SECTION 4. SCOPE OF THE FFI

AGREEMENT

An FFI that registers as a participating FFI (other than a reporting Model 2 FFI) must comply with the FFI agreement with respect to all of its branches (including a home office), other than branches that are reporting Model 1 FFIs or that are U.S. branches. In the case of an FFI that registers as a reporting Model 2 FFI with respect to a branch (including a home office) to be treated as a reporting Model 2 FFI, the FFI does not have to agree to comply with the terms of the FFI agreement for its branches that are not reporting Model 2 FFIs. However, if any branches of a reporting Model 2 FFI are not treated as reporting Model 2 FFIs and need to be treated as participating FFIs, the FFI must be able to comply with the FFI agreement with respect to all of its branches (other than branches that are reporting Model 1 FFIs or that are U.S. branches). In general, the FFI agreement does not apply to a reporting Model 1 FFI, unless the reporting Model 1 FFI has registered a branch located outside of a Model 1 IGA jurisdiction to agree to comply with the terms of the FFI agreement and to treat the branch as a participating FFI or reporting Model 2 FFI. In such a case, the terms of the FFI agreement apply to the operations of such branch.

With respect to an FFI that agrees that one or more branches (other than a branch that is a reporting Model 1 FFI or a U.S. branch) will be subject to the requirements of the FFI agreement and that has entered into a Qualified Intermediary (QI) agreement, Withholding Foreign Partnership (WP) agreement, or Withholding Foreign Trust (WT) agreement, the QI, WP, or WT agreement, as applicable, will apply in addition to the requirements of the FFI agreement, unless specifically modified by the QI, WP, or WT agreement.