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1

Agreement between the Government of the United States of America and the 

Government of [FATCA Partner] for Cooperation to Facilitate the Implementation of 

FATCA

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

Partner] (each, a “Party,” and together, the “Parties”) desire to conclude an agreement to 

improve their cooperation in combating international tax evasion;

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 [FATCA Partner] is supportive of the underlying policy goal of 

FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that [FATCA Partner] financial 

institutions may not be able to comply with certain aspects of FATCA due to domestic legal 

impediments;

Whereas, intergovernmental cooperation to facilitate FATCA implementation would address 

these issues and reduce burdens for [FATCA Partner] financial institutions;

Whereas, the Parties desire to conclude an agreement to provide for cooperation to facilitate 

the implementation of FATCA based on direct reporting by [FATCA Partner] financial 

institutions to the U.S. Internal Revenue Service, supplemented by the exchange of 

information upon request, subject to the confidentiality and other protections provided for 

herein, including the provisions limiting the use of the information exchanged;

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, but does not include the U.S. Territories. Any reference to a 

“State” of the United States includes the District of Columbia.1

(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.

 1 [The United States prefers not to include a geographic description of the parties as this is unnecessary.]
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(d) The term “[FATCA Partner]” means [full name of FATCA Partner][, 

including ___][, but not including ___].2

(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 [FATCA Partner], [ ].

3

(g) The term “Financial Institution” means a Custodial Institution, a Depository 

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

(h) The term “Foreign Reportable Amount” means, in accordance with relevant 

U.S. Treasury Regulations, a payment of fixed or determinable annual or 

periodical income that would be a withholdable payment if it were from 

sources within the United States.

(i) 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 three-year period that ends on 

December 31 (or the final day of a non-calendar year accounting period) prior 

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

which the entity has been in existence.

(j) The term “Depository Institution” means any Entity that accepts deposits in 

the ordinary course of a banking or similar business. 

(k) 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

 2 [The United States prefers not to include a geographic description of the parties as this is unnecessary; an 

example of a political definition is “Mexico means the United Mexican States.”]

3 [Include the FATCA Partner Competent Authority.]
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3) otherwise investing, administering, or managing funds or money on 

behalf of other persons.

This subparagraph 1(k) 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.

(l) 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.

(m) The term “[FATCA Partner] Financial Institution” means (i) any Financial 

Institution [resident in]/[organized under the laws of]

4 [FATCA Partner], but

excluding any branch of such Financial Institution that is located outside 

[FATCA Partner], and (ii) any branch of a Financial Institution not [resident 

in]/[organized under the laws of] [FATCA Partner], if such branch is located in 

[FATCA Partner].

(n) 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.

(o) The term “Reporting [FATCA Partner] Financial Institution” means any 

[FATCA Partner] Financial Institution that is not a Non-Reporting [FATCA 

Partner] Financial Institution.

(p) The term “Non-Reporting [FATCA Partner] Financial Institution” means 

any [FATCA Partner] Financial Institution, or other Entity resident in [FATCA 

Partner], that is described in Annex II as a Non-Reporting [FATCA Partner]

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].

5

(q) 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 [FATCA Partner] Financial Institution or other Partner Jurisdiction 

Financial Institution other than a Financial Institution treated as a 

Nonparticipating Financial Institution pursuant to paragraph 2 of Article 4 of 

 4 [Select the appropriate classification for Financial Institutions to be treated as FATCA Partner Financial Institutions, either based on their place of residence or place of organization. This decision is usually made based on 

the appropriate concept under FATCA Partner’s tax laws, and where there is no such concept, the legal organization test is generally chosen.]

5 [Some of our partner jurisdictions have expressed the need for a static definition of Non-Reporting FATCA 

Partner Financial Institution, even though we believe that a dynamic approach is preferred to provide flexibility. 

The bracketed language has been included to accommodate jurisdictions that have a need for a static definition.]
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this Agreement or the corresponding provision in an agreement between the 

United States and a Partner Jurisdiction.

(r) The term “New Account” means a Financial Account opened by a Reporting

[FATCA Partner] Financial Institution on or after July 1, 2014.

(s) The term “U.S. Account” means a Financial Account maintained by a 

Reporting [FATCA Partner] 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. Account if such account is not identified 

as a U.S. Account after application of the due diligence procedures in Annex I.

(t) The term “Non-Consenting U.S. Account” means a Financial Account 

maintained by a Reporting [FATCA Partner] Financial Institution as of June 

30, 2014 with respect to which (i) a Reporting [FATCA Partner] Financial 

Institution has determined that it is a U.S. Account in accordance with the due 

diligence procedures in Annex I, (ii) the laws of [FATCA Partner] prohibit the 

reporting required under an FFI Agreement absent consent of the Account 

Holder, (iii) the Reporting [FATCA Partner] Financial Institution has sought, 

but was unable to obtain, the required consent to report or the Account 

Holder’s U.S. TIN; and (iv) the Reporting [FATCA Partner] Financial 

Institution has reported, or was required to report, aggregate account 

information to the IRS as prescribed under sections 1471 to 1474 of the U.S. 

Internal Revenue Code and relevant U.S. Treasury Regulations.

(u) The term “Financial Account” has the meaning set forth in relevant U.S. 

Treasury Regulations, but does not include any account that is excluded from 

the definition of Financial Account in Annex II.

(v) The term “FFI Agreement” means an agreement that sets forth the 

requirements, consistent with this Agreement, for the Reporting [FATCA 

Partner] Financial Institution to be treated as complying with the requirements 

of section 1471(b) of the U.S. Internal Revenue Code. 

(w) 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 
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receive a payment under the contract is treated as an Account Holder.

(x) The terms “Cash Value Insurance Contract” and “Annuity Contract” have 

the meanings set forth in relevant U.S. Treasury Regulations.

(y) 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(y) shall be interpreted in accordance with the U.S. 

Internal Revenue Code.

(z) 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. 

(aa) The term “Entity” means a legal person or a legal arrangement such as a trust. 

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

(cc) 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, [FATCA Partner]
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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.

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

(ee) 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.

Article 2

Reporting and Exchange of Information

1. Directive to [FATCA Partner] Financial Institutions. [FATCA Partner] shall direct 

and enable all Reporting [FATCA Partner] Financial Institutions to:

a) register on the IRS FATCA registration website with the IRS by July 1, 2014, and 

comply with the requirements of an FFI Agreement, including with respect to due 

diligence, reporting, and withholding;

b) with respect to Financial Accounts maintained by Reporting [FATCA Partner] 

Financial Institutions as of June 30, 2014 identified as U.S. Accounts,

(i) request from each Account Holder the Account Holder’s U.S. TIN and 

consent to report [and simultaneously inform the Account Holder in writing

that, if the U.S. TIN and consent are not given, (1) aggregate information 

about the account shall be reported to the IRS, (2) information about the 

account may give rise to a group request by the IRS for specific 

information about the account, (3) in such case, the account information 

shall be transmitted to the [FATCA Partner] tax administration, and (4) the 

[FATCA Partner] tax administration may exchange this information with 

the IRS in accordance with paragraph 2 of this Article];

6

(ii) report annually to the IRS, in the time and manner required by an FFI 

Agreement and relevant U.S. Treasury Regulations, the aggregate 

information required with respect to Non-Consenting U.S. Accounts;

 6 [The bracketed language would be included in agreements with jurisdictions where such notification is 

required.]
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c) with respect to accounts of, or obligations to, Nonparticipating Financial 

Institutions that exist as of June 30, 2014, and in connection with which the 

Reporting [FATCA Partner] Financial Institution expects to pay a Foreign 

Reportable Amount,

(i) with respect to calendar years 2015 and 2016, request from each such

Nonparticipating Financial Institution the Nonparticipating Financial 

Institution’s consent to report [and simultaneously inform the 

Nonparticipating Financial Institution in writing that, if such consent is not 

given, (1) aggregate information about Foreign Reportable Amounts paid 

to the Nonparticipating Financial Institution shall be reported to the IRS, 

(2) such information may give rise to a group request by the IRS for 

specific information about the account or obligation, (3) in such case, the 

information about the account or obligation shall be transmitted to the 

[FATCA Partner] tax administration, and (4) the [FATCA Partner] tax 

administration may exchange this information with the IRS in accordance 

with paragraph 2 of this Article];

7

(ii) with respect to calendar years 2015 and 2016, report to the IRS the number 

of non-consenting Nonparticipating Financial Institutions to which Foreign 

Reportable Amounts were paid during the year and the aggregate value of 

all such payments no later than March 15 of the year following the year to 

which the information relates;

d) with respect to New Accounts identified as U.S. Accounts, obtain from each 

Account Holder consent to report, consistent with the requirements of an FFI 

Agreement, as a condition of account opening; and

e) with respect to new accounts opened by, or obligations entered into with, a 

Nonparticipating Financial Institution on or after July 1, 2014, and in connection 

with which the Reporting [FATCA Partner] Financial Institution expects to pay a 

Foreign Reportable Amount, obtain from each such Nonparticipating Financial 

Institution consent to report, consistent with the requirements of an FFI 

Agreement, as a condition of opening the account, or entering into the obligation.

2. Exchange of Information.

a) In the context of FATCA implementation, the U.S. Competent Authority may make 

group requests to the [FATCA Partner] Competent Authority based on the 

aggregate information reported to the IRS pursuant to the directive described in 

subparagraphs 1(b)(ii) and 1(c)(ii) of this Article, for all the information about 

Non-Consenting U.S. Accounts and Foreign Reportable Amounts paid to

Nonparticipating Financial Institutions that the Reporting [FATCA Partner]

Financial Institution would have had to report under an FFI Agreement had it 

obtained consent.

 7 [See footnote 6.]
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b) The U.S. Competent Authority may also make follow-up requests to the [FATCA 

Partner] Competent Authority for additional information with respect to a NonConsenting U.S. Account, including the account statements prepared in the 

ordinary course of the Reporting [FATCA Partner] Financial Institution’s business 

that summarize the activity (including withdrawals, transfer, and closures) of the 

account.

c) The [FATCA Partner] Competent Authority shall provide to the U.S. Competent 

Authority the information requested by the U.S. Competent Authority pursuant to 

subparagraphs 2(a) and 2(b) of this Article without regard to whether the [FATCA 

Partner] Competent Authority needs such information for its own tax purposes or 

whether the information relates to the investigation of conduct that would 

constitute a crime under the laws of [FATCA Partner] if such conduct occurred in 

[FATCA Partner]. If the information in the possession of the [FATCA Partner] 

Competent Authority is not sufficient to enable it to comply with the request for 

information, the [FATCA Partner] Competent Authority shall use all relevant 

information gathering measures to provide the U.S. Competent Authority with the 

information requested. Privileges under the laws and practices of the United States 

shall not apply in the execution of a request by the [FATCA Partner] Competent 

Authority and the availability and application of any such privileges shall be solely 

the responsibility of the United States.

d) With respect to a group request from the U.S. Competent Authority described in 

subparagraph 2(a) of this Article, the [FATCA Partner] Competent Authority shall, 

within six months of the receipt of the group request, provide the U.S. Competent 

Authority with all such requested information in the same format in which the 

information would have been reported if it had been reported directly to the IRS by 

the Reporting [FATCA Partner] Financial Institution. The [FATCA Partner] 

Competent Authority shall notify the U.S. Competent Authority and the relevant 

Reporting [FATCA Partner] Financial Institution if there will be any delay in the 

exchange of the requested information. In such case, the provisions of 

subparagraph 2(b) of Article 3 of this Agreement shall apply with respect to the 

Reporting [FATCA Partner] Financial Institution, and the [FATCA Partner] 

Competent Authority must exchange the requested information with the U.S. 

Competent Authority as soon as possible.

e) Notwithstanding subparagraph 2(a) of this Article, the [FATCA Partner] 

Competent Authority is not required to obtain and exchange the U.S. TIN of 

the Account Holder of a Non-Consenting U.S. Account if such U.S. TIN is not 

in the records of the Reporting [FATCA Partner] Financial Institution. In such 

a case, the [FATCA Partner] Competent Authority shall obtain and include in 

the exchanged information the date of birth of the relevant person, if the 

Reporting [FATCA Partner] Financial Institution has such date of birth in its 

records.

f) Requests pursuant to subparagraphs 2(a) and 2(b) of this Article shall apply to 

information for the time period beginning on or after the date of signature of 

this Agreement.
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Article 3

Application of FATCA to [FATCA Partner] Financial Institutions

1. Treatment of Reporting [FATCA Partner] Financial Institutions. Subject to the 

provisions of paragraph 2 of Article 4 of this Agreement, each Reporting [FATCA Partner]

Financial Institution that registers with the IRS on the IRS FATCA registration website and 

complies with the terms of an FFI Agreement shall be treated as complying with the 

requirements of, and as not subject to withholding under, section 1471 of the U.S. Internal 

Revenue Code.

2. Suspension of Rules Relating to Non-Consenting U.S. Accounts. 

a) Subject to subparagraph 2(b) of this Article, the United States shall not require a 

Reporting [FATCA Partner] 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:

(i) the Reporting [FATCA Partner] Financial Institution complies with the 

directives in paragraph 1 of Article 2 of this Agreement with respect to the 

account; and

(ii) the [FATCA Partner] Competent Authority exchanges with the U.S. 

Competent Authority the requested information described in subparagraph 

2(a) of Article 2 of this Agreement within six months from the date of the 

receipt of such request.

b) If the condition of subparagraph 2(a)(ii) of this Article is not fulfilled, the 

Reporting [FATCA Partner] Financial Institution shall be required to treat the 

account as held by a recalcitrant account holder as defined in relevant U.S. 

Treasury Regulations, including by withholding tax where required by those U.S. 

Treasury Regulations, beginning on the date that is six months after the date of the 

receipt of the request described in subparagraph 2(a) of Article 2 of this Agreement 

and ending on the date on which the [FATCA Partner] Competent Authority 

exchanges the requested information with the U.S. Competent Authority.

3. Specific Treatment of [FATCA Partner] 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, [FATCA Partner] retirement plans 

described in Annex II. For this purpose, a [FATCA Partner] retirement plan includes an Entity 

established or located in, and regulated by, [FATCA Partner], 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 [FATCA Partner] and regulated with respect to 

contributions, distributions, reporting, sponsorship, and taxation. 

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

Beneficial Owners. The United States shall treat each Non-Reporting [FATCA Partner]

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.
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5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a [FATCA Partner] 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 Financial Institution 

solely due to the expiration of the transitional rule for limited FFIs and limited branches under 

relevant U.S. Treasury Regulations, such [FATCA Partner] 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:

a) the [FATCA Partner] Financial Institution treats each such Related Entity or branch 

as a separate Nonparticipating Financial Institution 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 to the 

IRS 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 Related Entity or branch is 

located, and such Related Entity or branch is not used by the [FATCA Partner]

Financial Institution or any other Related Entity to circumvent the obligations 

under this Agreement or under section 1471 of the U.S. Internal Revenue Code, as 

appropriate.

6. Coordination of 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, [FATCA Partner] may use, and may permit [FATCA Partner] 

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.

Article 4

Verification and Enforcement

1. Minor and Administrative Errors. Consistent with the terms of an FFI Agreement, 

the U.S. Competent Authority may make an inquiry directly to a Reporting [FATCA Partner]

Financial Institution where it has reason to believe that administrative errors or other minor 

errors may have led to incorrect or incomplete information reporting inconsistent with the 

requirements of an FFI Agreement. [The competent authority agreement or arrangement may

provide that the U.S. CompetentAuthority would notify the [FATCA Partner] Competent

Authority when the U.S. CompetentAuthority makes such an inquiry of a Reporting [FATCA 
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11

Partner] Financial Institution regarding the Reporting [FATCA Partner] Financial Institution’s 

compliance with the conditions set forth in thisAgreement.]

8

2. Significant Non-Compliance. The U.S. Competent Authority shall notify the 

[FATCA Partner] Competent Authority when the U.S. Competent Authority has determined 

that there is significant non-compliance with the requirements of an FFI Agreement or this 

Agreement with respect to a Reporting [FATCA Partner] Financial Institution. If the noncompliance is not resolved within a period of 12 months after notification of significant noncompliance is first provided by the U.S. Competent Authority, the United States shall treat the 

Reporting [FATCA Partner] Financial Institution as a Nonparticipating Financial Institution 

pursuant to this paragraph 2. 

3. Competent Authority [Consultation]/[Agreement or Arrangement]. [The 

Competent Authorities of [FATCA Partner] and the United States may consult on notified 

cases of significant non-compliance pursuant to paragraph 2 of this Article.]/[The Competent 

Authorities of [FATCA Partner] and the United States shall enter into an agreement or 

arrangement under the mutual agreement procedure provided for in Article 7 of this 

Agreement which shall:

a) establish the procedures for the exchange of information described in paragraph 2 

of Article 2 of this Agreement; and

b) prescribe rules and procedures as may be necessary to implement this Article.]9

4. Reliance on Third Party Service Providers. In accordance with the provisions of an

FFI Agreement and relevant U.S. Treasury Regulations, Reporting [FATCA Partner] Financial 

Institutions may use third party service providers to fulfill the requirements of an FFI 

Agreement, but these requirements shall remain the responsibility of the Reporting [FATCA 

Partner] Financial Institutions.

[Article 5

Mutual Commitment to Continue to Enhance the Effectiveness of Information

Exchange and Transparency

1. 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.]

10

Article 6

Consistency in the Application of FATCA to Partner Jurisdictions

 8 [Consider whether the competent authority agreement or arrangement should provide for this notification described in the bracketed language.]

9 [Consider whether the Competent Authorities want to consult on cases of significant non-compliance or enter 

into an agreement or arrangement prescribing the rules and procedures to implement Art. 4 and the procedures 

for exchange of information described in para. 2 of Art. 2.]

10 [Consider whether to include this Art. 5.]
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1. [FATCA Partner] shall be granted the benefit of any more favorable terms under 

Article 3 or Annex I of this Agreement relating to the application of FATCA to [FATCA 

Partner] 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 [FATCA Partner] described in Article 2 of this Agreement, and subject to the 

same terms and conditions as described therein and in Articles 4, 6, 9, and 10 of this 

Agreement. 

2. The United States shall notify [FATCA Partner] of any such more favorable terms,

and such more favorable terms shall apply automatically under this Agreement as if such 

terms were specified in this Agreement and effective as of the date of signing of the agreement incorporating the more favorable terms, unless [FATCA Partner] declines in writing the 

application thereof. 

Article 7

Mutual Agreement Procedure

1. Where difficulties or doubts arise between the Parties regarding the implementation, 

application, or interpretation of this Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement.

2. The Competent Authorities may adopt and implement procedures to facilitate the 

implementation of this Agreement.

3. The Competent Authorities may communicate with each other directly for purposes of 

reaching a mutual agreement under this Article.

Article 8

Confidentiality

1. The [FATCA Partner] Competent Authority shall treat any information received from 

the United States pursuant to paragraph 2 of Article 2 and Article 4 of this Agreement as 

confidential and shall only disclose such information as may be necessary to carry out its 

obligations under this Agreement. Such information may be disclosed in connection with 

court proceedings related to the performance of the obligations of [FATCA Partner] under this 

Agreement.

2. Information provided to the U.S. Competent Authority pursuant paragraph 2 of Article 

2 and Article 4 of this Agreement shall be treated as confidential and may be disclosed only to 

persons or authorities (including courts and administrative bodies) of the Government of the 

United States concerned with the assessment, collection, or administration of, the enforcement 

or prosecution in respect of, or the determination of appeals in relation to, U.S. federal taxes, 

or the oversight of such functions. Such persons or authorities shall use such information 

only for such purposes. Such persons may disclose the information in public court 

proceedings or in judicial decisions. The information may not be disclosed to any other 

person, entity, authority, or jurisdiction. Notwithstanding the foregoing, where [FATCA 

Partner] provides prior, written consent, the information may be used for purposes permitted 

under the provisions of a mutual legal assistance treaty in force between the Parties that 

allows for the exchange of tax information.
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Article 9

Consultations and Amendments

1. In case any difficulties in the implementation or interpretation of this Agreement arise, 

either Party may, independently of the mutual agreement procedure described in paragraph 1 

of Article 7 of this Agreement, 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 11 of this Agreement.

Article 10

Annexes

The Annexes form an integral part of this Agreement.

Article 11

Term of Agreement

1. This Agreement shall enter into force on the date of [FATCA Partner]’s written 

notification to the United States that [FATCA Partner] has completed its necessary internal 

procedures for entry into force of this Agreement. 

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. If this Agreement is terminated, both Parties shall remain bound by the provisions of 

Article 8 of this Agreement with respect to any information obtained under 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 [FATCA Partner] languages,11 both texts

being equally authentic, this [__] day of [_____], 20[__].

 11 [Note that it is possible to sign in English, with an official FATCA Partner language version agreed at a later 

date. This permits signature at an earlier date and was the approach taken by Switzerland.]
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FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF [FATCA 

PARTNER]: