1 If an existing individual account is a high-quality account as of June 30, 2014, the reporting Canadian financial institution must complete the extended verification procedures for that account described in paragraph D of this section by June 30, 2015. If this account is identified as a U.S. account to be reported on or before December 31, 2014, the reporting Canadian financial institution must report the necessary information about that account in 2014 in the first account report and then on an annual basis. In the case of an account identified as a U.S. account to be reported after December 31, 2014 and June 30, 2015, the reporting Canadian financial institution is not required to report information relating to that account compared to 2014, but must then report account information annually. (c) the financial institution shares a common electronic account system with the sponsoring undertaking, which allows the sponsored entity to identify all account holders and beneficiaries of the financial institution and to access all account and customer information managed by the financial institution, including but not limited to customer identification information, customer documentation, account status and all payments made to the account holder or payee. 1 For the purposes of the exchange rate obligation provided for in Article 2 of this Agreement, the amount and characterisation of payments made in respect of an account subject to reporting may be determined in accordance with the principles of Canadian tax legislation and the amount and characterisation of payments made in respect of a Canadian reportable account may be determined in accordance with the principles of the Federal Income Tax Act of United States. CONSIDERING that the Parties conclude an agreement to improve international tax compliance and that the implementation of FATCA on the basis of national reports and reciprocal automatic exchanges in accordance with the Convention, and subject to confidentiality and other protective measures provided for therein, including provisions limiting the use of information exchanged under the Convention; to conclude; The agreement exempts tax-exempt savings accounts, registered disability savings plans and registered educational savings plans.  (e) The term partner jurisdiction refers to a jurisdiction that has in force an agreement with the United States to facilitate the implementation of FATCA. . .