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That's right, but why banks should worry about this? How does this regulation increase the cost of having an American client?
by geoka9 14y ago
That's right, but why banks should worry about this?
How does this regulation increase the cost of having an American client?
- rdouble 14y agoThe potential penalties for noncompliance with the new tax laws can hugely affect the banks' bottom lines. http://online.wsj.com/article/SB10000872396390444592704578062570295543436.html http://online.wsj.com/article/SB1000087239639044459270457806...
- geoka9 14y agoWow. Forcing foreign jurisdictions to follow one's domestic regulations to help enforce compliance of one's citizens is bizarre. I'd say it even trumps the regulations that are largely post-Soviet legacy in countries like Ukraine, for example.
- cpursley 14y agoYep, this is what desperate empires do when they know it's the end of the line. The US has enacted a series of virtual Berlin walls. The only way to escape is to expatriate and relinquish citizenship at an American embassy. And to add insult to injury, the US Government takes 45% of all your assets over $2.5 million if you take this route (not that I have that problem). And this is already after-tax income, mind you. It's quite sad, really.
- kintamanimatt 14y agoI don't think it's as high as 45%, or at least I can't find something to corroborate that.
- cpursley 14y agoPretty close. http://online.wsj.com/article/SB10001424052702303879604577410021186373802.html http://online.wsj.com/article/SB1000142405270230387960457741...
- nirvana 14y agoBecause the OECD has enacted numerous "money laundering" laws, and the IRS has regulations that require foreign banks to report information on US citizens with accounts. Sure, the foriegn bank is not located in the USA ,but many of them have branches in the USA, or are in one way or another allied with US banks. All of them do business with US banks. Thus, all of them are liable for "money laundering" which has been defined so broadly that basically anyone can be convicted of it. So, even though they are non-US entities they are required to file forms with the IRS, and the burden is getting bigger every year, and if they don't they risk censure under OECD rules or being fined as HSBC was, etc. It's easier to just not do business with US citizens.