S.L. 123.156 Art. 2Arragements to have effect.

It is hereby declared:

(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of tthe United States of America with a view to preventing fiscal evasion;

(b) that it is expedient that those arrangements should have effect following the entry into force of the Agreement and in accordance with the relevant provisions of the Agreement and the Annexes thereto;

(c) that the Agreement shall enter into force on such date as may be announced by notice in the Government Gazette.*

*see article 2 of this Order, and Legal Notice 290 of 2014. SCHEDULE I

Article 2

Agreement between the Government of the Republic of Malta and the Government of the United States of America Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act the Government of the Republic of Malta and the Government of the of America (each, a "Party," and together, the "Parties") desire to agreement to improve international tax compliance through mutual tax matters based on an effective infrastructure for the automatic information;

Article 26 of the Convention between the Government of the Republic the Government of the United States of America for the Avoidance of Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on at Valletta on August 8, 2008 ("the Convention") authorises the information for tax purposes, including on an automatic basis;

the United States of America enacted provisions commonly known as Account Tax Compliance Act ("FATCA"), which introduce a reporting financial institutions with respect to certain accounts; Government of the Republic of Malta is supportive of the underlying FATCA to improve tax compliance; FATCA has raised a number of issues, including that Republic of Malta institutions may not be able to comply with certain aspects of FATCA due legal impediments; the Government of the United States of America collects information certain accounts maintained by U.S. financial institutions held by Malta residents and is committed to exchanging such information with Government of the Republic of Malta and pursuing equivalent levels of provided that the appropriate safeguards and infrastructure for an exchange relationship are in place;

the Parties are committed to working together over the longer term achieving common reporting and due diligence standards for financial

Government of the United States of America acknowledges the need the reporting obligations under FATCA with other U.S. tax reporting Republic of Malta financial institutions to avoid duplicative reporting; an intergovernmental approach to FATCA implementation would impediments and reduce burdens for Republic of Malta financial

Parties desire to conclude an agreement to improve international tax and provide for the implementation of FATCA based on domestic reporting and reciprocal automatic exchange pursuant to the Convention to the confidentiality and other protections provided for therein, provisions limiting the use of the information exchanged under the Convention; Now, therefore, the Parties have agreed as follows: ARTICLE 1

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