1. Exception to certain reporting requirements applicable to foreign financial institutions with respect to certain individuals who live abroad (a) In general Section 1471(d)(1) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Exception for certain individuals who live abroad (i) In general Unless the foreign financial institution elects to not have this subparagraph apply, such term shall not include any depository account maintained by such financial institution if each holder of such account is— (I) a natural person, and (II) a qualified individual with respect to a foreign country in which such foreign financial institution is licensed to conduct business. (ii) Qualified individual For purposes of this subparagraph, an individual is a qualified individual with respect to any foreign country if such individual would be a qualified individual under section 911(d) if the only foreign country taken into account under such section were such foreign country. . (b) Effective date (1) In general The amendments made by this section shall take effect on the date of the enactment of this Act. (2) Modification of agreements At the request of any foreign financial institution, the Secretary of the Treasury (or the Secretary’s delegate) shall, as promptly as is practicable, modify any agreement which is in effect between the Secretary and such foreign financial institution under section 1471 of the Internal Revenue Code of 1986 to take into account the amendments made by this section. 2. Exception for certain individuals who live abroad to certain reporting requirements applicable to individuals with foreign financial assets (a) In general Section 6038D of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Exception for certain financial accounts of individuals living abroad (1) In