Progetto

D. Each Member State or Switzerland may allow Reporting Financial Institutions to use service providers to fulfil the reporting and due diligence obligations imposed on such Reporting Financial Institutions, as contemplated in domestic law, but those obligations shall remain the responsibility of the Reporting Financial Institutions.

E. Each Member State or Switzerland may allow Reporting Financial Institutions to apply the due diligence procedures for New Accounts to Preexisting Accounts, and the due diligence procedures for High Value Accounts to Lower Value Accounts. Where a Member State or Switzerland allows New Account due diligence procedures to be used for Preexisting

Accounts, the rules otherwise applicable to Preexisting Accounts continue to apply.

SECTION III

DUE DILIGENCE FOR PREEXISTING INDIVIDUAL ACCOUNTS

The following procedures apply for purposes of identifying Reportable Accounts among Preexisting Individual Accounts.

A. Accounts Not Required to be Reviewed, Identified, or Reported. A Preexisting Individual Account that is a Cash Value Insurance Contract or an Annuity Contract is not required to be reviewed, identified or reported, provided the Reporting Financial Institution is effectively prevented by law from selling such Contract to residents of a Reportable Jurisdiction.

AMP/EU/CH/en 27