Article 5
Collaboration on Compliance and Enforcement
General Inquiries. Subject to any further terms set forth in a competent authority agreement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the U.S. Competent Authority may make follow-up requests to the United Arab Emirates Competent Authority, pursuant to which the United Arab Emirates Competent Authority shall obtain and provide additional information with respect to a U.S. Reportable Account, including the account statements prepared in the ordinary course of a Reporting United Arab Emirates Financial Institution's business that summarize the activity (including withdrawals, transfers, and closures) of the U.S. Reportable Account.
Minor and Administrative Errors. The U.S. Competent Authority shall notify the United Arab Emirates Competent Authority when the U.S. Competent Authority has reason to believe that administrative errors or other minor errors may have led to incorrect or incomplete information reporting or resulted in other infringements of this Agreement. The United Arab Emirates Competent Authority shall apply its domestic law (including applicable penalties) to obtain corrected and/or complete information or to resolve other infringements of this Agreement.
Significant Non-Compliance.
The U.S. Competent Authority shall notify the United Arab Emirates Competent Authority when the U.S. Competent Authority has determined that there is significant non-compliance with the obligations under this Agreement with respect to a Reporting United Arab Emirates Financial Institution. The United Arab Emirates Competent Authority shall apply its domestic law (including applicable penalties) to address the significant non-compliance described in the notice.
If such enforcement actions do not resolve the non-compliance within a period of 18 months after notification of significant non-compliance is first provided by the U.S. Competent Authority, the United States shall treat the Reporting United Arab Emirates Financial Institution as a Non-participating Financial Institution pursuant to this subparagraph 3(b).
Reliance on Third Party Service Providers. The United Arab Emirates may allow Reporting United Arab Emirates Financial Institutions to use third party service providers to fulfill the obligations imposed on such Reporting United Arab Emirates Financial Institutions by the United Arab Emirates, as contemplated in this Agreement, but these obligations shall remain the responsibility of the Reporting United Arab Emirates Financial Institutions.
Prevention of Avoidance. The United Arab Emirates shall implement as necessary requirements to prevent Financial Institutions from adopting practices intended to circumvent the reporting required under this Agreement.