. 

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8. Following entry into force of this Agreement, each Competent Authority shall provide 

written notification to the other Competent Authority when it is satisfied that the jurisdiction 

of the other Competent Authority has in place (i) appropriate safeguards to ensure that the 

information received pursuant to this Agreement shall remain confidential and be used solely 

for tax purposes; and (ii) the infrastructure for an effective exchange relationship (including 

established processes for ensuring timely, accurate, and confidential information exchanges, 

effective and reliable communications, and demonstrated capabilities to promptly resolve 

questions and concerns about exchanges or requests for exchanges and to administer the 

provisions of Article 5 of this Agreement). The Competent Authorities shall endeavour in 

good faith to meet, prior to September 2015, to establish that each jurisdiction has such 

safeguards and infrastructure in place. 

9. The obligations of the Parties to obtain and exchange information under Article 2 of 

this Agreement shall take effect on the date of the later of the written notifications described 

in paragraph 8 of this Article. Notwithstanding the foregoing, if the Malta Competent 

Authority is satisfied that the United States has the safeguards and infrastructure described in 

paragraph 8 of this Article in place, but additional time is necessary for the U.S. Competent 

Authority to establish that Malta has such safeguards and infrastructure in place, the 

obligation of Malta to obtain and exchange information under Article 2 of this Agreement 

shall take effect on the date of the written notification provided by the Malta Competent 

Authority to the U.S. Competent Authority pursuant to paragraph 8 of this Article. 

10. This Agreement shall terminate on September 30, 2015, if Article 2 ofthis Agreement 

is not in effect for either Party pursuant to paragraph 9 of this Article by that date. 

ARTICLE4 

Application ofF A TCA to Malta Financial Institutions 

1. Treatment of Reporting Malta Financial Institutions. Each Reporting Malta 

Financial Institution shall be treated as complying with, and not subject to withholding under, 

section 1471 of the U.S. Internal Revenue Code if Malta complies with its obligations under 

Articles 2 and 3 of this Agreement with respect to such Reporting Malta Financial Institution, 

and the Reporting Malta Financial Institution: 

a) identifies U.S. Reportable Accounts and reports annually to the Malta 

Commissioner for Revenue the information required to be reported in 

subparagraph 2(a) of Article 2 of this Agreement in the time and manner 

described in Article 3 of this Agreement; 

b) for each of 20 15 and 2016, reports annually to the Malta Commissioner for 

Revenue the name of each Nonparticipating Financial Institution to which it 

has made payments and the aggregate amount of such payments; 

c) complies with the applicable registration requirements on the IRS FA TCA 

registration website; 

d) to the extent that a Reporting Malta Financial Institution is (i) acting as a 

qualified intermediary (for purposes of section 1441 of the U.S. Internal 

Revenue Code) that has elected to assume primary withholding responsibility 

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under chapter 3 of subtitle A of the U.S. Internal Revenue Code, (ii) a foreign 

partnership that has elected to act as a withholding foreign partnership (for 

purposes of both sections 1441 and 1471 ofthe U.S. Internal Revenue Code), 

or (iii) a foreign trust that has elected to act as a withholding foreign trust (for 

purposes of both sections 1441 and 1471 ofthe U.S. Internal Revenue Code), 

withholds 30 percent of any U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution; and 

e) in the case of a Reporting Malta Financial Institution that is not described in 

subparagraph 1 (d) of this Article and that makes a payment of, or acts as an 

intermediary with respect to, a U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution, the Reporting Malta Financial 

Institution provides to any immediate payor of such U.S. Source Withholdable 

Payment the information required for withholding and reporting to occur with 

respect to such payment. 

Notwithstanding the foregoing, a Reporting Malta Financial Institution with respect to which 

the conditions of this paragraph 1 are not satisfied shall not be subject to withholding under 

section 1471 of the U.S. Internal Revenue Code unless such Reporting Malta Financial 

Institution is treated by the IRS as a Nonparticipating Financial Institution pursuant to 

subparagraph 2(b) of Article 5 of this Agreement. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall not 

require a Reporting Malta Financial Institution to withhold tax under section 1471 or 1472 of 

the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account 

holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such 

account, if the U.S. Competent Authority receives the information set forth in subparagraph 

2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement, 

with respect to such account. 

3. Specific Treatment of Malta Retirement Plans. The United States shall treat as 

deemed-compliant FFis or exempt beneficial owners, as appropriate, for purposes of sections 

1471 and 1472 ofthe U.S. Internal Revenue Code, Malta retirement plans described in Annex 

II. For this purpose, a Malta retirement plan includes an Entity established or located in, and 

regulated by, Malta, or a predetermined contractual or legal arrangement, operated to provide 

pension or retirement benefits or earn income for providing such benefits under the laws of 

Malta and regulated with respect to contributions, distributions, reporting, sponsorship, and 

taxation. 

4. Identification and Treatment of Other Deemed-Compliant FFis and Exempt 

Beneficial Owners. The United States shall treat each Non-Reporting Malta Financial 

Institution as a deemed-compliant FFI or as an exempt beneficial owner, as appropriate, for 

purposes of section 1471 of the U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Malta Financial Institution, that otherwise 

meets the requirements described in paragraph 1 of this Article or is described in paragraph 3 

or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that prevents 

such Related Entity or branch from fulfilling the requirements of a participating FFI or 

deemed-compliant FFI for purposes of section 1471 ofthe U.S. Internal Revenue Code or has 

13 
a Related Entity or branch that is treated as a Nonparticipating Financial Institution solely due 

to the expiration of the transitional rule for limited FFis and limited branches under relevant 

U.S. Treasury Regulations, such Malta Financial Institution shall continue to be in 

compliance with the terms of this Agreement and shall continue to be treated as a deemedcompliant FFI or an exempt beneficial owner, as appropriate, for purposes of section 1471 of 

the U.S. Internal Revenue Code, provided that: 

a) the Malta Financial Institution treats each such Related Entity or branch as a 

separate Nonparticipating Financial Institution for purposes of all the reporting 

and withholding requirements of this Agreement and each such Related Entity 

or branch identifies itself to withholding agents as a Nonparticipating 

Financial Institution; 

b) each such Related Entity or branch identifies its U.S. accounts and reports the 

information with respect to those accounts as required under section 14 71 of 

the U.S. Internal Revenue Code to the extent permitted under the relevant laws 

pertaining to the Related Entity or branch; and 

c) such Related Entity or branch does not specifically solicit U.S. accounts held 

by persons that are not resident in the jurisdiction where such Related Entity 

or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

Entity or branch is located, and such Related Entity or branch is not used by 

the Malta Financial Institution or any other Related Entity to circumvent the 

obligations under this Agreement or under section 1471 of the U.S. Internal 

Revenue Code, as appropriate. 

6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of this 

Agreement: 

a) Malta shall not be obligated to obtain and exchange information with respect 

to a calendar year that is prior to the calendar year with respect to which similar 

information is required to be reported to the IRS by participating FFis pursuant 

to relevant U.S. Treasury Regulations; 

b) Malta shall not be obligated to begin exchanging information prior to the date 

by which participating FFis are required to report similar information to the 

IRS under relevant U.S. Treasury Regulations; 

c) the United States shall not be obligated to obtain and exchange information with 

respect to a calendar year that is prior to the first calendar year with respect to 

which Malta is required to obtain and exchange information; and 

d) the United States shall not be obligated to begin exchanging information prior 

to the date by which Malta is required to begin exchanging information. 

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding 

Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, Malta may use, and may permit Malta Financial Institutions to 

use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding definition in 

14 
this Agreement, provided that such application would not frustrate the purposes of this 

Agreement. 

ARTICLE 5 

Collaboration on Compliance and Enforcement 

1. Minor and Administrative Errors. A Competent Authority shall notify the 

Competent Authority of the other Party when the first-mentioned Competent Authority has 

reason to believe that administrative errors or other minor errors may have led to incorrect or 

incomplete information reporting or resulted in other infringements of this Agreement. The 

Competent Authority of such other Party shall apply its domestic law (including applicable 

penalties) to obtain corrected and/or complete information or to resolve other infringements 

of this Agreement. 

2. Significant Non-Compliance. 

a) A Competent Authority shall notify the Competent Authority of the other 

Party when the first-mentioned Competent Authority has determined that there 

is significant non-compliance with the obligations under this Agreement with 

respect to a Reporting Financial Institution in the other jurisdiction. The 

Competent Authority of such other Party shall apply its domestic law 

(including applicable penalties) to address the significant non-compliance 

described in the notice. 

b) If, in the case of a Reporting Malta Financial Institution, such enforcement 

actions do not resolve the non-compliance within a period of 18 months after 

notification of significant non-compliance is first provided, the United States 

shall treat the Reporting Malta Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 2(b ). 

3. Reliance on Third Party Service Providers. Each Party may allow Reporting 

Financial Institutions to use third party service providers to fulfil the obligations imposed on 

such Reporting Financial Institutions by a Party, as contemplated in this Agreement, but these 

obligations shall remain the responsibility of the Reporting Financial Institutions, 

4. Prevention of Avoidance. The Parties shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the reporting 

required under this Agreement. 

ARTICLE 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Reciprocity. The Government of the United States acknowledges the need to achieve 

equivalent levels of reciprocal automatic information exchange with Malta. The Government 

of the United States is committed to further improve transparency and enhance the exchange 

relationship with Malta by pursuing the adoption of regulations and advocating and 

15 
supporting relevant legislation to achieve such equivalent levels of reciprocal automatic 

information exchange. 

2. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed 

to work together, along with Partner Jurisdictions, to develop a practical and effective 

alternative approach to achieve the policy objectives of foreign passthru payment and gross 

proceeds withholding that minimizes burden. 

3. Development of Common Reporting and Exchange Model. The Parties are 

committed to working with Partner Jurisdictions, the Organisation for Economic Cooperation and Development, and the European Union, on adapting the terms of this 

Agreement and other agreements between the United States and Partner Jurisdictions to a 

common model for automatic exchange of information, including the development of 

reporting and due diligence standards for financial institutions. 

4. Documentation of Accounts Maintained as of June 30, 2014. With respect to 

Reportable Accounts maintained by a Reporting Financial Institution as of June 30, 2014: 

a) The United States commits to establish, by January 1, 2017, for reporting with 

respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial 

Institutions to obtain and report the Malta TIN of each Account Holder of a 

Malta Reportable Account as required pursuant to subparagraph 2(b )(1) of 

Article 2 of this Agreement; and 

b) Malta commits to establish, by January 1, 2017, for reporting with respect to 

2017 and subsequent years, rules requiring Reporting Malta Financial 

Institutions to obtain the U.S. TIN of each Specified U.S. Person as required 

pursuant to subparagraph 2(a)(l) of Article 2 of this Agreement. 

ARTICLE 7 

Consistency in the Application ofFATCA to Partner Jurisdictions 

1. Malta shall be granted the benefit of any more favourable terms under Article 4 or 

Annex 1 of this Agreement relating to the application of F ATCA to Malta Financial 

Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement 

pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as 

Malta described in Articles 2 and 3 of this Agreement, and subject to the same terms and 

conditions as described therein and in Articles 5 through 9 of this Agreement. 

2. The United States shall notify Malta of any such more favorable terms and such more 

favorable terms shall apply automatically under this Agreement as if such terms were 

specified in this Agreement and effective as of the date of the entry into force of the 

agreement incorporating the more favorable terms, unless Malta declines the application 

thereof. 

16 
ARTICLE 8 

Consultations and Amendments 

1. In case any difficulties in the implementation of this Agreement arise, either Party 

may request consultations to develop appropriate measures to ensure the fulfilment of this 

Agreement. 

2. This Agreement may be amended by written mutual agreement of the Parties. Unless 

otherwise agreed upon, such an amendment shall enter into force through the same 

procedures as set forth in paragraph l of Article l 0 of this Agreement. 

ARTICLE 9 

Annexes 

The Annexes form an integral part of this Agreement. 

ARTICLE 10 

Term of Agreement 

l. This Agreement shall enter into force on the date ofMalta's written notification to the 

United States that Malta has completed its necessary internal procedures for entry into force 

of this Agreement. 

2. Either Party may terminate this Agreement by giving notice oftermination in writing 

to the other Party. Such termination shall become effective on the first day of the month 

following the expiration of a period of 12 months after the date ofthe notice oftermination 

3. The Parties shall, prior to December 31, 2016, consult in good faith to amend this 

Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this 

Agreement. 

In witness whereof, the undersigned, being duly authorized thereto by their respective 

Governments, have signed this Agreement. 

Done at .. lJP.-.J.l~.Jr~ ................... , in duplicate, in the English language, this ---'-/--=b=:..__ __ 

day of Dec e. m b"- r , 2013. 

FORTHEGOVERNMENTOF FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA: THE REPUBLIC OF TA: 

Gina K. Abercrombie-Winstanley, Ambassador 

17 
ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. Malta shall require that Reporting Malta Financial Institutions apply the due 

diligence procedures contained in this Annex I to identify U.S. Reportable Accounts 

and accounts held by Nonparticipating Financial Institutions. 

B. For purposes of the Agreement, 

1. All dollar amounts are in U.S. dollars and shall be read to include the 

equivalent in other currencies. 

2. Except as otherwise provided herein, the balance or value of an 

account shall be determined as of the last day of the calendar year or other 

appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of June 30, 

2014, under this Annex I, the relevant balance or value shall be determined as 

of that day or the last day of the reporting period ending immediately before 

June 30, 2014, and where a balance or value threshold is to be determined as 

of the last day of a calendar year under this Annex I, the relevant balance or 

value shall be determined as of the last day of the calendar year or other 

appropriate reporting period. 

4. Subject to subparagraph E(1) of section II of this Annex I, an account 

shall be treated as a U.S. Reportable Account beginning as of the date it is 

identified as such pursuant to the due diligence procedures in this Annex I. 

5. Unless otherwise provided, information with respect to a U.S. 

Reportable Account shall be reported annually in the calendar year following 

the year to which the information relates. 

C. As an alternative to the procedures described in each section of this Annex I, 

Malta may permit Reporting Malta Financial Institutions to rely on the procedures 

described in relevant U.S. Treasury Regulations to establish whether an account is a 

U.S. Reportable Account or an account held by a Nonparticipating Financial 

Institution. Malta may permit Reporting Malta Financial Institutions to make such 

election separately for each section of this Annex I either with respect to all relevant 

Financial Accounts or, separately, with respect to any clearly identified group of such 

accounts (such as by line of business or the location of where the account is 

maintained). 

II. Preexisting Individual Accounts. The following rules and procedures apply for 

purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by 

individuals ("Preexisting Individual Accounts"). 

18 
A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting Malta Financial Institution elects otherwise, either with respect to all 

Preexisting Individual Accounts or, separately, with respect to any clearly identified 

group of such accounts, where the implementing rules in Malta provide for such an 

election, the following Preexisting Individual Accounts are not required to be 

reviewed, identified, or reported as U.S. Reportable Accounts: 

1. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account with a balance or value that does not exceed $50,000 as of June 30, 

2014. 

2. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account that is a Cash Value Insurance Contract or an Annuity Contract with 

a balance or value of$250,000 or less as of June 30, 2014. 

3. A Preexisting Individual Account that is a Cash Value Insurance 

Contract or an. Annuity Contract, provided the law or regulations of Malta or 

the United States effectively prevent the sale of such a Cash Value Insurance 

Contract or an Annuity Contract to U.S. residents (e.g., if the relevant 

Financial Institution does not have the required registration under U.S. law, 

and the law of Malta requires reporting or withholding with respect to 

insurance products held by residents ofMalta). 

4. A Depository Account with a balance of $50,000 or less. 

B. Review Procedures for Preexisting Individual Accounts With a Balance 

or Value as of June 30, 2014, that Exceeds $50,000 ($250,000 for a Cash Value 

Insurance Contract or Annuity Contract), But Does Not Exceed $1,000,000 

("Lower Value Accounts"). 

1. Electronic Record Search. The Reporting Malta Financial Institution 

must review electronically searchable data maintained by the Reporting Malta 

Financial Institution for any of the following U.S. indicia: 

a) Identification of the Account Holder as a U.S. citizen or 

resident; 

b) Unambiguous indication of a U.S. place ofbirth; 

c) Current U.S. mailing or residence address (including a U.S. 

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

f) Currently effective power of attorney or signatory authority 

granted to a person with a U.S. address; or 

19 
g) An "in-care-of' or "hold mail" address that is the sole address 

the Reporting Malta Financial Institution has on file for the Account 

Holder. In the case of a Preexisting Individual Account that is a Lower 

Value Account, an "in-care-of' address outside the United States or 

"hold mail" address shall not be treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph B(l) of this section 

are discovered in the electronic search, then no further action is required until 

there is a change in circumstances that results in one or more U.S. indicia 

being associated with the account, or the account becomes a High Value 

Account described in paragraph D of this section. 

3. If any of the U.S. indicia listed in subparagraph B(l) of this section are 

discovered in the electronic search, or if there is a change in circumstances 

that results in one or more U.S. indicia being associated with the account, then 

the Reporting Malta Financial Institution must treat the account as a U.S. 

Reportable Account unless it elects to apply subparagraph B(4) of this section 

and one of the exceptions in such subparagraph applies with respect to that 

account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph B(l) of 

this section, a Reporting Malta Financial Institution is not required to treat an 

account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting Malta Financial 

Institution obtains or has previously reviewed and maintains a record 

of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); 

(2) A non-U.S. passport or other government-issued 

identification evidencing the Account Holder's citizenship or 

nationality in a country other than the United States; and 

(3) A copy of the Account Holder's Certificate of Loss of 

Nationality of the United States or a reasonable explanation of: 

(a) The reason the Account Holder does not have 

such a certificate despite relinquishing U.S. citizenship; 

or 

(b) The reason the Account Holder did not obtain U.S. 

citizenship at birth. 

b) Where the Account Holder information contains a current U.S. 

mailing or residence address, or one or more U.S. telephone numbers 

20 
that are the only telephone numbers associated with the account, the 

Reporting Malta Financial Institution obtains, or has previously 

reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting Malta Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted to a person 

with a U.S. address, has an "in-care-of' address or "hold mail" 

address that is the sole address identified for the Account Holder, or 

has one or more U.S. telephone numbers (if a non-U.S. telephone 

number is also associated with the account), the Reporting Malta 

Financial Institution obtains, or has previously reviewed and maintains 

a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); or 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder's 

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed by June 30, 2016. 

2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or more 

21 
U.S. indicia described in subparagraph B(l) of this section being associated 

with the account, then the Reporting Malta Financial Institution must treat the 

account as a U.S. Reportable Account unless subparagraph B(4) ofthis section 

applies. 

3. Except for Depository Accounts described in subparagraph A(4) ofthis 

section, any Preexisting Individual Account that has been identified as a U.S. 

Reportable Account under this section shall be treated as a U.S. Reportable 

Account in all subsequent years, unless the Account Holder ceases to be a 

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or December 31 of 

2015 or Any Subsequent Year ("High Value Accounts"). 

1. Electronic Record Search. The Reporting Malta Financial Institution 

must review electronically searchable data maintained by the Reporting Malta 

Financial Institution for any of the U.S. indicia described in subparagraph B(l) 

ofthis section. 

2. Paper Record Search. If the Reporting Malta Financial Institution's 

electronically searchable databases include fields for, and capture all of the 

information described in, subparagraph D(3) of this section, then no further 

paper record search is required. If the electronic databases do not capture all of 

this information, then with respect to a High Value Account, the Reporting 

Malta Financial Institution must also review the current customer master file 

and, to the extent not contained in the current customer master file, the 

following documents associated with the account and obtained by the 

Reporting Malta Financial Institution within the last five years for any of the 

U.S. indicia described in subparagraph B(l) ofthis section: 

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Malta Financial Institution pursuant to AML/KYC Procedures or for 

other regulatory purposes; 

d) Any power of attorney or signature authority forms currently in 

effect; and 

e) Any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Malta Financial Institution is not required to perform the paper 

record search described in subparagraph D(2) of this section if the Reporting 

Malta Financial Institution's electronically searchable information includes the 

following: 

22 
a) The Account Holder's nationality or residence status; 

b) The Account Holder's residence address and mailing address 

currently on file with the Reporting Malta Financial Institution; 

c) The Account Holder's telephone number(s) currently on file, if 

any, with the Reporting Malta Financial Institution; 

d) Whether there are standing instructions to transfer funds in the 

account to another account (including an account at another branch of 

the Reporting Malta Financial Institution or another Financial 

Institution); 

e) Whether there is a current "in-care-of' address or "hold mail" 

address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority 

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition to 

the electronic and paper record searches described above, the Reporting Malta 

Financial Institution must treat as a U.S. Reportable Account any High Value 

Account assigned to a relationship manager (including any Financial Accounts 

aggregated with such High Value Account) if the relationship manager has 

actual knowledge that the Account Holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph B(l) of this 

section are discovered in the enhanced review of High Value Accounts 

described above, and the account is not identified as held by a 

Specified U.S. Person in subparagraph D(4) of this section, then no 

further action is required until there is a change in circumstances that 

results in one or more U.S. indicia being associated with the account. 

b) If any of the U.S. indicia listed in subparagraph B(l) of this 

section are discovered in the enhanced review of High Value Accounts 

described above, or if there is a subsequent change in circumstances 

that results in one or more U.S. indicia being associated with the 

account, then the Reporting Malta Financial Institution must treat the 

account as a U.S. Reportable Account unless it elects to apply 

subparagraph B(4) of this section and one of the exceptions in such 

subparagraph applies with respect to that account. 

c) Except for Depository Accounts described in subparagraph 

A( 4) of this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall be 

treated as a U.S. Reportable Account in all subsequent years, unless the 

Account Holder ceases to be a Specified U.S. Person. 

23 
E. Additional Procedures Applicable to High Value Accounts. 

1. If a Preexisting Individual Account is a High Value Account as of June 

30, 2014, the Reporting Malta Financial Institution must complete the 

enhanced review procedures described in paragraph D of this section with 

respect to such account by June 30, 2015. If based on this review such account 

is identified as a U.S. Reportable Account on or before December 31, 2014, 

the Reporting Malta Financial Institution must report the required information 

about such account with respect to 2014 in the first report on the account and 

on an annual basis thereafter. In the case of an account identified as a U.S. 

Reportable Account after December 31,2014, and on or before June 30, 2015, 

the Reporting Malta Financial Institution is not required to report information 

about such account with respect to 2014 , but must report information about 

the account on an annual basis thereafter. 

2. If a Preexisting Individual Account is not a High Value Account as of 

June 30, 2014, but becomes a High Value Account as of the last day of 2015 

or any subsequent calendar year, the Reporting Malta Financial Institution 

must complete the enhanced review procedures described in paragraph D of 

this section with respect to such account within six months after the last day of 

the calendar year in which the account becomes a High Value Account. If 

based on this review such account is identified as a U.S. Reportable Account, 

the Reporting Malta Financial Institution must report the required information 

about such account with respect to the year in which it is identified as a U.S. 

Reportable Account and subsequent years on an annual basis, unless the 

Account Holder ceases to be a Specified U.S. Person. 

3. Once a Reporting Malta Financial Institution applies the enhanced 

review procedures described in paragraph D of this section to a High Value 

Account, the Reporting Malta Financial Institution is not required to re-apply 

such procedures, other than the relationship manager inquiry described in 

subparagraph D( 4) of this section, to the same High Value Account in any 

subsequent year. 

4. If there is a change of circumstances with respect to a High Value 

Account that results in one or more U.S. indicia described in subparagraph 

B( 1) of this section being associated with the account, then the Reporting 

Malta Financial Institution must treat the account as a U.S. Reportable 

Account unless it elects to apply subparagraph B(4) of this section and one of 

the exceptions in such subparagraph applies with respect to that account. 

5. A Reporting Malta Financial Institution must implement procedures to 

ensure that a relationship manager identifies any change in circumstances of 

an account. For example, if a relationship manager is notified that the Account 

Holder has a new mailing address in the United States, the Reporting Malta 

Financial Institution is required to treat the new address as a change in 

circumstances and, if it elects to apply subparagraph B(4) of this section, is 

required to obtain the appropriate documentation from the Account Holder. 

24 
F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting Malta Financial Institution that has previously obtained 

documentation from an Account Holder to establish the Account Holder's status as 

neither a U.S. citizen nor a U.S. resident in order to meet its obligations under a 

qualified intermediary, withholding foreign partnership, or withholding foreign trust 

agreement with the IRS, or to fulfil its obligations under chapter 61 of Title 26 of the 

United States Code, is not required to perform the procedures described in 

subparagraph B( 1) of this section with respect to Lower Value Accounts or 

subparagraphs D(l) through D(3) of this section with respect to High Value Accounts. 

III. New Individual Accounts. The following rules and procedures apply for purposes of 

identifying U.S. Reportable Accounts among Financial Accounts held by individuals and 

opened on or after July 1, 2014 ("New Individual Accounts"). 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting Malta Financial Institution elects otherwise, either with respect to all 

New Individual Accounts or, separately, with respect to any clearly identified group 

of such accounts, where the implementing rules in Malta provide for such an election, 

the following New Individual Accounts are not required to be reviewed, identified, or 

reported as U.S. Reportable Accounts: 

1. A Depository Account unless the account balance exceeds $50,000 at 

the end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds 

$50,000 at the end of any calendar year or other appropriate reporting period. 

B. Other New Individual Accounts. With respect to New Individual Accounts 

not described in paragraph A of this section, upon account opening (or within 90 days 

after the end of the calendar year in which the account ceases to be described in 

paragraph A of this section), the Reporting Malta Financial Institution must obtain a 

self-certification which may be part of the account opening documentation, that 

allows the Reporting Malta Financial Institution to determine whether the Account 

Holder is resident in the United States for tax purposes (for this purpose, a U.S. 

citizen is considered to be resident in the United States for tax purposes, even if the 

Account Holder is also a tax resident of another jurisdiction) and confirm the 

reasonableness of such self-certification based on the information obtained by the 

Reporting Malta Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC Procedures. 

1. If the self-certification establishes that the Account Holder is resident 

in the United. States for tax purposes, the Reporting Malta Financial Institution 

must treat the account as a U.S. Reportable Account and obtain a selfcertification that includes the Account Holder's U.S. TIN (which may be an 

IRS Form W-9 or other similar agreed form). 

2. If there is a change of circumstances with respect to a New Individual 

Account that causes the Reporting Malta Financial Institution to know or have 

reason to know that the original self-certification is incorrect or unreliable, the 

Reporting Malta Financial Institution cannot rely on the original self25 
certification and must obtain a valid self-certification that establishes whether 

the Account Holder is a U.S. citizen or resident for U.S. tax purposes. If the 

Reporting Malta Financial Institution is unable to obtain a valid selfcertification, the Reporting Malta Financial Institution must treat the account 

as a U.S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Preexisting Accounts held by Entities ("Preexisting Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed, Identified, or Reported. 

Unless the Reporting Malta Financial Institution elects otherwise, either with respect 

to all Preexisting Entity Accounts or, separately, with respect to any clearly identified 

group of such accounts, where the implementing rules in Malta provide for such an 

election, a Preexisting Entity Account with an account balance or value that does not 

exceed $250,000 as of June 30 2014, is not required to be reviewed, identified, or 

reported as a U.S. Reportable Account until the account balance or value exceeds 

$1,000,000. 

B. Entity Accounts Subject to Review. A Preexisting Entity Account that has an 

account balance or value that exceeds $250,000 as of June 30, 2014, and a Preexisting 

Entity Account that does not exceed $250,000 as of June 30, 2014, but the account 

balance or value of which exceeds $1,000,000 as of the last day of 2015 or any 

subsequent calendar year, must be reviewed in accordance with the procedures set 

forth in paragraph D of this section. 

C. Entitv Accounts With Respect to Which Reporting is Required. With 

respect to Preexisting Entity Accounts described in paragraph B of this section, only 

accounts that are held by one or more Entities that are Specified U.S. Persons, or by 

Passive NFFEs with one or more Controlling Persons who are U.S. citizens or 

residents, shall be treated as U.S. Reportable Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in subparagraph 1 (b) of Article 4 of the Agreement 

are reported to the Malta Commissioner for Revenue. 

D. Review Procedures for Identifvine: Entitv Accounts With Respect to 

Which Reporting is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting Malta Financial Institution must apply the 

following review procedures to determine whether the account is held by one or more 

Specified U.S. Persons, by Passive NFFEs with one or more Controlling Persons who 

are U.S. citizens or residents, or by Nonparticipating Financial Institutions: 

1. Determine Whether the Entity is a Specified U.S. Person. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AMLIKYC Procedures) to determine whether the information 

indicates that the Account Holder is a U.S. Person. For this purpose, 

information indicating that the Account Holder is a U.S. Person 

26 
includes a U.S. place of incorporation or organization, or a U.S. 

address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting Malta Financial Institution must treat the 

account as a U.S. Reportable Account unless it obtains a selfcertification from the Account Holder (which may be on an IRS Form 

W-8 or W-9, or a similar agreed form), or reasonably determines based 

on information in its possession or that is publicly available, that the 

Account Holder is not a Specified U.S. Person. 

2. Determine Whether a Non-U.S. Entity is a Fhiancial Institution. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

b) If the information indicates that the Account Holder is a 

Financial Institution, or the Reporting Malta Financial Institution 

verifies the Account Holder's Global Intermediary Identification 

Number on the published IRS FFI list, then the account is not a U.S. 

Reportable Account. 

3. Determine Whether a Financial Institution is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

Reporting Under Subparagraph l(b) of Article 4 ofthe Agreement. 

a) Subject to subparagraph D(3)(b) of this section, a Reporting 

Malta Financial Institution may determine that the Account Holder is a 

Malta Financial Institution or other Partner Jurisdiction Financial 

Institution if the Reporting Malta Financial Institution reasonably 

determines that the Account Holder has such status on the basis of the 

Account Holder's Global Intermediary Identification Number on the 

published IRS FFI list or other information that is publicly available or 

in the possession of the Reporting Malta Financial Institution, as 

applicable. In such case, no further review, identification, or reporting 

is required with respect to the account. 

b) If the Account Holder is a Malta Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1 (b) of Article 4 of the 

Agreement. 

c) If the Account Holder is not a Malta Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

Malta Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are 

27 
reportable under subparagraph 1(b) of Article 4 of the Agreement, 

unless the Reporting Malta Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS 

Form W-8 or similar agreed form) from the Account Holder 

that it is a certified deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant U.S. 

Treasury Regulations; or 

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder's Global 

Intermediary Identification Number on the published IRS FFI 

list. 

4. Determine Whether an Account Held by an NFFE Is a U.S. 

Reportable Account. With respect to an Account Holder of a Preexisting 

Entity Account that is not identified as either a U.S. Person or a Financial 

Institution, the Reporting Malta Financial Institution must identify (i) whether 

the Account Holder has Controlling Persons, (ii) whether the Account Holder 

is a Passive NFFE, and (iii) whether any of the Controlling Persons of the 

Account Holder is a U.S. citizen or resident. In making these determinations 

the Reporting Malta Financial Institution must follow the guidance in 

subparagraphs D(4)(a) through D(4)(d) of this section in the order most 

appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Malta Financial Institution may rely on 

information collected and maintained pursuant to AML/KYC 

Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting Malta Financial Institution must obtain a 

self-certification (which may be on an IRS Form W-8 or W-9, or on a 

similar agreed form) from the Account Holder to establish its status, 

unless it has information in its possession or that is publicly available, 

based on which it can reasonably determine that the Account Holder is 

an Active NFFE. 

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a U.S. citizen or resident for tax purposes, a 

Reporting Malta Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that does not exceed $1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 

or W-9, or on a similar agreed form) from the Account Holder 

or such Controlling Person in the case of a Preexisting Entity 

28 
Account held by one or more NFFEs with an account balance 

or value that exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a U.S. citizen or 

resident, the account shall be treated as a U.S. Reportable Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts. 

1. Review of Preexisting Entity Accounts with an account balance or 

value that exceeds $250,000 as of June 30, 2014, must be completed by June 

30, 2016. 

2. Review of Preexisting Entity Accounts with an account balance or 

value that does not exceed $250,000 as of June 30, 2014, but exceeds 

$1,000,000 as of December 31 of 2015 or any subsequent year, must be 

completed within six months after the last day of the calendar year in which 

the account balance or value exceeds $1,000,000. 

3. If there is a change of circumstances with respect to a Preexisting 

Entity Account that causes the Reporting Malta Financial Institution to know, 

or have reason to know, that the self-certification or other documentation 

associated with an account is incorrect or unreliable, the Reporting Malta 

Financial Institution must redetermine the status of the account in accordance 

with the procedures set forth in paragraph D of this section. 

V. New Entity Accounts. The following rules and procedures apply for purposes of 

identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 

("New Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. 

Unless the Reporting Malta Financial Institution elects otherwise, either with respect 

to all New Entity Accounts or, separately, with respect to any clearly identified group 

of such accounts, where the implementing rules in Malta provide for such election, a 

credit card account or a revolving credit facility treated as a New Entity Account is 

not required to be reviewed, identified, or reported, provided that the Reporting Malta 

Financial Institution maintaining such account implements policies and procedures to 

prevent an account balance owed to the Account Holder that exceeds $50,000. 

B. Other New Entity Accounts. With respect to New Entity Accounts not 

described in paragraph A of this section, the Reporting Malta Financial Institution 

must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a 

Malta Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a 

participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those 

terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active NFFE or 

Passive NFFE. 

1. Subject to subparagraph B(2) of this section, a Reporting Malta 

Financial Institution may determine that the Account Holder is an Active 

29 
NFFE, a Malta Financial Institution, or other Partner Jurisdiction Financial 

Institution if the Reporting Malta Financial Institution reasonably determines 

that the Account Holder has such status on the basis of the Account Holder's 

Global Intermediary Identification Number or other information that is 

publicly available or in the possession of the Reporting Malta Financial 

Institution, as applicable. 

2. If the Account Holder is a Malta Financial Institution or other Partner 

Jurisdiction Financial Institution treated by the IRS as a Nonparticipating 

Financial Institution, then the account is not a U.S. Reportable Account, but 

payments to the Account Holder must be reported as contemplated in 

subparagraph l(b) of Article 4 ofthe Agreement. 

3. In all other cases, a Reporting Malta Financial Institution must obtain a 

self-certification from the Account Holder to establish the Account Holder's 

status. Based on the self-certification, the following rules apply: 

a) If the Account Holder is a Specified U.S. Person, the Reporting 

Malta Financial Institution must treat the account as a U.S. Reportable 

Account. 

b) If the Account Holder is a Passive NFFE, the Reporting Malta 

Financial Institution must identify the Controlling Persons as 

determined under AML/KYC Procedures, and must determine whether 

any such person is a U.S. citizen or resident on the basis of a selfcertification from the Account Holder or such person. If any such 

person is a U.S. citizen or resident, the Reporting Malta Financial 

Institution must treat the account as a U.S. Reportable Account. 

c) If the Account Holder is: (i) a U.S. Person that is not a 

Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this 

section, a Malta Financial Institution or other Partner Jurisdiction 

Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, 

or an exempt beneficial owner, as those terms are defined in relevant 

U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive 

NFFE none of the Controlling Persons of which is a U.S. citizen or 

resident, then the account is not a U.S. Reportable Account, and no 

reporting is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a Malta Financial Institution or other Partner 

Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph I (b) of Article 4 of the 

Agreement. 

VI. Special Rules and Definitions. The following additional rules and definitions apply 

in implementing the due diligence procedures described above: 

30 
A. Reliance on Self-Certifications and Documentary Evidence. A Reporting 

Malta Financial Institution may not rely on a self-certification or documentary 

evidence if the Reporting Malta Financial Institution knows or has reason to know 

that the self-certification or documentary evidence is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this Annex I. 

1. AML/KYC Procedures. "AML/KYC Procedures" means the 

customer due diligence procedures of a Reporting Malta Financial Institution 

pursuant to the anti-money laundering or similar requirements of Malta to 

which such Reporting Malta Financial Institution is subject. 

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity described in 

subparagraph B(4)G) of this section, and also includes any Non-U.S. Entity 

that is established in Malta or another Partner Jurisdiction and that is not a 

Financial Institution. 

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not (i) an 

Active NFFE or (ii) a withholding foreign partnership or withholding foreign 

trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An "Active NFFE" means any NFFE that meets any of 

the following criteria: 

a) Less than 50 percent of the NFFE's gross i'ncome for the 

preceding calendar year or other appropriate reporting period is passive 

income and less than 50 percent of the assets held by the NFFE during 

the preceding calendar year or other appropriate reporting period are 

assets that produce or are held for the production of passive income; 

b) The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity the stock 

of which is regularly traded on an estaolished securities market; 

c) The NFFE is organized in a U.S. Territory and all ofthe owners 

ofthe payee are bona fide residents ofthat U.S. Territory; 

d) The NFFE is a government (other than the U.S. government), a 

political subdivision of such government (which, for the avoidance of 

doubt, includes a state, province, county, or municipality), or a public 

body performing a function of such government or a political 

subdivision thereof, a government of a U.S. Territory, an international 

organization, a non-U.S. central bank of issue, or an Entity wholly 

owned by one or more of the foregoing; 

e) Substantially all ofthe activities ofthe NFFE consist ofholding 

(in whole or in part) the outstanding stock of, or providing financing 

and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except that 

31 
an NFFE shall not qualify for this status if the NFFE functions (or 

holds itself out) as an investment fund, such as a private equity fund, 

venture capital fund, leveraged buyout fund, or any investment vehicle 

whose purpose is to acquire or fund companies and then hold interests 

in those companies as capital assets for investment purposes; 

f) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the intent to 

operate a business other than that of a Financial Institution provided 

that the NFFE shall not qualify for this exception after the date that is 

24 months after the date of the initial organization of the NFFE; 

g) The NFFE was not a Financial Institution in the past five years, 

and is in the process of liquidating its assets or is reorganizing with the 

intent to continue or recommence operations in a business other than 

that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging 

transactions with, or for, Related Entities that are not Financial 

Institutions, and does not provide financing or hedging services to any 

Entity that is not a Related Entity, provided that the group of any such 

Related Entities is primarily engaged in a business other than that of a 

Financial Institution; 

i) The NFFE is an "excepted NFFE" as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

1. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is 

established and operated in its jurisdiction of residence and 

it is a professional organization, business league, chamber 

of commerce, labor organization, agricultural or 

horticultural organization, civic league or an organization 

operated exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction of residence; 

iii. It has no shareholders or members who have a proprietary 

or beneficial interest in its income or assets; 

tv. The applicable laws of the NFFE' s jurisdiction of residence 

or the NFFE's formation documents do not permit any 

income or assets of the NFFE to be distributed to, or 

applied for the benefit of, a private person or non-charitable 

Entity other than pursuant to the conduct of the NFFE' s 

charitable activities, or as payment of reasonable 

compensation for services rendered, or as payment 

32 
representing the fair market value of property which the 

NFFE has purchased; and 

v. The applicable laws of the NFFE' s jurisdiction of residence 

or the NFFE's formation documents require that, upon the 

NFFE's liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

organization, or escheat to the government of the NFFE's 

jurisdiction of residence or any political subdivision 

thereof. 

5. Preexisting Account. A "Preexisting Account" means a Financial 

Account maintained by a Reporting Financial Institution as of June 30, 20 I4. 

C. Account Balance Aggregation and Currency Translation Rules. 

I. Aggregation of Individual Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an individual, a 

Reporting Malta Financial Institution is required to aggregate all Financial 

Accounts maintained by the Reporting Malta Financial Institution, or by a 

Related Entity, but only to the extent that the Reporting Malta Financial 

Institution's computerized systems link the Financial Accounts by reference to 

a data element such as client number or taxpayer identification number, and 

allow account balances or values to be aggregated. Each holder of a jointly 

held Financial Account shall be attributed the entire balance or value of the 

jointly held Financial Account for purposes of applying the aggregation 

requirements described in this paragraph I. 

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting Malta Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting Malta Financial 

Institution, or by a Related Entity, but only to the extent that the Reporting 

Malta Financial Institution's computerized systems link the Financial 

Accounts by reference to a data element such as client number or taxpayer 

identification number, and allow account balances or values to be aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of Financial 

Accounts held by a person to determine whether a Financial Account is a High 

Value Account, a Reporting Malta Financial Institution is also required, in the 

case of any Financial Accounts that a relationship manager knows, or has 

reason to know, are directly or indirectly owned, controlled, or established 

(other than in a fiduciary capacity) by the same person, to aggregate all such 

accounts. 

4. Currency Translation Rule. For purposes of determining the balance 

or value of Financial Accounts denominated in a currency other than the U.S. 

dollar, a Reporting Malta Financial Institution must convert the U.S. dollar 

threshold amounts described in this Annex I into such currency using a 

33 
published spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting Malta Financial Institution is 

determining the balance or value. 

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any ofthe following: 

1. A certificate of residence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) of the 

jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality), that includes the individual's name and is typically used for 

identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality) that includes the name of the Entity and either the address of 

its principal office in the jurisdiction (or U.S. Territory) in which it claims to 

be a resident or the jurisdiction (or U.S. Territory) in which the Entity was 

incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in connection 

with a QI agreement (as described in relevant U.S. Treasury Regulations), any 

of the documents, other than a Form W-8 or W-9, referenced in the 

jurisdiction's attachment to the QI agreement for identifying individuals or 

Entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting Malta Financial 

Institution may presume that an individual beneficiary (other than the owner) of a 

Cash Value Insurance Contract receiving a death benefit is not a Specified U.S. 

Person and may treat such Financial Account as other than a U.S. Reportable Account 

unless the Reporting Malta Financial Institution has actual knowledge, or reason to 

know, that the beneficiary is a Specified U.S. Person. A Reporting Malta Financial 

Institution has reason to know that a beneficiary of a Cash Value Insurance Contract 

is a Specified U.S. Person if the information collected by the Reporting Malta 

Financial Institution and associated with the beneficiary contains U.S. indicia as 

described in subparagraph (B)(l) of section II of this Annex I. If a Reporting Malta 

Financial Institution has actual knowledge, or reason to know, that the beneficiary is a 

Specified U.S. Person, the Reporting Malta Financial Institution must follow the 

procedures in subparagraph (B)(3) of section II of this Annex I. 

F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, Malta may permit Reporting Malta Financial 

34 
Institutions to rely on due diligence procedures performed by third parties, to the 

extent provided in relevant U.S. Treasury Regulations. 

35 
ANNEX II 

The following Entities are treated as exempt beneficial owners or deemed-compliant FFis, as 

the case may be, and the following accounts are excluded from the definition of Financial 

Accounts. 

This Annex II may be modified by a mutual agreement entered into between the Competent 

Authorities of Malta and the United States: (1) to include additional Entities and accounts that 

present a low risk of being used by U.S. Persons to evade U.S. tax and that have similar 

characteristics to the Entities and accounts described in this Annex II as of the date of 

signature of the Agreement; or (2) to remove Entities and accounts that, due to changes in 

circumstances, no longer present a low risk of being used by U.S. Persons to evade U.S. tax. 

Any such addition or removal shall be effective on the date of signature of the mutual 

agreement, unless otherwise provided therein. Procedures for reaching such a mutual 

agreement may be included in the mutual agreement described in paragraph 6 of Article 3 of 

the Agreement. 

I. Exempt Beneficial Owners other than Funds. The following Entities are treated as 

Non-Reporting Malta Financial Institutions and as exempt beneficial owners for 

purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than 

with respect to a payment that is derived from an obligation held in connection with a 

commercial financial activity of a type engaged in by a Specified Insurance Company, 

Custodial Institution, or Depository Institution. 

A. Governmental Entity. The government of Malta, any political subdivision of 

Malta (which, for the avoidance of doubt, includes a state, province, county, or 

municipality), or any wholly owned agency or instrumentality of Malta or any one 

or more of the foregoing (each, a "Malta Governmental Entity"). This category is 

comprised of the integral parts, controlled entities, and political subdivisions of 

Malta. 

1. An integral part of Malta means any person, organization, agency, bureau, 

fund, instrumentality, or other body, however designated, that constitutes a 

governing authority of Malta. The net earnings of the governing authority 

must be credited to its own account or to other accounts of Malta, with no 

portion inuring to the benefit of any private person. An integral part does not 

include any individual who is a sovereign, official, or administrator acting in a 

private or personal capacity. 

2. A controlled entity means an Entity that is separate in form from Malta or that 

otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more Malta 

Governmental Entities directly or through one or more controlled entities; 

b) The Entity's net earnings are credited to its own account or to the accounts 

of one or more Malta Governmental Entities, with no portion of its income 

inuring to the benefit of any private person; and 

36 
c) The Entity's assets vest in one or more Malta Governmental Entities upon 

dissolution. 

3. Income does not inure to the benefit of private persons if such persons are the 

intended beneficiaries of a governmental program, and the program activities 

are performed for the general public with respect to the common welfare or 

relate to the administration of some phase of government. Notwithstanding 

the foregoing, however, income is considered to inure to the benefit of private 

persons if the income is derived from the use of a governmental entity to 

conduct a commercial business, such as a commercial banking business, that 

provides financial services to private persons. 

B. International Organization. Any international organization or wholly owned 

agency or instrumentality thereof. This category includes any intergovernmental 

organization (including a supranational organization) (1) that is comprised 

primarily of non-U.S. governments; (2) that has in effect a headquarters 

agreement with Malta; and (3) the income of which does not inure to the benefit 

of private persons. 

C. Central Bank. An institution that is by law or government sanction the principal 

authority, other than the government of Malta itself, issuing instruments intended 

to circulate as currency. Such an institution may include an instrumentality that is 

separate from the government of Malta, whether or not owned in whole or in part 

by Malta. 

II. Funds that Qualify as Exempt Beneficial Owners. The following Entities are 

treated as Non-Reporting Malta Financial Institutions and as exempt beneficial 

owners for purposes of sections 1471 and 1472 ofthe U.S. Internal Revenue Code. 

A. Treaty-Qualified Retirement Fund. A fund established in Malta, provided that 

the fund is entitled to benefits under an income tax treaty between Malta and the 

United States on income that it derives from sources within the United States (or 

would be entitled to such benefits if it derived any such income) as a resident of 

Malta that satisfies any applicable limitation on benefits requirement, and is 

operated principally to administer or provide pension or retirement benefits. 

B. Broad Participation Retirement Fund. A fund established in Malta to provide 

retirement, disability, or death benefits, or any combination thereof, to 

beneficiaries that are current or former employees (or persons designated by such 

employees) of one or more employers in consideration for services rendered, 

provided that the fund: 

1. Does not have a single beneficiary with a right to more than five percent of the 

fund's assets; 

2. Is subject to government regulation and provides annual information reporting 

about its beneficiaries to the relevant tax authorities in Malta; and 

3. Satisfies at least one of the following requirements: 

37 
a) The fund is generally exempt from tax in Malta on investment income 

under the laws of Malta due to its status as a retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions (other than 

transfers of assets from other plans described in paragraphs A through D of 

this section or from retirement and pension accounts described in 

subparagraph A(1) of section V of this Annex II) from the sponsoring 

employers; 

c) Distributions or withdrawals from the fund are allowed only upon the 

occurrence of specified events related to retirement, disability, or death 

(except rollover distributions to other retirement funds described in 

paragraphs A through D of this section or retirement and pension accounts 

described in subparagraph A( 1) of section V of this Annex II), or penalties 

apply to distributions or withdrawals made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by 

employees to the fund are limited by reference to earned income of the 

employee or may not exceed $50,000 annually, applying the rules set forth 

in Annex I for account aggregation and currency translation. 

C. Narrow Participation Retirement Fund. A fund established in Malta to provide 

retirement, disability, or death benefits to beneficiaries that are current or former 

employees (or persons designated by such employees) of one or more employers 

in consideration for services rendered, provided that: 

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not Investment 

Entities or Passive NFFEs; 

3. The employee and employer contributions to the fund (other than transfers of 

assets from treaty-qualified retirement funds described in paragraph A of this 

section or retirement and pension accounts described in subparagraph A( 1) of 

section V of this Annex II) are limited by reference to earned income and 

compensation of the employee, respectively; 

4. Participants that are not residents of Malta are not entitled to more than 20 

percent of the fund's assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in Malta. 

D. Pension Fund of an Exempt Beneficial Owner. A fund established in Malta by 

an exempt beneficial owner to provide retirement, disability, or death benefits to 

beneficiaries or participants that are current or former employees of the exempt 

beneficial owner (or persons designated by such employees), or that are not 

current or former employees, if the benefits provided to such beneficiaries or 

participants are in consideration of personal services performed for the exempt 

beneficial owner. 

38 
E. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity 

that is a Malta Financial Institution solely because it is an Investment Entity, 

provided that each direct holder of an Equity Interest in the Entity is an exempt 

beneficial owner, and each direct holder of a debt interest in such Entity is either a 

Depository Institution (with respect to a loan made to such Entity) or an exempt 

beneficial owner. 

III. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant 

FFis. The following Financial Institutions are Non-Reporting Malta Financial 

Institutions that are treated as deemed-compliant FFis for purposes of section 14 71 of 

the U.S. Internal Revenue Code: 

A. Financial Institutions with a Local Client Base. A Financial Institution 

satisfying the following requirements: 

1. The Financial Institution must be licensed and regulated as a financial 

institution under the laws of Malta; 

2. The Financial Institution must have no fixed place of business outside of 

Malta. For this purpose, a fixed place of business does not include a location 

that is not advertised to the public and from which the Financial Institution 

performs solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders 

outside Malta. For this purpose, a Financial Institution shall not be considered 

to have solicited account holders outside Malta merely because the Financial 

Institution (a) operates a website, provided that the website does not 

specifically indicate that the Financial Institution provides Financial Accounts 

or services to nonresidents, and does not otherwise target or solicit U.S. 

customers or Account Holders, or (b) advertises in print media or on a radio or 

television station that is distributed or aired primarily within Malta but is also 

incidentally distributed or aired in other countries, provided that the 

advertisement does not specifically indicate that the Financial Institution 

provides Financial Accounts or services to nonresidents, and does not 

otherwise target or solicit U.S. customers or Account Holders; 

4. The Financial Institution must be required under the laws of Malta to identify 

resident Account Holders for purposes of either information reporting or 

withholding of tax with respect to Financial Accounts held by residents or for 

purposes of satisfying Malta's AML due diligence requirements; 

5. At least 98 percent of the Financial Accounts by value maintained by the 

Financial Institution must be held by residents (including residents that are 

Entities) of Malta or a Member State of the European Union; 

6. Beginning on or before July 1, 2014, the Financial Institution must have 

policies and procedures, consistent with those set forth in Annex I, to prevent 

the Financial Institution from providing a Financial Account to any 

Nonparticipating Financial Institution and to monitor whether the Financial 

39 
Institution opens or maintains a Financial Account for any Specified U.S. 

Person who is not a resident of Malta (including a U.S. Person that was a 

resident of Malta when the Financial Account was opened but subsequently 

ceases to be a resident of Malta) or any Passive NFFE with Controlling 

Persons who are U.S. residents or U.S. citizens who are not residents of Malta; 

7. Such policies and procedures must provide that if any Financial Account held 

by a Specified U.S. Person who is not a resident of Malta or by a Passive 

NFFE with Controlling Persons who are U.S. residents or U.S. citizens who 

are not residents of Malta is identified, the Financial Institution must report 

such Financial Account as would be required if the Financial Institution were a 

Reporting Malta Financia-l Institution (including by following the registration 

requirementsapplicable to Reporting Malta Financial Institutions) or close 

such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a 

resident of Malta or by an Entity, the Financial Institution must review those 

Preexisting Accounts in accordance with the procedures set forth in Annex I 

applicable to Preexisting Accounts to identify any U.S. Reportable Account or 

Financial Account held by a Nonparticipating Financial Institution, and must 

report such Financial Account as would be required if the Financial Institution 

were a Reporting Malta Financial Institution (including by following the 

registration requirements applicable to Reporting Malta Financial Institutions) 

or close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution 

must be incorporated or organized in Malta and, with the exception of any 

Related Entity that is a retirement fund described in paragraphs A through D 

of section II of this Annex II, satisfy the requirements set forth in this 

paragraph A; and 

10. The Financial Institution must not have policies or practices that discriminate 

against opening or maintaining Financial Accounts for individuals who are 

Specified U.S. Persons and residents of Malta. 

B. Local Bank. A Financial Institution satisfying the following requirements: 

1. The Financial Institution operates solely as (and is licensed and regulated 

under the laws of Malta as) (a) a bank or (b) a credit union or similar 

cooperative credit organization that is operated without profit; 

2. The Financial Institution's business consists primarily of receiving deposits 

from and making loans to, with respect to a bank, unrelated retail customers 

and, with respect to a credit union or similar cooperative credit organization, 

members, provided that no member has a greater than five percent interest in 

such credit union or cooperative credit organization; 

3. The Financial Institution satisfies the requirements set forth in subparagraphs 

A(2) and A(3) of this section, provided that, in addition to the limitations on 

the website described in subparagraph A(3) of this section, the website does 

not permit the opening of a Financial Account; 

40 
4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million in total assets on their 

consolidated or combined balance sheets; and 

5. Any Related Entity must be incorporated or organized in Malta, and any 

Related Entity that is a Financial Institution, with the exception of any 

Related Entity that is a retirement fund described in paragraphs A through D 

of section II of this Annex II or a Financial Institution with only low-value 

accounts described in paragraph C of this section, must satisfy the 

requirements set forth in this paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A Malta Financial 

Institution satisfying the following requirements: 

1. The Financial Institution is not an Investment Entity; 

2. No Financial Account maintained by the Financial Institution or any Related 

Entity has a balance or value in excess of $50,000, applying the rules set forth 

in Annex I for account aggregation and currency translation; and 

3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $50 million in total assets on their 

consolidated or combined balance sheets. 

D. Qualified Credit Card Issuer. A Malta Financial Institution satisfying the 

following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer 

of credit cards that accepts deposits only when a customer makes a payment in 

excess of a balance due with respect to the card and the overpayment is not 

immediately returned to the customer; and 

2. Beginning on or before July 1, 2014, the Financial Institution implements 

policies and procedures to either prevent a customer deposit in excess of 

$50,000, or to ensure that any customer deposit in excess of $50,000, in each 

case applying the rules set forth in Annex I for account aggregation and 

currency translation, is refunded to the customer within 60 days. For this 

purpose, a customer deposit does not refer to credit balances to the extent of 

disputed charges but does include credit balances resulting from merchandise 

returns. 

IV. Investment Entities that Qualify as Deemed-Compliant FFis and Other Special 

Rules. The Financial Institutions described in paragraphs A through E of this section 

are Non-Reporting Malta Financial Institutions that are treated as deemed-compliant 

FFis for purposes of section 1471 of the U.S. Internal Revenue Code. In addition, 

paragraph F of this section provides special rules applicable to an Investment Entity. 

41 
A. Trustee-Documented Trust. A trust established under the laws of Malta to the 

extent that the trustee of the trust is a Reporting U.S. Financial Institution, 

Reporting Model 1 FFI, or Participating FFI and reports all information required 

to be reported pursuant to the Agreement with respect to all U.S. Reportable 

Accounts of the trust. 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A 

Financial Institution described in subparagraph B(1) or B(2) of this section having 

a sponsoring entity that complies with the requirements of subparagraph B(3) of 

this section. 

1. A Financial Institution is a sponsored investment entity if (a) it is an 

Investment Entity established in Malta that is not a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust pursuant to 

relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the 

Financial Institution to act as a sponsoring entity for the Financial Institution. 

2. A Financial Institution is a sponsored controlled foreign corporation if (a) the 

Financial Institution is a controlled foreign corporation1 organized under the 

laws of Malta that is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned, directly or 

indirectly, by a Reporting U.S. Financial Institution that agrees to act, or 

requires an affiliate of the Financial Institution to act, as a sponsoring entity 

for the Financial Institution; and (c) the Financial Institution shares a common 

electronic account system with the sponsoring entity that enables the 

sponsoring entity to identify all Account Holders and payees of the Financial 

Institution and to access all account and customer information maintained by 

the Financial Institution including, but not limited to, customer identification 

information, customer documentation, account balance, and all payments 

made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial 

Institution (such as a fund manager, trustee, corporate director, or 

managing partner) to fulfill applicable registration requirements; 

b) The sponsoring entity has registered as a sponsoring entity pursuant to 

applicable registration requirements; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with 

respect to the Financial Institution, the sponsoring entity registers the 

Financial Institution pursuant to applicable registration requirements on or 

1 A "controlled foreign corporation" means any foreign corporation if more than 50 percent of the total 

combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock 

of such corporation, is owned, or is considered as owned, by "United States shareholders" on any day during the 

taxable year of such foreign corporation. The term a "United States shareholder" means, with respect to any 

foreign corporation, a United States person who owns, or is considered as owning, 10 percent or more of the 

total combined voting power of all classes of stock entitled to vote of such foreign corporation. 

42 
before the later of December 31, 2015 and the date that is 90 days after 

such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, on behalf of the Financial 

Institution, all due diligence, withholding, reporting, and other 

requirements that the Financial Institution would have been required to 

perform if it were a Reporting Malta Financial Institution; 

e) The sponsoring entity identifies the Financial Institution and includes the 

identifying number of the Financial Institution (obtained by following 

applicable registration requirements) in all reporting completed on the 

Financial Institution's behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked. 

C. Sponsored, Closely Held Investment Vehicle. A Malta Financial Institution 

satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an 

Investment Entity and is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; 

2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting 

Model 1 FFI, or Participating FFI, is authorized to act on behalf of the 

Financial Institution (such as a professional manager, trustee, or managing 

partner), and agrees to perform, on behalf of the Financial Institution, all due 

diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting Malta 

Financial Institution; 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests 

in the Financial Institution (disregarding debt interests owned by Participating 

FFis and deemed-compliant FFis and Equity Interests owned by an Entity if 

that Entity owns 100 percent ofthe Equity Interests in the Financial Institution 

and is itself a sponsored Financial Institution described in this paragraph C); 

and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity pursuant to 

applicable registration requirements; 

b) The sponsoring entity agrees to perform, on behalf of the Financial 

Institution, all due diligence, withholding, reporting, and other 

requirements that the Financial Institution would have been required to 

perform if it were a Reporting Malta Financial Institution and retains 

43 
documentation collected with respect to the Financial Institution for a 

period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution's behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity 

established in Malta that is a Financial Institution solely because it (1) renders 

investment advice to, and acts on behalf of, or (2) manages portfolios for, and acts 

on behalf of, a customer for the purposes of investing, managing, or administering 

funds deposited in the name of the customer with a Financial Institution other than 

a Nonparticipating Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in Malta that is 

regulated as a collective investment vehicle, provided that all of the interests in the 

collective investment vehicle (including debt interests in excess of $50,000) are 

held by or through one or more exempt beneficial owners, Active NFFEs 

described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not 

Specified U.S. Persons, or Financial Institutions that are not Nonparticipating 

Financial Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of 

any Investment Entity (other than a Financial Institution through which 

interests in the collective investment vehicle are held) shall be deemed 

fulfilled. 

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated 

as a collective investment vehicle, all of the interests in which (including 

debt interests in excess of $50,000) are held by or through one or more 

exempt beneficial owners, Active NFFEs described in subparagraph B(4) 

of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, 

or Financial Institutions that are not Nonparticipating Financial 

Institutions; or 

b) An Investment Entity that is a qualified collective investment vehicle 

under relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a Malta Financial 

Institution (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

3. With respect to interests in an Investment Entity established in Malta that is 

not described in paragraph E of subparagraph F(2) of this section, consistent 

44 
with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all 

other Investment Entities with respect to such interests shall be deemed 

fulfilled if the information required to be reported by the first-mentioned 

Investment Entity pursuant to the Agreement with respect to such interests is 

reported by such Investment Entity or another person. 

4. An Investment Entity established in Malta that is regulated as a collective 

investment vehicle shall not fail to qualify under paragraph E or 

subparagraph F(2) of this section, or otherwise as a deemed-compliant FFI, 

solely because the collective investment vehicle has issued physical shares in 

bearer form, provided that: 

a) The collective investment vehicle has not issued, and does not issue, any 

physical shares in bearer form after December 31, 2012; 

b) The collective investment vehicle retires all such shares upon 

surrender; 

c) The collective investment vehicle (or a Reporting Malta Financial 

Institution) performs the due diligence procedures set forth in Annex I 

and reports any information required to be reported with respect to any 

such shares when such shares are presented for redemption or other 

payment; and 

d) The collective investment vehicle has in place policies and procedures to 

ensure that such shares are redeemed or immobilized as soon as possible, 

and in any event prior to January 1, 2017. 

V. Accounts Excluded from Financial Accounts. The following accounts are excluded 

from the definition of Financial Accounts and therefore are not treated as U.S. Reportable 

Accounts. 

A. Certain Savings Accounts. 

1. Retirement and Pension Account._ A retirement or pension account maintained 

in Malta that satisfies the following requirements under the laws of Malta. 

a) The account is subject to regulation as a personal retirement account or is 

part of a registered or regulated retirement or pension plan for the 

provision of retirement or pension benefits (including disability or death 

benefits); 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of Malta are deductible or 

excluded from the gross income of the account holder or taxed at a 

reduced rate, or taxation of investment income from the account is 

deferred or taxed at a reduced rate); 

c) Annual information reporting is required to the tax authorities in Malta 

with respect to the account; 

45 
d) Withdrawals are conditioned on reaching a specified retirement age, 

disability, or death, or penalties apply to withdrawals made before such 

specified events; and 

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is 

a maximum lifetime contribution limit to the account of $1,000,000 or 

less, in each case applying the rules set forth in Annex I for account 

aggregation and currency translation. 

2. Non-Retirement Savings Accounts. An account maintained in Malta (other 

than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of Malta. 

a) The account is subject to regulation as a savings vehicle for purposes other 

than for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of Malta are deductible or 

excluded from the gross income of the account holder or taxed at a 

reduced rate, or taxation of investment income from the account is 

deferred or taxed at a reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the 

purpose of the savings account (for example, the provision of educational 

or medical benefits), or penalties apply to withdrawals made before such 

criteria are met; and 

d) Annual contributions are limited to $50,000 or less, applying the rules set 

forth in Annex I for account aggregation and currency translation. 

B. Certain Term Life Insurance Contracts. A life insurance contract maintained in 

Malta with a coverage period that will end before the insured individual attains 

age 90, provided that the contract satisfies the following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at least 

annually during the period the contract is in existence or until the insured 

attains age 90, whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, 

loan, or otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or 

termination of the contract cannot exceed the aggregate premiums paid for the 

contract, less the sum of mortality, morbidity, and expense charges (whether 

or not actually imposed) for the period or periods of the contract's existence 

and any amounts paid prior to the cancellation or termination of the contract; 

and 

4. The contract is not held by a transferee for value. 

46 
C. Account Held By an Estate. An account maintained in Malta that is held solely by 

an estate if the documentation for such account includes a copy of the deceased's will 

or death certificate. 

D. Escrow Accounts. An account maintained in Malta established in connection with 

any ofthe following: 

1. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the 

account satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit 

in an amount appropriate to secure an obligation directly related to the 

transaction, or a similar payment, or is funded with a financial asset that is 

deposited in the account in connection with the sale, exchange, or lease of 

the property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating 

to the leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be 

paid or otherwise distributed for the benefit of the purchaser, seller, lessor, 

or lessee (including to satisfy such person's obligation) when the property 

is sold, exchanged, or surrendered, or the lease terminates; 

d) The account is not a margin or similar account established in connection 

with a sale or exchange of a financial asset; and 

e) The account is not associated with a credit card account. 

3. An obligation of a Financial Institution servicing a loan secured by real 

property to set aside a portion of a payment solely to facilitate the payment of 

taxes or insurance related to the real property at a later time. 

4. An obligation of a Financial Institution solely to facilitate the payment of taxes 

at a later time. 

E. Partner Jurisdiction Accounts. An account maintained in Malta and excluded 

from the definition of Financial Account under an agreement between the United 

States and another Partner Jurisdiction to facilitate the implementation ofFATCA, 

provided that such account is subject to the same requirements and oversight 

under the laws of such other Partner Jurisdiction as if such account were 

established in that Partner Jurisdiction and maintained by a Partner Jurisdiction 

Financial Institution in that Partner Jurisdiction. 

VI. Definitions. The following additional definitions apply to the descriptions above: 

47 
A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial 

Institution with respect to which a non-U.S. government or agency thereof agrees 

to obtain and exchange information pursuant to a Model 1 IGA, other than a 

Financial Institution treated as a Nonparticipating Financial Institution under the 

Model 1 IGA. For purposes of this definition, the term Model 1 IGA means an 

arrangement between the United States or the Treasury Department and a nonU.S. government or one or more agencies thereof to implement FATCA through 

reporting by Financial Institutions to such non-U.S. government or agency 

thereof, followed by automatic exchange of such reported information with the 

IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that 

has agreed to comply with the requirements of an FFI Agreement, including a 

Financial Institution described in a Model 2 IGA that has agreed to comply with 

the requirements of an FFI Agreement. The term Participating FFI also includes a 

qualified intermediary branch of a Reporting U.S. Financial Institution, unless 

such branch is a Reporting Model 1 FFI. For purposes of this definition, the term 

FFI Agreement means an agreement that sets forth the requirements for a 

Financial Institution to be treated as complying with the requirements of section 

1471(b) of the U.S. Internal Revenue Code. In addition, for purposes of this 

definition, the term Model 2 IGA means an arrangement between the United 

States or the Treasury Department and a non-U.S. government or one or more 

agencies thereof to facilitate the implementation ofF ATCA through reporting by 

Financial Institutions directly to the IRS in accordance with the requirements of an 

FFI Agreement, supplemented by the exchange of information between such nonU.S. government or agency thereof and the IRS. 

48