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Will FATCA stop you going for a Greencard or US citizenship

Will FATCA stop you going for a Greencard or US citizenship

Old Oct 13th 2011, 11:04 pm
  #31  
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Default Re: Will FATCA stop you going for a Greencard or US citizenship

Originally Posted by theOAP
I've asked the Manager at my (big, big) bank that very question. No one seems to know anything about it at the branch level. I believe it was reported a while back that Lloyds was closing all USC's accounts in it's Private Banking section, but I can no longer locate the article. Right now, it's anyone's guess.
This is exactly the kind of reaction I fear. Having one's UK bank account closed is going to be a major hassle for those that still have connections in the UK. And an even bigger problem for US citizens in the UK.
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Old Oct 13th 2011, 11:13 pm
  #32  
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Default Re: Will FATCA stop you going for a Greencard or US citizenship

Originally Posted by Giantaxe
This is exactly the kind of reaction I fear. Having one's UK bank account closed is going to be a major hassle for those that still have connections in the UK. And an even bigger problem for US citizens in the UK.
This is an article from July of this year on HSBC.

http://www.guardian.co.uk/business/2...-tax-clampdown

The latest publications indicate the Treasury (IRS) is paying particuarly close attention to any 'Private Banking' account in the FFI's.

Last edited by theOAP; Oct 13th 2011 at 11:18 pm.
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Old Oct 14th 2011, 2:25 pm
  #33  
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Default Re: Will FATCA stop you going for a Greencard or US citizenship

i wonder how the UK bank would know if the account belonged to a USC if the account holder was a dual citizen and actually used their UK/European/rest of world passport to open the account and had no payments or nowt that tied it to the US?
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Old Oct 14th 2011, 3:46 pm
  #34  
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Default Re: Will FATCA stop you going for a Greencard or US citizenship

Originally Posted by paulpur
i wonder how the UK bank would know if the account belonged to a USC if the account holder was a dual citizen and actually used their UK/European/rest of world passport to open the account and had no payments or nowt that tied it to the US?
Ahhh....you've just asked the Trillion Dollar question! Sadly, no one will reward your insight.

Years ago, you could open a UK account with a UK paper driving license, which gave no indication of nationality or place of birth. The latest UK photo driving license gives the place of birth (at least for the US), although the paper counterpart still gives no indication.

The answer is why the FFI's must eventually 'interrogate' every account, by asking the US tie-in questions of every account holder, if the US plan is to work. Those who fail to respond (recalcitrant) will automatically have the 30% with held from transactions from the US (if there are any).

A non-compliant FFI can have any number of USC's as account holders, but will have 30% with held on any transactions from the States. So...they just don't do any business with the US.

All this is terribly complicated, and ill thought out. I'm afraid the US is counting on its 'financial might' by bullying the rest of the world into submission. As has been mentioned by others, the question is will the rest of the world (and the FFI's) agree?
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Old Oct 16th 2011, 9:06 pm
  #35  
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Default Re: Will FATCA stop you going for a Greencard or US citizenship

Originally Posted by airways
Spoke to my tax advisors on it and they assure me that the contents of your bank account are outside the legislation. It is specifically aimed at the sale and disposal of securities such as sahres, bonds etc and is to make sure the tax is paid. Also interbank transfers to tax treaty countries are not a problem either. You just have to make sure the tax is declared where it should be.
From what I can determine from the IRS website, you are correct.

It's early days yet. The Treasury Regulations are quote "expected to be proposed by December 31, 2011"

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