Notification of More Favorable Terms

Article 6 of the Model 2 IGA provides that the United States shall notify its Partner Jurisdictions

of any more favorable terms under Article 3 or Annex I of the IGA afforded to another Partner

Jurisdiction. For informational purposes only, the notification letter sent to Switzerland pursuant 

to this provision is attached. To confirm whether Switzerland has declined the application of any

of the terms in the attached letter, please contact Switzerland.
March 27, 2015

[Name]

[Address]

Dear [ ]:

On behalf of the Government of the United States of America, I am writing to provide you with 

notification pursuant to Article 12 of the Agreement between the United States of America and 

Switzerland for Cooperation to Facilitate the Implementation of FATCA (the “Agreement”), 

done at Bern, on February 14, 2013, as amended by the exchange of notes on March 21 and 27, 

2013, September 6 and 9, 2013, June 10, 2013 and May 21, 2014, and September 25, 2014 and 

January 7, 2015, which reads as follows:

Article 12

Consistency in the Application of FATCA to Partner Jurisdictions

1. Switzerland shall be granted the benefit of any more favorable terms under 

Part C and Annex 1 of this Agreement relating to the application of FATCA to 

Swiss 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 Switzerland described in Part B 

of this Agreement and subject to the same terms and conditions as described 

therein and in Articles 11, 12, 14, and 15 of this Agreement. 

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

and shall apply such more favorable terms 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 Switzerland declines the application thereof.

The Government of the United States of America has signed multiple intergovernmental 

agreements that include provisions that are set forth in the attachment to this letter (the 

“Attachment”). The Attachment uses, as an example, the provisions of the Agreement between

the Government of the United States of America and the Government of Bermuda for

Cooperation to Facilitate the Implementation of FATCA (the “Bermuda IGA”), signed at 

Hamilton, on December 19, 2013. 
I hereby notify you, on behalf of the Government of the United States of America that, to the 

extent the Agreement does not contain identical terms to those in the Attachment, pursuant to 

Article 12 of the Agreement, Switzerland is granted the benefit of such more favorable terms. If 

Switzerland would like to decline the application of any such terms to the Agreement, 

Switzerland should do so by notifying me of this in writing. I request that you provide this 

notification in writing within 90 days if you are declining the application of any such more 

favorable terms to the Agreement. 

Sincerely,
ATTACHMENT

Based on the Bermuda IGA, the United States considers the language in italics to be “more 

favorable,” except in those cases where the Agreement already includes such language:

1. Paragraph 3 of Article 3:

Specific Treatment of Bermuda 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, Bermuda retirement plans 

described in Annex II. 

2. Paragraph 5 of Article 3:

Special Rules Regarding Related Entities and Branches That Are Nonparticipating 

Financial Institutions. If a Bermuda Financial Institution, that otherwise meets the

requirements described in Article 2 of this Agreement 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 FFI solely due to the 

expiration of the transitional rule for limited FFIs and limited branches under relevant 

U.S. Treasury Regulations, such Bermuda Financial Institution shall continue to be treated 

as a participating FFI, deemed-compliant FFI, or exempt beneficial owner, as appropriate, 

for purposes of section 1471 of the U.S. Internal Revenue Code, provided that:

3. Paragraph 6 of Article 3:

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, Bermuda may use, and may permit Bermuda 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.

4. Subparagraph B(2) of Section I of Annex I:

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 in the case of a Cash Value 

Insurance Contract or an Annuity Contract, as of the last day of the calendar year or the 

most recent contract anniversary date.
5. Subparagraph C of Section I of Annex I:

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

Bermuda Financial Institutions may rely on the procedures described in relevant U.S. 

Treasury Regulations to establish whether an account is a U.S. Account or an account held by 

a Nonparticipating Financial Institution, except that if an account is treated as held by a 

recalcitrant account holder under procedures described in relevant U.S. Treasury Regulations, 

such account shall be treated as a U.S. Account for purposes of this Agreement. Reporting 

Bermuda Financial Institutions may 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). Except as otherwise provided in an FFI Agreement, once a 

Reporting Bermuda Financial Institution has chosen to rely on the procedures in relevant U.S. 

Treasury Regulations with respect to any group of accounts, such Reporting Bermuda 

Financial Institution must continue to apply such procedures consistently in all subsequent 

years, unless there has been a material modification to relevant U.S. Treasury Regulations. 

6. Subparagraph A of Section II of Annex I:

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

Reporting Bermuda Financial Institution elects otherwise, either with respect to all 

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

group of such accounts, the following Preexisting Individual Accounts are not required to 

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

7. Subparagraph B(1)(g) of Section II of Annex I:

An “in-care-of” or “hold mail” address that is the sole address the Reporting Bermuda

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.

8. Subparagraph B(4)(b)(2) of Section II of Annex I:

Documentary evidence, as defined in paragraph D of section VI of this Annex I, 

establishing the Account Holder’s non-U.S. status.

9. Subparagraph F of Section II of Annex I:

Preexisting Individual Accounts That Have Been Documented for Certain Other 

Purposes. A Reporting Bermuda 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.

10. Subparagraph A of Section III of Annex I:

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

Reporting Bermuda Financial Institution elects otherwise, either with respect to all New 

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

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

identified, or reported as U.S. Accounts:

11. Subparagraph A of Section IV of Annex I:

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

Reporting Bermuda Financial Institution elects otherwise, either with respect to all 

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

such accounts, 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. Account until the account balance or value exceeds $1,000,000.

12. Subparagraph D(2)(b) of Section IV of Annex I:

If the information indicates that the Account Holder is a Financial Institution, or the 

Reporting Bermuda 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. Account.

13. Subparagraph D(3)(a) of Section IV of Annex I:

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

Institution may determine that the Account Holder is a Bermuda Financial Institution or 

other Partner Jurisdiction Financial Institution if the Reporting Bermuda 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 Bermuda Financial Institution, as applicable. In such case, no further review, 

identification, or reporting is required with respect to the account.

14. Subparagraph D(3)(b) of Section IV of Annex I:

If the Account Holder is a Bermuda 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. Account, but payments to the Account Holder must be reported 

consistent with the requirements of an FFI Agreement.
15. Subparagraph A of Section V of Annex I:

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

Reporting Bermuda Financial Institution elects otherwise, either with respect to all New 

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

accounts, 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 Bermuda Financial Institution maintaining such account implements policies 

and procedures to prevent an account balance owed to the Account Holder that exceeds 

$50,000.

16. Subparagraph B(1) of Section V of Annex I:

Subject to subparagraph B(2) of this section, a Reporting Bermuda Financial Institution 

may determine that the Account Holder is an Active NFFE, a Bermuda Financial 

Institution, or other Partner Jurisdiction Financial Institution if the Reporting Bermuda 

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 Bermuda 

Financial Institution, as applicable. 

17. Subparagraph B(2) of Section V of Annex I:

If the Account Holder is a Bermuda 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. Account, but payments to the Account Holder must be reported 

consistent with the requirements of an FFI Agreement.

18. Subparagraph B(2) of Section VI of Annex I:

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 Bermuda or another 

Partner Jurisdiction and that is not a Financial Institution.

19. Subparagraph B(4)(d) of Section VI of Annex I:

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;
20. Subparagraph B(4)(i) of Section VI of Annex I:

The NFFE is an “excepted NFFE” as described in relevant U.S. Treasury Regulations; 

21. Subparagraph B(4)(j)(i) of Section VI of Annex 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;

22. Subparagraph E of Section VI of Annex I:

Alternative Procedures for Financial Accounts Held by Individual Beneficiaries of a 

Cash Value Insurance Contract. A Reporting Bermuda 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. Account unless the Reporting Bermuda Financial 

Institution has actual knowledge, or reason to know, that the beneficiary is a Specified 

U.S. Person. A Reporting Bermuda 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 Bermuda 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 Bermuda Financial Institution has actual knowledge, or 

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

Financial Institution must follow the procedures in subparagraph B(3) of section II of 

this Annex I.

23. Subparagraph F of Section VI of Annex I:

Reliance on Third Parties. Regardless of whether an election is made under paragraph 

C of section I of this Annex I, Reporting Bermuda Financial Institutions may rely on due 

diligence procedures performed by third parties, to the extent provided in an FFI 

Agreement and relevant U.S. Treasury Regulations.