United States and Cabo Verde Forge Landmark Tax Cooperation Agreement
Washington D.C. – September 5, 2025 – In a significant step towards enhancing international tax transparency and combating financial evasion, the United States Department of State today announced the publication of a pivotal agreement with the Republic of Cabo Verde. Titled “Cabo Verde (24-207) – Agreement to Improve International Tax Compliance and to Implement FATCA,” this accord signifies a deepened commitment from both nations to uphold robust financial integrity and foster a more equitable global tax system.
The agreement, officially published today, centers on the effective implementation of the Foreign Account Tax Compliance Act (FATCA). FATCA, enacted by the U.S. Congress in 2010, requires foreign financial institutions to report information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest, to the Internal Revenue Service (IRS). This landmark legislation aims to prevent U.S. taxpayers from evading their tax obligations through offshore accounts.
The newly formalized agreement with Cabo Verde establishes a framework for the exchange of financial account information between the two countries. This collaboration will enable U.S. tax authorities to receive crucial data from financial institutions in Cabo Verde concerning U.S. persons, thereby bolstering efforts to ensure compliance with U.S. tax laws. Simultaneously, it allows Cabo Verde to receive reciprocal information from U.S. financial institutions, which can be instrumental in supporting Cabo Verde’s own tax administration and enforcement initiatives.
This cooperative endeavor is expected to yield several key benefits for both nations. For the United States, it represents a vital enhancement in its ability to detect and deter offshore tax evasion, safeguarding the integrity of its tax system and ensuring that all U.S. citizens and residents meet their tax responsibilities. For Cabo Verde, the agreement demonstrates a commitment to global financial standards and can contribute to strengthening its own domestic revenue collection by improving transparency and deterring illicit financial flows.
The U.S. Department of State, in its announcement, underscored the shared dedication to promoting transparency and combating financial crimes. The agreement reflects a mutual understanding that effective international cooperation is paramount in addressing the complexities of modern financial markets and in upholding the principles of fairness and accountability.
This publication marks a significant milestone in the ongoing efforts by the United States to expand its network of intergovernmental agreements for FATCA implementation. By bringing Cabo Verde into this essential framework, the U.S. government continues its proactive approach to ensuring that individuals and entities cannot use offshore accounts to avoid their tax obligations. The diplomatic engagement leading to this agreement highlights the strong and evolving partnership between the United States and the Republic of Cabo Verde.
Further details regarding the specific provisions and operational procedures of the agreement are expected to be made available through official channels. The U.S. Department of State anticipates that this accord will serve as a model for future collaborations with other nations, reinforcing a global commitment to tax transparency and compliance.
Cabo Verde (24-207) – Agreement to Improve International Tax Compliance and to Implement FATCA
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