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b) If, in the case of a Reporting Portuguese Financial Institution, such enforcement actions do not resolve the

non-compliance within a period of 18 months after notification of significant non-compliance is first provided, the

United States shall treat the Reporting Portuguese Financial Institution as a Nonparticipating Financial Institution

pursuant to this subparagraph 2(b).

3. Reliance on Third Party Service Providers. Each Party may allow Reporting Financial Institutions to use

third party service providers to fulfill the obligations imposed on such Reporting Financial Institutions by a Party,

as contemplated in this Agreement, but these obligations shall remain the responsibility of the Reporting Financial

Institutions.

4. Prevention of Avoidance. The Parties shall implement as necessary requirements to prevent Financial

Institutions from adopting practices intended to circumvent the reporting required under this Agreement.

Article 6

Mutual Commitment to Continue to Enhance the Effectiveness of Information Exchange and Transparency

1. Reciprocity. The Government of the United States acknowledges the need to achieve equivalent levels

of reciprocal automatic information exchange with Portugal. The Government of the United States is committed

to further improve transparency and enhance the exchange relationship with Portugal by pursuing the adoption

of regulations and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal

automatic information exchange.

2. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to work together,

along with Partner Jurisdictions, to develop a practical and effective alternative approach to achieve the policy

objectives of foreign passthru payment and gross proceeds withholding that minimizes burden.

3. Documentation of Accounts Maintained as of June 30, 2014. With respect to Reportable Accounts

maintained by a Reporting Financial Institution as of June 30, 2014:

a) The United States commits to establish, by January 1, 2017, for reporting with respect to 2017 and

subsequent years, rules requiring Reporting U.S. Financial Institutions to obtain and report the Portuguese TIN

of each Account Holder of a Portuguese Reportable Account as required pursuant to subparagraph 2(b)(1) of

Article 2 of this Agreement; and

b) Portugal commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent

years, rules requiring Reporting Portuguese Financial Institutions to obtain the U.S. TIN of each Specified U.S.

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

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions

1. Portugal shall be granted the benefit of any more favorable terms under Article 4 or Annex I of this

Agreement relating to the application of FATCA to Portuguese 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 Portugal described in Articles 2 and 3 of this Agreement, and subject to the

same terms and conditions as described therein and in Articles 5 through 9 of this Agreement.

2 The United States shall notify Portugal of any such more favorable terms, and such more favorable terms

shall apply automatically under this Agreement as if such terms were specified in this Agreement and effective

as of the date of the signing of the agreement incorporating the more favorable terms, unless Portugal declines

in writing the application thereof.

Article 8

Consultations and Amendments

1. In case any difficulties in the implementation of this Agreement arise, either Party may request

consultations to develop appropriate measures to ensure the fulfillment of this Agreement.