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Wealth management firms the world over are declining to open offshore accounts for Americans.

In a piece for Bloomberg, reporter Sanat Vallikappen begins, Go away, American millionaires. Valliikappen then goes on to explain that wealth management firms the world over are declining to open offshore accounts for Americans.

This is the institutional blog of the Ludwig von Mises Institute and many of its affiliated writers and scholars commenting on economic affairs of the day.

I dont open U.S. accounts, period, said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asias largest lender, who described regulatory attitudes toward U.S. clients as Draconian.

It hadnt been easy for Americans doing financial business overseas, but since the 2010 passage of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts, opening a foreign bank account has become mission impossible.

Valliikappen writes,

The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.

The Institute of International Bankers and the European Banking Federation said in an April 30 letter to the IRS, that the 400 pages of rules and regulations issued by the American tax authority create Unnecessary burdens and costs.

Massachusetts Democrat Richard Neal says the government needs to crack down on offshore tax dodgers. Mr. Neal wants tax money and doesnt care much about privacy and all that.

People should know, and the IRS should know, what money is being held offshore and for what purpose, Neal said. I dont think theres anything unreasonable about that.

See original here:
Offshore bank accounts: no Americans allowed