INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 SUBSIDIARY LEGISLATION 123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) ORDER 26th June, 2014 * LEGAL NOTICE 78
2014, as amended by Legal Notice 30
this order is the Exchange
Information (United States
America) (FATCA) Order. 2. 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
tthe United States
America with a view to preventing fiscal evasion; (b) that it is expedient that those arrangements should have effect following the entry into force
the Agreement and in accordance with the relevant provisions
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.* *see article 2
this Order, and Legal Notice 290
2014. Citation. Arragements to have effect. 1 2 [ S.L.123.156 Amended by: L.N. 30
2015. EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) SCHEDULE I Article 2 Agreement between the Government
the Republic
Malta and the Government
the United States
America to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act Whereas, the Government
the Republic
Malta and the Government
the United States
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
information; Whereas, Article 26
the Convention between the Government
the Republic
Malta and the Government
the United States
America for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with Respect to Taxes on Income, done at Valletta on August 8, 2008 ( "the Convention") authorises the exchange
information for tax purposes, including on an automatic basis; Whereas, the United States
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
the Republic
Malta is supportive
the underlying policy goal
FATCA to improve tax compliance; Whereas, FATCA has raised a number
issues, including that Republic
Malta financial institutions may not be able to comply with certain aspects
FATCA due to domestic legal impediments; Whereas, the Government
the United States
America collects information regarding certain accounts maintained by U.S. financial institutions held by Republic
Malta residents and is committed to exchanging such information with the Government
the Republic
Malta and pursuing equivalent levels
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
the United States
America acknowledges the need to coordinate the reporting obligations under FATCA with other U.S. tax reporting obligations
Republic
Malta financial institutions to avoid duplicative reporting; Whereas, an intergovernmental approach to FATCA implementation would address legal impediments and reduce burdens for Republic
Malta financial institutions; Whereas, the Parties desire to conclude an agreement to improve international tax compliance and provide for the implementation
FATCA based on domestic EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 3 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
the information exchanged under the Convention; Now, therefore, the Parties have agreed as follows: ARTICLE 1 Definitions 1. For purposes
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
America, including the States thereof, and, when used in a geographical sense, means the land territory
the United States
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
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"
the United States includes the District
Columbia. b) The term "U.S. Territory" means American Samoa, the Commonwealth
the Northern Mariana Islands, Guam, the Commonwealth
Puerto Rico, or the U.S. Virgin Islands.
Malta and, when used in a geographical sense, means the Island
Malta, the Island
Gozo and the other islands
the Maltese archipelago including the territorial sea thereof as well as any area
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
FATCA. The IRS shall publish a list identifying all Partner Jurisdictions. f) The term "Competent Authority" means:
the United States, the Secretary
the Treasury or his delegate; and
Malta, the Minister responsible for finance or his authorised representative.
its business, financial assets for the account
others. An entity holds financial assets for the account
others as a substantial portion
its business if the entity’s gross income attributable to the holding
financial assets and related financial services equals or exceeds 20 percent
the entity’s gross income during the shorter
: (i) the three-year period that ends on December 31 (or the final day
a non-calendar year accounting period) prior to the year in which the determination is being made; or (ii) the period during 4 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) which the entity has been in existence. i) The term "Depository Institution" means any Entity that accepts deposits in the ordinary course
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
the following activities or operations for or on behalf
a customer:
deposit, derivatives, etc.); foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodity futures trading;
other persons. This subparagraph 1(j) shall be interpreted in a manner consistent with similar language set forth in the definition
"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
an insurance company) that issues, or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract.
such Financial Institution that is located outside Malta, and (ii) any branch
a Financial Institution not resident in Malta, if such branch is located in Malta.
such Financial Institution that is located outside the Partner Jurisdiction, and (ii) any branch
a Financial Institution not established in the Partner Jurisdiction, if such branch is located in the Partner Jurisdiction.
such Financial Institution that is located outside the United States, and (ii) any branch
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
income with respect to which information is required to be exchanged under subparagraph
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 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 5 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)
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:
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;
a Financial Institution not described in subparagraph 1(s)
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
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
interests was established with a purpose
avoiding reporting in accordance with this Agreement; and
Financial Account in Annex II. Notwithstanding the foregoing, the term "Financial Account" does not include any account that is excluded from the definition
Financial Account in Annex II. For purposes
this Agreement, interests are "regularly traded" if there is a meaningful volume
trading with respect to the interests on an ongoing basis, and an "established securities market" means an exchange that is
ficially recognized and supervised by a governmental authority in which the market is located and that has a meaningful annual value
shares traded on the exchange. For purposes
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
the interest (other than a Financial Institution acting as an intermediary) is registered on the books
such Financial Institution. The preceding sentence will not apply to interests first registered on the books
such Financial Institution prior to July 1, 2014, and with respect to interests first registered on the books
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
deposit, thrift certificate, investment certificate, certificate
indebtedness, or other similar instrument maintained by a Financial 6 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) Institution in the ordinary course
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
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
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
a partnership that is a Financial Institution, either a capital or profits interest in the partnership. In the case
a trust that is a Financial Institution, an Equity Interest is considered to be held by any person treated as a settlor or beneficiary
all or a portion
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
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
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
time determined in whole or in part by reference to the life expectancy
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
the jurisdiction in which the contract was issued, and under which the issuer agrees to make payments for a term
years.
(i) the amount that the policyholder is entitled to receive upon surrender or termination
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:
an economic loss incurred upon the occurrence
the event insured against;
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
the Insurance Contract, or EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 7 arising from a redetermination
the premium due to correction
posting or other similar error; or
the contract or group involved.
a Depository Account, the account is held by an individual resident in Malta and more than $10
interest is paid to such account in any given calendar year; or (ii) in the case
a Financial Account other than a Depository Account, the Account Holder is a resident
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
subtitle A or chapter 61
subtitle F
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
the due diligence procedures in Annex I. dd) The term "Account Holder" means the person listed or identified as the holder
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
another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding the account for purposes
this Agreement, and such other person is treated as holding the account. For purposes
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
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
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
the contract. Upon the maturity
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
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
the trust, and (ii) one or more U.S. persons have the authority to control all substantial decisions
the trust, or an estate
a decedent that is a citizen or resident
the United States. This subparagraph 1(
INFORMATION (UNITED STATES
AMERICA) (FATCA) The term "Specified U.S. Person" means a U.S. Person, other than: (i) a corporation the stock
which is regularly traded on one or more established securities markets; (ii) any corporation that is a member
the same expanded affiliated group, as defined in section 1471(e)
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
the United States, any U.S. Territory, any political subdivision
any
the foregoing, or any wholly owned agency or instrumentality
any one or more
the foregoing; (v) any organization exempt from taxation under section 501(a)
the U.S. Internal Revenue Code or an individual retirement plan as defined in section 7701(a)
the U.S. Internal Revenue Code; (vi) any bank as defined in section 581
the U.S. Internal Revenue Code; (vii) any real estate investment trust as defined in section 856
the U.S. Internal Revenue Code; (viii) any regulated investment company as defined in section 851
the U.S. Internal Revenue Code or any entity registered with the U.S. Securities and Exchange Commission under the Investment Company Act
1940 (15 U.S.C. 80a-64); (ix) any common trust fund as defined in section 584(a)
the U.S. Internal Revenue Code; (x) any trust that is exempt from tax under section 664(c)
the U.S. Internal Revenue Code or that is described in section 4947(a)
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
the United States or any State; (xii) a broker as defined in section 6045(c)
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)
the U.S. Internal Revenue Code.
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"
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
more than 50 percent
the vote or value in an Entity. Notwithstanding the foregoing, the Malta Competent Authority may treat an Entity as not a Related Entity
another Entity if the two Entities are not members
the same expanded affiliated group as defined in section 1471(e)
the U.S. Internal Revenue Code.
a trust, such term means EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 9 the settlor, the trustees, the protector (if any), the beneficiaries or class
beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case
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
the Party applying this Agreement, any meaning under the applicable tax laws
that Party prevailing over a meaning given to the term under other laws
that Party. ARTICLE 2 Obligations to Obtain and Exchange Information with Respect to Reportable Accounts 1. Subject to the provisions
this Agreement, each Party shall obtain the information specified in paragraph 2
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
the Convention. 2. The information to be obtained and exchanged is: a) In the case
Malta with respect to each U.S. Reportable Account
each Reporting Malta Financial Institution:
each Specified U.S. Person that is an Account Holder
such account and, in the case
a Non-U.S. Entity that, after application
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)
such entity and each such Specified U.S. Person;
an account number);
the Reporting Malta Financial Institution;
a Cash Value Insurance Contract or Annuity Contract, the Cash Value or surrender value) as
the end
the relevant calendar year or other appropriate reporting period or, if the account was closed during such year, immediately before closure;
any Custodial Account: (A) the total gross amount
interest, the total gross amount
dividends, and the total gross amount
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
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 10 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) custodian, broker, nominee, or otherwise as an agent for the Account Holder;
any Depository Account, the total gross amount
interest paid or credited to the account during the calendar year or other appropriate reporting period; and
any account not described in subparagraph 2(a)
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
any redemption payments made to the Account Holder during the calendar year or other appropriate reporting period. b) In the case
the United States, with respect to each Malta Reportable Account
each Reporting U.S. Financial Institution:
any person that is a resident
Malta and is an Account Holder
the account;
an account number);
the Reporting U.S. Financial Institution;
interest paid on a Depository Account
U.S. source dividends paid or credited to the account; and
other U.S. source income paid or credited to the account, to the extent subject to reporting under chapter 3
subtitle A or chapter 61
subtitle F
the U.S. Internal Revenue Code. ARTICLE 3 Time and Manner
Exchange
Information 1. For purposes
the exchange obligation in Article 2
this Agreement, the amount and characterization
payments made with respect to a U.S. Reportable Account may be determined in accordance with the principles
Malta’s tax laws, and the amount and characterization
payments made with respect to a Malta Reportable Account may be determined in accordance with principles
U.S. federal income tax law. 2. For purposes
the exchange obligation in Article 2
this Agreement, the information exchanged shall identify the currency in which each relevant amount is denominated. 3. With respect to paragraph 2
this Agreement, information is to be obtained and exchanged with respect to 2014 and all subsequent years, except that: a) In the case
Malta:
this Agreement;
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 11 through 2(a)
this Agreement, except for gross proceeds described in subparagraph 2(a)
this Agreement; and
this Agreement; b) In the case
the United States, the information to be obtained and exchanged with respect to 2014 and subsequent years is all
the information identified in subparagraph 2(b)
this Agreement. 4. Notwithstanding paragraph 3
this Article, with respect to each Reportable Account that is maintained by a Reporting Financial Institution as
June 30, 2014, and subject to paragraph 4
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,
any relevant person if such taxpayer identifying number is not in the records
the Reporting Financial Institution. In such case, the Parties shall obtain and include in the exchanged information the date
birth
the relevant person, if the Reporting Financial Institution has such date
birth in its records. 5. Subject to paragraphs 3 and 4
this Article, the information described in Article 2
this Agreement shall be exchanged within nine months after the end
the calendar year to which the information relates. 6. The Competent Authorities
Malta and the United States shall enter into an agreement under the mutual agreement procedure provided for in Article 25
the Convention, which shall: a) establish the procedures for the automatic exchange obligations described in Article 2
this Agreement; b) prescribe rules and procedures as may be necessary to implement Article 5
this Agreement; and c) establish as necessary procedures for the exchange
the information reported under subparagraph 1(b)
this Agreement. 7. All information exchanged shall be subject to the confidentiality and other protections provided for in the Convention, including the provisions limiting the use
the information exchanged. 8. Following entry into force
this Agreement, each Competent Authority shall provide written notification to the other Competent Authority when it is satisfied that the jurisdiction
the other Competent Authority has in place (
this Agreement). The Competent Authorities shall endeavour in good faith to meet, prior to September 2015, to establish that each jurisdiction has such safeguards and infrastructure in place. 9. The obligations
the Parties to obtain and exchange information under Article 2
this Agreement shall take effect on the date
the later
the written notifications described in paragraph 8
this Article. Notwithstanding the foregoing, 12 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) if the Malta Competent Authority is satisfied that the United States has the safeguards and infrastructure described in paragraph 8
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
Malta to obtain and exchange information under Article 2
this Agreement shall take effect on the date
the written notification provided by the Malta Competent Authority to the U.S. Competent Authority pursuant to paragraph 8
this Article. 10. This Agreement shall terminate on September 30, 2015, if Article 2
this Agreement is not in effect for either Party pursuant to paragraph 9
this Article by that date. ARTICLE 4 Application
FATCA to Malta Financial Institutions 1. Treatment
Reporting Malta Financial Institutions. Each Reporting Malta Financial Institution shall be treated as complying with, and not subject to withholding under, section 1471
the U.S. Internal Revenue Code if Malta complies with its obligations under Articles 2 and 3
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)
this Agreement in the time and manner described in Article 3
this Agreement; b) for each
2015 and 2016, reports annually to the Malta Commissioner for Revenue the name
each Nonparticipating Financial Institution to which it has made payments and the aggregate amount
such payments;
section 1441
the U.S. Internal Revenue Code) that has elected to assume primary withholding responsibility under chapter 3
subtitle A
the U.S. Internal Revenue Code, (ii) a foreign partnership that has elected to act as a withholding foreign partnership (for purposes
both sections 1441 and 1471
the U.S. Internal Revenue Code), or (iii) a foreign trust that has elected to act as a withholding foreign trust (for purposes
both sections 1441 and 1471
the U.S. Internal Revenue Code), withholds 30 percent
any U.S. Source Withholdable Payment to any Nonparticipating Financial Institution; and e) in the case
a Reporting Malta Financial Institution that is not described in subparagraph 1(d)
this Article and that makes a payment
, 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
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
this paragraph 1 are not satisfied shall not be subject to withholding under section 1471
the U.S. Internal Revenue Code unless such Reporting Malta Financial Institution is treated by the IRS as a EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 13 Nonparticipating Financial Institution pursuant to subparagraph 2(b)
this Agreement. 2. Suspension
Rules Relating to Recalcitrant Accounts. The United States shall not require a Reporting Malta Financial Institution to withhold tax under section 1471 or 1472
the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account holder (as defined in section 1471(d)
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)
this Agreement, subject to the provisions
this Agreement, with respect to such account. 3. Specific Treatment
Malta Retirement Plans. The United States shall treat as deemed-compliant FFIs or exempt beneficial owners, as appropriate, for purposes
sections 1471 and 1472
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
Malta and regulated with respect to contributions, distributions, reporting, sponsorship, and taxation. 4. Identification and Treatment
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
section 1471
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
this Article or is described in paragraph 3 or 4
this Article, has a Related Entity or branch that operates in a jurisdiction that prevents such Related Entity or branch from fulfilling the requirements
a participating FFI or deemed-compliant FFI for purposes
section 1471
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
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
this Agreement and shall continue to be treated as a deemed-compliant FFI or an exempt beneficial owner, as appropriate, for purposes
section 1471
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
all the reporting and withholding requirements
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
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 14 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) Related Entity to circumvent the obligations under this Agreement or under section 1471
the U.S. Internal Revenue Code, as appropriate. 6. Coordination
Timing. Notwithstanding paragraphs 3 and 5
this Agreement:
Definitions with U.S. Treasury Regulations. Notwithstanding Article 1
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
a corresponding definition in this Agreement, provided that such application would not frustrate the purposes
this Agreement. ARTICLE 5 Collaboration on Compliance and Enforcement 1. Minor and Administrative Errors. A Competent Authority shall notify the Competent Authority
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
this Agreement. The Competent Authority
such other Party shall apply its domestic law (including applicable penalties) to obtain corrected and/or complete information or to resolve other infringements
this Agreement.
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
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
a Reporting Malta Financial Institution, such enforcement actions do not resolve the non-compliance within a period
18 months after notification
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). Reliance on Third Party Service Providers. Each Party may allow EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 15 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
the Reporting Financial Institutions. 4. Prevention
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
Information Exchange and Transparency 1. Reciprocity. The Government
the United States acknowledges the need to achieve equivalent levels
reciprocal automatic information exchange with Malta. The Government
the United States is committed to further improve transparency and enhance the exchange relationship with Malta by pursuing the adoption
regulations and advocating and supporting relevant legislation to achieve such equivalent levels
reciprocal automatic information exchange. 2. Treatment
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
foreign passthru payment and gross proceeds withholding that minimizes burden. 3. Development
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
this Agreement and other agreements between the United States and Partner Jurisdictions to a common model for automatic exchange
information, including the development
reporting and due diligence standards for financial institutions. 4. Documentation
Accounts Maintained as
June 30, 2014. With respect to Reportable Accounts maintained by a Reporting Financial Institution as
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
each Account Holder
a Malta Reportable Account as required pursuant to subparagraph 2(b)
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
each Specified U.S. Person as required pursuant to subparagraph 2(a)
this Agreement. ARTICLE 7 Consistency in the Application
FATCA to Partner Jurisdictions 1. Malta shall be granted the benefit
any more favourable terms under Article 4 or Annex 1
this Agreement relating to the application
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
this Agreement, and subject to the same terms and conditions as described therein and in Articles 5 through 9
this Agreement. 16 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 2. The United States shall notify Malta
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
the date
the entry into force
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
this Agreement arise, either Party may request consultations to develop appropriate measures to ensure the fulfilment
this Agreement. 2. This Agreement may be amended by written mutual agreement
the Parties. Unless otherwise agreed upon, such an amendment shall enter into force through the same procedures as set forth in paragraph 1
this Agreement. ARTICLE 9 Annexes The Annexes form an integral part
this Agreement. ARTICLE 10 Term
Agreement 1. This Agreement shall enter into force on the date
Malta’s written notification to the United States that Malta has completed its necessary internal procedures for entry into force
this Agreement. 2. Either Party may terminate this Agreement by giving notice
termination in writing to the other Party. Such termination shall become effective on the first day
the month following the expiration
a period
12 months after the date
the notice
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
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
December 2013. For the Government
the Republic
Malta Edward Scicluna Minister for Finance For the Government
the United States
America Gina Abercrombie Winstanley Ambassador EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 17 ANNEX I DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN NONPARTICIPATING FINANCIAL INSTITUTIONS I. General. A. Malta shall require that Reporting Malta Financial Institutions apply the due diligence procedures contained in this Annex I to identify U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions. B. For purposes
the Agreement,
an account shall be determined as
the last day
the calendar year or other appropriate reporting period. 3. Where a balance or value threshold is to be determined as
June 30, 2014, under this Annex I, the relevant balance or value shall be determined as
that day or the last day
the reporting period ending immediately before June 30, 2014, and where a balance or value threshold is to be determined as
the last day
a calendar year under this Annex I, the relevant balance or value shall be determined as
the last day
the calendar year or other appropriate reporting period. 4. Subject to subparagraph E
section II
this Annex I, an account shall be treated as a U.S. Reportable Account beginning as
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
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
this Annex I either with respect to all relevant Financial Accounts or, separately, with respect to any clearly identified group
such accounts (such as by line
business or the location
where the account is maintained). II. Preexisting Individual Accounts. The following rules and procedures apply for purposes
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
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
this section, a Preexisting Individual Account with a balance or value that does not exceed $50,000 as
June 30, 2014. 18 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) 2. Subject to subparagraph E
this section, a Preexisting Individual Account that is a Cash Value Insurance Contract or an Annuity Contract with a balance or value
$250,000 or less as
June 30,
Malta or the United States effectively prevent the sale
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
Malta requires reporting or withholding with respect to insurance products held by residents
Malta). 4. A Depository Account with a balance
$50,000 or less. B. Review Procedures for Preexisting Individual Accounts With a Balance or Value as
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
the following U.S. indicia:
the Account Holder as a U.S. citizen or resident; Unambiguous indication
a U.S. place
birth; Current U.S. mailing or residence address (including a U.S. post
fice box); Current U.S. telephone number; Standing instructions to transfer funds to an account maintained in the United States; Currently effective power
attorney or signatory authority granted to a person with a U.S. address; or An "in-care-
" or "hold mail" address that is the sole address the Reporting Malta Financial Institution has on file for the Account Holder. In the case
a Preexisting Individual Account that is a Lower Value Account, an "in-care-
" address outside the United States or "hold mail" address shall not be treated as U.S. indicia. 2. If none
the U.S. indicia listed in subparagraph B
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
this section. 3. If any
the U.S. indicia listed in subparagraph B
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
this section and one
the exceptions in such subparagraph applies with respect to that account. 4. Notwithstanding a finding
U.S. indicia under subparagraph B
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 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA)
birth, the Reporting Malta Financial Institution obtains or has previously reviewed and maintains a record
the Account Holder’s Certificate
Loss
Nationality
the United States or a reasonable explanation
: (
section VI
this Annex I, establishing the Account Holder’s non-U.S. status. 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
section VI
this Annex I, establishing the Account Holder’s nonU.S. status. Where the Account Holder information contains a currently effective power
attorney or signatory authority granted to a person with a U.S. address, has an "in-care-
" 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
20 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) section VI
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
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
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
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
this section applies. 3. Except for Depository Accounts described in subparagraph A
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
June 30, 2014, or December 31
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
the U.S. indicia described in subparagraph B
this section. 2. Paper Record Search. If the Reporting Malta Financial Institution’s electronically searchable databases include fields for, and capture all
the information described in, subparagraph D
this section, then no further paper record search is required. If the electronic databases do not capture all
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
the U.S. indicia described in subparagraph B
this section:
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
this section if the Reporting Malta Financial Institution’s electronically searchable information includes the following:
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 21 on file with the Reporting Malta Financial Institution;
the Reporting Malta Financial Institution or another Financial Institution); e) Whether there is a current "in-care-
" address or "hold mail" address for the Account Holder; and f) Whether there is any power
attorney or signatory authority for the account.
Finding U.S. Indicia. a) If none
the U.S. indicia listed in subparagraph B
this section are discovered in the enhanced review
High Value Accounts described above, and the account is not identified as held by a Specified U.S. Person in subparagraph D
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
the U.S. indicia listed in subparagraph B
this section are discovered in the enhanced review
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
this section and one
the exceptions in such subparagraph applies with respect to that account. c) Except for Depository Accounts described in subparagraph A
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. Additional Procedures Applicable to High Value Accounts. 1. If a Preexisting Individual Account is a High Value Account as
June 30, 2014, the Reporting Malta Financial Institution must complete the enhanced review procedures described in paragraph D
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
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
June 22 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) 30, 2014, but becomes a High Value Account as
the last day
2015 or any subsequent calendar year, the Reporting Malta Financial Institution must complete the enhanced review procedures described in paragraph D
this section with respect to such account within six months after the last day
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
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
this section, to the same High Value Account in any subsequent year. 4. If there is a change
circumstances with respect to a High Value Account that results in one or more U.S. indicia described in subparagraph B
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
this section and one
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
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
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
the United States Code, is not required to perform the procedures described in subparagraph B
this section with respect to Lower Value Accounts or subparagraphs D
this section with respect to High Value Accounts. III. New Individual Accounts. The following rules and procedures apply for purposes
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
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
any calendar year or other appropriate reporting period. 2. A Cash Value Insurance Contract unless the Cash Value exceeds $50,000 at the end
any calendar year or other appropriate reporting EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 23 period. B. Other New Individual Accounts. With respect to New Individual Accounts not described in paragraph A
this section, upon account opening (or within 90 days after the end
the calendar year in which the account ceases to be described in paragraph A
this section), the Reporting Malta Financial Institution must obtain a self-certification which may be part
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
another jurisdiction) and confirm the reasonableness
such self-certification based on the information obtained by the Reporting Malta Financial Institution in connection with the opening
the account, including any documentation collected pursuant to AML/KYC Procedures.
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
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
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
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
June 30, 2014, and a Preexisting Entity Account that does not exceed $250,000 as
June 30, 2014, but the account balance or value
which exceeds $1,000,000 as
the last day
2015 or any subsequent calendar year, must be reviewed in accordance with the procedures set forth in paragraph D
this section. C. Entity Accounts With Respect to Which Reporting is Required. With respect to Preexisting Entity Accounts described in paragraph B
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 24 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) aggregate payments as described in subparagraph 1(b)
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
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.
incorporation or organization, or a U.S. address. If the information indicates that the Account Holder is a U.S. Person, the Reporting Malta Financial Institution must treat the account as a U.S. Reportable Account unless it obtains a selfcertification from the Account Holder (which may be on an IRS Form W-8 or W-9, or a similar agreed form), or reasonably determines based on information in its possession or that is publicly available, that the Account Holder is not a Specified U.S. Person. 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. 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. Determine Whether a Financial Institution is a Nonparticipating Financial Institution Payments to Which Are Subject to Aggregate Reporting Under Subparagraph 1(b)
the Agreement.
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
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
the Reporting Malta Financial Institution, as applicable. In such case, no further review, identification, or reporting is required with respect to the account. If the Account Holder is a Malta Financial Institution or other EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) c) 4. [ S.L.123.156 25 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)
the Agreement. 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)
the Agreement, unless the Reporting Malta Financial Institution:
a participating FFI or registered deemedcompliant FFI, verifies the Account Holder’s Global Intermediary Identification Number on the published IRS FFI list. Determine Whether an Account Held by an NFFE Is a U.S. Reportable Account. With respect to an Account Holder
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 (
the Controlling Persons
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
this section in the order most appropriate under the circumstances. a) b) c) For purposes
determining the Controlling Persons
an Account Holder, a Reporting Malta Financial Institution may rely on information collected and maintained pursuant to AML/KYC Procedures. For purposes
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. For purposes
determining whether a Controlling Person
a Passive NFFE is a U.S. citizen or resident for tax purposes, a Reporting Malta Financial Institution may rely on:
a Preexisting Entity Account held by one or more NFFEs with an account balance or value that does not exceed $1,000,000; or
a Preexisting 26 [ S.L.123.156 d) EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) Entity Account held by one or more NFFEs with an account balance or value that exceeds $1,000,000. If any Controlling Person
a Passive NFFE is a U.S. citizen or resident, the account shall be treated as a U.S. Reportable Account. E. Timing
Review and Additional Procedures Applicable to Preexisting Entity Accounts. 1. Review
Preexisting Entity Accounts with an account balance or value that exceeds $250,000 as
June 30, 2014, must be completed by June 30, 2016. 2. Review
Preexisting Entity Accounts with an account balance or value that does not exceed $250,000 as
June 30, 2014, but exceeds $1,000,000 as
December 31
2015 or any subsequent year, must be completed within six months after the last day
the calendar year in which the account balance or value exceeds $1,000,000. 3. If there is a change
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
the account in accordance with the procedures set forth in paragraph D
this section. V. New Entity Accounts. The following rules and procedures apply for purposes
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
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
this section, the Reporting Malta Financial Institution must determine whether the Account Holder is: (
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
the Account Holder’s Global Intermediary Identification Number or other information that is publicly available or in the possession
the Reporting Malta Financial Institution, as applicable. EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 27 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)
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 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. If the Account Holder is: (i) a U.S. Person that is not a Specified U.S. Person; (ii) subject to subparagraph B
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
the Controlling Persons
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. 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)
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. B. Definitions. The following definitions apply for purposes
this Annex I. 1. AML/KYC Procedures. "AML/KYC Procedures" means the customer due diligence procedures
a Reporting Malta Financial Institution pursuant to the anti-money laundering or similar requirements
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
this section, and also includes any Non-U.S. 28 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) 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 (
the following criteria:
the NFFE’s gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50 percent
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
passive income; The stock
the NFFE is regularly traded on an established securities market or the NFFE is a Related Entity
an Entity the stock
which is regularly traded on an established securities market; The NFFE is organized in a U.S. Territory and all
the owners
the payee are bona fide residents
that U.S. Territory; The NFFE is a government (other than the U.S. government), a political subdivision
such government (which, for the avoidance
doubt, includes a state, province, county, or municipality), or a public body performing a function
such government or a political subdivision thereof, a government
a U.S. Territory, an international organization, a non-U.S. central bank
issue, or an Entity wholly owned by one or more
the foregoing; Substantially all
the activities
the NFFE consist
holding (in whole or in part) the outstanding stock
, and providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business
a Financial Institution, except that an Entity shall not qualify for NFFE status if the Entity 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; 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
a Financial Institution provided that the NFFE shall not qualify for this exception after the date that is 24 months after the date
the initial organization
the NFFE; The NFFE was not a Financial Institution in the past five years, and is in the process
liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that
a Financial Institution; 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
EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA)
a Financial Institution; The NFFE is an "excepted NFFE" as described in relevant U.S. Treasury Regulations; or The NFFE meets all
the following requirements: i. It is established and operated in its jurisdiction
residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its jurisdiction
residence and it is a professional organization, business league, chamber
commerce, labor organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion
social welfare; ii. It is exempt from income tax in its jurisdiction
residence; iii. It has no shareholders or members who have a proprietary or beneficial interest in its income or assets; iv. The applicable laws
the NFFE’s jurisdiction
residence or the NFFE’s formation documents do not permit any income or assets
the NFFE to be distributed to, or applied for the benefit
, a private person or non-charitable Entity other than pursuant to the conduct
the NFFE’s charitable activities, or as payment
reasonable compensation for services rendered, or as payment representing the fair market value
property which the NFFE has purchased; and v. The applicable laws
the NFFE’s jurisdiction
residence or the NFFE’s formation documents require that, upon the NFFE’s liquidation or dissolution, all
its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government
the NFFE’s jurisdiction
residence or any political subdivision thereof. Preexisting Account. A "Preexisting Account" means a Financial Account maintained by a Reporting Financial Institution as
June 30,
Individual Accounts. For purposes
determining the aggregate balance or value
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
a jointly held Financial Account shall be attributed the entire balance or value
the jointly held Financial Account for purposes
applying the aggregation requirements described in this paragraph 1. 2. Aggregation
Entity Accounts. For purposes
determining the aggregate balance or value
Financial Accounts held by an Entity, a Reporting Malta Financial Institution is required to take into account all 30 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) 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
determining the aggregate balance or value
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
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
determining the balance or value
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
the last day
the calendar year preceding the year in which the Reporting Malta Financial Institution is determining the balance or value. D. Documentary Evidence. For purposes
this Annex I, acceptable documentary evidence includes any
the following: 1. A certificate
residence issued by an authorized government body (for example, a government or agency thereof, or a municipality)
the jurisdiction in which the payee claims to be a resident.
ficial documentation issued by an authorized government body (for example, a government or agency thereof, or a municipality) that includes the name
the Entity and either the address
its principal
fice 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
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
a Cash Value Insurance Contract. A Reporting Malta Financial Institution may presume that an individual beneficiary (other than the owner)
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 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 31 reason to know, that the beneficiary is a Specified U.S. Person. A Reporting Malta Financial Institution has reason to know that a beneficiary
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)
section II
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)
section II
this Annex I. F. Reliance on Third Parties. Regardless
whether an election is made under paragraph C
section I
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. G. Alternative Procedures for New Entity Accounts Opened on or after July 1, 2014, and before January 1, 2015. For New Entity Accounts opened on or after July 1, 2014, and before January 1, 2015, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group
such accounts, Malta may permit Reporting Malta Financial Institutions to treat such accounts as Preexisting Entity Accounts and apply the due diligence procedures related to Preexisting Entity Accounts specified in section IV
this Annex I in lieu
the due diligence procedures specified in section V
this Annex I. In this case, the due diligence procedures
section IV
this Annex I must be applied without regard to the account balance or value threshold specified in paragraph A
section IV
this Annex I. ANNEX II The following Entities are treated as exempt beneficial owners or deemedcompliant FFIs, as the case may be, and the following accounts are excluded from the definition
Financial Accounts. This Annex II may be modified by a mutual agreement entered into between the Competent Authorities
Malta and the United States:
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
the date
signature
the Agreement; or
being used by U.S. Persons to evade U.S. tax. Any such addition or removal shall be effective on the date
signature
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
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
sections 1471 and 1472
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
a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution. A. Governmental Entity. The government
Malta, any political subdivision
Malta (which, for the avoidance
doubt, includes a state, province, county, or municipality), or any wholly owned agency or instrumentality
Malta or any one or more
the foregoing (each, a 32 [ S.L.123.156 EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) "Malta Governmental Entity"). This category is comprised
the integral parts, controlled entities, and political subdivisions
Malta. 1. An integral part
Malta means any person, organization, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a governing authority
Malta. The net earnings
the governing authority must be credited to its own account or to other accounts
Malta, with no portion inuring to the benefit
any private person. An integral part does not include any individual who is a sovereign,
ficial, 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:
one or more Malta Governmental Entities, with no portion
its income inuring to the benefit
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
private persons if such persons are the intended beneficiaries
a governmental program, and the program activities are performed for the general public with respect to the common welfare or relate to the administration
some phase
government. Notwithstanding the foregoing, however, income is considered to inure to the benefit
private persons if the income is derived from the use
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)
non-U.S. governments;
which does not inure to the benefit
private persons. C. Central Bank. An institution that is by law or government sanction the principal authority, other than the government
Malta itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government
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
sections 1471 and 1472
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
Malta that satisfies any EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 33 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)
one or more employers in consideration for services rendered, provided that the fund:
the fund’s assets; Is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in Malta; and Satisfies at least one
the following requirements: a) The fund is generally exempt from tax in Malta on investment income under the laws
Malta due to its status as a retirement or pension plan; b) The fund receives at least 50 percent
its total contributions (other than transfers
assets from other plans described in paragraphs A through D
this section or from retirement and pension accounts described in subparagraph A
section V
this Annex II) from the sponsoring employers; c) Distributions or withdrawals from the fund are allowed only upon the occurrence
specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in paragraphs A through D
this section or retirement and pension accounts described in subparagraph A
section V
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
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)
one or more employers in consideration for services rendered, provided that:
assets from treaty-qualified retirement funds described in paragraph A
this section or retirement and pension accounts described in subparagraph A
section V
this Annex II) are limited by reference to earned income and compensation
the employee, respectively; Participants that are not residents
Malta are not entitled to more than 20 percent
the fund’s assets; and 34 [ S.L.123.156 5. EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) 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
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
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
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
an Equity Interest in the Entity is an exempt beneficial owner, and each direct holder
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 DeemedCompliant FFIs. The following Financial Institutions are Non-Reporting Malta Financial Institutions that are treated as deemed-compliant FFIs for purposes
section 1471
the U.S. Internal Revenue Code: A. Financial Institutions with a Local Client Base. A Financial Institution satisfying the following requirements:
Malta; The Financial Institution must have no fixed place
business outside
Malta. For this purpose, a fixed place
business does not include a location that is not advertised to the public and from which the Financial Institution performs solely administrative support functions; 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 (
Malta to identify resident Account Holders for purposes
either information reporting or withholding
tax with respect to Financial Accounts held by residents or for purposes
satisfying Malta’s AML due diligence requirements; At least 98 percent
the Financial Accounts by value maintained by the Financial Institution must be held by residents EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 35 (including residents that are Entities)
Malta or a Member State
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
Malta (including a U.S. Person that was a resident
Malta when the Financial Account was opened but subsequently ceases to be a resident
Malta) or any Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not residents
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
Malta or by a Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not residents
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
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
the Financial Institution that is a Financial Institution must be incorporated or organized in Malta and, with the exception
any Related Entity that is a retirement fund described in paragraphs A through D
section II
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
Malta. B. Local Bank. requirements:
Malta
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, 36 [ S.L.123.156
this section, provided that, in addition to the limitations on the website described in subparagraph A
this section, the website does not permit the opening
a Financial Account; 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 Any Related Entity must be incorporated or organized in Malta, and any Related Entity that is a Financial Institution, with the exception
any Related Entity that is a retirement fund described in paragraphs A through D
section II
this Annex II or a Financial Institution with only low-value accounts described in paragraph C
this section, must satisfy the requirements set forth in this paragraph B. Financial Institution with Only Low-Value Accounts. A Malta Financial Institution satisfying the following requirements: 1. 2. 3. D. EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) The Financial Institution is not an Investment Entity; No Financial Account maintained by the Financial Institution or any Related Entity has a balance or value in excess
$50,000, applying the rules set forth in Annex I for account aggregation and currency translation; and 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. Qualified Credit Card Issuer. A Malta Financial Institution satisfying the following requirements: 1. 2, The Financial Institution is a Financial Institution solely because it is an issuer
credit cards that accepts deposits only when a customer makes a payment in excess
a balance due with respect to the card and the overpayment is not immediately returned to the customer; and Beginning on or before July 1, 2014, the Financial Institution implements policies and procedures to either prevent a customer deposit in excess
$50,000, or to ensure that any customer deposit in excess
$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
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
this section are Non-Reporting Malta Financial Institutions that are treated as EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 37 deemed-compliant FFIs for purposes
section 1471
the U.S. Internal Revenue Code. In addition, paragraph F
this section provides special rules applicable to an Investment Entity. A. Trustee-Documented Trust. A trust established under the laws
Malta to the extent that the trustee
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
the trust. B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial Institution described in subparagraph B
this section having a sponsoring entity that complies with the requirements
subparagraph B
this section. 1. 2. 3. A Financial Institution is a sponsored investment entity if (
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
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
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. The sponsoring entity complies with the following requirements: a) The sponsoring entity is authorized to act on behalf
the Financial Institution (such as a fund manager, trustee, corporate director, or managing partner) to fulfill applicable registration requirements;
the total combined voting power
all classes
stock
such corporation entitled to vote, or the total value
the stock
such corporation, is owned, or is considered as owned, by "United States shareholders" on any day during the taxable year
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
the total combined voting power
all classes
stock entitled to vote
such foreign corporation. 38 [ S.L.123.156 d) e) f) C. EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) to applicable registration requirements on the IRS FATCA registration website on or before the later
December 31, 2015 and the date that is 90 days after such a U.S. Reportable Account is first identified; The sponsoring entity agrees to perform, on behalf
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; The sponsoring entity identifies the Financial Institution and includes the identifying number
the Financial Institution (obtained by following applicable registration requirements) in all reporting completed on the Financial Institution’s behalf; and 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:
the Financial Institution (such as a professional manager, trustee, or managing partner), and agrees to perform, on behalf
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; The Financial Institution does not hold itself out as an investment vehicle for unrelated parties; Twenty or fewer individuals own all
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
the Equity Interests in the Financial Institution and is itself a sponsored Financial Institution described in this paragraph C); and The sponsoring entity complies with the following requirements:
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
six years; c) The sponsoring entity identifies the Financial Institution in all reporting completed on the Financial Institution’s EXCHANGE
INFORMATION (UNITED STATES
AMERICA) (FATCA) [ S.L.123.156 39 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 Fin
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.