AGREEMENT 

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF 

AMERICA 

AND 

THE GOVERNMENT OF THE FRENCH REPUBLIC 

TO IMPROVE INTERNATIONAL TAX COMPLIANCE 

AND TO IMPLEMENT FATCA
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Whereas, the Government of the United States of America and the Government of the 

French Republic (each, a “Party,” and together, the “Parties”) have a longstanding and 

close relationship with respect to mutual assistance in tax matters and desire to conclude 

an agreement to improve international tax compliance by further building on that 

relationship;

Whereas, Article 27 of the Convention between the Government of the French Republic 

and the Government of the United States of America for the Avoidance of Double 

Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and 

Capital, done at Paris on August 31, 1994, as amended by the Protocols, signed at 

Washington on December 8, 2004 and at Paris on January 13, 2009 (the “Convention”) 

authorizes 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 (“FATCA”), which introduce a reporting regime for 

financial institutions with respect to certain accounts;

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

goal of FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that French Financial 

Institutions may not be able to comply with certain aspects of FATCA 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 residents of France and 

is committed to exchanging such information with the Government of the French Republic 

and pursuing equivalent levels of exchange;

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 French Financial Institutions to avoid duplicative reporting;

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for French Financial Institutions;
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Whereas, the Parties desire to conclude an agreement to improve international tax 

compliance and provide for the implementation of FATCA 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 has 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 “France” means the French Republic and, when used in a 

geographical sense, means the European and Overseas Departments of the 

French Republic and includes the territorial sea and any area outside the 

territorial sea within which, in accordance with international law, the 

French Republic has sovereign rights for the purpose of exploring and 

exploiting the natural resources of the seabed and its subsoil and the 

superjacent waters.
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e) The term “Partner Jurisdiction” means a jurisdiction that has in effect an 

agreement with the United States to facilitate the implementation of 

FATCA. 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 France, the Minister in charge of Finance or his 

authorized 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 of the entity’s gross income during the shorter of: (i) the threeyear 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.
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This subparagraph 1(j) 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.

l) The term “French Financial Institution” means (i) any Financial 

Institution resident in France, but excluding any branch of such Financial 

Institution that is located outside France, and (ii) any branch of a Financial 

Institution not resident in France, if such branch is located in France.

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 French 

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

context requires.

o) The term “Reporting French Financial Institution” means any French 

Financial Institution that is not a Non-Reporting French Financial 

Institution.

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 French Financial Institution” means any 

French Financial Institution, or other Entity resident in France that is 

identified in Annex II as a Non-Reporting French Financial Institution or 

that otherwise qualifies as a deemed-compliant FFI or an exempt beneficial 

owner under relevant U.S. Treasury Regulations in effect on the date of 

signature of this Agreement.
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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 French 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 

interests 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 1(s)(1) 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 

noninvestment-linked, nontransferable immediate life annuity that 

is issued to an individual and monetizes a pension or disability 

benefit provided under an account, product, or arrangement 

identified as excluded from the definition of Financial Account in 

Annex II.
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Notwithstanding the foregoing, the term “Financial Account” does not 

include any account, product, or arrangement identified as excluded from 

the definition of Financial Account in Annex II. For purposes of this 

Agreement, interests are “regularly traded” if 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).
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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 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; 
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(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 

French Reportable Account, as the context requires.

ab) The term “ French 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 France 

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 France, including an Entity 

that certifies that it is resident in France 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.

ac) The term “U.S. Reportable Account” means a Financial Account 

maintained by a Reporting French 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 identified as a U.S. Reportable Account after 

application of the due diligence procedures in Annex I.
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ad) 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.

ae) 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(ae) shall be 

interpreted in accordance with the U.S. Internal Revenue Code.
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af) 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 of 

the 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) of 

the 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 

section 4947(a)(1) 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(g) of the U.S. Internal Revenue Code.

ag) The term “Entity” means a legal person or a legal arrangement such as a 

trust. 

ah) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person.

ai) 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.
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aj) 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, 

France 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) of the U.S. Internal Revenue Code.

ak) The term “U.S. TIN” means a U.S. federal taxpayer identifying number.

al) The term “French TIN” means a French taxpayer identifying number (that 

is, SIRET number).

am) 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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ARTICLE 2

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 27 of the Convention.

2. The information to be obtained and exchanged is:

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

Reporting French 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 French 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 
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(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 French Financial Institution acted as a 

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

Account Holder;

(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 French 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 French Reportable 

Account of each Reporting U.S. Financial Institution :

(1) the name, address, and, with respect to a French entity, the French 

TIN or, with respect to a French individual, the date of birth (but if 

France assigns a French TIN to French individuals, the French 

TIN), of any person that is a resident of France 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.
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ARTICLE 3

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 France’s tax laws, and the amount and 

characterization of payments made with respect to a French 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:

a) In the case of France:

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

is only the information described in subparagraphs 2(a)(1) through 

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

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

is the information described in subparagraphs 2(a)(1) through 

2(a)(7) of Article 2 of this Agreement, except for gross proceeds 

described in subparagraph 2(a)(5)(B) of Article 2 of this 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)(1) 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 2014 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 French 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.
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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 France and the United States shall enter into an 

arrangement under the mutual agreement procedure provided for in Article 26 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.

ARTICLE 4

APPLICATION OF FATCA TO FRENCH FINANCIAL INSTITUTIONS

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

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

under, section 1471 of the U.S. Internal Revenue Code if France complies with its 

obligations under Articles 2 and 3 of this Agreement with respect to such Reporting 

French Financial Institution, and the Reporting French Financial Institution:

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

Competent Authority 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 2015 and 2016, reports annually to the French Competent 

Authority 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 FATCA

registration website;
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d) to the extent that a Reporting French 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 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 of the 

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 

of the 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 French 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 French 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 French 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 

French 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 French 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 French Retirement Plans. The United States shall treat as 

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

sections 1471 and 1472 of the U.S. Internal Revenue Code, French retirement plans 

identified in Annex II. For this purpose, a French retirement plan includes an Entity 

established or located in, and regulated by, France, 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 France and regulated with respect to 

contributions, distributions, reporting, sponsorship, and taxation.
- 18 -

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

Beneficial Owners. The United States shall treat each Non-Reporting French 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 French 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 of the U.S. 

Internal Revenue Code or has 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 

French Financial Institution shall continue to be in compliance with the terms of this 

Agreement and shall continue to be treated as a deemed-compliant FFI or exempt 

beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue 

Code, provided that:

a) the French 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 

1471 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 branch or 

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

the French 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.
- 19 -

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

Agreement: 

a) France 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) France 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 France 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 France 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, France may use, and may permit French Financial 

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

corresponding definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement.
- 20 -

ARTICLE 5

COLLABORATION ON COMPLIANCE AND ENFORCEMENT

1. Minor and Administrative Errors. Subject to any further terms set forth in a 

competent authority arrangement concluded pursuant to paragraph 6 of Article 3 of this 

Agreement, 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 French 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 French Financial Institution as a 

Nonparticipating Financial Institution.

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

Financial Institutions to use third party service providers to fulfill the obligations imposed 

on them 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.
- 21 -

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 France. The 

Government of the United States is committed to further improve transparency and 

enhance the exchange relationship with France by pursuing the adoption of regulations 

and advocating and 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, with respect to French entities, 

the French TIN, and, with respect to individuals, the date of birth (but if 

France assigns a French TIN to French individuals, the French TIN) of each 

Account Holder of a French Reportable Account as required pursuant to 

subparagraph 2(b)(1) of Article 2 of this Agreement; and

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

to 2017 and subsequent years, rules requiring Reporting French Financial 

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

required pursuant to subparagraph 2(a)(1) of Article 2 of this Agreement.
- 22 -

ARTICLE 7

CONSISTENCY IN THE APPLICATION OF FATCA TO PARTNER 

JURISDICTIONS 

1. France shall be granted the benefit of any more favorable terms under Article 4 or 

Annex I of this Agreement relating to the application of FATCA to French 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 France 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 France of any such more favorable terms, and such 

more favorable terms shall apply automatically under this Agreement as if they 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 France declines the application 

thereof.

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 fulfillment 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 1 of Article 10 of this Agreement.

ARTICLE 9

ANNEXES

The Annexes form an integral part of this Agreement.
- 23 -

ARTICLE 10

TERM OF AGREEMENT

1. The Parties shall notify each other in writing when their necessary internal 

procedures for entry into force have been completed. The Agreement shall enter into force 

on the date of the later of such written notifications, and shall continue in force until

terminated.

2. Either Party may terminate this Agreement by giving notice of termination 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 of the notice of 

termination.

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 , in duplicate, in the English and French languages, both texts 

being equally authentic, this day of , 2013.

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF

THE FRENCH REPUBLIC:
- 24 -

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. France shall require that Reporting French 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 
- 25 -

following the year to which the information relates.

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

Annex I, France may permit Reporting French 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. France may permit Reporting French 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”).

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

the Reporting French 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 France 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 France 

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 France requires reporting or withholding with 

respect to insurance products held by residents of France).

4. A Depository Account with a balance of $50,000 or less.
- 26 -

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 French Financial 

Institution must review electronically searchable data maintained by the 

Reporting French 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 of birth;

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

g) An “in-care-of” or “hold mail” address that is the sole

address the Reporting French 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(1) 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(1) 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 French Financial Institution must treat the 
- 27 -

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(1) 

of this section, a Reporting French 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 French 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 that are the only telephone numbers associated with the 

account, the Reporting French 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
- 28 -

(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 French 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 French 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. 
- 29 -

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 U.S. indicia described in subparagraph B(1) of this section being 

associated with the account, then the Reporting French Financial Institution 

must treat the account as a U.S. Reportable Account unless 

subparagraph B(4) of this section applies.

3. 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.

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 French Financial 

Institution must review electronically searchable data maintained by the 

Reporting French Financial Institution for any of the U.S. indicia described 

in subparagraph B(1) of this section.

2. Paper Record Search. If the Reporting French 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 French 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 French Financial Institution within 

the last five years for any of the U.S. indicia described in 

subparagraph B(1) of this 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 

French Financial Institution pursuant to AML/KYC Procedures or 
- 30 -

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 French Financial Institution is not required to perform the paper 

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

Reporting French Financial Institution’s electronically searchable 

information includes the following:

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 French Financial 

Institution;

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

if any, with the Reporting French 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 French 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. 
- 31 -

4. Relationship Manager Inquiry for Actual Knowledge. In 

addition to the electronic and paper record searches described above, the 

Reporting French 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(1) 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(1) 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 French 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. 
- 32 -

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 French 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 French 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 French 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 French 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 French 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 French Financial Institution applies the enhanced 

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

Account, the Reporting French Financial Institution is not required to reapply 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.
- 33 -

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 

French 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 French 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 French 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.

F. Preexisting Individual Accounts That Have Been Documented for

Certain Other Purposes. A Reporting French 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 fulfill 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(1) 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 French 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 France 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 
- 34 -

$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 French Financial 

Institution must obtain a self-certification, which may be part of the account 

opening documentation, that allows the Reporting French 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 French 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 French 

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

and obtain a self-certification 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 French Financial Institution 

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

incorrect or unreliable, the Reporting French Financial Institution cannot 

rely on the original self-certification and must obtain a valid selfcertification that establishes whether the Account Holder is a U.S. citizen or 

resident for U.S. tax purposes. If the Reporting French Financial Institution 

is unable to obtain a valid self-certification, the Reporting French Financial 

Institution must treat the account as a U.S. Reportable Account.
- 35 -

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 French 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 France 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. Entity 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 French Competent Authority.

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting French 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:
- 36 -

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 

AML/KYC 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 

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 French 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 Financial 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 French 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. 
- 37 -

3. Determine Whether a Financial Institution Is a 

Nonparticipating Financial Institution Payments to Which Are Subject 

to Aggregate Reporting Under Subparagraph 1(b) of Article 4 of the 

Agreement.

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

French Financial Institution may determine that the Account Holder 

is a French Financial Institution or other Partner Jurisdiction 

Financial Institution if the Reporting French 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 French 

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 French 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 French Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

French Financial Institution must treat the Account Holder as a 

Nonparticipating Financial Institution payments to which are 

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

unless the Reporting French 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

deemed-compliant 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. 
- 38 -

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 French 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 French 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 French 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 French 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 French 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 Account held by one or more NFFEs with 

an account balance or value that exceeds $1,000,000. 
- 39 -

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 French 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 French 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 French 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 France 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 French 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 
- 40 -

described in paragraph A of this section, the Reporting French Financial Institution 

must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a 

French 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 French 

Financial Institution may determine that the Account Holder is an Active 

NFFE, a French Financial Institution, or other Partner Jurisdiction 

Financial Institution if the Reporting French 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 French Financial Institution, as applicable. 

2. If the Account Holder is a French 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.

3. In all other cases, a Reporting French 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 French Financial Institution must treat the account as a 

U.S. Reportable Account.

b) If the Account Holder is a Passive NFFE, the Reporting 

French 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 self-certification from the Account Holder or such person. If any 

such person is a U.S. citizen or resident, the Reporting French 

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

Account.
- 41 -

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 French 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 French 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.

VI. Special Rules and Definitions. The following additional rules and definitions 

apply in implementing the due diligence procedures described above:

A. Reliance on Self-Certifications and Documentary Evidence. A 

Reporting French Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting French 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 French Financial Institution 

pursuant to the anti-money laundering or similar requirements of 

France to which such Reporting French 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)(j) of this section, and also includes any Non-U.S. 

Entity that is established in France or another Partner Jurisdiction and 

that is not a Financial Institution.
- 42 -

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 income 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 established 

securities market;

c) The NFFE is organized in a U.S. Territory and all of the owners 

of the payee are bona fide residents of that 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 of the activities of the NFFE consist of holding 

(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 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;
- 43 -

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:

i. 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;
- 44 -

iv. 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 noncharitable 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 

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, 

2014.

C. Account Balance Aggregation and Currency Translation Rules.

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of Financial Accounts held by an individual, 

a Reporting French Financial Institution is required to aggregate all 

Financial Accounts maintained by the Reporting French Financial 

Institution, or by a Related Entity, but only to the extent that the Reporting 

French 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 1.
- 45 -

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting French Financial Institution is required to take into account all 

Financial Accounts that are maintained by the Reporting French Financial 

Institution, or by a Related Entity, but only to the extent that the Reporting 

French 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 French 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 French Financial Institution must convert 

the U.S. dollar threshold amounts described in this Annex I into such 

currency using a published spot rate determined as of the last day of the 

calendar year preceding the year in which the Reporting French Financial 

Institution is determining the balance or value.

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the 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.
- 46 -

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 French 

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 French Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person. A 

Reporting French 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 French Financial Institution and associated with the 

beneficiary contains U.S. indicia as described in subparagraph (B)(1) of section II 

of this Annex I. If a Reporting French Financial Institution has actual knowledge, 

or reason to know, that the beneficiary is a Specified U.S. Person, the Reporting 

French 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, France may permit Reporting 

French Financial Institutions to rely on due diligence procedures performed by 

third parties, to the extent provided in relevant U.S. Treasury Regulations.
- 47 -

ANNEX II

NON-REPORTING FRENCH FINANCIAL INSTITUTIONS 

AND PRODUCTS

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.

I. Exempt Beneficial Owners. The following Entities are treated as Non-Reporting 

French Financial Institutions and as exempt beneficial owners for purposes of sections 

1471 and 1472 of the U.S. Internal Revenue Code:

A. Governmental Entities

The French Government, any local or territorial authority thereof and any wholly 

owned agency or instrumentality of any one or more of the foregoing.

B. Central Bank

The French Central Bank and any of its wholly owned subsidiaries

C. International Organizations

Any intergovernmental (including a supranational organization) recognized in reference to 

French statute or regulation or that has an international headquarters agreement with 

France.

D. Retirement Funds

Caisses de retraites.

E. Other Entities

Caisses de congés payés.
- 48 -

II. Deemed-Compliant Financial Institutions. The following Financial Institutions 

are Non-Reporting French Financial Institutions that are treated as deemed-compliant FFIs 

for purposes of section 1471 of the U.S. Internal Revenue Code. In addition, paragraph C 

of this section provides special rules applicable to an Investment Entity.

A. Financial Institutions with a Local Client Base

A French Financial Institution that meets all of the following requirements:

1. The Financial Institution must be licensed and regulated as a financial 

institution under the laws of France; 

2. The Financial Institution must have no fixed place of business outside 

France. 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 France. For this purpose, a Financial Institution shall not be 

considered to have solicited customers or Account Holders outside of 

France 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 non-residents, 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 France 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 non-residents, and does not otherwise target or 

solicit U.S. customers or Account Holders;

4. The Financial Institution must be required under the tax laws of France 

to identify resident Account Holders for purposes of either information 

reporting or withholding of tax with respect to Financial Accounts held by 

residents of France or for purposes of satisfying France’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 France or another Member State of the European Union; 
- 49 -

6. Subject to subparagraph 7, below, 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 Institution opens or 

maintains a Financial Account for (i) any Specified U.S. Person who is not 

a resident of France (including a U.S. Person that was a resident of France 

when the Financial Account was opened but subsequently ceases to be a 

resident of France), or (ii) any Passive NFFE with Controlling Persons who 

are U.S. citizens who are not residents of France or U.S. residents;

7. Beginning on or before July 1, 2014, such policies and procedures must 

provide that if any Financial Account held by a person described in 

subparagraph 6 is identified, the Financial Institution must report such 

Financial Account as would be required if the Financial Institution were a 

Reporting French Financial Institution (including by following the 

applicable registration requirements on the IRS FATCA registration 

website) or close such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a 

resident of France 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 French Financial Institution 

(including by following the applicable registration requirements on the IRS 

FATCA registration website) or close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial 

Institution must be incorporated or organized in France and, with the 

exception of any Related Entity that is a retirement fund described in 

paragraph D of section I of this Annex II, must meet 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 who are residents of 

France.
- 50 -

B. Certain Collective Investment Vehicles 

An Investment Entity established in France that is regulated as a collective 

investment vehicle, as well as the “sociétés de crédit foncier” and the 

“sociétés de financement de l’habitat,” 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. 

C. Specific 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 B 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:

(i) 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

(ii) an Investment Entity that is a qualified collective 

investment vehicle under relevant U.S. Treasury 

Regulations, 
- 51 -

the reporting obligations of any Investment Entity that is a 

French 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 

France that is not described in paragraph B or subparagraph C(2) of 

this section, consistent 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.

D. FCPE and SICAVAS Collective Investment Vehicles

An Investment Entity the sole purpose of which is to invest funds

established under employee savings accounts described in subparagraph B 

of section III of this Annex II.

III. Accounts Excluded from Financial Accounts. The following accounts and 

products established in France and maintained by a French Financial Institution are 

excluded from the definition of Financial Accounts and therefore are not treated as U.S. 

Reportable Accounts:

A. Certain Retirement Accounts or Products

- Products called « Article 82 » , « Article 83 », « Madelin, “Madelin 

agricole”, “Perp, Pere and Prefon”

- Products called « Article 39 » 

B. Certain Other Tax-Favored Accounts or Products

Regulated savings accounts

- Livret A and Livret Bleu 

- Livret de Développement Durable 

- Livret d’Epargne Populaire

- Livret Jeune 

- Plan d’Epargne Logement and Compte d’Epargne Logement 

- Plan d’épargne populaire / PEP
- 52 -

Employee savings accounts

- Accords de participation 

- Plan d’épargne d’entreprise / PEE and Plan d’épargne 

interentreprises / PEI 

- Plan d’épargne pour la retraite collectif / PERCO and Plan 

d’épargne pour la retraite collectif interentreprises / PERCOI

- Compte courant bloqué