Exchange of Information (United States of America) (FATCA)

L.N. 78 of 2014

INCOME TAX ACT

(CAP. 123)

Exchange of Information (United States of America) (FATCA)

Order, 2014

IN exercise of the powers conferred by article 76 of the Income

Tax Act, the Minister for Finance has made the following order:-

The title of this order is the Exchange of Information

(United States of America) (FATCA) Order, 2014.

Article 2

Agreement

between the

Government of the Republic of Malta

and the

Government of the United States of America

to Improve International Tax Compliance and to Implement the

Foreign Account Tax Compliance Act

Whereas, the Government of the Republic of Malta and the Government of

the United States of America (each, a "Party," and together, the "Parties") desire to

conclude an agreement to improve international tax compliance through mutual

assistance in tax matters based on an effective infrastructure for the automatic

exchange of information;

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

Republic of Malta 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, done at Valletta on August 8, 2008 ("the Convention")

authorises the exchange of information for tax purposes, including on an automatic

basis;

Whereas, the United States of America enacted provisions commonly known

as the Foreign Account Tax Compliance Act ("FATCA"), which introduce a

reporting regime for financial institutions with respect to certain accounts;

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

underlying policy goal of FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that Republic of

Malta 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 Republic of Malta residents and is committed to exchanging such

information with the Government of the Republic of Malta and pursuing

equivalent levels of exchange, provided that the appropriate safeguards and

infrastructure for an effective exchange relationship are in place;

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

towards achieving common reporting and due diligence standards for financial

institutions;

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

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

reporting obligations of Republic of Malta financial institutions to avoid

duplicative reporting;

Whereas, an intergovernmental approach to FATCA implementation would

address legal impediments and reduce burdens for Republic of Malta financial

institutions;

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 may exercise

sovereign rights or jurisdiction in accordance with international law; the

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

"State" of the United States includes the District of Columbia.

b)

The term "U.S. Territory" means American Samoa, the

Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth

of Puerto Rico, or the U.S. Virgin Islands.

c)

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

d)

The term "Malta" means the Republic of Malta and, when used

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

the other islands of the Maltese archipelago including the territorial sea

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

water column adjacent to the territorial sea, where Malta exercises sovereign

rights and jurisdiction in accordance with international law.

e)

The term "Partner Jurisdiction" means a jurisdiction that has in

effect an agreement with the United States to facilitate the implementation 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 Malta, the Minister responsible for finance or

his authorised representative.

g)

The term "Financial Institution" means a Custodial Institution, a

Depository Institution, an Investment Entity, or a Specified Insurance

Company.

h)

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

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

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

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

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

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

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

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

period during which the entity has been in existence.

i)

The term "Depository Institution" means any Entity that accepts

deposits in the ordinary course of a banking or similar business.

j)

The term "Investment Entity" means any Entity that conducts as

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

more of the following activities or operations for or on behalf of a customer

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

certificates of deposit, derivatives, etc.); foreign exchange; exchange,

interest rate and index instruments; transferable securities; or

commodity futures trading;

(2)

individual and collective portfolio management; or

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

money on behalf of other persons.

This subparagraph 1(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 "Malta Financial Institution" means (i) any Financial

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

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

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

m)

The term "Partner Jurisdiction Financial Institution" means

(i) any Financial Institution established in a Partner Jurisdiction, but

excluding any branch of such Financial Institution that is located outside the

Partner Jurisdiction, and (ii) any branch of a Financial Institution not

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

Jurisdiction.

n)

The term "Reporting Financial Institution" means a Reporting

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

context requires.

o)

The term "Reporting Malta Financial Institution" means any

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

Institution.

p)

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

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

branch of such Financial Institution that is located outside the United States,

and (ii) any branch of a Financial Institution not resident in the United States,

if such branch is located in the United States, provided that the Financial

Institution or branch has control, receipt, or custody of income with respect

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

of Article 2 of this Agreement.

q)

The term "Non-Reporting Malta Financial Institution" means

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

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

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

owner under relevant U.S. Treasury Regulations.

r)

The term "Nonparticipating Financial Institution" means a

nonparticipating FFI, as that term is defined in relevant U.S. Treasury

Regulations, but does not include a Malta Financial Institution or other

Partner Jurisdiction Financial Institution other than a Financial Institution

treated as a Nonparticipating Financial Institution pursuant to subparagraph

2(b) of Article 5 of this Agreement or the corresponding provision in an

agreement between the United States and a Partner Jurisdiction.

s)

The term "Financial Account" means an account maintained by

a Financial Institution, and includes

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

because it is an Investment Entity, any equity or debt interest (other than

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 that is excluded from the definition of

Financial Account in Annex II.

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

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

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

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

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

is officially recognized and supervised by a governmental authority in which

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

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

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

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

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

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

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

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

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

apply the preceding sentence prior to January 1, 2016.

t)

The term "Depository Account" includes any commercial,

checking, savings, time, or thrift account, or an account that is evidenced by

a certificate of deposit, thrift certificate, investment certificate, certificate of

indebtedness, or other similar instrument maintained by a Financial

Institution in the ordinary course of a banking or similar business. A

Depository Account also includes an amount held by an insurance company

pursuant to a guaranteed investment contract or similar agreement to pay or

credit interest thereon.

u)

The term "Custodial Account" means an account (other than an

Insurance Contract or Annuity Contract) for the benefit of another person

that holds any financial instrument or contract held for investment

(including, but not limited to, a share or stock in a corporation, a note, bond,

debenture, or other evidence of indebtedness, a currency or commodity

transaction, a credit default swap, a swap based upon a nonfinancial index, a

notional principal contract, an Insurance Contract or Annuity Contract, and

any option or other derivative instrument).

v)

The term "Equity Interest" means, in the case of a partnership

that is a Financial Institution, either a capital or profits interest in the

partnership. In the case of a trust that is a Financial Institution, an Equity

Interest is considered to be held by any person treated as a settlor or

beneficiary of all or a portion of the trust, or any other natural person

exercising ultimate effective control over the trust. A Specified U.S. Person

shall be treated as being a beneficiary of a foreign trust if such Specified U.S.

Person has the right to receive directly or indirectly (for example, through a

nominee) a mandatory distribution or may receive, directly or indirectly, a

discretionary distribution from the trust.

w)

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

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

occurrence of a specified contingency involving mortality, morbidity,

accident, liability, or property risk.

x)

The term "Annuity Contract" means a contract under which the

issuer agrees to make payments for a period of time determined in whole or

in part by reference to the life expectancy of one or more individuals. The

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

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

the contract was issued, and under which the issuer agrees to make payments

for a term of years.

y)

The term "Cash Value Insurance Contract" means an Insurance

Contract (other than an indemnity reinsurance contract between two

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

z)

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

the policyholder is entitled to receive upon surrender or termination of the

contract (determined without reduction for any surrender charge or policy

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

to the contract. Notwithstanding the foregoing, the term “Cash Value” does

not include an amount payable under an Insurance Contract as

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

providing indemnification of an economic loss incurred upon the

occurrence of the event insured against;

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

under an Insurance Contract (other than under a life insurance contract)

due to policy cancellation or termination, decrease in risk exposure

during the effective period of the Insurance Contract, or arising from a

redetermination of the premium due to correction of posting or other

similar error; or

(3) a policyholder dividend based upon the underwriting

experience of the contract or group involved.

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

Account or a Malta Reportable Account, as the context requires.

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

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

case of a Depository Account, the account is held by an individual resident in

Malta and more than $10 of interest is paid to such account in any given

calendar year; or (ii) in the case of a Financial Account other than a

Depository Account, the Account Holder is a resident of Malta, including an

Entity that certifies that it is resident in Malta for tax purposes, with respect

to which U.S. source income that is subject to reporting under chapter 3 of

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

paid or credited.

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

maintained by a Reporting Malta Financial Institution and held by one or

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

Controlling Persons that is a Specified U.S. Person. Notwithstanding the

foregoing, an account shall not be treated as a U.S. Reportable Account if

such account is not identified as a U.S. Reportable Account after application

of the due diligence procedures in Annex I.

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

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

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

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

custodian, nominee, signatory, investment advisor, or intermediary, is not

treated as holding the account for purposes of this Agreement, and such other

person is treated as holding the account. For purposes of the immediately

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

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

of a Cash Value Insurance Contract or an Annuity Contract, the Account

Holder is any person entitled to access the Cash Value or change the

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

the beneficiary, the Account Holder is any person named as the owner in the

contract and any person with a vested entitlement to payment under the terms

of the contract. Upon the maturity of a Cash Value Insurance Contract or an

Annuity Contract, each person entitled to receive a payment under the

contract is treated as an Account Holder.

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

individual, a partnership or corporation organized in the United States or

under the laws of the United States or any State thereof, a trust if (i) a court

within the United States would have authority under applicable law to render

orders or judgments concerning substantially all issues regarding

administration of the trust, and (ii) one or more U.S. persons have the

authority to control all substantial decisions of the trust, or an estate of a

decedent that is a citizen or resident of the United States. This subparagraph

1(ee) shall be interpreted in accordance with the U.S. Internal Revenue Code.

ff)

The term "Specified U.S. Person" means a U.S. Person, other

than: (i) a corporation the stock of which is regularly traded on one or more

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

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

Internal Revenue Code, as a corporation described in clause (i); (iii) the

United States or any wholly owned agency or instrumentality thereof; (iv)

any State of the United States, any U.S. Territory, any political subdivision of

any of the foregoing, or any wholly owned agency or instrumentality of any

one or more of the foregoing; (v) any organization exempt from taxation

under section 501(a) of the U.S. Internal Revenue Code or an individual

retirement plan as defined in section 7701(a)(37) of the U.S. Internal

Revenue Code; (vi) any bank as defined in section 581 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(b) of the U.S. Internal Revenue

Code.

gg) The term "Entity" means a legal person or a legal arrangement

such as a trust.

hh)

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

Person.

ii)

The term "U.S. Source Withholdable Payment" means any

payment of interest (including any original issue discount), dividends, rents,

salaries, wages, premiums, annuities, compensations, remunerations,

emoluments, and other fixed or determinable annual or periodical gains,

profits, and income, if such payment is from sources within the United

States. Notwithstanding the foregoing, a U.S. Source Withholdable Payment

does not include any payment that is not treated as a withholdable payment in

relevant U.S. Treasury Regulations.

jj)

An Entity is a "Related Entity" of another Entity if either Entity

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

this purpose control includes direct or indirect ownership of more than 50

percent of the vote or value in an Entity. Notwithstanding the foregoing, the

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

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

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

Code.

kk)

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

number.

ll)

The term "Malta TIN" means a Malta taxpayer identifying

number.

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

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

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

beneficiaries, and any other natural person exercising ultimate effective

control over the trust, and in the case of a legal arrangement other than a

trust, such term means persons in equivalent or similar positions. The term

“Controlling Persons” shall be interpreted in a manner consistent with the

Financial Action Task Force Recommendations.

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

context otherwise requires or the Competent Authorities agree to a common

meaning (as permitted by domestic law), have the meaning that it has at that time

under the law of the Party applying this Agreement, any meaning under the

applicable tax laws of that Party prevailing over a meaning given to the term under

other laws of that Party.

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 26 of the

2. The information to be obtained and exchanged is

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

of each Reporting Malta Financial Institution

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

Person that is an Account Holder of such account and, in the case of a

Non-U.S. Entity that, after application of the due diligence procedures

set forth in Annex I, is identified as having one or more Controlling

Persons that is a Specified U.S. Person, the name, address, and U.S. TIN

(if any) of such entity and each such Specified U.S. Person;

(2) the account number (or functional equivalent in the

absence of an account number);

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

Financial Institution;

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

Cash Value Insurance Contract or Annuity Contract, the Cash Value or

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

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

year, immediately before closure;

(5)

in the case of any Custodial Account

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

amount of dividends, and the total gross amount of other income

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

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

account) during the calendar year or other appropriate reporting

period; and

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

of property paid or credited to the account during the calendar

year or other appropriate reporting period with respect to which

the Reporting Malta Financial Institution acted as a custodian,

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

Holder;

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

amount of interest paid or credited to the account during the calendar

year or other appropriate reporting period; and

(7) in the case of any account not described in subparagraph

2(a)(5) or 2(a)(6) of this Article, the total gross amount paid or credited

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

year or other appropriate reporting period with respect to which the

Reporting Malta Financial Institution is the obligor or debtor, including

the aggregate amount of any redemption payments made to the Account

Holder during the calendar year or other appropriate reporting period.

b)

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

Reportable Account of each Reporting U.S. Financial Institution

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

resident of Malta and is an Account Holder of the account;

(2) the account number (or the functional equivalent in the

absence of an account number);

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

Financial Institution;

(4)

the gross amount of interest paid on a Depository Account

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

to the account; and

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

credited to the account, to the extent subject to reporting under chapter 3

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

Code.

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

Malta’s tax laws, and the amount and characterization of payments made with

respect to a Malta Reportable Account may be determined in accordance with

principles of U.S. federal income tax law.

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

the information exchanged shall identify the currency in which each relevant

amount is denominated.

It is hereby declared

(a)

that the arrangements specified in the Agreement set

out in the Schedule to this Order have been made with the

Government of tthe United States of America with a view to

preventing fiscal evasion;

(b)

that it is expedient that those arrangements should

have effect following the entry into force of the Agreement and

in accordance with the relevant provisions of the Agreement and

the Annexes thereto;

(c)

that the Agreement shall enter into force on such

date as may be announced by notice in the Government Gazette.

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 Malta

(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.

Notwithstanding paragraph 3 of this Article, with respect to each

Reportable Account that is maintained by a Reporting Financial Institution as of

June 30, 2014, and subject to paragraph 4 of Article 6 of this Agreement, the

Parties are not required to obtain and include in the exchanged information the

Malta TIN or the U.S. TIN, as applicable, of any relevant person if such taxpayer

identifying number is not in the records of the Reporting Financial Institution. In

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

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

date of birth in its records.

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.

The Competent Authorities of Malta and the United States shall enter

into an agreement under the mutual agreement procedure provided for in Article

25 of the Convention, which shall

a)

establish the procedures for the automatic exchange obligations

described in Article 2 of this Agreement;

b)

prescribe rules and procedures as may be necessary to implement

Article 5 of this Agreement; and

c)

establish as necessary procedures for the exchange of the

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

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.

Following entry into force of this Agreement, each Competent

Authority shall provide written notification to the other Competent Authority when

it is satisfied that the jurisdiction of the other Competent Authority has in place (i)

appropriate safeguards to ensure that the information received pursuant to this

Agreement shall remain confidential and be used solely for tax purposes; and (ii)

the infrastructure for an effective exchange relationship (including established

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

effective and reliable communications, and demonstrated capabilities to promptly

resolve questions and concerns about exchanges or requests for exchanges and to

administer the provisions of Article 5 of this Agreement). The Competent

Authorities shall endeavour in good faith to meet, prior to September 2015, to

establish that each jurisdiction has such safeguards and infrastructure in place.

The obligations of the Parties to obtain and exchange information under

Article 2 of this Agreement shall take effect on the date of the later of the written

notifications described in paragraph 8 of this Article. Notwithstanding the

foregoing, if the Malta Competent Authority is satisfied that the United States has

the safeguards and infrastructure described in paragraph 8 of this Article in place,

but additional time is necessary for the U.S. Competent Authority to establish that

Malta has such safeguards and infrastructure in place, the obligation of Malta to

obtain and exchange information under Article 2 of this Agreement shall take

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

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

This Agreement shall terminate on September 30, 2015, if Article 2 of

this Agreement is not in effect for either Party pursuant to paragraph 9 of this

Article by that date.

ARTICLE 4

Application of FATCA to Malta Financial Institutions

1. Treatment of Reporting Malta Financial Institutions. Each

Reporting Malta Financial Institution shall be treated as complying with, and not

subject to withholding under, section 1471 of the U.S. Internal Revenue Code if

Malta complies with its obligations under Articles 2 and 3 of this Agreement with

respect to such Reporting Malta Financial Institution, and the Reporting Malta

Financial Institution

a)

identifies U.S. Reportable Accounts and reports annually to the

Malta Commissioner for Revenue the information required to be reported in

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

described in Article 3 of this Agreement;

b)

for each of 2015 and 2016, reports annually to the Malta

Commissioner for Revenue the name of each Nonparticipating Financial

Institution to which it has made payments and the aggregate amount of such

payments;

c)

complies with the applicable registration requirements on the IRS

FATCA registration website;

d)

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

acting as a qualified intermediary (for purposes of section 1441 of the U.S.

Internal Revenue Code) that has elected to assume primary withholding

responsibility 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 Malta Financial Institution that is not

described in subparagraph 1(d) of this Article and that makes a payment of,

or acts as an intermediary with respect to, a U.S. Source Withholdable

Payment to any Nonparticipating Financial Institution, the Reporting Malta

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

Withholdable Payment the information required for withholding and

reporting to occur with respect to such payment.

Notwithstanding the foregoing, a Reporting Malta Financial Institution with

respect to which the conditions of this paragraph 1 are not satisfied shall not be

subject to withholding under section 1471 of the U.S. Internal Revenue Code

unless such Reporting Malta Financial Institution is treated by the IRS as a

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

of this Agreement.

2. Suspension of Rules Relating to Recalcitrant Accounts. The United

States shall not require a Reporting Malta Financial Institution to withhold tax

under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an

account held by a recalcitrant account holder (as defined in section 1471(d)(6) of

the U.S. Internal Revenue Code), or to close such account, if the U.S. Competent

Authority receives the information set forth in subparagraph 2(a) of Article 2 of

this Agreement, subject to the provisions of Article 3 of this Agreement, with

respect to such account.

3. Specific Treatment of Malta Retirement Plans. The United States

shall treat as deemed-compliant FFIs or exempt beneficial owners, as appropriate,

for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, Malta

retirement plans described in Annex II. For this purpose, a Malta retirement plan

includes an Entity established or located in, and regulated by, Malta, or a

predetermined contractual or legal arrangement, operated to provide pension or

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

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

sponsorship, and taxation.

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

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

Malta Financial Institution as a deemed-compliant FFI or as an exempt beneficial

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

Code.

5. Special Rules Regarding Related Entities and Branches That Are

Nonparticipating Financial Institutions. If a Malta Financial Institution, that

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

described in paragraph 3 or 4 of this Article, has a Related Entity or branch that

operates in a jurisdiction that prevents such Related Entity or branch from

fulfilling the requirements of a participating FFI or deemed-compliant FFI for

purposes of section 1471 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 Malta 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 an exempt beneficial owner, as appropriate,

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

a)

the Malta Financial Institution treats each such Related Entity or

branch as a separate Nonparticipating Financial Institution for purposes of all

the reporting and withholding requirements of this Agreement and each such

Related Entity or branch identifies itself to withholding agents as a

Nonparticipating Financial Institution;

b)

each such Related Entity or branch identifies its U.S. accounts

and reports the information with respect to those accounts as required under

section 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 Malta Financial Institution or any other Related Entity to

circumvent the obligations under this Agreement or under section 1471 of the

U.S. Internal Revenue Code, as appropriate.

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

of this Agreement

a)

Malta shall not be obligated to obtain and exchange information

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

which similar information is required to be reported to the IRS by participating

FFIs pursuant to relevant U.S. Treasury Regulations;

b)

Malta shall not be obligated to begin exchanging information prior to

the date by which participating FFIs are required to report similar information to

the IRS under relevant U.S. Treasury Regulations;

c)

the United States shall not be obligated to obtain and exchange

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

respect to which Malta is required to obtain and exchange information; and

d)

the United States shall not be obligated to begin exchanging

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

information.

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

Notwithstanding Article 1 of this Agreement and the definitions provided in the

Annexes to this Agreement, in implementing this Agreement, Malta may use, and

may permit Malta Financial Institutions to use, a definition in relevant U.S.

Treasury Regulations in lieu of a corresponding definition in this Agreement,

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

ARTICLE 5

Collaboration on Compliance and Enforcement

1. Minor and Administrative Errors. A Competent Authority shall

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

Competent Authority has reason to believe that administrative errors or other

minor errors may have led to incorrect or incomplete information reporting or

resulted in other infringements of this Agreement. The Competent Authority of

such other Party shall apply its domestic law (including applicable penalties) to

obtain corrected and/or complete information or to resolve other infringements of

this Agreement.

2. Significant Non-Compliance.

a)

A Competent Authority shall notify the Competent Authority of

the other Party when the first-mentioned Competent Authority has

determined that there is significant non-compliance with the obligations

under this Agreement with respect to a Reporting Financial Institution in the

other jurisdiction. The Competent Authority of such other Party shall apply

its domestic law (including applicable penalties) to address the significant

non-compliance described in the notice.

b)

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

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

months after notification of significant non-compliance is first provided, the

United States shall treat the Reporting Malta Financial Institution as a

Nonparticipating Financial Institution pursuant to this subparagraph 2(b).

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

Reporting Financial Institutions to use third party service providers to fulfil the

obligations imposed on such Reporting Financial Institutions by a Party, as

contemplated in this Agreement, but these obligations shall remain the

responsibility of the Reporting Financial Institutions.

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

requirements to prevent Financial Institutions from adopting practices intended to

circumvent the reporting required under this Agreement.

ARTICLE 6

Mutual Commitment to Continue to Enhance the Effectiveness

of Information Exchange and Transparency

1. Reciprocity. The Government of the United States acknowledges the

need to achieve equivalent levels of reciprocal automatic information exchange

with Malta. The Government of the United States is committed to further improve

transparency and enhance the exchange relationship with Malta by pursuing the

adoption of regulations and advocating and 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 Co-operation and Development, and the European Union, on adapting

the terms of this Agreement and other agreements between the United States and

Partner Jurisdictions to a common model for automatic exchange of information,

including the development of reporting and due diligence standards for financial

institutions.

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

respect to Reportable Accounts maintained by a Reporting Financial Institution as

of June 30, 2014

a)

The United States commits to establish, by January 1, 2017, for

reporting with respect to 2017 and subsequent years, rules requiring

Reporting U.S. Financial Institutions to obtain and report the Malta TIN of

each Account Holder of a Malta Reportable Account as required pursuant to

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

b)

Malta commits to establish, by January 1, 2017, for reporting

with respect to 2017 and subsequent years, rules requiring Reporting Malta

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

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

ARTICLE 7

Consistency in the Application of FATCA to Partner Jurisdictions

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

Article 4 or Annex 1 of this Agreement relating to the application of FATCA to

Malta Financial Institutions afforded to another Partner Jurisdiction under a signed

bilateral agreement pursuant to which the other Partner Jurisdiction commits to

undertake the same obligations as Malta described in Articles 2 and 3 of this

Agreement, and subject to the same terms and conditions as described therein and

in Articles 5 through 9 of this Agreement.

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

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

if such terms were specified in this Agreement and effective as of the date of the

entry into force of the agreement incorporating the more favorable terms, unless

Malta declines the application thereof.

ARTICLE 8

Consultations and Amendments

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

either Party may request consultations to develop appropriate measures to ensure

the fulfilment of this Agreement.

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

Parties. Unless otherwise agreed upon, such an amendment shall enter into force

through the same procedures as set forth in paragraph 1 of Article 10 of this

Agreement.

ARTICLE 9

Annexes

The Annexes form an integral part of this Agreement.

ARTICLE 10

Term of Agreement

1. This Agreement shall enter into force on the date of Malta’s written

notification to the United States that Malta has completed its necessary internal

procedures for entry into force of this Agreement.

2. Either Party may terminate this Agreement by giving notice 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 Valletta, in duplicate, in the English language this 16th day of

December 2013.

For the Government

For the Government

of the Republic of Malta

of the United States of America

Edward Scicluna

Gina Abercrombie Winstanley

Minister for Finance

Ambassador

ANNEX I

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING

ON U.S. REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN

NONPARTICIPATING FINANCIAL INSTITUTIONS

I.

General.

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

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

Accounts and accounts held by Nonparticipating Financial Institutions.

B.

For purposes of the Agreement,

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

the equivalent in other currencies.

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

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

appropriate reporting period.

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

30, 2014, under this Annex I, the relevant balance or value shall be

determined as of that day or the last day of the reporting period ending

immediately before June 30, 2014, and where a balance or value threshold is

to be determined as of the last day of a calendar year under this Annex I, the

relevant balance or value shall be determined as of the last day of the

calendar year or other appropriate reporting period.

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

account shall be treated as a U.S. Reportable Account beginning as of the

date it is identified as such pursuant to the due diligence procedures in this

Annex I.

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

Reportable Account shall be reported annually in the calendar year following

the year to which the information relates.

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

Annex I, Malta may permit Reporting Malta Financial Institutions to rely on the

procedures described in relevant U.S. Treasury Regulations to establish whether an

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

Financial Institution. Malta may permit Reporting Malta Financial Institutions to

make such election separately for each section of this Annex I either with respect

to all relevant Financial Accounts or, separately, with respect to any clearly

identified group of such accounts (such as by line of business or the location of

where the account is maintained).

II. Preexisting Individual Accounts. The following rules and procedures

apply for purposes of identifying U.S. Reportable Accounts among Preexisting

Accounts held by individuals ("Preexisting Individual Accounts").

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

Unless the Reporting Malta Financial Institution elects otherwise, either with

respect to all Preexisting Individual Accounts or, separately, with respect to any

clearly identified group of such accounts, where the implementing rules in Malta

provide for such an election, the following Preexisting Individual Accounts are not

required to be reviewed, identified, or reported as U.S. Reportable Accounts

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

Individual Account with a balance or value that does not exceed $50,000 as

of June 30, 2014.

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

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

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

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

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

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

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

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

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

insurance products held by residents of Malta).

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

B. Review Procedures for Preexisting Individual Accounts With a

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

Cash Value Insurance Contract or Annuity Contract), But Does Not Exceed

$1,000,000 ("Lower Value Accounts").

1. Electronic Record Search. The Reporting Malta Financial

Institution must review electronically searchable data maintained by the

Reporting Malta Financial Institution for any of the following U.S. indicia

a)

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

resident;

b)

Unambiguous indication of a U.S. place 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 Malta Financial Institution has on file for the

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

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

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

2. If none of the U.S. indicia listed in subparagraph B(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 Malta Financial Institution must treat the

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

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

with respect to that account.

4. Notwithstanding a finding of U.S. indicia under subparagraph

B(1) of this section, a Reporting Malta Financial Institution is not required to

treat an account as a U.S. Reportable Account if

a) Where the Account Holder information unambiguously

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

obtains or has previously reviewed and maintains a record of

(1)

A self-certification that the Account Holder is

neither a U.S. citizen nor a U.S. resident for tax purposes (which

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

(2)

A non-U.S. passport or other government-issued

identification evidencing the Account Holder’s citizenship or

nationality in a country other than the United States; and

(3)

A copy of the Account Holder’s Certificate of Loss

of Nationality of the United States or a reasonable explanation

of

(a)

The reason the Account Holder does not

have such a certificate despite relinquishing U.S.

citizenship; or

(b) The reason the Account Holder did not obtain

U.S. citizenship at birth.

b) Where the Account Holder information contains a current

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

numbers that are the only telephone numbers associated with the

account, the Reporting Malta Financial Institution obtains, or has

previously reviewed and maintains a record of

(1)

A self-certification that the Account Holder is

neither a U.S. citizen nor a U.S. resident for tax purposes (which

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

(2)

Documentary evidence, as defined in paragraph D

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

non-U.S. status.

c) Where the Account Holder information contains standing

instructions to transfer funds to an account maintained in the United

States, the Reporting Malta Financial Institution obtains, or has

previously reviewed and maintains a record of

(1)

A self-certification that the Account Holder is

neither a U.S. citizen nor a U.S. resident for tax purposes (which

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

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

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

non-U.S. status.

d) Where the Account Holder information contains a

currently effective power of attorney or signatory authority granted to

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

mail" address that is the sole address identified for the Account

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

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

Malta Financial Institution obtains, or has previously reviewed and

maintains a record of

(1)

A self-certification that the Account Holder is

neither a U.S. citizen nor a U.S. resident for tax purposes (which

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

(2)

Documentary evidence, as defined in paragraph D

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

non-U.S. status.

C. Additional Procedures Applicable to Preexisting Individual

Accounts That Are Lower Value Accounts.

1. Review of Preexisting Individual Accounts that are Lower Value

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

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

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

indicia described in subparagraph B(1) of this section being associated with the

account, then the Reporting Malta Financial Institution must treat the account as a

U.S. Reportable Account unless 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 Malta Financial Institution

must review electronically searchable data maintained by the Reporting Malta

Financial Institution for any of the U.S. indicia described in subparagraph B(1) of

this section.

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

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

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

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

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

Financial Institution must also review the current customer master file and, to the

extent not contained in the current customer master file, the following documents

associated with the account and obtained by the Reporting Malta Financial

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

subparagraph B(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 Malta

Financial Institution pursuant to AML/KYC Procedures or for other

regulatory purposes;

d)

Any power of attorney or signature authority forms currently in

effect; and

e)

Any standing instructions to transfer funds currently in effect.

3. Exception Where Databases Contain Sufficient Information. A

Reporting Malta Financial Institution is not required to perform the paper record

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

Financial Institution’s electronically searchable information includes the

following

a)

The Account Holder’s nationality or residence status;

b)

The Account Holder’s residence address and mailing address

currently on file with the Reporting Malta Financial Institution;

c)

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

any, with the Reporting Malta Financial Institution;

d)

Whether there are standing instructions to transfer funds in the

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

Reporting Malta Financial Institution or another Financial Institution);

e)

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

address for the Account Holder; and

f)

Whether there is any power of attorney or signatory authority for

the account.

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

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

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

Account assigned to a relationship manager (including any Financial Accounts

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

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

5. Effect of Finding U.S. Indicia.

a)

If none of the U.S. indicia listed in subparagraph B(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 Malta Financial Institution must treat the account as a U.S.

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

section and one of the exceptions in such subparagraph applies with respect

to that account.

c)

Except for Depository Accounts described in subparagraph A(4)

of this section, any Preexisting Individual Account that has been identified as

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

Reportable Account in all subsequent years, unless the Account Holder

ceases to be a Specified U.S. Person.

E.

Additional Procedures Applicable to High Value Accounts.

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

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

review procedures described in paragraph D of this section with respect to such

account by June 30, 2015. If based on this review such account is identified as a

U.S. Reportable Account on or before December 31, 2014, the Reporting Malta

Financial Institution must report the required information about such account with

respect to 2014 in the first report on the account and on an annual basis thereafter.

In the case of an account identified as a U.S. Reportable Account after December

31, 2014, and on or before June 30, 2015, the Reporting Malta Financial Institution

is not required to report information about such account with respect to 2014 , but

must report information about the account on an annual basis thereafter.

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

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

subsequent calendar year, the Reporting Malta Financial Institution must complete

the enhanced review procedures described in paragraph D of this section with

respect to such account within six months after the last day of the calendar year in

which the account becomes a High Value Account. If based on this review such

account is identified as a U.S. Reportable Account, the Reporting Malta Financial

Institution must report the required information about such account with respect to

the year in which it is identified as a U.S. Reportable Account and subsequent

years on an annual basis, unless the Account Holder ceases to be a Specified U.S.

Person.

3. Once a Reporting Malta Financial Institution applies the enhanced

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

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

procedures, other than the relationship manager inquiry described in subparagraph

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

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

Account that results in one or more U.S. indicia described in subparagraph B(1) of

this section being associated with the account, then the Reporting Malta Financial

Institution must treat the account as a U.S. Reportable Account unless it elects to

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

subparagraph applies with respect to that account.

5. A Reporting Malta Financial Institution must implement procedures to

ensure that a relationship manager identifies any change in circumstances of an

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

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

Institution is required to treat the new address as a change in circumstances and, if

it elects to apply subparagraph B(4) of this section, is required to obtain the

appropriate documentation from the Account Holder.

F. Preexisting Individual Accounts That Have Been Documented for

Certain Other Purposes. A Reporting Malta Financial Institution that has

previously obtained documentation from an Account Holder to establish the

Account Holder’s status as neither a U.S. citizen nor a U.S. resident in order to

meet its obligations under a qualified intermediary, withholding foreign

partnership, or withholding foreign trust agreement with the IRS, or to fulfil its

obligations under chapter 61 of Title 26 of the United States Code, is not required

to perform the procedures described in subparagraph B(1) of this section with

respect to Lower Value Accounts or subparagraphs D(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 Malta Financial Institution elects otherwise, either with

respect to all New Individual Accounts or, separately, with respect to any clearly

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

for such an election, the following New Individual Accounts are not required to be

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

1. A Depository Account unless the account balance exceeds

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

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

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

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

Accounts not described in paragraph A of this section, upon account opening (or

within 90 days after the end of the calendar year in which the account ceases to be

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

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

documentation, that allows the Reporting Malta Financial Institution to determine

whether the Account Holder is resident in the United States for tax purposes (for

this purpose, a U.S. citizen is considered to be resident in the United States for tax

purposes, even if the Account Holder is also a tax resident of another jurisdiction)

and confirm the reasonableness of such self-certification based on the information

obtained by the Reporting Malta Financial Institution in connection with the

opening of the account, including any documentation collected pursuant to AML/

KYC Procedures.

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

resident in the United States for tax purposes, the Reporting Malta Financial

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

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 Malta Financial Institution to

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

unreliable, the Reporting Malta Financial Institution cannot rely on the

original self-certification and must obtain a valid self-certification that

establishes whether the Account Holder is a U.S. citizen or resident for U.S.

tax purposes. If the Reporting Malta Financial Institution is unable to obtain

a valid self-certification, the Reporting Malta Financial Institution must treat

the account as a U.S. Reportable Account.

IV. Preexisting Entity Accounts. The following rules and procedures

apply for purposes of identifying U.S. Reportable Accounts and accounts held by

Nonparticipating Financial Institutions among Preexisting Accounts held by

Entities ("Preexisting Entity Accounts").

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

Reported. Unless the Reporting Malta Financial Institution elects otherwise,

either with respect to all Preexisting Entity Accounts or, separately, with respect to

any clearly identified group of such accounts, where the implementing rules in

Malta provide for such an election, a Preexisting Entity Account with an account

balance or value that does not exceed $250,000 as of June 30 2014, is not required

to be reviewed, identified, or reported as a U.S. Reportable Account until the

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

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

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

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

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

2015 or any subsequent calendar year, must be reviewed in accordance with the

procedures set forth in paragraph D of this section.

C. 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 Malta Commissioner for Revenue.

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 Malta Financial Institution must apply

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

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

Persons who are U.S. citizens or residents, or by Nonparticipating Financial

Institutions

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

a) Review information maintained for regulatory or customer

relationship purposes (including information collected pursuant to

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 Malta Financial Institution must treat the

account as a U.S. Reportable Account unless it obtains a self-

certification 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 Malta Financial Institution

verifies the Account Holder’s Global Intermediary Identification

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

Reportable Account.

3. Determine Whether a Financial Institution is a

Nonparticipating Financial Institution Payments to Which Are Subject

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

Agreement.

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

Reporting Malta Financial Institution may determine that the Account

Holder is a Malta Financial Institution or other Partner Jurisdiction

Financial Institution if the Reporting Malta Financial Institution

reasonably determines that the Account Holder has such status on the

basis of the Account Holder’s Global Intermediary Identification

Number on the published IRS FFI list or other information that is

publicly available or in the possession of the Reporting Malta Financial

Institution, as applicable. In such case, no further review, identification,

or reporting is required with respect to the account.

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

other Partner Jurisdiction Financial Institution treated by the IRS as a

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

Reportable Account, but payments to the Account Holder must be

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

Agreement.

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

or other Partner Jurisdiction Financial Institution, then the Reporting

Malta Financial Institution must treat the Account Holder as a

Nonparticipating Financial Institution payments to which are reportable

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

Reporting Malta Financial Institution

(1)

Obtains a self-certification (which may be on an

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

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

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

Treasury Regulations; or

(2)

In the case of a participating FFI or registered

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.

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

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

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

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

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

Persons of the Account Holder is a U.S. citizen or resident. In making these

determinations the Reporting Malta Financial Institution must follow the

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

order most appropriate under the circumstances.

a) For purposes of determining the Controlling Persons of an

Account Holder, a Reporting Malta Financial Institution may rely on

information collected and maintained pursuant to AML/KYC

Procedures.

b) For purposes of determining whether the Account Holder

is a Passive NFFE, the Reporting Malta Financial Institution must

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

or on a similar agreed form) from the Account Holder to establish its

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

available, based on which it can reasonably determine that the Account

Holder is an Active NFFE.

c) For purposes of determining whether a Controlling Person

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

Reporting Malta Financial Institution may rely on

(1) Information collected and maintained pursuant to

AML/KYC Procedures in the case of a Preexisting Entity

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

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

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

W-8 or W-9, or on a similar agreed form) from the Account

Holder or such Controlling Person in the case of a Preexisting

Entity Account held by one or more NFFEs with an account

balance or value that exceeds $1,000,000.

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

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

Account.

E. Timing of Review and Additional Procedures Applicable to

Preexisting Entity Accounts.

1. Review of Preexisting Entity Accounts with an account balance

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

June 30, 2016.

2. Review of Preexisting Entity Accounts with an account balance

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

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

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

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

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

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

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

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

Financial Institution must redetermine the status of the account in accordance

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

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

purposes of identifying U.S. Reportable Accounts and accounts held by

Nonparticipating Financial Institutions among Financial Accounts held by Entities

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

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

Reported. Unless the Reporting Malta Financial Institution elects otherwise,

either with respect to all New Entity Accounts or, separately, with respect to any

clearly identified group of such accounts, where the implementing rules in Malta

provide for such election, a credit card account or a revolving credit facility treated

as a New Entity Account is not required to be reviewed, identified, or reported,

provided that the Reporting Malta Financial Institution maintaining such account

implements policies and procedures to prevent an account balance owed to the

Account Holder that exceeds $50,000.

B. Other New Entity Accounts. With respect to New Entity Accounts not

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

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

Malta Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a

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

those terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active

NFFE or Passive NFFE.

1. Subject to subparagraph B(2) of this section, a Reporting Malta

Financial Institution may determine that the Account Holder is an Active

NFFE, a Malta Financial Institution, or other Partner Jurisdiction Financial

Institution if the Reporting Malta Financial Institution reasonably determines

that the Account Holder has such status on the basis of the Account Holder’s

Global Intermediary Identification Number or other information that is

publicly available or in the possession of the Reporting Malta Financial

Institution, as applicable.

2. If the Account Holder is a Malta Financial Institution or other

Partner Jurisdiction Financial Institution treated by the IRS as a

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

Reportable Account, but payments to the Account Holder must be reported as

contemplated in subparagraph 1(b) of Article 4 of the Agreement.

3. In all other cases, a Reporting Malta Financial Institution must

obtain a self-certification from the Account Holder to establish the Account

Holder’s status. Based on the self-certification, the following rules apply

a) If the Account Holder is a Specified U.S. Person, the

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

Reportable Account.

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

Malta Financial Institution must identify the Controlling Persons as

determined under AML/KYC Procedures, and must determine whether

any such person is a U.S. citizen or resident on the basis of a self-

certification from the Account Holder or such person. If any such

person is a U.S. citizen or resident, the Reporting Malta Financial

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

c)

If the Account Holder is: (i) a U.S. Person that is not a

Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this

section, a Malta Financial Institution or other Partner Jurisdiction

Financial Institution; (iii) a participating FFI, a deemed-compliant FFI,

or an exempt beneficial owner, as those terms are defined in relevant

U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a Passive NFFE

none of the Controlling Persons of which is a U.S. citizen or resident,

then the account is not a U.S. Reportable Account, and no reporting is

required with respect to the account.

d) If the Account Holder is a Nonparticipating Financial

Institution (including a Malta Financial Institution or other Partner

Jurisdiction Financial Institution treated by the IRS as a

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

Reportable Account, but payments to the Account Holder must be

reported as contemplated in subparagraph 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 Malta Financial Institution may not rely on a self-certification or

documentary evidence if the Reporting Malta Financial Institution knows or has

reason to know that the self-certification or documentary evidence is incorrect or

unreliable.

Definitions. The following definitions apply for purposes of this Annex

1. AML/KYC Procedures. "AML/KYC Procedures" means the

customer due diligence procedures of a Reporting Malta Financial Institution

pursuant to the anti-money laundering or similar requirements of Malta to

which such Reporting Malta Financial Institution is subject.

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI

as defined in relevant U.S. Treasury Regulations or is an Entity described in

subparagraph B(4)(j) of this section, and also includes any Non-U.S. Entity

that is established in Malta or another Partner Jurisdiction and that is not a

Financial Institution.

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not

(i) an Active NFFE or (ii) a withholding foreign partnership or withholding

foreign trust pursuant to relevant U.S. Treasury Regulations.

4. Active NFFE. An "Active NFFE" means any NFFE that meets

any of the following criteria

a) Less than 50 percent of the NFFE’s gross 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;

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;

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 non-charitable Entity other

than pursuant to the conduct of the NFFE’s charitable activities,

or as payment of reasonable compensation for services rendered,

or as payment 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

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 Malta Financial Institution is required to aggregate

all Financial Accounts maintained by the Reporting Malta Financial

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

Malta Financial Institution’s computerized systems link the Financial

Accounts by reference to a data element such as client number or taxpayer

identification number, and allow account balances or values to be

aggregated. Each holder of a jointly held Financial Account shall be

attributed the entire balance or value of the jointly held Financial Account for

purposes of applying the aggregation requirements described in this

paragraph 1.

2. Aggregation of Entity Accounts. For purposes of determining

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

Reporting Malta Financial Institution is required to take into account all

Financial Accounts that are maintained by the Reporting Malta Financial

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

Malta Financial Institution’s computerized systems link the Financial

Accounts by reference to a data element such as client number or taxpayer

identification number, and allow account balances or values to be

aggregated.

3. Special Aggregation Rule Applicable to Relationship

Managers. For purposes of determining the aggregate balance or value of

Financial Accounts held by a person to determine whether a Financial

Account is a High Value Account, a Reporting Malta Financial Institution is

also required, in the case of any Financial Accounts that a relationship

manager knows, or has reason to know, are directly or indirectly owned,

controlled, or established (other than in a fiduciary capacity) by the same

person, to aggregate all such accounts.

4. Currency Translation Rule. For purposes of determining the

balance or value of Financial Accounts denominated in a currency other than

the U.S. dollar, a Reporting Malta Financial Institution must convert the U.S.

dollar threshold amounts described in this Annex I into such currency using a

published spot rate determined as of the last day of the calendar year

preceding the year in which the Reporting Malta Financial Institution is

determining the balance or value.

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

documentary evidence includes any 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.

3. With respect to an Entity, any official documentation issued by an

authorized government body (for example, a government or agency thereof,

or a municipality) that includes the name of the Entity and either the address

of its principal office in the jurisdiction (or U.S. Territory) in which it claims

to be a resident or the jurisdiction (or U.S. Territory) in which the Entity was

incorporated or organized.

4. With respect to a Financial Account maintained in a jurisdiction

with anti-money laundering rules that have been approved by the IRS in

connection with a QI agreement (as described in relevant U.S. Treasury

Regulations), any of the documents, other than a Form W-8 or W-9,

referenced in the jurisdiction’s attachment to the QI agreement for

identifying individuals or Entities.

5. Any financial statement, third-party credit report, bankruptcy

filing, or U.S. Securities and Exchange Commission report.

E. Alternative Procedures for Financial Accounts Held by Individual

Beneficiaries of a Cash Value Insurance Contract. A Reporting Malta Financial

Institution may presume that an individual beneficiary (other than the owner) of a

Cash Value Insurance Contract receiving a death benefit is not a Specified U.S.

Person and may treat such Financial Account as other than a U.S. Reportable

Account unless the Reporting Malta Financial Institution has actual knowledge, or

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

Financial Institution has reason to know that a beneficiary of a Cash Value

Insurance Contract is a Specified U.S. Person if the information collected by the

Reporting Malta Financial Institution and associated with the beneficiary contains

U.S. indicia as described in subparagraph (B)(1) of section II of this Annex I. If a

Reporting Malta Financial Institution has actual knowledge, or reason to know,

that the beneficiary is a Specified U.S. Person, the Reporting Malta Financial

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

Annex I.

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

under paragraph C of section I of this Annex I, Malta may permit Reporting Malta

Financial Institutions to rely on due diligence procedures performed by third

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

ANNEX II

The following Entities are treated as exempt beneficial owners or deemed-

compliant FFIs, as the case may be, and the following accounts are excluded from

the definition of Financial Accounts.

This Annex II may be modified by a mutual agreement entered into between

the Competent Authorities of Malta and the United States: (1) to include additional

Entities and accounts that present a low risk of being used by U.S. Persons to

evade U.S. tax and that have similar characteristics to the Entities and accounts

described in this Annex II as of the date of signature of the Agreement; or (2) to

remove Entities and accounts that, due to changes in circumstances, no longer

present a low risk of being used by U.S. Persons to evade U.S. tax. Any such

addition or removal shall be effective on the date of signature of the mutual

agreement, unless otherwise provided therein. Procedures for reaching such a

mutual agreement may be included in the mutual agreement described in

paragraph 6 of Article 3 of the Agreement.

I.

Exempt Beneficial Owners other than Funds. The following Entities

are treated as Non-Reporting Malta Financial Institutions and as exempt beneficial

owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code,

other than with respect to a payment that is derived from an obligation held in

connection with a commercial financial activity of a type engaged in by a

Specified Insurance Company, Custodial Institution, or Depository Institution.

A.

Governmental Entity. The government of Malta, any political

subdivision of Malta (which, for the avoidance of doubt, includes a state,

province, county, or municipality), or any wholly owned agency or

instrumentality of Malta or any one or more of the foregoing (each, a "Malta

Governmental Entity"). This category is comprised of the integral parts,

controlled entities, and political subdivisions of Malta.

1. An integral part of Malta means any person, organization,

agency, bureau, fund, instrumentality, or other body, however

designated, that constitutes a governing authority of Malta. The net

earnings of the governing authority must be credited to its own account

or to other accounts of Malta, with no portion inuring to the benefit of

any private person. An integral part does not include any individual who

is a sovereign, official, or administrator acting in a private or personal

capacity.

2. A controlled entity means an Entity that is separate in form

from Malta or that otherwise constitutes a separate juridical entity,

provided that

a)

The Entity is wholly owned and controlled by one or

more Malta Governmental Entities directly or through one or

more controlled entities;

b) The Entity’s net earnings are credited to its own

account or to the accounts of one or more Malta Governmental

Entities, with no portion of its income inuring to the benefit of

any private person; and

c)

The Entity’s assets vest in one or more Malta

Governmental Entities upon dissolution.

3. Income does not inure to the benefit of private persons if

such persons are the intended beneficiaries of a governmental program,

and the program activities are performed for the general public with

respect to the common welfare or relate to the administration of some

phase of government. Notwithstanding the foregoing, however, income

is considered to inure to the benefit of private persons if the income is

derived from the use of a governmental entity to conduct a commercial

business, such as a commercial banking business, that provides

financial services to private persons.

B.

International Organization. Any international organization or

wholly owned agency or instrumentality thereof. This category includes any

intergovernmental organization (including a supranational organization) (1)

that is comprised primarily of non-U.S. governments; (2) that has in effect a

headquarters agreement with Malta; and (3) the income of which does not

inure to the benefit of private persons.

C.

Central Bank. An institution that is by law or government

sanction the principal authority, other than the government of Malta itself,

issuing instruments intended to circulate as currency. Such an institution may

include an instrumentality that is separate from the government of Malta,

whether or not owned in whole or in part by Malta.

II. Funds that Qualify as Exempt Beneficial Owners. The following

Entities are treated as Non-Reporting Malta Financial Institutions and as exempt

beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal

Revenue Code.

A.

Treaty-Qualified Retirement Fund. A fund established in

Malta, provided that the fund is entitled to benefits under an income tax

treaty between Malta and the United States on income that it derives from

sources within the United States (or would be entitled to such benefits if it

derived any such income) as a resident of Malta that satisfies any applicable

limitation on benefits requirement, and is operated principally to administer

or provide pension or retirement benefits.

B.

Broad Participation Retirement Fund. A fund established in

Malta to provide retirement, disability, or death benefits, or any combination

thereof, to beneficiaries that are current or former employees (or persons

designated by such employees) of one or more employers in consideration

for services rendered, provided that the fund

1. Does not have a single beneficiary with a right to more

than five percent of the fund’s assets;

2. Is subject to government regulation and provides annual

information reporting about its beneficiaries to the relevant tax

authorities in Malta; and

3. Satisfies at least one of the following requirements

a) The fund is generally exempt from tax in Malta on

investment income under the laws of Malta due to its status as a

retirement or pension plan;

b) The fund receives at least 50 percent of its total

contributions (other than transfers of assets from other plans

described in paragraphs A through D of this section or from

retirement and pension accounts described in subparagraph A(1)

of section V of this Annex II) from the sponsoring employers;

c) Distributions or withdrawals from the fund are

allowed only upon the occurrence of specified events related to

retirement, disability, or death (except rollover distributions to

other retirement funds described in paragraphs A through D of

this section or retirement and pension accounts described in

subparagraph A(1) of section V of this Annex II), or penalties

apply to distributions or withdrawals made before such

specified events; or

d) Contributions (other than certain permitted make-up

contributions) by employees to the fund are limited by reference

to earned income of the employee or may not exceed $50,000

annually, applying the rules set forth in Annex I for account

aggregation and currency translation.

Narrow Participation Retirement Fund. A fund established in

Malta to provide retirement, disability, or death benefits to beneficiaries that

are current or former employees (or persons designated by such employees)

of one or more employers in consideration for services rendered, provided

1. The fund has fewer than 50 participants;

2. The fund is sponsored by one or more employers that are

not Investment Entities or Passive NFFEs;

3. The employee and employer contributions to the fund

(other than transfers of assets from treaty-qualified retirement funds

described in paragraph A of this section or retirement and pension

accounts described in subparagraph A(1) of section V of this Annex II)

are limited by reference to earned income and compensation of the

employee, respectively;

4. Participants that are not residents of Malta are not entitled

to more than 20 percent of the fund’s assets; and

5. The fund is subject to government regulation and provides

annual information reporting about its beneficiaries to the relevant tax

authorities in Malta.

D.

Pension Fund of an Exempt Beneficial Owner. A fund

established in Malta by an exempt beneficial owner to provide retirement,

disability, or death benefits to beneficiaries or participants that are current or

former employees of the exempt beneficial owner (or persons designated by

such employees), or that are not current or former employees, if the benefits

provided to such beneficiaries or participants are in consideration of personal

services performed for the exempt beneficial owner.

E.

Investment Entity Wholly Owned by Exempt Beneficial

Owners. An Entity that is a Malta Financial Institution solely because it is an

Investment Entity, provided that each direct holder of an Equity Interest in

the Entity is an exempt beneficial owner, and each direct holder of a debt

interest in such Entity is either a Depository Institution (with respect to a loan

made to such Entity) or an exempt beneficial owner.

III. Small or Limited Scope Financial Institutions that Qualify as

Deemed-Compliant FFIs. The following Financial Institutions are Non-

Reporting Malta Financial Institutions that are treated as deemed-compliant FFIs

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

A.

Financial Institutions with a Local Client Base. A Financial

Institution satisfying the following requirements

1. The Financial Institution must be licensed and regulated as

a financial institution under the laws of Malta;

2. The Financial Institution must have no fixed place of

business outside of Malta. For this purpose, a fixed place of business

does not include a location that is not advertised to the public and from

which the Financial Institution performs solely administrative support

functions;

3. The Financial Institution must not solicit customers or

Account Holders outside Malta. For this purpose, a Financial Institution

shall not be considered to have solicited account holders outside Malta

merely because the Financial Institution (a) operates a website,

provided that the website does not specifically indicate that the

Financial Institution provides Financial Accounts or services to

nonresidents, and does not otherwise target or solicit U.S. customers or

Account Holders, or (b) advertises in print media or on a radio or

television station that is distributed or aired primarily within Malta but

is also incidentally distributed or aired in other countries, provided that

the advertisement does not specifically indicate that the Financial

Institution provides Financial Accounts or services to nonresidents, and

does not otherwise target or solicit U.S. customers or Account Holders;

4. The Financial Institution must be required under the laws

of Malta to identify resident Account Holders for purposes of either

information reporting or withholding of tax with respect to Financial

Accounts held by residents or for purposes of satisfying Malta’s AML

due diligence requirements;

5. At least 98 percent of the Financial Accounts by value

maintained by the Financial Institution must be held by residents

(including residents that are Entities) of Malta or a Member State of the

European Union;

6. Beginning on or before July 1, 2014, the Financial

Institution must have policies and procedures, consistent with those set

forth in Annex I, to prevent the Financial Institution from providing a

Financial Account to any Nonparticipating Financial Institution and to

monitor whether the Financial Institution opens or maintains a Financial

Account for any Specified U.S. Person who is not a resident of Malta

(including a U.S. Person that was a resident of Malta when the Financial

Account was opened but subsequently ceases to be a resident of Malta)

or any Passive NFFE with Controlling Persons who are U.S. residents

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

7. Such policies and procedures must provide that if any

Financial Account held by a Specified U.S. Person who is not a resident

of Malta or by a Passive NFFE with Controlling Persons who are U.S.

residents or U.S. citizens who are not residents of Malta is identified,

the Financial Institution must report such Financial Account as would

be required if the Financial Institution were a Reporting Malta 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 Malta or by an Entity, the Financial

Institution must review those Preexisting Accounts in accordance with

the procedures set forth in Annex I applicable to Preexisting Accounts

to identify any U.S. Reportable Account or Financial Account held by a

Nonparticipating Financial Institution, and must report such Financial

Account as would be required if the Financial Institution were a

Reporting Malta Financial Institution (including by following the

registration requirements applicable to Reporting Malta Financial

Institutions) or close such Financial Account;

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

Financial Institution must be incorporated or organized in Malta and,

with the exception of any Related Entity that is a retirement fund

described in paragraphs A through D of section II of this Annex II,

satisfy the requirements set forth in this paragraph A; and

10. The Financial Institution must not have policies or

practices that discriminate against opening or maintaining Financial

Accounts for individuals who are Specified U.S. Persons and residents

of Malta.

B.

Local Bank. A Financial Institution satisfying the following

requirements

1. The Financial Institution operates solely as (and is licensed and

regulated under the laws of Malta as) (a) a bank or (b) a credit union or

similar cooperative credit organization that is operated without profit;

2. The Financial Institution’s business consists primarily of

receiving deposits from and making loans to, with respect to a bank,

unrelated retail customers and, with respect to a credit union or similar

cooperative credit organization, members, provided that no member has a

greater than five percent interest in such credit union or cooperative credit

organization;

3. The Financial Institution satisfies the requirements set forth in

subparagraphs A(2) and A(3) of this section, provided that, in addition to the

limitations on the website described in subparagraph A(3) of this section, the

website does not permit the opening of a Financial Account;

4. The Financial Institution does not have more than $175 million in

assets on its balance sheet, and the Financial Institution and any Related

Entities, taken together, do not have more than $500 million in total assets on

their consolidated or combined balance sheets; and

5. Any Related Entity must be incorporated or organized in Malta,

and any Related Entity that is a Financial Institution, with the exception of any

Related Entity that is a retirement fund described in paragraphs A through D

of section II of this Annex II or a Financial Institution with only low-value

accounts described in paragraph C of this section, must satisfy the

requirements set forth in this paragraph B.

C.

Financial Institution with Only Low-Value Accounts. A Malta

Financial Institution satisfying the following requirements

1. The Financial Institution is not an Investment Entity;

2. No Financial Account maintained by the Financial

Institution or any Related Entity has a balance or value in excess of

$50,000, applying the rules set forth in Annex I for account aggregation

and currency translation; and

3. The Financial Institution does not have more than $50

million in assets on its balance sheet, and the Financial Institution and

any Related Entities, taken together, do not have more than $50 million

in total assets on their consolidated or combined balance sheets.

D.

Qualified Credit Card Issuer. A Malta Financial Institution

satisfying the following requirements

1. The Financial Institution is a Financial Institution solely

because it is an issuer of credit cards that accepts deposits only when a

customer makes a payment in excess of a balance due with respect to

the card and the overpayment is not immediately returned to the

customer; and

2, Beginning on or before July 1, 2014, the Financial

Institution implements policies and procedures to either prevent a

customer deposit in excess of $50,000, or to ensure that any customer

deposit in excess of $50,000, in each case applying the rules set forth in

Annex I for account aggregation and currency translation, is refunded to

the customer within 60 days. For this purpose, a customer deposit does

not refer to credit balances to the extent of disputed charges but does

include credit balances resulting from merchandise returns.

IV. Investment Entities that Qualify as Deemed-Compliant FFIs and

Other Special Rules. The Financial Institutions described in paragraphs A

through E of this section are Non-Reporting Malta Financial Institutions that are

treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal

Revenue Code. In addition, paragraph F of this section provides special rules

applicable to an Investment Entity.

A.

Trustee-Documented Trust. A trust established under the laws

of Malta to the extent that the trustee of the trust is a Reporting U.S.

Financial Institution, Reporting Model 1 FFI, or Participating FFI and reports

all information required to be reported pursuant to the Agreement with

respect to all U.S. Reportable Accounts of the trust.

B.

Sponsored Investment Entity and Controlled Foreign

Corporation. A Financial Institution described in subparagraph B(1) or B(2)

of this section having a sponsoring entity that complies with the requirements

of subparagraph B(3) of this section.

1. A Financial Institution is a sponsored investment entity if

(a) it is an Investment Entity established in Malta that is not a qualified

intermediary, withholding foreign partnership, or withholding foreign

trust pursuant to relevant U.S. Treasury Regulations; and (b) an Entity

has agreed with the Financial Institution to act as a sponsoring entity for

the Financial Institution.

2. A Financial Institution is a sponsored controlled foreign

corporation if (a) the Financial Institution is a controlled foreign

corporation * organized under the laws of Malta that is not a qualified

intermediary, withholding foreign partnership, or withholding foreign

trust pursuant to relevant U.S. Treasury Regulations; (b) the Financial

Institution is wholly owned, directly or indirectly, by a Reporting U.S.

Financial Institution that agrees to act, or requires an affiliate of the

Financial Institution to act, as a sponsoring entity for the Financial

Institution; and (c) the Financial Institution shares a common electronic

account system with the sponsoring entity that enables the sponsoring

entity to identify all Account Holders and payees of the Financial

Institution and to access all account and customer information

maintained by the Financial Institution including, but not limited to,

customer identification information, customer documentation, account

balance, and all payments made to the Account Holder or payee.

3. The sponsoring entity complies with the following

requirements

a)

The sponsoring entity is authorized to act on behalf

of the Financial Institution (such as a fund manager, trustee,

corporate director, or managing partner) to fulfill applicable

registration requirements;

b)

The sponsoring entity has registered as a sponsoring

*A "controlled foreign corporation" means any foreign corporation if more than 50 percent of the total combined

voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such

corporation, is owned, or is considered as owned, by "United States shareholders" on any day during the taxable

year of such foreign corporation. The term a "United States shareholder" means, with respect to any foreign

corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total

combined voting power of all classes of stock entitled to vote of such foreign corporation.

entity with the IRS on the IRS FATCA registration website;

c)

If the sponsoring entity identifies any U.S.

Reportable Accounts with respect to the Financial Institution,

the sponsoring entity registers the Financial Institution pursuant

to applicable registration requirements on the IRS FATCA

registration website on or before the later of December 31, 2015

and the date that is 90 days after such a U.S. Reportable Account

is first identified;

d)

The sponsoring entity agrees to perform, on behalf

of the Financial Institution, all due diligence, withholding,

reporting, and other requirements that the Financial Institution

would have been required to perform if it were a Reporting

Malta Financial Institution;

e)

The sponsoring entity identifies the Financial

Institution and includes the identifying number of the Financial

Institution (obtained by following applicable registration

requirements) in all reporting completed on the Financial

Institution’s behalf; and

f)

The sponsoring entity has not had its status as a

sponsor revoked.

Sponsored, Closely Held Investment Vehicle. A Malta

Financial Institution satisfying the following requirements

1. The Financial Institution is a Financial Institution solely

because it is an Investment Entity and is not a qualified intermediary,

withholding foreign partnership, or withholding foreign trust pursuant

to relevant U.S. Treasury Regulations;

2. The sponsoring entity is a Reporting U.S. Financial

Institution, Reporting Model 1 FFI, or Participating FFI, is authorized to

act on behalf of the Financial Institution (such as a professional

manager, trustee, or managing partner), and agrees to perform, on behalf

of the Financial Institution, all due diligence, withholding, reporting,

and other requirements that the Financial Institution would have been

required to perform if it were a Reporting Malta Financial Institution;

3. The Financial Institution does not hold itself out as an

investment vehicle for unrelated parties;

4. Twenty or fewer individuals own all of the debt interests

and Equity Interests in the Financial Institution (disregarding debt

interests owned by Participating FFIs and deemed-compliant FFIs and

Equity Interests owned by an Entity if that Entity owns 100 percent of

the Equity Interests in the Financial Institution and is itself a sponsored

Financial Institution described in this paragraph C); and

5. The sponsoring entity complies with the following

requirements

a)

The sponsoring entity has registered as a sponsoring

entity with the IRS on the IRS FATCA registration website;

b)

The sponsoring entity agrees to perform, on behalf of

the Financial Institution, all due diligence, withholding,

reporting, and other requirements that the Financial Institution

would have been required to perform if it were a Reporting

Malta Financial Institution and retains documentation collected

with respect to the Financial Institution for a period of six years;

c)

The sponsoring entity identifies the Financial

Institution in all reporting completed on the Financial

Institution’s behalf; and

d) The sponsoring entity has not had its status as a sponsor

revoked.

D.

Investment Advisors and Investment Managers. An

Investment Entity established in Malta that is a Financial Institution solely

because it (1) renders investment advice to, and acts on behalf of, or (2)

manages portfolios for, and acts on behalf of, a customer for the purposes of

investing, managing, or administering funds deposited in the name of the

customer with a Financial Institution other than a Nonparticipating Financial

Institution.

E.

Collective Investment Vehicle. An Investment Entity

established in Malta that is regulated as a collective investment vehicle,

provided that all of the interests in the collective investment vehicle

(including debt interests in excess of $50,000) are held by or through one or

more exempt beneficial owners, Active NFFEs described in subparagraph

B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S.

Persons, or Financial Institutions that are not Nonparticipating Financial

Institutions.

F.

Special Rules. The following rules apply to an Investment

Entity

1. With respect to interests in an Investment Entity that is a

collective investment vehicle described in paragraph E of this section,

the reporting obligations of any Investment Entity (other than a

Financial Institution through which interests in the collective

investment vehicle are held) shall be deemed fulfilled.

2. With respect to interests in

a) An Investment Entity established in a Partner

Jurisdiction that is regulated as a collective investment vehicle,

all of the interests in which (including debt interests in excess of

$50,000) are held by or through one or more exempt beneficial

owners, Active NFFEs described in subparagraph B(4) of

section VI of Annex I, U.S. Persons that are not Specified U.S.

Persons, or Financial Institutions that are not Nonparticipating

Financial Institutions; or

b) An Investment Entity that is a qualified collective

investment vehicle under relevant U.S. Treasury Regulations;

the reporting obligations of any Investment Entity that is a Malta

Financial Institution (other than a Financial Institution through which

interests in the collective investment vehicle are held) shall be deemed

fulfilled.

3. With respect to interests in an Investment Entity

established in Malta that is not described in paragraph E or

subparagraph F(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.

4. An Investment Entity established in Malta that is regulated

as a collective investment vehicle shall not fail to qualify under

paragraph E or subparagraph F(2) of this section, or otherwise as a

deemed-compliant FFI, solely because the collective investment vehicle

has issued physical shares in bearer form, provided that

a)

The collective investment vehicle has not issued,

and does not issue, any physical shares in bearer form after

December 31, 2012;

b)

The collective investment vehicle retires all such

shares upon surrender;

c)

The collective investment vehicle (or a Reporting

Malta Financial Institution) performs the due diligence procedures

set forth in Annex I and reports any information required to be

reported with respect to any such shares when such shares are

presented for redemption or other payment; and

d)

The collective investment vehicle has in place

policies and procedures to ensure that such shares are redeemed

or immobilized as soon as possible, and in any event prior to

January 1, 2017.

V. Accounts Excluded from Financial Accounts. The following accounts

are excluded from the definition of Financial Accounts and therefore are not

treated as U.S. Reportable Accounts.

Certain Savings Accounts.

1. Retirement and Pension Account. A retirement or

pension account maintained in Malta that satisfies the following

requirements under the laws of Malta.

a) The account is subject to regulation as a personal

retirement account or is part of a registered or regulated

retirement or pension plan for the provision of retirement or

pension benefits (including disability or death benefits);

b) The account is tax-favored (i.e., contributions to the

account that would otherwise be subject to tax under the laws of

Malta are deductible or excluded from the gross income of the

account holder or taxed at a reduced rate, or taxation of

investment income from the account is deferred or taxed at a

reduced rate);

c) Annual information reporting is required to the tax

authorities in Malta with respect to the account;

d) Withdrawals are conditioned on reaching a specified

retirement age, disability, or death, or penalties apply to

withdrawals made before such specified events; and

e) Either (i) annual contributions are limited to $50,000

or less, or (ii) there is a maximum lifetime contribution limit to

the account of $1,000,000 or less, in each case applying the rules

set forth in Annex I for account aggregation and currency

translation.

2. Non-Retirement Savings Accounts. An account

maintained in Malta (other than an insurance or Annuity Contract) that

satisfies the following requirements under the laws of Malta.

a)

The account is subject to regulation as a savings

vehicle for purposes other than for retirement;

b) The account is tax-favored (i.e., contributions to the

account that would otherwise be subject to tax under the laws of

Malta are deductible or excluded from the gross income of the

account holder or taxed at a reduced rate, or taxation of

investment income from the account is deferred or taxed at a

reduced rate);

c) Withdrawals are conditioned on meeting specific

criteria related to the purpose of the savings account (for

example, the provision of educational or medical benefits), or

penalties apply to withdrawals made before such criteria are

met; and

d) Annual contributions are limited to $50,000 or less,

applying the rules set forth in Annex I for account aggregation

and currency translation.

Certain Term Life Insurance Contracts. A life insurance

contract maintained in Malta with a coverage period that will end before the

insured individual attains age 90, provided that the contract satisfies the

following requirements

1. Periodic premiums, which do not decrease over time, are

payable at least annually during the period the contract is in existence or

until the insured attains age 90, whichever is shorter;

2. The contract has no contract value that any person can

access (by withdrawal, loan, or otherwise) without terminating the

contract;

3. The amount (other than a death benefit) payable upon

cancellation or termination of the contract cannot exceed the aggregate

premiums paid for the contract, less the sum of mortality, morbidity, and

expense charges (whether or not actually imposed) for the period or

periods of the contract’s existence and any amounts paid prior to the

cancellation or termination of the contract; and

4. The contract is not held by a transferee for value.

Account Held By an Estate. An account maintained in Malta

that is held solely by an estate if the documentation for such account includes

a copy of the deceased’s will or death certificate.

Escrow Accounts. An account maintained in Malta established

in connection with any of the following

1. A court order or judgment.

2. A sale, exchange, or lease of real or personal property,

provided that the account satisfies the following requirements

a) The account is funded solely with a down payment,

earnest money, deposit in an amount appropriate to secure an

obligation directly related to the transaction, or a similar

payment, or is funded with a financial asset that is deposited in

the account in connection with the sale, exchange, or lease of the

property;

b) The account is established and used solely to secure

the obligation of the purchaser to pay the purchase price for the

property, the seller to pay any contingent liability, or the lessor

or lessee to pay for any damages relating to the leased property

as agreed under the lease;

c) The assets of the account, including the income

earned thereon, will be paid or otherwise distributed for the

benefit of the purchaser, seller, lessor, or lessee (including to

satisfy such person’s obligation) when the property is sold,

exchanged, or surrendered, or the lease terminates;

d) The account is not a margin or similar account

established in connection with a sale or exchange of a financial

asset; and

e)

The account is not associated with a credit card

account.

3. An obligation of a Financial Institution servicing a loan

secured by real property to set aside a portion of a payment solely to

facilitate the payment of taxes or insurance related to the real property

at a later time.

4. An obligation of a Financial Institution solely to facilitate

the payment of taxes at a later time.

Partner Jurisdiction Accounts. An account maintained in Malta

and excluded from the definition of Financial Account under an agreement

between the United States and another Partner Jurisdiction to facilitate the

implementation of FATCA, provided that such account is subject to the same

requirements and oversight under the laws of such other Partner Jurisdiction

as if such account were established in that Partner Jurisdiction and

maintained by a Partner Jurisdiction Financial Institution in that Partner

Jurisdiction.

VI. Definitions. The following additional definitions apply to the

descriptions above

A.

Reporting Model 1 FFI. The term Reporting Model 1 FFI means

a Financial Institution with respect to which a non-U.S. government or

agency thereof agrees to obtain and exchange information pursuant to a

Model 1 IGA, other than a Financial Institution treated as a Nonparticipating

Financial Institution under the Model 1 IGA. For purposes of this definition,

the term Model 1 IGA means an arrangement between the United States or

the Treasury Department and a non-U.S. government or one or more agencies

thereof to implement FATCA through reporting by Financial Institutions to

such non-U.S. government or agency thereof, followed by automatic

exchange of such reported information with the IRS.

B.

Participating FFI. The term Participating FFI means a Financial

Institution that has agreed to comply with the requirements of an FFI

Agreement, including a Financial Institution described in a Model 2 IGA that

has agreed to comply with the requirements of an FFI Agreement. The term

Participating FFI also includes a qualified intermediary branch of a

Reporting U.S. Financial Institution, unless such branch is a Reporting

Model 1 FFI. For purposes of this definition, the term FFI Agreement means

an agreement that sets forth the requirements for a Financial Institution to be

treated as complying with the requirements of section 1471(b) of the U.S.

Internal Revenue Code. In addition, for purposes of this definition, the term

Model 2 IGA means an arrangement between the United States or the

Treasury Department and a non-U.S. government or one or more agencies

thereof to facilitate the implementation of FATCA through reporting by

Financial Institutions directly to the IRS in accordance with the requirements

of an FFI Agreement, supplemented by the exchange of information between

such non-U.S. government or agency thereof and the IRS.

€5.04