Projet (Accord en)

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 branch or Related Entity is located or accounts held by Nonparticipating Financial Institutions that are not established in the jurisdiction where such branch or Related Entity is located, and such branch or Related Entity is not used by the Swiss Financial Institution or any other Related Entity to circumvent the obligations under this Agreement or under section 1471 of the U.S. Internal Revenue Code, as

appropriate.

Part D – General Provisions

Article 11 Verification and Enforcement

1. Minor and administrative errors. Consistent with the terms of an FFI Agreement, the U.S. Competent Authority can make a query directly to a Reporting Swiss Financial Institution where it has reason to believe that administrative errors or other errors may have led to incorrect or incomplete information reporting inconsistent with the requirements of an FFI Agreement.

2. Significant non-compliance. The U.S. Competent Authority shall notify the Swiss Competent Authority when the U.S. Competent Authority has determined that there is significant non-compliance with the requirements of an FFI Agreement or this Agreement with respect to a Reporting Swiss Financial Institution. If the non-compliance is not resolved within a period of 12 months after notification of significant non-compliance is first provided by the U.S. Competent Authority, the United States shall treat the Reporting Swiss Financial Institution as a Nonparticipating Financial Institution pursuant to this paragraph. The IRS shall make available a list of all Partner Jurisdiction Financial Institutions that are treated as Nonparticipating Financial Institutions.

3. Competent Authority Consultation. The Competent Authorities of Switzerland and the United States may consult on notified cases of significant non-compliance pursuant to paragraph 2.

4. Reliance on Third Party Service Providers. In accordance with the provisions of an FFI Agreement and applicable U.S. Treasury Regulations, Reporting Swiss Financial

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

Agreement, but these requirements shall remain the responsibility of the Reporting Swiss Financial Institutions.

Article 12 Consistency in the Application of FATCA to Partner Jurisdictions

1. Switzerland shall be granted the benefit of any more favorable terms under Part C and Annex 1 of this Agreement relating to the application of FATCA to Swiss Financial

Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as Switzerland described in Part B of this Agreement and subject to the same terms and

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