Agreement between the Government of the United States of America and the 

Government of the Republic of Cabo Verde to Improve International Tax Compliance 

and to Implement FATCA 

Whereas, the Government of the United States of America and the Government of the 

Republic of Cabo Verde (each, a “Party,” and together, the “Parties”) desire to conclude an 

agreement to improve international tax compliance; 

Whereas, the United States of America enacted provisions commonly known as the Foreign 

Account Tax Compliance Act (“FATCA”), which introduce a reporting regime for financial 

institutions with respect to certain accounts; 

Whereas, the Government of the Republic of Cabo Verde is supportive of the underlying 

policy goal of FATCA to improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that Cabo Verdean financial 

institutions may not be able to comply with certain aspects of FATCA due to domestic legal 

impediments; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for Cabo Verdean financial institutions; 

Whereas, the Parties desire to conclude an agreement to improve international tax 

compliance and provide for the implementation of FATCA based on domestic reporting and 

automatic exchange, subject to the confidentiality and other protections provided for herein, 

including the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 

Article 1 

Definitions 

1. For purposes of this agreement and any annexes thereto (the “Agreement”), the 

following terms shall have the meanings set forth below: 

a) The term “United States” means the United States of America, 

including the States thereof and the District of Columbia, but does not 

include the U.S. Territories. For purposes of applying this Agreement, 

any reference to a “State” of the United States includes the District of 

Columbia. 

b) The term “U.S. Territory” means American Samoa, the 

Commonwealth of the Northern Mariana Islands, Guam, the 

Commonwealth of Puerto Rico, or the U.S. Virgin Islands. 

c) The term “IRS” means the U.S. Internal Revenue Service. 

d) The term “Cabo Verde” means the Republic of Cabo Verde. 

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e) The term “Partner Jurisdiction” means a jurisdiction that has in 

effect an agreement with the United States to facilitate the 

implementation of FATCA. The IRS shall publish a list identifying all 

Partner Jurisdictions. 

f) The term “Competent Authority” means: 

(1) in the case of the United States, the Secretary of the Treasury 

or his delegate; and 

(2) in the case of Cabo Verde, the Ministry of Finance. 

g) The term “Financial Institution” means a Custodial Institution, a 

Depository Institution, an Investment Entity, or a Specified Insurance 

Company. 

h) The term “Custodial Institution” means any Entity that holds, as a 

substantial portion of its business, financial assets for the account of 

others. An entity holds financial assets for the account of others as a 

substantial portion of its business if the entity’s gross income attributable 

to the holding of financial assets and related financial services equals or 

exceeds 20 percent of the entity’s gross income during the shorter of: (i) 

the three-year period that ends on December 31 (or the final day of a 

non-calendar year accounting period) prior to the year in which the 

determination is being made; or (ii) the period during which the entity 

has been in existence. 

i) The term “Depository Institution” means any Entity that accepts 

deposits in the ordinary course of a banking or similar business. 

j) The term “Investment Entity” means any Entity that conducts as a 

business (or is managed by an entity that conducts as a business) one 

or more of the following activities or operations for or on behalf of a 

customer: 

(1) trading in money market instruments (cheques, bills, 

certificates of deposit, derivatives, etc.); foreign exchange; 

exchange, interest rate and index instruments; transferable 

securities; or commodity futures trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or 

money on behalf of other persons. 

This subparagraph 1(j) shall be interpreted in a manner consistent with 

similar language set forth in the definition of “financial institution” in 

the Financial Action Task Force Recommendations. 

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k) The term “Specified Insurance Company” means any Entity that is 

an insurance company (or the holding company of an insurance 

company) that issues, or is obligated to make payments with respect 

to, a Cash Value Insurance Contract or an Annuity Contract. 

l) The term “Cabo Verdean Financial Institution” means (i) any 

Financial Institution resident in Cabo Verde but excluding any branch of 

such Financial Institution that is located outside Cabo Verde, and (ii) 

any branch of a Financial Institution not resident in Cabo Verde, if such 

branch is located in Cabo Verde. 

m) The term “Partner Jurisdiction Financial Institution” means (i) any 

Financial Institution established in a Partner Jurisdiction, but excluding 

any branch of such Financial Institution that is located outside the 

Partner Jurisdiction, and (ii) any branch of a Financial Institution not 

established in the Partner Jurisdiction, if such branch is located in the 

Partner Jurisdiction. 

n) The term “Reporting Cabo Verdean Financial Institution” means 

any Cabo Verdean Financial Institution that is not a Non-Reporting 

Cabo Verdean Financial Institution. 

o) The term “Non-Reporting Cabo Verdean Financial Institution” 

means any Cabo Verdean Financial Institution, or other Entity in Cabo 

Verde, that is described in Annex II as a Non-Reporting Cabo Verdean 

Financial Institution or that otherwise qualifies as a deemed-compliant 

FFI or an exempt beneficial owner under relevant U.S. Treasury 

Regulations. 

p) The term “Nonparticipating Financial Institution” means a 

nonparticipating FFI, as that term is defined in relevant U.S. Treasury 

Regulations, but does not include a Cabo Verdean Financial Institution 

or other Partner Jurisdiction Financial Institution other than a Financial 

Institution treated as a Nonparticipating Financial Institution pursuant to 

subparagraph 3(b) of Article 5 of this Agreement or the corresponding 

provision in an agreement between the United States and a Partner 

Jurisdiction. 

q) The term “Financial Account” means an account maintained by a 

Financial Institution, and includes: 

(1) in the case of an Entity that is a Financial Institution solely 

because it is an Investment Entity, any equity or debt interest 

(other than interests that are regularly traded on an established 

securities market) in the Financial Institution; 

(2) in the case of a Financial Institution not described in 

subparagraph 1(q)(1) of this Article, any equity or debt interest in 

the Financial Institution (other than interests that are regularly 

traded on an established securities market), if (i) the value of the 

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debt or equity interest is determined, directly or indirectly, 

primarily by reference to assets that give rise to U.S. Source 

Withholdable Payments, and (ii) the class of interests was 

established with a purpose of avoiding reporting in accordance 

with this Agreement; and 

(3) any Cash Value Insurance Contract and any Annuity Contract 

issued or maintained by a Financial Institution, other than a 

noninvestment-linked, nontransferable immediate life annuity 

that is issued to an individual and monetizes a pension or 

disability benefit provided under an account that is excluded 

from the definition of Financial Account in Annex II. 

Notwithstanding the foregoing, the term “Financial Account” does not 

include any account that is excluded from the definition of Financial 

Account in Annex II. For purposes of this Agreement, interests are 

“regularly traded” if there is a meaningful volume of trading with 

respect to the interests on an ongoing basis, and an “established 

securities market” means an exchange that is officially recognized and 

supervised by a governmental authority in which the market is located 

and that has a meaningful annual value of shares traded on the 

exchange. For purposes of this subparagraph 1(q), an interest in a 

Financial Institution is not “regularly traded” and shall be treated as a 

Financial Account if the holder of the interest (other than a Financial 

Institution acting as an intermediary) is registered on the books of such 

Financial Institution. The preceding sentence will not apply to interests 

first registered on the books of such Financial Institution prior to July 1, 

2014, and with respect to interests first registered on the books of such 

Financial Institution on or after July 1, 2014, a Financial Institution is 

not required to apply the preceding sentence prior to January 1, 2016. 

r) The term “Depository Account” includes any commercial, checking, 

savings, time, or thrift account, or an account that is evidenced by a 

certificate of deposit, thrift certificate, investment certificate, certificate 

of indebtedness, or other similar instrument maintained by a Financial 

Institution in the ordinary course of a banking or similar business. A 

Depository Account also includes an amount held by an insurance 

company pursuant to a guaranteed investment contract or similar 

agreement to pay or credit interest thereon. 

s) The term “Custodial Account” means an account (other than an 

Insurance Contract or Annuity Contract) for the benefit of another 

person that holds any financial instrument or contract held for 

investment (including, but not limited to, a share or stock in a 

corporation, a note, bond, debenture, or other evidence of indebtedness, 

a currency or commodity transaction, a credit default swap, a swap 

based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other 

derivative instrument). 

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t) The term “Equity Interest” means, in the case of a partnership that is a 

Financial Institution, either a capital or profits interest in the 

partnership. In the case of a trust that is a Financial Institution, an 

Equity Interest is considered to be held by any person treated as a 

settlor or beneficiary of all or a portion of the trust, or any other natural 

person exercising ultimate effective control over the trust. A Specified 

U.S. Person shall be treated as being a beneficiary of a foreign trust if 

such Specified U.S. Person has the right to receive directly or indirectly 

(for example, through a nominee) a mandatory distribution or may 

receive, directly or indirectly, a discretionary distribution from the trust. 

u) The term “Insurance Contract” means a contract (other than an 

Annuity Contract) under which the issuer agrees to pay an amount upon 

the occurrence of a specified contingency involving mortality, morbidity, 

accident, liability, or property risk. 

v) The term “Annuity Contract” means a contract under which the issuer 

agrees to make payments for a period of time determined in whole or in 

part by reference to the life expectancy of one or more individuals. The 

term also includes a contract that is considered to be an Annuity 

Contract in accordance with the law, regulation, or practice of the 

jurisdiction in which the contract was issued, and under which the issuer 

agrees to make payments for a term of years. 

w) The term “Cash Value Insurance Contract” means an Insurance 

Contract (other than an indemnity reinsurance contract between two 

insurance companies) that has a Cash Value greater than $50,000. 

x) The term “Cash Value” means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or 

policy loan), and (ii) the amount the policyholder can borrow under or 

with regard to the contract. Notwithstanding the foregoing, the term 

“Cash Value” does not include an amount payable under an Insurance 

Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the 

occurrence of the event insured against; 

(2) a refund to the policyholder of a previously paid premium under 

an Insurance Contract (other than under a life insurance contract) 

due to policy cancellation or termination, decrease in risk 

exposure during the effective period of the Insurance Contract, or 

arising from a redetermination of the premium due to correction 

of posting or other similar error; or 

(3) a policyholder dividend based upon the underwriting experience 

of the contract or group involved. 

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y) The term “U.S. Reportable Account” means a Financial Account 

maintained by a Reporting Cabo Verdean Financial Institution and held 

by one or more Specified U.S. Persons or by a Non-U.S. Entity with one 

or more Controlling Persons that is a Specified U.S. Person. 

Notwithstanding the foregoing, an account shall not be treated as a U.S. 

Reportable Account if such account is not identified as a U.S. 

Reportable Account after application of the due diligence procedures in 

Annex I. 

z) The term “Account Holder” means the person listed or identified as the 

holder of a Financial Account by the Financial Institution that maintains 

the account. A person, other than a Financial Institution, holding a 

Financial Account for the benefit or account of another person as agent, 

custodian, nominee, signatory, investment advisor, or intermediary, is 

not treated as holding the account for purposes of this Agreement, and 

such other person is treated as holding the account. For purposes of the 

immediately preceding sentence, the term “Financial Institution” does 

not include a Financial Institution organized or incorporated in a U.S. 

Territory. In the case of a Cash Value Insurance Contract or an Annuity 

Contract, the Account Holder is any person entitled to access the Cash 

Value or change the beneficiary of the contract. If no person can access 

the Cash Value or change the beneficiary, the Account Holder is any 

person named as the owner in the contract and any person with a vested 

entitlement to payment under the terms of the contract. Upon the 

maturity of a Cash Value Insurance Contract or an Annuity Contract, 

each person entitled to receive a payment under the contract is treated as 

an Account Holder. 

aa) The term “U.S. Person” means a U.S. citizen or resident individual, a 

partnership or corporation organized in the United States or under the 

laws of the United States or any State thereof, a trust if (i) a court 

within the United States would have authority under applicable law to 

render orders or judgments concerning substantially all issues regarding 

administration of the trust, and (ii) one or more U.S. persons have the 

authority to control all substantial decisions of the trust, or an estate of 

a decedent that is a citizen or resident of the United States. This 

subparagraph 1(aa) shall be interpreted in accordance with the U.S. 

Internal Revenue Code. 

bb) The term “Specified U.S. Person” means a U.S. Person, other than: (i) 

a corporation the stock of which is regularly traded on one or more 

established securities markets; (ii) any corporation that is a member of 

the same expanded affiliated group, as defined in section 1471(e)(2) of 

the U.S. Internal Revenue Code, as a corporation described in clause (i); 

(iii) the United States or any wholly owned agency or instrumentality 

thereof; (iv) any State of the United States, any U.S. Territory, any 

political subdivision of any of the foregoing, or any wholly owned 

agency or instrumentality of any one or more of the foregoing; (v) any 

organization exempt from taxation under section 501(a) of the U.S. 

Internal Revenue Code or an individual retirement plan as defined in 

6 
 

 

 

section 7701(a)(37) of the U.S. Internal Revenue Code; (vi) any bank as 

defined in section 581 of the U.S. Internal Revenue Code; (vii) any real 

estate investment trust as defined in section 856 of the U.S. Internal 

Revenue Code; (viii) any regulated investment company as defined in 

section 851 of the U.S. Internal Revenue Code or any entity registered 

with the U.S. Securities and Exchange Commission under the Investment 

Company Act of 1940 (15 U.S.C. 80a-64); (ix) any common trust fund 

as defined in section 584(a) of the U.S. Internal Revenue Code; (x) any 

trust that is exempt from tax under section 664(c) of the U.S. Internal 

Revenue Code or that is described in section 4947(a)(1) of the U.S. 

Internal Revenue Code; (xi) a dealer in securities, commodities, or 

derivative financial instruments (including notional principal contracts, 

futures, forwards, and options) that is registered as such under the laws 

of the United States or any State; (xii) a broker as defined in section 

6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust 

under a plan that is described in section 403(b) or section 457(g) of the 

U.S. Internal Revenue Code. 

cc) The term “Entity” means a legal person or a legal arrangement such as a trust. 

dd) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person. 

ee) The term “U.S. Source Withholdable Payment” means any payment of 

interest (including any original issue discount), dividends, rents, salaries, 

wages, premiums, annuities, compensations, remunerations, 

emoluments, and other fixed or determinable annual or periodical gains, 

profits, and income, if such payment is from sources within the United 

States. Notwithstanding the foregoing, a U.S. Source Withholdable 

Payment does not include any payment that is not treated as a 

withholdable payment in relevant U.S. Treasury Regulations. 

ff) An Entity is a “Related Entity” of another Entity if either Entity 

controls the other Entity, or the two Entities are under common control. 

For this purpose control includes direct or indirect ownership of more 

than 50 percent of the vote or value in an Entity. Notwithstanding the 

foregoing, Cabo Verde may treat an Entity as not a Related Entity of 

another Entity if the two Entities are not members of the same expanded 

affiliated group as defined in section 1471(e)(2) of the U.S. Internal 

Revenue Code. 

gg) The term “U.S. TIN” means a U.S. federal taxpayer identifying number. 

hh) The term “Controlling Persons” means the natural persons who 

exercise control over an Entity. In the case of a trust, such term means 

the settlor, the trustees, the protector (if any), the beneficiaries or class 

of beneficiaries, and any other natural person exercising ultimate 

effective control over the trust, and in the case of a legal arrangement 

other than a trust, such term means persons in equivalent or similar 

positions. The term “Controlling Persons” shall be interpreted in a 

manner consistent with the Financial Action Task 

7 
 

 

Force Recommendations. 

2. Any term not otherwise defined in this Agreement shall, unless the context 

otherwise requires or the Competent Authorities agree to a common meaning (as 

permitted by domestic law), have the meaning that it has at that time under the law of 

the Party applying this Agreement, any meaning under the applicable tax laws of that 

Party prevailing over a meaning given to the term under other laws of that Party. 

Article 2 

Obligations to Obtain and Exchange Information with Respect to U.S. Reportable 

Accounts 

1. Subject to the provisions of Article 3 of this Agreement, Cabo Verde shall obtain the 

information specified in paragraph 2 of this Article with respect to all U.S. Reportable 

Accounts and shall annually exchange this information with the United States on an 

automatic basis. 

2. The information to be obtained and exchanged with respect to each U.S. Reportable 

Account of each Reporting Cabo Verdean Financial Institution is: 

a) the name, address, and U.S. TIN of each Specified U.S. Person that is an 

Account Holder of such account and, in the case of a Non-U.S. Entity that, 

after application of the due diligence procedures set forth in Annex I, is 

identified as having one or more Controlling Persons that is a Specified U.S. 

Person, the name, address, and U.S. TIN (if any) of such entity and each such 

Specified U.S. Person; 

b) the account number (or functional equivalent in the absence of an account 

number); 

c) the name and identifying number of the Reporting Cabo Verdean Financial 

Institution; 

d) the account balance or value (including, in the case of a Cash Value Insurance 

Contract or Annuity Contract, the Cash Value or surrender value) as of the 

end of the relevant calendar year or other appropriate reporting period or, if 

the account was closed during such year, immediately before closure; 

e) in the case of any Custodial Account: 

(1) the total gross amount of interest, the total gross amount of dividends, 

and the total gross amount of other income generated with respect to 

the assets held in the account, in each case paid or credited to the 

account (or with respect to the account) during the calendar year or 

other appropriate reporting period; and 

(2) the total gross proceeds from the sale or redemption of property paid 

or credited to the account during the calendar year or other appropriate 

reporting period with respect to which the Reporting Cabo Verdean 

8 
 

Financial Institution acted as a custodian, broker, nominee, or 

otherwise as an agent for the Account Holder; 

f) in the case of any Depository Account, the total gross amount of interest paid 

or credited to the account during the calendar year or other appropriate 

reporting period; and 

g) in the case of any account not described in subparagraph 2(e) or 2(f) of this 

Article, the total gross amount paid or credited to the Account Holder with 

respect to the account during the calendar year or other appropriate reporting 

period with respect to which the Reporting Cabo Verdean Financial Institution 

is the obligor or debtor, including the aggregate amount of any redemption 

payments made to the Account Holder during the calendar year or other 

appropriate reporting period. 

Article 3 

Time and Manner of Exchange of Information 

1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount 

and characterization of payments made with respect to a U.S. Reportable Account may be 

determined in accordance with the principles of the tax laws of Cabo Verde. 

2. For purposes of the exchange obligation in Article 2 of this Agreement, the 

information exchanged shall identify the currency in which each relevant amount is 

denominated. 

3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be 

obtained and exchanged with respect to 2014 and all subsequent years, except that: 

a) the information to be obtained and exchanged with respect to 2014 is only the 

information described in subparagraphs 2(a) through 2(d) of Article 2 of this 

Agreement; 

b) the information to be obtained and exchanged with respect to 2015 is the 

information described in subparagraphs 2(a) through 2(g) of Article 2 of this 

Agreement, except for gross proceeds described in subparagraph 2(e)(2) of 

Article 2 of this Agreement; and 

c) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2(a) through 

2(g) of Article 2 of this Agreement. 

4. Notwithstanding paragraph 3 of this Article, with respect to each U.S. Reportable 

Account maintained by a Reporting Cabo Verdean Financial Institution as of the 

Determination Date, and subject to paragraph 2 of Article 6 of this Agreement, Cabo Verde is 

not required to obtain and include in the exchanged information the U.S. TIN of any relevant 

person if such U.S. TIN is not in the records of the Reporting Cabo Verdean Financial 

Institution. In such a case, Cabo Verde shall obtain and include in the exchanged information 

the date of birth of the relevant person, if the Reporting Cabo Verdean Financial Institution 

9 
 

 

has such date of birth in its records. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of 

this Agreement shall be exchanged by the later of nine months after the end of the calendar 

year to which the information relates or the next September 30th after this Agreement enters 

into force. 

6. The Competent Authorities of Cabo Verde and the United States shall enter into an 

agreement or arrangement under the mutual agreement procedure provided for in Article 8 of 

this Agreement, which shall: 

a) establish the procedures for the automatic exchange obligations described in 

Article 2 of this Agreement; 

b) prescribe rules and procedures as may be necessary to implement Article 5 of 

this Agreement; and 

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1(b) of Article 4 of this Agreement. 

7. All information exchanged shall be subject to the confidentiality and other protections 

provided for in Article 9 of this Agreement, including the provisions limiting the use of the 

information exchanged. 

Article 4 

Application of FATCA to Cabo Verdean Financial Institutions 

1. Treatment of Reporting Cabo Verdean Financial Institutions. Each 

Reporting Cabo Verdean Financial Institution shall be treated as complying with, and 

not subject to withholding under, section 1471 of the U.S. Internal Revenue Code if 

Cabo Verde complies with its obligations under Articles 2 and 3 of this Agreement 

with respect to such Reporting Cabo Verdean Financial Institution, and the Reporting 

Cabo Verdean Financial Institution: 

a) identifies U.S. Reportable Accounts and reports annually to the 

Cabo Verde Competent Authority the information required to be 

reported in paragraph 2 of Article 2 of this Agreement in the time 

and manner described in Article 3 of this Agreement; 

b) for each of 2015 and 2016, reports annually to the Cabo Verde 

Competent Authority the name of each Nonparticipating Financial 

Institution to which it has made payments and the aggregate 

amount of such payments; 

c) complies with the applicable registration requirements on the IRS 

FATCA registration website; 

d) to the extent that a Reporting Cabo Verdean Financial Institution is (i) 

acting as a qualified intermediary (for purposes of section 1441 of the 

U.S. Internal Revenue Code) that has elected to assume primary 

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withholding responsibility under chapter 3 of subtitle A of the U.S. 

Internal Revenue Code, (ii) a foreign partnership that has elected to act 

as a withholding foreign partnership (for purposes of both sections 1441 

and 1471 of the U.S. Internal Revenue Code), or (iii) a foreign trust that 

has elected to act as a withholding foreign trust (for purposes of both 

sections 1441 and 1471 of the U.S. Internal Revenue Code), withholds 

30 percent of any U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution; and 

e) in the case of a Reporting Cabo Verdean Financial Institution that is not 

described in subparagraph 1(d) of this Article and that makes a payment 

of, or acts as an intermediary with respect to, a U.S. Source 

Withholdable Payment to any Nonparticipating Financial Institution, the 

Reporting Cabo Verdean Financial Institution provides to any 

immediate payor of such U.S. Source Withholdable Payment the 

information required for withholding and reporting to occur with respect 

to such payment. 

Notwithstanding the foregoing, a Reporting Cabo Verdean Financial Institution with 

respect to which the conditions of this paragraph 1 are not satisfied shall not be 

subject to withholding under section 1471 of the U.S. Internal Revenue Code unless 

such Reporting Cabo Verdean Financial Institution is treated by the IRS as a 

Nonparticipating Financial Institution pursuant to subparagraph 3(b) of Article 5 of 

this Agreement. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States 

shall not require a Reporting Cabo Verdean Financial Institution to withhold tax under 

section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an account 

held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S. 

Internal Revenue Code), or to close such account, if the U.S. Competent Authority 

receives the information set forth in paragraph 2 of Article 2 of this Agreement, subject 

to the provisions of Article 3 of this Agreement, with respect to such account. 

3. Specific Treatment of Cabo Verdean Retirement Plans. The United States 

shall treat as deemed-compliant FFIs or exempt beneficial owners, as appropriate, for 

purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, Cabo Verdean 

retirement plans described in Annex II. For this purpose, a Cabo Verdean retirement 

plan includes an Entity established or located in, and regulated by, Cabo Verde, or a 

predetermined contractual or legal arrangement, operated to provide pension or 

retirement benefits or earn income for providing such benefits under the laws of Cabo 

Verde and regulated with respect to contributions, distributions, reporting, 

sponsorship, and taxation. 

4. Identification and Treatment of Other Deemed-Compliant FFIs and 

Exempt Beneficial Owners. The United States shall treat each Non-Reporting Cabo 

Verdean Financial Institution as a deemed-compliant FFI or as an exempt beneficial 

owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Cabo Verdean Financial Institution, 

11 
 

that otherwise meets the requirements described in paragraph 1 of this Article or is 

described in paragraph 3 or 4 of this Article, has a Related Entity or branch that 

operates in a jurisdiction that prevents such Related Entity or branch from fulfilling the 

requirements of a participating FFI or deemed-compliant FFI for purposes of section 

1471 of the U.S. Internal Revenue Code or has a Related Entity or branch that is 

treated as a Nonparticipating Financial Institution solely due to the expiration of the 

transitional rule for limited FFIs and limited branches under relevant U.S. Treasury 

Regulations, such Cabo Verdean Financial Institution shall continue to be in 

compliance with the terms of this Agreement and shall continue to be treated as a 

deemed-compliant FFI or exempt beneficial owner, as appropriate, for purposes of 

section 1471 of the U.S. Internal Revenue Code, provided that: 

a) the Cabo Verdean Financial Institution treats each such Related Entity or 

branch as a separate Nonparticipating Financial Institution for purposes of all 

the reporting and withholding requirements of this Agreement and each such 

Related Entity or branch identifies itself to withholding agents as a 

Nonparticipating Financial Institution; 

b) each such Related Entity or branch identifies its U.S. accounts and reports the 

information with respect to those accounts as required under section 1471 of 

the U.S. Internal Revenue Code to the extent permitted under the relevant 

laws pertaining to the Related Entity or branch; and 

c) such Related Entity or branch does not specifically solicit U.S. accounts held 

by persons that are not resident in the jurisdiction where such Related Entity 

or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

Entity or branch is located, and such Related Entity or branch is not used by 

the Cabo Verdean Financial Institution or any other Related Entity to 

circumvent the obligations under this Agreement or under section 1471 of the 

U.S. Internal Revenue Code, as appropriate. 

6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 

of this Agreement: 

a) Cabo Verde shall not be obligated to obtain and exchange information 

with respect to a calendar year that is prior to the calendar year with 

respect to which similar information is required to be reported to the IRS 

by participating FFIs pursuant to relevant U.S. Treasury Regulations; 

and 

b) Cabo Verde shall not be obligated to begin exchanging information 

prior to the date by which participating FFIs are required to report 

similar information to the IRS under relevant U.S. Treasury 

Regulations. 

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding 

Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, Cabo Verde may use, and may permit Cabo Verdean 

Financial Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a 

12 
 

corresponding definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement. 

Article 5 

Collaboration on Compliance and Enforcement 

1. General Inquiries. Subject to any further terms set forth in a competent 

authority agreement or arrangement concluded pursuant to paragraph 6 of Article 3 of 

this Agreement, the U.S. Competent Authority may make follow-up requests to the 

Cabo Verde Competent Authority, pursuant to which the Cabo Verde 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 Cabo Verdean Financial Institution’s business that summarize the 

activity (including withdrawals, transfers, and closures) of the U.S. Reportable 

Account. 

2. Minor and Administrative Errors. The U.S. Competent Authority shall 

notify the Cabo Verdean 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 Cabo Verdean 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. 

3. Significant Non-Compliance. 

a) The U.S. Competent Authority shall notify the Cabo Verde 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 Cabo Verdean Financial Institution. The 

Cabo Verdean Competent Authority shall apply its domestic law 

(including applicable penalties) to address the significant noncompliance described in the notice. 

b) 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 Cabo Verdean Financial Institution as a 

Nonparticipating Financial Institution pursuant to this subparagraph 

3(b). 

4. Reliance on Third Party Service Providers. Cabo Verde may allow 

Reporting Cabo Verdean Financial Institutions to use third party service providers to 

fulfill the obligations imposed on such Reporting Cabo Verdean Financial Institutions 

by Cabo Verde, as contemplated in this Agreement, but these obligations shall remain 

the responsibility of the Reporting Cabo Verdean Financial Institutions. 

5. Prevention of Avoidance. Cabo Verde shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the reporting 

13 
 

 

 

required under this Agreement. 

Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed 

to work together, along with Partner Jurisdictions, to develop a practical and effective 

alternative approach to achieve the policy objectives of foreign passthru payment and gross 

proceeds withholding that minimizes burden. 

2. Documentation of Accounts Maintained as of the Determination Date. With 

respect to U.S. Reportable Accounts maintained by a Reporting Cabo Verdean Financial 

Institution as of the Determination Date, Cabo Verde commits to have established, within 12 

months of entry into force of this agreement, for reporting with respect to 2017 and 

subsequent years, rules requiring Reporting Cabo Verdean Financial Institutions to obtain the 

U.S. TIN of each Specified U.S. Person as required pursuant to subparagraph 2(a) of Article 

2 of this Agreement. 

Article 7 

Consistency in the Application of FATCA to Partner Jurisdictions 

1. Cabo Verde shall be granted the benefit of any more favorable terms under Article 4 

or Annex I of this Agreement relating to the application of FATCA to Cabo Verdean 

Financial Institutions afforded to another Partner Jurisdiction under a signed bilateral 

agreement pursuant to which the other Partner Jurisdiction commits to undertake the same 

obligations as Cabo Verde described in Articles 2 and 3 of this Agreement, and subject to the 

same terms and conditions as described therein and in Articles 5, 6, 7, 10 and 11 of this 

Agreement. 

2. The United States shall notify Cabo Verde of any such more favorable terms, and 

such more favorable terms shall apply automatically under this Agreement as if such terms 

were specified in this Agreement and effective as of the date of signing of the agreement 

incorporating the more favorable terms, unless Cabo Verde declines in writing the 

application thereof. 

Article 8 

Mutual Agreement Procedure 

1. Where difficulties or doubts arise between the Parties regarding the implementation, 

application, or interpretation of this Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement. 

2. The Competent Authorities may adopt and implement procedures to facilitate the 

implementation of this Agreement. 

3. The Competent Authorities may communicate with each other directly for purposes of 

14 
 

 

 

 

 

reaching a mutual agreement under this Article. 

Article 9 

Confidentiality 

1. The Cabo Verdean Competent Authority shall treat any information received from the 

United States pursuant to Article 5 of this Agreement as confidential and shall only disclose 

such information as may be necessary to carry out its obligations under this Agreement. Such 

information may be disclosed in connection with court proceedings related to the 

performance of the obligations of Cabo Verde under this Agreement. 

2. Information provided to the U.S. Competent Authority pursuant to Articles 2 and 5 of 

this Agreement shall be treated as confidential and may be disclosed only to persons or 

authorities (including courts and administrative bodies) of the Government of the United 

States concerned with the assessment, collection, or administration of, the enforcement or 

prosecution in respect of, or the determination of appeals in relation to, U.S. federal taxes, or 

the oversight of such functions. Such persons or authorities shall use such information only 

for such purposes. Such persons may disclose the information in public court proceedings or 

in judicial decisions. The information may not be disclosed to any other person, entity, 

authority, or jurisdiction. Notwithstanding the foregoing, where Cabo Verde provides prior, 

written consent, the information may be used for purposes permitted under the provisions of a 

mutual legal assistance treaty in force between the Parties that allows for the exchange of tax 

information. 

Article 10 

Consultations and Amendments 

1. In case any difficulties in the implementation of this Agreement arise, either Party 

may, independently of the mutual agreement procedure described in paragraph 1 of Article 8 

of this Agreement, request consultations to develop appropriate measures to ensure the 

fulfillment of this Agreement. 

2. This Agreement may be amended by written mutual agreement of the Parties. Unless 

otherwise agreed upon, such an amendment shall enter into force through the same 

procedures as set forth in paragraph 1 of Article 12 of this Agreement. 

Article 11 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 12 

Term of Agreement 

1. This Agreement shall enter into force on the date of Cabo Verde’s written notification 

to the United States that Cabo Verde has completed its necessary internal procedures for 

15 
 

 

entry into force of this Agreement. 

2. Either Party may terminate this Agreement by giving notice of termination in writing 

to the other Party. Such termination shall become effective on the first day of the month 

following the expiration of a period of 12 months after the date of the notice of termination. 

3. The Parties shall consult in good faith to amend this Agreement as necessary to 

reflect progress on the commitments set forth in Article 6 of this Agreement. 

4. If this Agreement is terminated, both Parties shall remain bound by the provisions of 

Article 9 of this Agreement with respect to any information obtained under this Agreement. 

In witness whereof, the undersigned, being duly authorized thereto by their respective 

Governments, have signed this Agreement. 

Done at ________, in duplicate, in the English and Portuguese languages, both texts being 

equally authentic, this __ day of ________, 20__. 

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA: THE REPUBLIC OF CABO VERDE: 

16 
 

 

 

ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. Cabo Verde shall require that Reporting Cabo Verdean Financial Institutions 

apply the due diligence procedures contained in this Annex I to identify U.S. 

Reportable Accounts and accounts held by Nonparticipating Financial Institutions. 

B. For purposes of the Agreement, 

1. All dollar amounts are in U.S. dollars and shall be read to include the 

equivalent in other currencies. 

2. Except as otherwise provided herein, the balance or value of an 

account shall be determined as of the last day of the calendar year or other 

appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of the 

Determination Date under this Annex I, the relevant balance or value shall be 

determined as of that day or the last day of the reporting period ending 

immediately before the Determination Date, and where a balance or value 

threshold is to be determined as of the last day of a calendar year under this 

Annex I, the relevant balance or value shall be determined as of the last day of 

the calendar year or other appropriate reporting period. 

4. Subject to subparagraph E(1) of section II of this Annex I, an account 

shall be treated as a U.S. Reportable Account beginning as of the date it is 

identified as such pursuant to the due diligence procedures in this Annex I. 

5. Unless otherwise provided, information with respect to a U.S. 

Reportable Account shall be reported annually in the calendar year following 

the year to which the information relates. 

C. As an alternative to the procedures described in each section of this Annex I, 

Cabo Verde may permit Reporting Cabo Verdean Financial Institutions to rely on the 

procedures described in relevant U.S. Treasury Regulations to establish whether an 

account is a U.S. Reportable Account or an account held by a Nonparticipating 

Financial Institution. Cabo Verde may permit Reporting Cabo Verdean Financial 

Institutions to make such election separately for each section of this Annex I either 

with respect to all relevant Financial Accounts or, separately, with respect to any 

clearly identified group of such accounts (such as by line of business or the location 

of where the account is maintained). 

II. Preexisting Individual Accounts. The following rules and procedures apply for 

purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by 

individuals (“Preexisting Individual Accounts”). 

Annex I –1 
 

 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting Cabo Verdean Financial Institution elects otherwise, either with respect 

to all Preexisting Individual Accounts or, separately, with respect to any clearly 

identified group of such accounts, where the implementing rules in Cabo Verde 

provide for such an election, the following Preexisting Individual Accounts are not 

required to be reviewed, identified, or reported as U.S. Reportable Accounts: 

1. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account with a balance or value that does not exceed $50,000 as of the 

Determination Date. 

2. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account that is a Cash Value Insurance Contract or an Annuity Contract with a 

balance or value of $250,000 or less as of the Determination Date. 

3. A Preexisting Individual Account that is a Cash Value Insurance 

Contract or an Annuity Contract, provided the law or regulations of Cabo 

Verde or the United States effectively prevent the sale of such a Cash Value 

Insurance Contract or an Annuity Contract to U.S. residents (e.g., if the 

relevant Financial Institution does not have the required registration under 

U.S. law, and the law of Cabo Verde requires reporting or withholding with 

respect to insurance products held by residents of Cabo Verde). 

4. A Depository Account with a balance of $50,000 or less. 

B. Review Procedures for Preexisting Individual Accounts With a Balance or 

Value as of the Determination Date, that Exceeds $50,000 ($250,000 for a Cash 

Value Insurance Contract or Annuity Contract), But Does Not Exceed $1,000,000 

(“Lower Value Accounts”). 

1. Electronic Record Search. The Reporting Cabo Verdean Financial 

Institution must review electronically searchable data maintained by the 

Reporting Cabo Verdean Financial Institution for any of the following U.S. 

indicia: 

a) Identification of the Account Holder as a U.S. citizen or 

resident; 

b) Unambiguous indication of a U.S. place of birth; 

c) Current U.S. mailing or residence address (including a U.S. 

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

Annex I –2 
 

 

 

f) Currently effective power of attorney or signatory authority 

granted to a person with a U.S. address; or 

g) An “in-care-of” or “hold mail” address that is the sole address 

the Reporting Cabo Verdean Financial Institution has on file for the 

Account Holder. In the case of a Preexisting Individual Account that is 

a Lower Value Account, an “in-care-of” address outside the United 

States or “hold mail” address shall not be treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph B(1) of this section 

are discovered in the electronic search, then no further action is required until 

there is a change in circumstances that results in one or more U.S. indicia 

being associated with the account, or the account becomes a High Value 

Account described in paragraph D of this section. 

3. If any of the U.S. indicia listed in subparagraph B(1) of this section are 

discovered in the electronic search, or if there is a change in circumstances 

that results in one or more U.S. indicia being associated with the account, then 

the Reporting Cabo Verdean Financial Institution must treat the account as a 

U.S. Reportable Account unless it elects to apply subparagraph B(4) of this 

section and one of the exceptions in such subparagraph applies with respect to 

that account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph B(1) of 

this section, a Reporting Cabo Verdean Financial Institution is not required to 

treat an account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting Cabo Verdean Financial 

Institution obtains, or has previously reviewed and maintains a record 

of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); 

(2) A non-U.S. passport or other government-issued 

identification evidencing the Account Holder’s citizenship or 

nationality in a country other than the United States; and 

(3) A copy of the Account Holder’s Certificate of Loss of 

Nationality of the United States or a reasonable explanation of: 

(a) The reason the Account Holder does not have 

such a certificate despite relinquishing U.S. citizenship; 

or 

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

Annex I –3 
 

 

 

b) Where the Account Holder information contains a current U.S. 

mailing or residence address, or one or more U.S. telephone numbers 

that are the only telephone numbers associated with the account, the 

Reporting Cabo Verdean Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder’s 

non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting Cabo Verdean Financial Institution obtains, or 

has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder’s 

non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted to a person 

with a U.S. address, has an “in-care-of” address or “hold mail” 

address that is the sole address identified for the Account Holder, or 

has one or more U.S. telephone numbers (if a non-U.S. telephone 

number is also associated with the account), the Reporting Cabo 

Verdean Financial Institution obtains, or has previously reviewed and 

maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which may be 

on an IRS Form W-8 or other similar agreed form); or 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account Holder’s 

non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed within two years from the 

Annex I –4 
 

 

 

 

Determination Date. 

2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or more 

U.S. indicia described in subparagraph B(1) of this section being associated 

with the account, then the Reporting Cabo Verdean Financial Institution must 

treat the account as a U.S. Reportable Account unless subparagraph B(4) of 

this section applies. 

3. Except for Depository Accounts described in subparagraph A(4) of this 

section, any Preexisting Individual Account that has been identified as a U.S. 

Reportable Account under this section shall be treated as a U.S. Reportable 

Account in all subsequent years, unless the Account Holder ceases to be a 

Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts With a 

Balance or Value That Exceeds $1,000,000 as of the Determination Date, or 

December 31 of 2015 or Any Subsequent Year (“High Value Accounts”). 

1. Electronic Record Search. The Reporting Cabo Verdean Financial 

Institution must review electronically searchable data maintained by the 

Reporting Cabo Verdean Financial Institution for any of the U.S. indicia 

described in subparagraph B(1) of this section. 

2. Paper Record Search. If the Reporting Cabo Verdean Financial 

Institution’s electronically searchable databases include fields for, and capture 

all of the information described in, subparagraph D(3) of this section, then no 

further paper record search is required. If the electronic databases do not 

capture all of this information, then with respect to a High Value Account, the 

Reporting Cabo Verdean Financial Institution must also review the current 

customer master file and, to the extent not contained in the current customer 

master file, the following documents associated with the account and obtained 

by the Reporting Cabo Verdean Financial Institution within the last five years 

for any of the U.S. indicia described in subparagraph B(1) of this section: 

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Cabo Verdean Financial Institution pursuant to AML/KYC Procedures 

or for other regulatory purposes; 

d) Any power of attorney or signature authority forms currently in 

effect; and 

e) Any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Annex I –5 
 

Reporting Cabo Verdean Financial Institution is not required to perform the 

paper record search described in subparagraph D(2) of this section if the 

Reporting Cabo Verdean Financial Institution’s electronically searchable 

information includes the following: 

a) The Account Holder’s nationality or residence status; 

b) The Account Holder’s residence address and mailing address 

currently on file with the Reporting Cabo Verdean Financial 

Institution; 

c) The Account Holder’s telephone number(s) currently on file, if 

any, with the Reporting Cabo Verdean Financial Institution; 

d) Whether there are standing instructions to transfer funds in the 

account to another account (including an account at another branch of 

the Reporting Cabo Verdean Financial Institution or another Financial 

Institution); 

e) Whether there is a current “in-care-of” address or “hold mail” 

address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority 

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition 

to the electronic and paper record searches described above, the Reporting 

Cabo Verdean Financial Institution must treat as a U.S. Reportable Account 

any High Value Account assigned to a relationship manager (including any 

Financial Accounts aggregated with such High Value Account) if the 

relationship manager has actual knowledge that the Account Holder is a 

Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph B(1) of this 

section are discovered in the enhanced review of High Value Accounts 

described above, and the account is not identified as held by a 

Specified U.S. Person in subparagraph D(4) of this section, then no 

further action is required until there is a change in circumstances that 

results in one or more U.S. indicia being associated with the account. 

b) If any of the U.S. indicia listed in subparagraph B(1) of this 

section are discovered in the enhanced review of High Value Accounts 

described above, or if there is a subsequent change in circumstances 

that results in one or more U.S. indicia being associated with the 

account, then the Reporting Cabo Verdean Financial Institution must 

treat the account as a U.S. Reportable Account unless it elects to apply 

subparagraph B(4) of this section and one of the exceptions in such 

subparagraph applies with respect to that account. 

Annex I –6 
 

 

c) Except for Depository Accounts described in subparagraph 

A(4) of this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall be 

treated as a U.S. Reportable Account in all subsequent years, unless the 

Account Holder ceases to be a Specified U.S. Person. 

E. Additional Procedures Applicable to High Value Accounts. 

1. If a Preexisting Individual Account is a High Value Account as of the 

Determination Date, the Reporting Cabo Verdean Financial Institution must 

complete the enhanced review procedures described in paragraph D of this 

section with respect to such account within one year from the Determination 

Date. If based on this review such account is identified as a U.S. Reportable 

Account on or before December 31, 2014, the Reporting Cabo Verdean 

Financial Institution must report the required information about such account 

with respect to 2014 in the first report on the account and on an annual basis 

thereafter. In the case of an account identified as a U.S. Reportable Account 

after December 31, 2014 and on or before June 30, 2015, the Reporting Cabo 

Verdean Financial Institution is not required to report information about such 

account with respect to 2014, but must report information about the account 

on an annual basis thereafter. 

2. If a Preexisting Individual Account is not a High Value Account as of 

the Determination Date, but becomes a High Value Account as of the last day 

of the 2015 or any subsequent calendar year, the Reporting Cabo Verdean 

Financial Institution must complete the enhanced review procedures described 

in paragraph D of this section with respect to such account within six months 

after the last day of the calendar year in which the account becomes a High 

Value Account. If based on this review such account is identified as a U.S. 

Reportable Account, the Reporting Cabo Verdean Financial Institution must 

report the required information about such account with respect to the year in 

which it is identified as a U.S. Reportable Account and subsequent years on an 

annual basis, unless the Account Holder ceases to be a Specified U.S. Person. 

3. Once a Reporting Cabo Verdean Financial Institution applies the 

enhanced review procedures described in paragraph D of this section to a High 

Value Account, the Reporting Cabo Verdean Financial Institution is not 

required to re-apply such procedures, other than the relationship manager 

inquiry described in subparagraph D(4) of this section, to the same High Value 

Account in any subsequent year. 

4. If there is a change of circumstances with respect to a High Value 

Account that results in one or more U.S. indicia described in subparagraph 

B(1) of this section being associated with the account, then the Reporting 

Cabo Verdean Financial Institution must treat the account as a U.S. Reportable 

Account unless it elects to apply subparagraph B(4) of this section and one of 

the exceptions in such subparagraph applies with respect to that account. 

5. A Reporting Cabo Verdean Financial Institution must implement 

Annex I –7 
 

 

 

 

 

procedures to ensure that a relationship manager identifies any change in 

circumstances of an account. For example, if a relationship manager is 

notified that the Account Holder has a new mailing address in the United 

States, the Reporting Cabo Verdean Financial Institution is required to treat the 

new address as a change in circumstances and, if it elects to apply 

subparagraph B(4) of this section, is required to obtain the appropriate 

documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for Certain 

Other Purposes. A Reporting Cabo Verdean Financial Institution that has previously 

obtained documentation from an Account Holder to establish the Account Holder’s 

status as neither a U.S. citizen nor a U.S. resident in order to meet its obligations 

under a qualified intermediary, withholding foreign partnership, or withholding 

foreign trust agreement with the IRS, or to fulfill its obligations under chapter 61 of 

Title 26 of the United States Code, is not required to perform the procedures described 

in subparagraph B(1) of this section with respect to Lower Value Accounts or 

subparagraphs D(1) through D(3) of this section with respect to High Value Accounts. 

III. New Individual Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts among Financial Accounts held by individuals and 

opened after the Determination Date (“New Individual Accounts”). 

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless 

the Reporting Cabo Verdean Financial Institution elects otherwise, either with respect 

to all New Individual Accounts or, separately, with respect to any clearly identified 

group of such accounts, where the implementing rules in Cabo Verde provide for such 

an election, the following New Individual Accounts are not required to be reviewed, 

identified, or reported as U.S. Reportable Accounts: 

1. A Depository Account unless the account balance exceeds $50,000 at 

the end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds 

$50,000 at the end of any calendar year or other appropriate reporting period. 

B. Other New Individual Accounts. With respect to New Individual Accounts 

not described in paragraph A of this section, upon account opening (or within 90 days 

after the end of the calendar year in which the account ceases to be described in 

paragraph A of this section), the Reporting Cabo Verdean Financial Institution must 

obtain a self-certification, which may be part of the account opening documentation, 

that allows the Reporting Cabo Verdean Financial Institution to determine whether the 

Account Holder is resident in the United States for tax purposes (for this purpose, a 

U.S. citizen is considered to be resident in the United States for tax purposes, even if 

the Account Holder is also a tax resident of another jurisdiction) and confirm the 

reasonableness of such self-certification based on the information obtained by the 

Reporting Cabo Verdean Financial Institution in connection with the opening of the 

account, including any documentation collected pursuant to AML/KYC Procedures. 

1. If the self-certification establishes that the Account Holder is resident 

Annex I –8 
 

 

 

in the United States for tax purposes, the Reporting Cabo Verdean Financial 

Institution must treat the account as a U.S. Reportable Account and obtain a 

self-certification that includes the Account Holder’s U.S. TIN (which may be 

an IRS Form W-9 or other similar agreed form). 

2. If there is a change of circumstances with respect to a New Individual 

Account that causes the Reporting Cabo Verdean Financial Institution to know, 

or have reason to know, that the original self-certification is incorrect or 

unreliable, the Reporting Cabo Verdean Financial Institution cannot rely on the 

original self-certification and must obtain a valid self-certification that 

establishes whether the Account Holder is a U.S. citizen or resident for U.S. 

tax purposes. If the Reporting Cabo Verdean Financial Institution is unable to 

obtain a valid self-certification, the Reporting Cabo Verdean Financial 

Institution must treat the account as a U.S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Preexisting Accounts held by Entities (“Preexisting Entity Accounts”). 

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. 

Unless the Reporting Cabo Verdean Financial Institution elects otherwise, either with 

respect to all Preexisting Entity Accounts or, separately, with respect to any clearly 

identified group of such accounts, where the implementing rules in Cabo Verde 

provide for such an election, a Preexisting Entity Account with an account balance or 

value that does not exceed $250,000 as of the Determination Date, is not required to 

be reviewed, identified, or reported as a U.S. Reportable Account until the account 

balance or value exceeds $1,000,000. 

B. Entity Accounts Subject to Review. A Preexisting Entity Account that has an 

account balance or value that exceeds $250,000 as of the Determination Date, and a 

Preexisting Entity Account that does not exceed $250,000 as of the Determination 

Date but the account balance or value of which exceeds $1,000,000 as of the last day 

of 2015 or any subsequent calendar year, must be reviewed in accordance with the 

procedures set forth in paragraph D of this section. 

C. Entity Accounts With Respect to Which Reporting Is Required. With 

respect to Preexisting Entity Accounts described in paragraph B of this section, only 

accounts that are held by one or more Entities that are Specified U.S. Persons, or by 

Passive NFFEs with one or more Controlling Persons who are U.S. citizens or 

residents, shall be treated as U.S. Reportable Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for which 

aggregate payments as described in subparagraph 1(b) of Article 4 of the Agreement 

are reported to the Cabo Verdean Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described in 

paragraph B of this section, the Reporting Cabo Verdean Financial Institution must 

apply the following review procedures to determine whether the account is held by 

one or more Specified U.S. Persons, by Passive NFFEs with one or more Controlling 

Persons who are U.S. citizens or residents, or by Nonparticipating Financial 

Annex I –9 
 

Institutions: 

1. Determine Whether the Entity Is a Specified U.S. Person. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a U.S. Person. For this purpose, 

information indicating that the Account Holder is a U.S. Person 

includes a U.S. place of incorporation or organization, or a U.S. 

address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting Cabo Verdean Financial Institution must treat the 

account as a U.S. Reportable Account unless it obtains a selfcertification from the Account Holder (which may be on an IRS Form 

W-8 or W-9, or a similar agreed form), or reasonably determines based 

on information in its possession or that is publicly available, that the 

Account Holder is not a Specified U.S. Person. 

2. Determine Whether a Non-U.S. Entity Is a Financial Institution. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

b) If the information indicates that the Account Holder is a 

Financial Institution, or the Reporting Cabo Verdean Financial 

Institution verifies the Account Holder’s Global Intermediary 

Identification Number on the published IRS FFI list, then the account 

is not a U.S. Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution. 

a) Subject to subparagraph D(3)(b) of this section, a Reporting 

Cabo Verdean Financial Institution may determine that the Account 

Holder is a Cabo Verdean Financial Institution or other Partner 

Jurisdiction Financial Institution if the Reporting Cabo Verdean 

Financial Institution reasonably determines that the Account Holder 

has such status on the basis of the Account Holder’s Global 

Intermediary Identification Number on the published IRS FFI list or 

other information that is publicly available or in the possession of the 

Reporting Cabo Verdean Financial Institution, as applicable. In such 

case, no further review, identification, or reporting is required with 

respect to the account. 

b) If the Account Holder is a Cabo Verdean Financial Institution 

or other Partner Jurisdiction Financial Institution treated by the IRS as 

Annex I –10 
 

 

a Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1(b) of Article 4 of the 

Agreement. 

c) If the Account Holder is not a Cabo Verdean Financial 

Institution or other Partner Jurisdiction Financial Institution, then the 

Reporting Cabo Verdean Financial Institution must treat the Account 

Holder as a Nonparticipating Financial Institution payments to which 

are reportable under subparagraph 1(b) of Article 4 of the Agreement, 

unless the Reporting Cabo Verdean Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS 

Form W-8 or similar agreed form) from the Account Holder 

that it is a certified deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant U.S. 

Treasury Regulations; or 

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder’s Global 

Intermediary Identification Number on the published IRS FFI 

list. 

4. Determine Whether an Account Held by an NFFE Is a U.S. 

Reportable Account. With respect to an Account Holder of a Preexisting 

Entity Account that is not identified as either a U.S. Person or a Financial 

Institution, the Reporting Cabo Verdean Financial Institution must identify (i) 

whether the Account Holder has Controlling Persons, (ii) whether the Account 

Holder is a Passive NFFE, and (iii) whether any of the Controlling Persons of 

the Account Holder is a U.S. citizen or resident. In making these 

determinations the Reporting Cabo Verdean Financial Institution must follow 

the guidance in subparagraphs D(4)(a) through D(4)(d) of this section in the 

order most appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Cabo Verdean Financial Institution may 

rely on information collected and maintained pursuant to AML/KYC 

Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting Cabo Verdean Financial Institution must 

obtain a self-certification (which may be on an IRS Form W-8 or W-9, 

or on a similar agreed form) from the Account Holder to establish its 

status, unless it has information in its possession or that is publicly 

available, based on which it can reasonably determine that the Account 

Holder is an Active NFFE. 

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a U.S. citizen or resident for tax purposes, a 

Reporting Cabo Verdean Financial Institution may rely on: 

Annex I –11 
 

 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that does not exceed $1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 

or W-9, or on a similar agreed form) from the Account Holder 

or such Controlling Person in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account balance 

or value that exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a U.S. citizen or 

resident, the account shall be treated as a U.S. Reportable Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts. 

1. Review of Preexisting Entity Accounts with an account balance or 

value that exceeds $250,000 as of the Determination Date must be completed 

within two years from the Determination Date. 

2. Review of Preexisting Entity Accounts with an account balance or 

value that does not exceed $250,000 as of the Determination Date, but exceeds 

$1,000,000 as of December 31 of 2015 or any subsequent year, must be 

completed within six months after the last day of the calendar year in which 

the account balance or value exceeds $1,000,000. 

3. If there is a change of circumstances with respect to a Preexisting 

Entity Account that causes the Reporting Cabo Verdean Financial Institution to 

know, or have reason to know, that the self-certification or other 

documentation associated with an account is incorrect or unreliable, the 

Reporting Cabo Verdean Financial Institution must redetermine the status of 

the account in accordance with the procedures set forth in paragraph D of this 

section. 

V. New Entity Accounts. The following rules and procedures apply for purposes of 

identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Financial Accounts held by Entities and opened after the Determination 

Date (“New Entity Accounts”). 

A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. 

Unless the Reporting Cabo Verdean Financial Institution elects otherwise, either with 

respect to all New Entity Accounts or, separately, with respect to any clearly identified 

group of such accounts, where the implementing rules in Cabo Verde provide for such 

election, a credit card account or a revolving credit facility treated as a New Entity 

Account is not required to be reviewed, identified, or reported, provided that the 

Reporting Cabo Verdean Financial Institution maintaining such account implements 

policies and procedures to prevent an account balance owed to the Account Holder 

Annex I –12 
 

 

 

 

that exceeds $50,000. 

B. Other New Entity Accounts. With respect to New Entity Accounts not 

described in paragraph A of this section, the Reporting Cabo Verdean Financial 

Institution must determine whether the Account Holder is: (i) a Specified U.S. 

Person; (ii) a Cabo Verdean Financial Institution or other Partner Jurisdiction 

Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or 

(iv) an Active NFFE or Passive NFFE. 

1. Subject to subparagraph B(2) of this section, a Reporting Cabo 

Verdean Financial Institution may determine that the Account Holder is an 

Active NFFE, a Cabo Verdean Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting Cabo Verdean Financial 

Institution reasonably determines that the Account Holder has such status on 

the basis of the Account Holder’s Global Intermediary Identification Number 

or other information that is publicly available or in the possession of the 

Reporting Cabo Verdean Financial Institution, as applicable. 

2. If the Account Holder is a Cabo Verdean Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be reported as 

contemplated in subparagraph 1(b) of Article 4 of the Agreement. 

3. In all other cases, a Reporting Cabo Verdean Financial Institution must 

obtain a self-certification from the Account Holder to establish the Account 

Holder’s status. Based on the self-certification, the following rules apply: 

a) If the Account Holder is a Specified U.S. Person, the Reporting 

Cabo Verdean Financial Institution must treat the account as a U.S. 

Reportable Account. 

b) If the Account Holder is a Passive NFFE, the Reporting Cabo 

Verdean Financial Institution must identify the Controlling Persons as 

determined under AML/KYC Procedures, and must determine whether 

any such person is a U.S. citizen or resident on the basis of a selfcertification from the Account Holder or such person. If any such 

person is a U.S. citizen or resident, the Reporting Cabo Verdean 

Financial Institution must treat the account as a U.S. Reportable 

Account. 

c) If the Account Holder is: (i) a U.S. Person that is not a 

Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of this 

section, a Cabo Verdean Financial Institution or other Partner 

Jurisdiction Financial Institution; (iii) a participating FFI, a deemedcompliant FFI, or an exempt beneficial owner, as those terms are 

defined in relevant U.S. Treasury Regulations; (iv) an Active NFFE; or 

(v) a Passive NFFE none of the Controlling Persons of which is a U.S. 

citizen or resident, then the account is not a U.S. Reportable Account, 

Annex I –13 
 

 

 

 

 

 

and no reporting is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial 

Institution (including a Cabo Verdean Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1(b) of Article 4 of the 

Agreement. 

VI. Special Rules and Definitions. The following additional rules and definitions apply 

in implementing the due diligence procedures described above: 

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting 

Cabo Verdean Financial Institution may not rely on a self-certification or documentary 

evidence if the Reporting Cabo Verdean Financial Institution knows or has reason to 

know that the self-certification or documentary evidence is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this Annex I. 

1. AML/KYC Procedures. “AML/KYC Procedures” means the customer 

due diligence procedures of a Reporting Cabo Verdean Financial 

Institution pursuant to the anti-money laundering or similar requirements 

of Cabo Verde to which such Reporting Cabo Verdean Financial Institution 

is subject. 

2. NFFE. An “NFFE” means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity described in 

subparagraph B(4)(j) of this section, and also includes any Non-U.S. 

Entity that is established in Cabo Verde or another Partner Jurisdiction and 

that is not a Financial Institution. 

3. Passive NFFE. A “Passive NFFE” means any NFFE that is not (i) an 

Active NFFE, or (ii) a withholding foreign partnership or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An “Active NFFE” means any NFFE that meets any of the 

following criteria: 

a) Less than 50 percent of the NFFE’s gross income for the preceding 

calendar year or other appropriate reporting period is passive 

income and less than 50 percent of the assets held by the NFFE 

during the preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the production of 

passive income; 

b) The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity the 

stock of which is regularly traded on an established securities 

market; 

Annex I –14 
c) The NFFE is organized in a U.S. Territory and all of the owners of 

the payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a government (other than the U.S. government), a 

political subdivision of such government (which, for the avoidance 

of doubt, includes a state, province, county, or municipality), or a 

public body performing a function of such government or a 

political subdivision thereof, a government of a U.S. Territory, an 

international organization, a non-U.S. central bank of issue, or an 

Entity wholly owned by one or more of the foregoing; 

e) Substantially all of the activities of the NFFE consist of holding (in 

whole or in part) the outstanding stock of, or providing financing 

and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except 

that an Entity shall not qualify for NFFE status if the Entity 

functions (or holds itself out) as an investment fund, such as a 

private equity fund, venture capital fund, leveraged buyout fund, or 

any investment vehicle whose purpose is to acquire or fund 

companies and then hold interests in those companies as capital 

assets for investment purposes; 

f) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the intent 

to operate a business other than that of a Financial Institution, 

provided that the NFFE shall not qualify for this exception after the 

date that is 24 months after the date of the initial organization of 

the NFFE; 

g) The NFFE was not a Financial Institution in the past five years, and 

is in the process of liquidating its assets or is reorganizing with the 

intent to continue or recommence operations in a business other 

than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

with, or for, Related Entities that are not Financial Institutions, and 

does not provide financing or hedging services to any Entity that is 

not a Related Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than that of a 

Financial Institution; 

i) The NFFE is an “excepted NFFE” as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

i. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is established 

and operated in its jurisdiction of residence and it is a 

Annex I –15 
 

 

 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction of residence; 

iii. It has no shareholders or members who have a proprietary or 

beneficial interest in its income or assets; 

iv. The applicable laws of the NFFE’s jurisdiction of residence 

or the NFFE’s formation documents do not permit any 

income or assets of the NFFE to be distributed to, or applied 

for the benefit of, a private person or non-charitable Entity 

other than pursuant to the conduct of the NFFE’s charitable 

activities, or as payment of reasonable compensation for 

services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and 

v. The applicable laws of the NFFE’s jurisdiction of residence 

or the NFFE’s formation documents require that, upon the 

NFFE’s liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

organization, or escheat to the government of the NFFE’s 

jurisdiction of residence or any political subdivision thereof. 

5. Preexisting Account. A “Preexisting Account” means a Financial 

Account maintained by a Reporting Cabo Verdean Financial Institution as 

of the Determination Date. 

6. Determination Date. The “Determination Date” means the date, which 

may be prior to entry into force of this Agreement, on which the Treasury 

Department determines not to apply withholding under section 1471 of the 

U.S. Internal Revenue Code to Cabo Verdean Financial Institutions. That 

date is: (a) June 30, 2014, in the case of (i) a jurisdiction that signed an 

agreement with the United States to implement FATCA or facilitate 

FATCA implementation on or before June 30, 2014, or (ii) a jurisdiction 

that the Treasury Department determined reached such an agreement in 

substance on or before June 30, 2014, and is included on the Treasury 

Department list of such jurisdictions, (b) November 30, 2014, in the case 

of a jurisdiction that the Treasury Department determined reached such an 

agreement in substance on or after July 1, 2014, and on or before 

November 30, 2014, and is included on the Treasury Department list of 

such jurisdictions, or (c) the date of entry into force of such an agreement, 

in the case of any other jurisdiction. The Determination Date for Cabo 

Verde is June 30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of Financial Accounts held by an individual, a 

Annex I –16 
 

 

Reporting Cabo Verdean Financial Institution is required to aggregate all 

Financial Accounts maintained by the Reporting Cabo Verdean Financial 

Institution, or by a Related Entity, but only to the extent that the Reporting 

Cabo Verdean Financial Institution’s computerized systems link the Financial 

Accounts by reference to a data element such as client number or taxpayer 

identification number, and allow account balances or values to be aggregated. 

Each holder of a jointly held Financial Account shall be attributed the entire 

balance or value of the jointly held Financial Account for purposes of applying 

the aggregation requirements described in this paragraph 1. 

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting Cabo Verdean Financial Institution is required to take into account 

all Financial Accounts that are maintained by the Reporting Cabo Verdean 

Financial Institution, or by a Related Entity, but only to the extent that the 

Reporting Cabo Verdean Financial Institution’s computerized systems link the 

Financial Accounts by reference to a data element such as client number or 

taxpayer identification number, and allow account balances or values to be 

aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of Financial 

Accounts held by a person to determine whether a Financial Account is a High 

Value Account, a Reporting Cabo Verdean Financial Institution is also 

required, in the case of any Financial Accounts that a relationship manager 

knows, or has reason to know, are directly or indirectly owned, controlled, or 

established (other than in a fiduciary capacity) by the same person, to 

aggregate all such accounts. 

4. Currency Translation Rule. For purposes of determining the balance 

or value of Financial Accounts denominated in a currency other than the U.S. 

dollar, a Reporting Cabo Verdean Financial Institution must convert the U.S. 

dollar threshold amounts described in this Annex I into such currency using a 

published spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting Cabo Verdean Financial Institution 

is determining the balance or value. 

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

1. A certificate of residence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) of the 

jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency thereof, or 

a municipality), that includes the individual’s name and is typically used for 

identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

Annex I –17 
 

 

authorized government body (for example, a government or agency thereof, or 

a municipality) that includes the name of the Entity and either the address of 

its principal office in the jurisdiction (or U.S. Territory) in which it claims to 

be a resident or the jurisdiction (or U.S. Territory) in which the Entity was 

incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in connection 

with a QI agreement (as described in relevant U.S. Treasury Regulations), any 

of the documents, other than a Form W-8 or W-9, referenced in the 

jurisdiction’s attachment to the QI agreement for identifying individuals or 

Entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting Cabo Verdean 

Financial Institution may presume that an individual beneficiary (other than the 

owner) of a Cash Value Insurance Contract receiving a death benefit is not a Specified 

U.S. Person and may treat such Financial Account as other than a U.S. Reportable 

Account unless the Reporting Cabo Verdean Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person. A 

Reporting Cabo Verdean Financial Institution has reason to know that a beneficiary of 

a Cash Value Insurance Contract is a Specified U.S. Person if the information 

collected by the Reporting Cabo Verdean Financial Institution and associated with the 

beneficiary contains U.S. indicia as described in subparagraph (B)(1) of section II of 

this Annex I. If a Reporting Cabo Verdean Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person, the 

Reporting Cabo Verdean Financial Institution must follow the procedures in 

subparagraph B(3) of section II of this Annex I. 

F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, Cabo Verde may permit Reporting Cabo 

Verdean Financial Institutions to rely on due diligence procedures performed by third 

parties, to the extent provided in relevant U.S. Treasury Regulations. 

G. Alternative Procedures for New Accounts Opened Prior to Entry Into 

Force of this Agreement. 

1. Applicability. If Cabo Verde has provided a written notice to the 

United States prior to entry into force of this Agreement that, as of the 

Determination Date, Cabo Verde lacked the legal authority to require 

Reporting Cabo Verdean Financial Institutions either: (i) to require Account 

Holders of New Individual Accounts to provide the self-certification specified 

in section III of this Annex I, or (ii) to perform all the due diligence 

procedures related to New Entity Accounts specified in section V of this 

Annex I, then Reporting Cabo Verdean Financial Institutions may apply the 

alternative procedures described in subparagraph G(2) of this section, as 

applicable, to such New Accounts, in lieu of the procedures otherwise required 

Annex I –18 
 

 

 

under this Annex I. The alternative procedures described in subparagraph 

G(2) of this section shall be available only for those New Individual Accounts 

or New Entity Accounts, as applicable, opened prior to the earlier of: (i) the 

date Cabo Verde has the ability to compel Reporting Cabo Verdean Financial 

Institutions to comply with the due diligence procedures described in section 

III or section V of this Annex I, as applicable, which date Cabo Verde shall 

inform the United States of in writing by the date of entry into force of this 

Agreement, or (ii) the date of entry into force of this Agreement. If the 

alternative procedures for New Entity Accounts opened after the 

Determination Date, and before January 1, 2015, described in paragraph H of 

this section are applied with respect to all New Entity Accounts or a clearly 

identified group of such accounts, the alternative procedures described in this 

paragraph G may not be applied with respect to such New Entity Accounts. 

For all other New Accounts, Reporting Cabo Verdean Financial Institutions 

must apply the due diligence procedures described in section III or section V 

of this Annex I, as applicable, to determine if the account is a U.S. Reportable 

Account or an account held by a Nonparticipating Financial Institution. 

2. Alternative Procedures. 

a) Within one year after the date of entry into force of this 

Agreement, Reporting Cabo Verdean Financial Institutions must: (i) 

with respect to a New Individual Account described in subparagraph 

G(1) of this section, request the self-certification specified in section 

III of this Annex I and confirm the reasonableness of such selfcertification consistent with the procedures described in section III of 

this Annex I, and (ii) with respect to a New Entity Account described 

in subparagraph G(1) of this section, perform the due diligence 

procedures specified in section V of this Annex I and request 

information as necessary to document the account, including any selfcertification, required by section V of this Annex I. 

b) Cabo Verde must report on any New Account that is identified 

pursuant to subparagraph G(2)(a) of this section as a U.S. Reportable 

Account or as an account held by a Nonparticipating Financial 

Institution, as applicable, by the date that is the later of: (i) September 

30 next following the date that the account is identified as a U.S. 

Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable. The information 

required to be reported with respect to such a New Account is any 

information that would have been reportable under this Agreement if 

the New Account had been identified as a U.S. Reportable Account or 

as an account held by a Nonparticipating Financial Institution, as 

applicable, as of the date the account was opened. 

c) By the date that is one year after the date of entry into force of 

this Agreement, Reporting Cabo Verdean Financial Institutions must 

close any New Account described in subparagraph G(1) of this section 

Annex I –19 
 

for which it was unable to collect the required self-certification or 

other documentation pursuant to the procedures described in 

subparagraph G(2)(a) of this section. In addition, by the date that is 

one year after the date of entry into force of this Agreement, Reporting 

Cabo Verdean Financial Institutions must: (i) with respect to such 

closed accounts that prior to such closure were New Individual 

Accounts (without regard to whether such accounts were High Value 

Accounts), perform the due diligence procedures specified in 

paragraph D of section II of this Annex I, or (ii) with respect to such 

closed accounts that prior to such closure were New Entity Accounts, 

perform the due diligence procedures specified in section IV of this 

Annex I. 

d) Cabo Verde must report on any closed account that is identified 

pursuant to subparagraph G(2)(c) of this section as a U.S. Reportable 

Account or as an account held by a Nonparticipating Financial 

Institution, as applicable, by the date that is the later of: (i) September 

30 next following the date that the account is identified as a U.S. 

Reportable Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the account is 

identified as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable. The information 

required to be reported for such a closed account is any information 

that would have been reportable under this Agreement if the account 

had been identified as a U.S. Reportable Account or as an account held 

by a Nonparticipating Financial Institution, as applicable, as of the date 

the account was opened. 

H. Alternative Procedures for New Entity Accounts Opened after the 

Determination Date, and before January 1, 2015. For New Entity Accounts 

opened after the Determination Date, and before January 1, 2015, either with respect 

to all New Entity Accounts or, separately, with respect to any clearly identified group 

of such accounts, Cabo Verde may permit Reporting Cabo Verdean Financial 

Institutions to treat such accounts as Preexisting Entity Accounts and apply the due 

diligence procedures related to Preexisting Entity Accounts specified in section IV of 

this Annex I in lieu of the due diligence procedures specified in section V of this 

Annex I. In this case, the due diligence procedures of section IV of this Annex I must 

be applied without regard to the account balance or value threshold specified in 

paragraph A of section IV of this Annex I. 

Annex I –20 
Annex II 

The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFIs, 

as the case may be, and the following accounts are excluded from the definition of Financial 

Accounts. 

This Annex II may be modified by a mutual written decision entered into between the Competent 

Authorities of Cabo Verde and the United States: (1) to include additional Entities and accounts 

that present a low risk of being used by U.S. Persons to evade U.S. tax and that have similar 

characteristics to the Entities and accounts described in this Annex II as of the date of signature 

of the Agreement; or (2) to remove Entities and accounts that, due to changes in circumstances, 

no longer present a low risk of being used by U.S. Persons to evade U.S. tax. Any such addition 

or removal shall be effective on the date of signature of the mutual decision, unless otherwise 

provided therein. Procedures for reaching such a mutual decision may be included in the mutual 

agreement or arrangement described in paragraph 6 of Article 3 of the Agreement. 

I. Exempt Beneficial Owners other than Funds. The following Entities shall be treated as 

Non-Reporting Cabo Verdean Financial Institutions and as exempt beneficial owners for 

purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than with 

respect to a payment that is derived from an obligation held in connection with a commercial 

financial activity of a type engaged in by a Specified Insurance Company, Custodial 

Institution, or Depository Institution. 

A. Governmental Entity. The government of Cabo Verde, any political subdivision of 

Cabo Verde (which, for the avoidance of doubt, includes a state, province, county, or 

municipality), or any wholly owned agency or instrumentality of Cabo Verde or any one 

or more of the foregoing (each, a “Cabo Verde Governmental Entity”). This category is 

comprised of the integral parts, controlled entities, and political subdivisions of Cabo 

Verde. 

1. An integral part of Cabo Verde means any person, organization, agency, bureau, 

fund, instrumentality, or other body, however designated, that constitutes a governing 

authority of Cabo Verde. The net earnings of the governing authority must be 

credited to its own account or to other accounts of Cabo Verde, with no portion 

inuring to the benefit of any private person. An integral part does not include any 

individual who is a sovereign, official, or administrator acting in a private or personal 

capacity. 

2. A controlled entity means an Entity that is separate in form from Cabo Verde or that 

otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more Cabo Verde 

Governmental Entities directly or through one or more controlled entities; 

Annex II - 1 
 

b) The Entity’s net earnings are credited to its own account or to the accounts of one 

or more Cabo Verde Governmental Entities, with no portion of its income inuring 

to the benefit of any private person; and 

c) The Entity’s assets vest in one or more Cabo Verde Governmental Entities upon 

dissolution. 

3. Income does not inure to the benefit of private persons if such persons are the 

intended beneficiaries of a governmental program, and the program activities are 

performed for the general public with respect to the common welfare or relate to the 

administration of some phase of government. Notwithstanding the foregoing, 

however, income is considered to inure to the benefit of private persons if the income 

is derived from the use of a governmental entity to conduct a commercial business, 

such as a commercial banking business, that provides financial services to private 

persons. 

B. International Organization. Any international organization or wholly owned agency or 

instrumentality thereof. This category includes any intergovernmental organization 

(including a supranational organization) (1) that is comprised primarily of non-U.S. 

governments; (2) that has in effect a headquarters agreement with Cabo Verde; and (3) 

the income of which does not inure to the benefit of private persons. 

C. Central Bank. An institution that is by law or government sanction the principal 

authority, other than the government of Cabo Verde itself, issuing instruments intended to 

circulate as currency. Such an institution may include an instrumentality that is separate 

from the government of Cabo Verde, whether or not owned in whole or in part by Cabo 

Verde. 

II. Funds that Qualify as Exempt Beneficial Owners. The following Entities shall be treated 

as Non-Reporting Cabo Verdean Financial Institutions and as exempt beneficial owners for 

purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code. 

A. Broad Participation Retirement Fund. A fund established in Cabo Verde to provide 

retirement, disability, or death benefits, or any combination thereof, to beneficiaries that 

are current or former employees (or persons designated by such employees) of one or 

more employers in consideration for services rendered, provided that the fund: 

1. Does not have a single beneficiary with a right to more than five percent of the fund’s 

assets; 

2. Is subject to government regulation and provides information reporting to the tax 

authorities in Cabo Verde; and 

3. Satisfies at least one of the following requirements: 

Annex II - 2 
 

a) The fund is generally exempt from tax in Cabo Verde on investment income 

under the laws of Cabo Verde due to its status as a retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions (other than transfers 

of assets from other plans described in paragraphs A through C of this section or 

from retirement and pension accounts described in subparagraph A(1) of section 

V of this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon the occurrence 

of specified events related to retirement, disability, or death (except rollover 

distributions to other retirement funds described in paragraphs A through C of this 

section or retirement and pension accounts described in subparagraph A(1) of 

section V of this Annex II), or penalties apply to distributions or withdrawals 

made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by employees 

to the fund are limited by reference to earned income of the employee or may not 

exceed $50,000 annually, applying the rules set forth in Annex I for account 

aggregation and currency translation. 

B. Narrow Participation Retirement Fund. A fund established in Cabo Verde to provide 

retirement, disability, or death benefits to beneficiaries that are current or former 

employees (or persons designated by such employees) of one or more employers in 

consideration for services rendered, provided that: 

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not Investment Entities or 

Passive NFFEs; 

3. The employee and employer contributions to the fund (other than transfers of assets 

from retirement and pension accounts described in subparagraph A(1) of section V of 

this Annex II) are limited by reference to earned income and compensation of the 

employee, respectively; 

4. Participants that are not residents of Cabo Verde are not entitled to more than 20 

percent of the fund’s assets; and 

5. The fund is subject to government regulation and provides information reporting to 

the tax authorities in Cabo Verde. 

C. Pension Fund of an Exempt Beneficial Owner. A fund established in Cabo Verde by 

an exempt beneficial owner to provide retirement, disability, or death benefits to 

beneficiaries or participants that are current or former employees of the exempt beneficial 

owner (or persons designated by such employees), or that are not current or former 

Annex II - 3 
employees, if the benefits provided to such beneficiaries or participants are in 

consideration of personal services performed for the exempt beneficial owner. 

D. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that is a 

Cabo Verdean Financial Institution solely because it is an Investment Entity, provided 

that each direct holder of an Equity Interest in the Entity is an exempt beneficial owner, 

and each direct holder of a debt interest in such Entity is either a Depository Institution 

(with respect to a loan made to such Entity) or an exempt beneficial owner. 

III. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant FFIs. 

The following Financial Institutions are Non-Reporting Cabo Verdean Financial Institutions 

that shall be treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. 

Internal Revenue Code. 

A. Financial Institution with a Local Client Base. A Financial Institution satisfying the 

following requirements: 

1. The Financial Institution must be licensed and regulated as a financial institution 

under the laws of Cabo Verde; 

2. The Financial Institution must have no fixed place of business outside of Cabo Verde. 

For this purpose, a fixed place of business does not include a location that is not 

advertised to the public and from which the Financial Institution performs solely 

administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders outside Cabo 

Verde. For this purpose, a Financial Institution shall not be considered to have 

solicited customers or Account Holders outside Cabo Verde merely because the 

Financial Institution (a) operates a website, provided that the website does not 

specifically indicate that the Financial Institution provides Financial Accounts or 

services to nonresidents, and does not otherwise target or solicit U.S. customers or 

Account Holders, or (b) advertises in print media or on a radio or television station 

that is distributed or aired primarily within Cabo Verde but is also incidentally 

distributed or aired in other countries, provided that the advertisement does not 

specifically indicate that the Financial Institution provides Financial Accounts or 

services to nonresidents, and does not otherwise target or solicit U.S. customers or 

Account Holders; 

4. The Financial Institution must be required under the laws of Cabo Verde to identify 

resident Account Holders for purposes of either information reporting or withholding 

of tax with respect to Financial Accounts held by residents or for purposes of 

satisfying Cabo Verde’s AML due diligence requirements; 

5. At least 98 percent of the Financial Accounts by value maintained by the Financial 

Institution must be held by residents (including residents that are Entities) of Cabo 

Verde; 

Annex II - 4 
 

6. By the later of the Determination Date, or the date that the Financial Institution 

claims treatment as a deemed-compliant FFI pursuant to this paragraph A, the 

Financial Institution must have policies and procedures, consistent with those set 

forth in Annex I, to prevent the Financial Institution from providing a Financial 

Account to any Nonparticipating Financial Institution and to monitor whether the 

Financial Institution opens or maintains a Financial Account for any Specified U.S. 

Person who is not a resident of Cabo Verde (including a U.S. Person that was a 

resident of Cabo Verde when the Financial Account was opened but subsequently 

ceases to be a resident of Cabo Verde) or any Passive NFFE with Controlling Persons 

who are U.S. residents or U.S. citizens who are not residents of Cabo Verde; 

7. Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident of Cabo Verde or by a Passive NFFE with 

Controlling Persons who are U.S. residents or U.S. citizens who are not residents of 

Cabo Verde is identified, the Financial Institution must report such Financial Account 

as would be required if the Financial Institution were a Reporting Cabo Verdean 

Financial Institution (including by following the applicable registration requirements 

on the IRS FATCA registration website) or close such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a resident of 

Cabo Verde or by an Entity, the Financial Institution must review those Preexisting 

Accounts in accordance with the procedures set forth in Annex I applicable to 

Preexisting Accounts to identify any U.S. Reportable Account or Financial Account 

held by a Nonparticipating Financial Institution, and must report such Financial 

Account as would be required if the Financial Institution were a Reporting Cabo 

Verdean Financial Institution (including by following the applicable registration 

requirements on the IRS FATCA registration website) or close such Financial 

Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution must be 

incorporated or organized in Cabo Verde and, with the exception of any Related 

Entity that is a retirement fund described in paragraphs A through C of section II of 

this Annex II, satisfy the requirements set forth in this paragraph A; and 

10. The Financial Institution must not have policies or practices that discriminate against 

opening or maintaining Financial Accounts for individuals who are Specified U.S. 

Persons and residents of Cabo Verde. 

B. Local Bank. A Financial Institution satisfying the following requirements: 

1. The Financial Institution operates solely as (and is licensed and regulated under the 

laws of Cabo Verde as) (a) a bank or (b) a credit union or similar cooperative credit 

organization that is operated without profit; 

2. The Financial Institution’s business consists primarily of receiving deposits from and 

making loans to, with respect to a bank, unrelated retail customers and, with respect 

Annex II - 5 
 

to a credit union or similar cooperative credit organization, members, provided that 

no member has a greater than five percent interest in such credit union or cooperative 

credit organization; 

3. The Financial Institution satisfies the requirements set forth in subparagraphs A(2) 

and A(3) of this section, provided that, in addition to the limitations on the website 

described in subparagraph A(3) of this section, the website does not permit the 

opening of a Financial Account; 

4. The Financial Institution does not have more than $175 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken together, 

do not have more than $500 million in total assets on their consolidated or combined 

balance sheets; and 

5. Any Related Entity must be incorporated or organized in Cabo Verde, and any 

Related Entity that is a Financial Institution, with the exception of any Related Entity 

that is a retirement fund described in paragraphs A through C of section II of this 

Annex II or a Financial Institution with only low-value accounts described in 

paragraph C of this section, must satisfy the requirements set forth in this paragraph 

B. 

C. Financial Institution with Only Low-Value Accounts. A Cabo Verdean Financial 

Institution satisfying the following requirements: 

1. The Financial Institution is not an Investment Entity; 

2. No Financial Account maintained by the Financial Institution or any Related Entity 

has a balance or value in excess of $50,000, applying the rules set forth in Annex I 

for account aggregation and currency translation; and 

3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken together, 

do not have more than $50 million in total assets on their consolidated or combined 

balance sheets. 

D. Qualified Credit Card Issuer. A Cabo Verdean Financial Institution satisfying the 

following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in excess of 

a balance due with respect to the card and the overpayment is not immediately 

returned to the customer; and 

2. By the later of the Determination Date, or the date that the Financial Institution 

claims treatment as a deemed-compliant FFI pursuant to this paragraph D, the 

Financial Institution implements policies and procedures to either prevent a customer 

Annex II - 6 
 

 

 

 

 

 

deposit in excess of $50,000, or to ensure that any customer deposit in excess of 

$50,000, in each case applying the rules set forth in Annex I for account aggregation 

and currency translation, is refunded to the customer within 60 days. For this 

purpose, a customer deposit does not refer to credit balances to the extent of disputed 

charges but does include credit balances resulting from merchandise returns. 

IV. Investment Entities that Qualify as Deemed-Compliant FFIs and Other Special Rules. 

The Financial Institutions described in paragraphs A through E of this section are NonReporting Cabo Verdean Financial Institutions that shall be treated as deemed-compliant 

FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. In addition, paragraph 

F of this section provides special rules applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of Cabo Verde to the 

extent that the trustee of the trust is a Reporting U.S. Financial Institution, Reporting 

Model 1 FFI, or Participating FFI and the trustee reports all information required to be 

reported pursuant to the Agreement as would be required if the trust were a Reporting 

Cabo Verdean Financial Institution (including by following the applicable registration 

requirements on the IRS FATCA registration website). 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial 

Institution described in subparagraph B(1) or B(2) of this section having a sponsoring 

entity that complies with the requirements of subparagraph B(3) of this section. 

1. A Financial Institution is a sponsored investment entity if (a) it is an Investment 

Entity established in Cabo Verde that is not a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; and (b) an Entity has agreed with the Financial Institution to act as a 

sponsoring entity for the Financial Institution. 

2. A Financial Institution is a sponsored controlled foreign corporation if (a) the 

Financial Institution is a controlled foreign corporation1

 organized under the laws of 

Cabo Verde that is not a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the 

Financial Institution is wholly owned, directly or indirectly, by a Reporting U.S. 

Financial Institution that agrees to act, or requires an affiliate of the Financial 

Institution to act, as a sponsoring entity for the Financial Institution; and (c) the 

Financial Institution shares a common electronic account system with the sponsoring 

entity that enables the sponsoring entity to identify all Account Holders and payees of 

1 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined 

voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such 

corporation, is owned, or is considered as owned, by “United States shareholders” on any day during the taxable 

year of such foreign corporation. The term a “United States shareholder” means, with respect to any foreign 

corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total 

combined voting power of all classes of stock entitled to vote of such foreign corporation, or, beginning with tax 

years of foreign corporations beginning after December 31, 2017, and taxable years of United States shareholders 

with or within which such taxable years of foreign corporations end, 10 percent or more of the total value of 

shares of all classes of stock of such foreign corporation. 

Annex II - 7 
 

the Financial Institution and to access all account and customer information 

maintained by the Financial Institution including, but not limited to, customer 

identification information, customer documentation, account balance, and all 

payments made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS FATCA registration 

website; 

b) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with respect to 

the Financial Institution, the sponsoring entity registers the Financial Institution 

pursuant to applicable registration requirements on the IRS FATCA registration 

website on or before the later of December 31, 2016, and the date that is 90 days 

after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting Cabo 

Verdean Financial Institution; 

e) The sponsoring entity identifies the Financial Institution and includes the 

identifying number of the Financial Institution (obtained by following applicable 

registration requirements on the IRS FATCA registration website) in all reporting 

completed on the Financial Institution’s behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked. 

C. Sponsored, Closely Held Investment Vehicle. A Cabo Verdean Financial Institution 

satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an Investment 

Entity and is not a qualified intermediary, withholding foreign partnership, or 

withholding foreign trust pursuant to relevant U.S. Treasury Regulations; 

2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1 

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to perform, 

on behalf of the Financial Institution, all due diligence, withholding, reporting, and 

other requirements that the Financial Institution would have been required to perform 

if it were a Reporting Cabo Verdean Financial Institution; 

Annex II - 8 
 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests in the 

Financial Institution (disregarding debt interests owned by Participating FFIs and 

deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns 

100 percent of the Equity Interests in the Financial Institution and is itself a sponsored 

Financial Institution described in this paragraph C); and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the Financial Institution, all 

due diligence, withholding, reporting, and other requirements that the Financial 

Institution would have been required to perform if it were a Reporting Cabo 

Verdean Financial Institution and retains documentation collected with respect to 

the Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution’s behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity established in 

Cabo Verde that is a Financial Institution solely because it (1) renders investment advice 

to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a customer 

for the purposes of investing, managing, or administering funds deposited in the name of 

the customer with a Financial Institution other than a Nonparticipating Financial 

Institution. 

E. Collective Investment Vehicle. An Investment Entity established in Cabo Verde that is 

regulated as a collective investment vehicle, provided that all of the interests in the 

collective investment vehicle (including debt interests in excess of $50,000) are held by 

or through one or more exempt beneficial owners, Active NFFEs described in 

subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. 

Persons, or Financial Institutions that are not Nonparticipating Financial Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

Annex II - 9 
2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated as a 

collective investment vehicle, all of the interests in which (including debt interests 

in excess of $50,000) are held by or through one or more exempt beneficial 

owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, 

U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are 

not Nonparticipating Financial Institutions; or 

b) An Investment Entity that is a qualified collective investment vehicle under 

relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a Cabo Verdean Financial 

Institution (other than a Financial Institution through which interests in the collective 

investment vehicle are held) shall be deemed fulfilled. 

3. With respect to interests in an Investment Entity established in Cabo Verde that is not 

described in paragraph E or subparagraph F(2) of this section, consistent with 

paragraph 4 of Article 5 of the Agreement, the reporting obligations of all other 

Investment Entities with respect to such interests shall be deemed fulfilled if the 

information required to be reported by the first-mentioned Investment Entity pursuant 

to the Agreement with respect to such interests is reported by such Investment Entity 

or another person. 

4. An Investment Entity established in Cabo Verde that is regulated as a collective 

investment vehicle shall not fail to qualify under paragraph E or subparagraph F(2) of 

this section, or otherwise as a deemed-compliant FFI, solely because the collective 

investment vehicle has issued physical shares in bearer form, provided that: 

a) The collective investment vehicle has not issued, and does not issue, any physical 

shares in bearer form after December 31, 2012; 

b) The collective investment vehicle retires all such shares upon surrender; 

c) The collective investment vehicle (or a Reporting Cabo Verdean Financial 

Institution) performs the due diligence procedures set forth in Annex I and reports 

any information required to be reported with respect to any such shares when such 

shares are presented for redemption or other payment; and 

d) The collective investment vehicle has in place policies and procedures to ensure 

that such shares are redeemed or immobilized as soon as possible, and in any 

event prior to January 1, 2017. 

Annex II - 10 
 

V. Accounts Excluded from Financial Accounts. The following accounts are excluded from 

the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable 

Accounts. 

A. Certain Savings Accounts. 

1. Retirement and Pension Account. A retirement or pension account maintained in 

Cabo Verde that satisfies the following requirements under the laws of Cabo Verde. 

a) The account is subject to regulation as a personal retirement account or is part of a 

registered or regulated retirement or pension plan for the provision of retirement 

or pension benefits (including disability or death benefits); 

b) The account is tax-favored (i.e., contributions to the account that would otherwise 

be subject to tax under the laws of Cabo Verde are deductible or excluded from 

the gross income of the account holder or taxed at a reduced rate, or taxation of 

investment income from the account is deferred or taxed at a reduced rate); 

c) Annual information reporting is required to the tax authorities in Cabo Verde with 

respect to the account; 

d) Withdrawals are conditioned on reaching a specified retirement age, disability, or 

death, or penalties apply to withdrawals made before such specified events; and 

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of $1,000,000 or less, in each 

case applying the rules set forth in Annex I for account aggregation and currency 

translation. 

2. Non-Retirement Savings Accounts. An account maintained in Cabo Verde (other 

than an insurance or Annuity Contract) that satisfies the following requirements under 

the laws of Cabo Verde. 

a) The account is subject to regulation as a savings vehicle for purposes other than 

for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would otherwise 

be subject to tax under the laws of Cabo Verde are deductible or excluded from 

the gross income of the account holder or taxed at a reduced rate, or taxation of 

investment income from the account is deferred or taxed at a reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the purpose of 

the savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; and 

Annex II - 11 
d) Annual contributions are limited to $50,000 or less, applying the rules set forth in 

Annex I for account aggregation and currency translation. 

B. Certain Term Life Insurance Contracts. A life insurance contract maintained in Cabo 

Verde with a coverage period that will end before the insured individual attains age 90, 

provided that the contract satisfies the following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the contract is in existence or until the insured attains age 90, 

whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, loan, or 

otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or termination of 

the contract cannot exceed the aggregate premiums paid for the contract, less the sum 

of mortality, morbidity, and expense charges (whether or not actually imposed) for 

the period or periods of the contract’s existence and any amounts paid prior to the 

cancellation or termination of the contract; and 

4. The contract is not held by a transferee for value. 

C. Account Held By an Estate. An account maintained in Cabo Verde that is held solely 

by an estate if the documentation for such account includes a copy of the deceased’s will 

or death certificate. 

D. Escrow Accounts. An account maintained in Cabo Verde established in connection with 

any of the following: 

1. A court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the account 

satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit in an 

amount appropriate to secure an obligation directly related to the transaction, or a 

similar payment, or is funded with a financial asset that is deposited in the 

account in connection with the sale, exchange, or lease of the property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating to the 

leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee 

Annex II - 12 
(including to satisfy such person’s obligation) when the property is sold, 

exchanged, or surrendered, or the lease terminates; 

d) The account is not a margin or similar account established in connection with a 

sale or exchange of a financial asset; and 

e) The account is not associated with a credit card account. 

3. An obligation of a Financial Institution servicing a loan secured by real property to 

set aside a portion of a payment solely to facilitate the payment of taxes or insurance 

related to the real property at a later time. 

4. An obligation of a Financial Institution solely to facilitate the payment of taxes at a 

later time. 

E. Partner Jurisdiction Accounts. An account maintained in Cabo Verde and excluded 

from the definition of Financial Account under an agreement between the United States 

and another Partner Jurisdiction to facilitate the implementation of FATCA, provided that 

such account is subject to the same requirements and oversight under the laws of such 

other Partner Jurisdiction as if such account were established in that Partner Jurisdiction 

and maintained by a Partner Jurisdiction Financial Institution in that Partner Jurisdiction. 

VI. Definitions. The following additional definitions shall apply to the descriptions above: 

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial Institution 

with respect to which a non-U.S. government or agency thereof agrees to obtain and 

exchange information pursuant to a Model 1 IGA, other than a Financial Institution 

treated as a Nonparticipating Financial Institution under the Model 1 IGA. For purposes 

of this definition, the term Model 1 IGA means an arrangement between the United 

States or the Treasury Department and a non-U.S. government or one or more agencies 

thereof to implement FATCA through reporting by Financial Institutions to such nonU.S. government or agency thereof, followed by automatic exchange of such reported 

information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that has 

agreed to comply with the requirements of an FFI Agreement, including a Financial 

Institution described in a Model 2 IGA that has agreed to comply with the requirements 

of an FFI Agreement. The term Participating FFI also includes a qualified intermediary 

branch of a Reporting U.S. Financial Institution, unless such branch is a Reporting Model 

1 FFI. For purposes of this definition, the term FFI Agreement means an agreement that 

sets forth the requirements for a Financial Institution to be treated as complying with the 

requirements of section 1471(b) of the U.S. Internal Revenue Code. In addition, for 

purposes of this definition, the term Model 2 IGA means an arrangement between the 

United States or the Treasury Department and a non-U.S. government or one or more 

agencies thereof to facilitate the implementation of FATCA through reporting by 

Financial Institutions directly to the IRS in accordance with the requirements of an FFI 

Annex II - 13 
Agreement, supplemented by the exchange of information between such non-U.S. 

government or agency thereof and the IRS. 

Annex II - 14