Important note: On 2 October 2015 I.R.S. announced that it has illegally provided the confidential bank information of customers of U.S. banks, totally without any authorization from Congress. Time to impeach Treasury Secretary Jacob Lew
The U.S. Treasury lists
the countries and territories that have signed FATCA IGAs or where
they are pending, but it is no surprise that they do not go out of their
way to tell you about the countries without such agreements. In non-IGA
countries, some banks have registered and received a GIIN, and you can
find these on the IRS website,
but they also dont go out of their way to list banks that have not
registered and will choose not to comply with FATCA. Here is a place to
start. Be sure to check this against the respective federal websites,
because some of the countries are not in their proper alphabetical spot
on the lists. The table below lists United Nations members, except of
course for the United States of America itself.
Central banks of issue are generally exempt from FATCA, as
governmental institutions. This allows for a private or commercial
non-FATCA bank (non-participating FFI) to clear checks through the
Note: A pending agreement is not a done deal, and may be
penned by government officials with no more authority to allow
disclosure than the U.S. Treasury has. Congress will not likely
authorize reciprocal exchange and some of the countries with pending IGAs probably wont either.
This website is run by Tom Alciere
Note that the U.S. dollar is the official currecny of some countries,
such as Ecuador, El Salvador and Zimbabwe, without a FATCA I.G.A. This means that U.S.-dollar
transactions can be conducted by a FATCA-compliant bank in Zimbabwe, which has a correspondent
bank in New York, and which will gladly accept cheques drawn on a non-FATCA bank, which will clear through
the central bank, which is exempt from FATCA as a governmental institution. Likewise, wire
transfers through a New York bank to a FATCA-compliant bank in Zimbabwe will go through
without a problem, and then you can write a cheque and deposit it into an account at a
Bankers in non-IGA countries consider this: You register with
IRS and obtain a GIIN, which makes you deemed compliant.
Now you have time to dump all your U.S.-based investments, free of the
30% withholding tax. When the day comes to provide the data,
it is against the laws of your country to do so. It is as if I make a
deal with you whereby you pay me a thousand dollars today and I agree to
deliver a bag of cocaine to you on a future date, but they still have
not legalized cocaine yet, so the deal is illegal. This is not
a breach of contract, it is illegality of performance.
Now, the governments in IGA countries need to understand that
the IGA is an agreement and cannot have any force
contrary to your laws, and your statutes cannot have any force contrary
to your constitution, so again it is not breach of contract,
it is illegality of performance.
If IRS imposes the 30% tax, you are okay with that because you
have no U.S.-sourced payments. It may be possible to open a subsidiary
in El Salvador, Ecuador or elsewhere, where the U.S. dollar is the
official currency of the FATCA-exempt central bank, and you can clear
U.S.-dollar transactions that way, but why not simply use your countrys
currency and the currency of the trading partners?
Let your commercial banks offer accounts in the currencies of your
trading partners, and let investors auction the foreign currency for
local currency and vice-versa, on the books of the bank, through a
secure on-line platform which of course would not reveal the identity of
the customer, because the other party would not care when the bank is
effecting the sale.
The bank has the same amount of local currency deposit and foreign
after the transaction as it had before the transaction.
This was at Lancaster Elementary School in Salem, New Hampshire on Friday evening, 5 February 2016. Tom Alciere: Senator, you know what it's like to find out that you're classified as a citizen of another country, under their laws. What do you think about about imposing U.S. income taxes and bank account reporting requirements on people in other countries who happen to be classified as U.S. citizens under United States laws, who aren't even in the United States?
Ted Cruz: Well, look, I don't think that makes sense. I think we ought to focus on the United States of America.