Mediaboss Marketing

April 26, 2012 Santiago, Chile

Should we crawl into bed with the IRS?

Thanks to the steady barrage of US government regulation ranging fromthe obtusely insipid Dodd-Frank financial reform to theimpossible-to-implement Foreign Account Tax Compliance Act (FATCA),banks everywhere have to make this decision.

In short, Congress has arrogantly passed legislation to control foreignbanks on foreign soil. FATCA, for example, requires that every singlebank on the planet enter into an information-sharing agreement with theIRS.

Banks that dont comply will face severe penalties, including beingsubject to a steep withholding tax on funds sourced through the US.

In the long-run, Congress will have put the final nail in the coffin ofthe US banking system as the market will simply establish an alternativedestination to source, clear, and transfer funds.

For now, though, many banks are simply walking away from US customersaltogether throwing their hands up and saying we would rather not dobusiness with this entire market rather than deal with Uncle Sam everagain

To be clear, this is a bank-by-bank decision that each one is makingindividually. And were seeing -a lot- of banks around the world, fromSingapore to Panama to the Cayman Islands, say thanks but no thanks toUS customers.

But, as the saying goes, whenever one door closes, another one opens.OK, maybe not exactly 1 for 1 but there are still plenty of optionsaround the world where US taxpayers can establish foreign bank accountsto diversify their savings abroad.

Not a bad place to visit your money...

Read the original post:
Eight Places Where Americans Can Still Bank Offshore