Page:United States Statutes at Large Volume 124.djvu/124

 124 STAT. 98 PUBLIC LAW 111–147—MAR. 18, 2010 the information described in subsection (c) with respect to such account, ‘‘(D) to deduct and withhold a tax equal to 30 percent of— ‘‘(i) any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and ‘‘(ii) in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under para- graph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recal- citrant account holders or foreign financial institutions which do not meet the requirements of this subsection, ‘‘(E) to comply with requests by the Secretary for addi- tional information with respect to any United States account maintained by such institution, and ‘‘(F) in any case in which any foreign law would (but for a waiver described in clause (i)) prevent the reporting of any information referred to in this subsection or sub- section (c) with respect to any United States account main- tained by such institution— ‘‘(i) to attempt to obtain a valid and effective waiver of such law from each holder of such account, and ‘‘(ii) if a waiver described in clause (i) is not obtained from each such holder within a reasonable period of time, to close such account. Any agreement entered into under this subsection may be terminated by the Secretary upon a determination by the Sec- retary that the foreign financial institution is out of compliance with such agreement. ‘‘(2) FINANCIAL INSTITUTIONS DEEMED TO MEET REQUIRE- MENTS IN CERTAIN CASES.—A foreign financial institution may be treated by the Secretary as meeting the requirements of this subsection if— ‘‘(A) such institution— ‘‘(i) complies with such procedures as the Secretary may prescribe to ensure that such institution does not maintain United States accounts, and ‘‘(ii) meets such other requirements as the Sec- retary may prescribe with respect to accounts of other foreign financial institutions maintained by such institution, or ‘‘(B) such institution is a member of a class of institu- tions with respect to which the Secretary has determined that the application of this section is not necessary to carry out the purposes of this section. ‘‘(3) ELECTION TO BE WITHHELD UPON RATHER THAN WITH- HOLD ON PAYMENTS TO RECALCITRANT ACCOUNT HOLDERS AND NONPARTICIPATING FOREIGN FINANCIAL INSTITUTIONS.—In the case of a foreign financial institution which meets the require- ments of this subsection and such other requirements as the Secretary may provide and which elects the application of this paragraph—