Not so long ago banks around the world were FALLING ALL OVER THEMSELVES to pursue depositors from the USA.
THEN came the new IRS vigilance of the Obama Admin; suddenly American citizens were treated like kids in need of a really good spanking.
The IRS went to all the major banks and said:
“We’re going to impose onerous reporting requirements on you, requiring you to fink to us regarding all your American depositors. If we discover you haven’t complied..? We’ll fine you 30% of ALL your transactions that touched the US banking system in ANY way...!”
Probably more than HALF of all world banking transactions touch the USA in some way:
The potential fines seemd to foreign bankers to reach the MOON.
The easier path..?
Simply ban any account from US passport holders over some really paltry sum.
The result is that Americans abroad are viewed by foreign bankers as AIDS-having LEPERS.
This all started cuz a Jewish banker with US/Swiss dual citizenship got into hot water with charges of major fraud. He made US authorities an offer:
“Let me off the hook and I’ll give you a secret list of ALL Americans with secret banks accounts in Switzerland.”
That perp..?
He also got a cut of ALL funds recovered —his total was over $100 million bucks.
I don’t know about that banker story. This all started with Bush trying to stop US citizens’ funding of terrorists, laundering drug money, and trying to hide arms and dual-use product sales. The Swiss caved and gave up a bunch of depositors. Obama followed up with reporting requirements for foreign banks for transactions with US citizens. A lot of foreign banks found that too onerous and just ended business with Americans, whether or not they were US or foreign residents.
The tax requirements themselves haven’t changed much, although the foreign earned income limit has been raised, which actually helps expats. Most of the complaining in this story sounds like people starting a business without looking into the tax and filing requirements first.
You make a very cogent observation, gaijin!
(Nota bene: I would never renounce my U.S. citizenship.)
But the inverse situation is a greater problem for me, personally.
Two years ago, my (big-name - "When 'he' talks, people listen") U.S. broker notified me that I would have to dissolve my account within six months. That, after 20 years of very successful (and for them, extremely remunerative) business relations.
The Patriot Act, etc. were cited as reasons. Of course, the real reason was the fear of being held liable in case I turned out to be financing terrorists, dealing in drugs, laundering money, etc. - and the resultant "claw-back" which could affect individual company big-wigs.
My personal broker - whom I have known for 30 years, and with whose kids my kids used to play at the beach - had no say in the matter, just hung her head in shame.
All the other big brokerages had introduced similar policies - no more dealings with non-resident U.S. citizens.
I'm not so much mad because of my own situation (I'm not hurtin'), but think of all the retired Army sargeants and other "small fry" living on a shoe-string in, e.g., the Philippines or elsewhere who were dependent upon having a "pied-à-terre" in the old homeland, for banking purposes!
Disgraceful!
Regards,