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tax purposes. If the Reporting Portuguese Financial Institution is unable to obtain a valid self-certification, the

Reporting Portuguese Financial Institution must treat the account as a U.S. Reportable Account.

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes

of 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 Portuguese Financial

Institution elects otherwise, either with respect to all Preexisting Entity Accounts or, separately, with respect to

any clearly identified group of such accounts, where the implementing rules in Portugal provide for such an

election, a Preexisting Entity Account with an account balance or value that does not exceed $250,000 as of

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 of June 30, 2014, and a Preexisting Entity Account that does not exceed $250,000 as of

June 30, 2014 but the account balance or value of which exceeds $1,000,000 as of the last day of 2015 or any

subsequent calendar year, must be reviewed in accordance with the procedures set forth in paragraph D of this

section.

C. Entity Accounts With Respect to Which Reporting Is Required.With respect to Preexisting Entity Accounts

described in paragraph B of 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 aggregate payments as described in subparagraph 1(b) of Article 4 of the

Agreement are reported to the Portuguese Competent Authority.

D. Review Procedures for Identifying Entity Accounts With Respect to Which Reporting Is Required. For Preexisting

Entity Accounts described in paragraph B of this section, the Reporting Portuguese 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.

a) 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

U.S. Person. For this purpose, information indicating that the Account Holder is a U.S. Person includes a U.S.

place of incorporation or organization, or a U.S. address.

b) If the information indicates that the Account Holder is aU.S. Person, the Reporting Portuguese Financial

Institution must treat the account as a U.S. Reportable Account unless it obtains a self-certification 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.

2. Determine Whether a Non-U.S. Entity Is a Financial Institution.

a) 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.

b) If the information indicates that the Account Holder is a Financial Institution, or the Reporting Portuguese

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.

3. Determine Whether a Financial Institution Is a Nonparticipating Financial Institution Payments to Which Are