I am pleased to be here for the signing of the agreement implementing the Foreign Account Tax Compliance Act with Minister Saccomanni. We welcome Italy’s commitment to intensifying our cooperation to improve international tax compliance. Today’s signing marks a significant step forward in both our countries’ efforts to work together towards a global standard to combat offshore tax evasion. These efforts benefit both our two countries.
This agreement also aligns with our mutual commitment in the G20 to develop a global model for automatic exchange of tax-relevant bank information.
The Foreign Account Tax Compliance Act, or FATCA, introduces reporting requirements for foreign financial institutions with respect to certain accounts held by U.S. taxpayers. Because access to information from other countries is critically important to the full and fair enforcement of domestic tax laws, information exchange is a top priority for the United States. As such, we have been a leader in the development of new international standards for greater transparency through full exchange of tax information. But we cannot do this alone.
Today, Italy is the 13th country to sign an intergovernmental agreement with the United States to Improve International Tax Compliance and Implement FATCA. By working together to detect, deter and discourage offshore tax abuses through increased transparency and enhanced reporting, we can help to build a stronger, more stable, and more accountable global financial system.
This FATCA agreement is yet one further example of the deep and substantial links between the Italian and U.S. economies. We look forward to continuing to work together to deepen these ties.