The title says it all. It is time to get organized. The Canadian Bankers Association has joined with the IRS in what is nothing less than a declaration of war!
The title says it all. It is time to get organized. The Canadian Bankers Association has joined with the IRS in what is nothing less than a declaration of war!
http://www.cba.ca/en/consumer-information/40-banking-basics/597-us-foreign-account-tax-compliance-act-fatca-information-for-clients
This is chilling and outrageous.
This makes me livid. It absolutely affects Canadians due to the huge cost to comply with FATCA.
Rather than standing up to the ridiculous requests of the US Government, the CBA and the Federal Government are just going to breach our privacy and cost us millions.
I thought I read somewhere that banks would face fines payable to the Canadian government for turning away customers based on their place of birth as well as closing down accounts if those customers refused to comply.
On that note… does anyone know if there are any Canadian banks here that are not complying with FATCA?
I am not aware of this, but would like to think that you are right. Could you research a bit and post your source?
I am not aware of a single bank – but credit unions may be an option.
Another posibility would be to create a credit union – obviously this can be done – why be dependent on the decisions of others?
… yes, it should be emphasized in what we say that this does affect ALL Canadians. All of us will pay for the banks’ implementation of FATCA — they don’t have a slush fund to cover the costs to become arms of the IRS.
This is from the letter TD bank sent to the IRS and US Treasury:
http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Tax/us_tax_7789_1_042611.pdf
Note the section stating:
“Canadian ABBS rules may prevent a Canadian bank from denying banking services to individuals even if they refuse to comply with requirements that FFIs may implement to ensure compliance with FATCA.2
For example, a financial institution is required to open certain types of bank accounts if an individual presents certain identification identified in the ABBS rules. A financial institution could not refuse to open an account for a U.S. person if such adequate identification is presented, even if the individual refuses to provide certain information that the financial institution may need to obtain to comply with FATCA, such as a U.S. TIN or a W-8BEN or W-9 (which may be required under the procedures described in Notice 2010-60 if U.S. indicia are found). If an FFI closed an account because such information was not provided, the purpose of ABBS rules would be frustrated and, in addition, the FFI could be subject to fines. Each violation of the ABBS requirements would subject the financial institution to a penalty of
up to $200,000.3
Even if an FFI could close the account of an uncooperative
accountholder, an FFI could not refuse to re-open an account for such individual if adequate identification under ABBS were again provided.”
Thanks so much for that – great information!
And it’s time for us to declare war on the banks, if and when they begin to implement this as described. If a bank demands that you sign away your privacy rights, you can refuse and immediately file a complaint with the Privacy Commissioner and threaten court action. Giving up any privacy rights is supposed to be a voluntary action, and the threat of an account closure (which I don’t think is legal in Canada) or a 30% withholding of US source transactions (dump all US source holdings NOW before implementation and put all you money in Canadian bonds and securities!) is not “voluntary” it’s extortion. When you refuse, tell the bank you’ll be seeking legal action against them.
If this becomes costly, then perhaps those afflicted with these demands should organize a class-action attack against the banks and the Finance Department for caving into this (if that’s what they’ve done), through this forum.
Also write your MP and the opposition critics and the press about this — especially once it actually happens and we have concrete cases to work with. At the moment, the FATCA rules are still being drafted and according to web information we’ve seen somewhere (I forget the link but I know I saw it) the regs and procedures won’t be finalized until some time this coming summer. It’s too easy for government and press to downplay this for now, on the assumption that maybe somehow something will change before the summer. So don’t jump the gun yet, but keep this ammunition dry and at the ready! (“Don’t fire until you see the whites of their eyes!” Or was that quotation from the enemy in 1812 and not our side? No matter, it’s always good advice in combat. And this will be combat.)
No, I think the time to begin is now. If we wait, this thing will get away from us.
1. The first person who is requested by an existing bank to confirm citizenship should go the Human Rights Commission.
2. The class action against the banks (they are intentional violating the Human Rights Code and privacy rights) should be organized now.
3. Canada’a privacy commissioner (Jennifer Stoddart) should be contacted now.
4. Every Federal Riding should have a representative to put pressure on the MP to get the government to pass a law prohibiting the banks from complyiing with FATCA.
The banks are anxious to make their problem our problem.. They need to understand that the cost of proceeding with this will be very high in political capital and customer relations.
There are two fundamental questions:
1. Canadian sovereignty – In 2012 exactly two hundred years after the War of 1812 – the U.S. in once again trying to invade by imposing its laws on Canada (and of course the rest of the world).
2. Is Canada a country that is run for its citizens/residents or for its banks?
If we don’t start now, it will be too late.
I for one will notify you all here if and when TD asks me for my info. I’m a little worried though, since the ID they have on file for me is my Canadian passport which has US as place of birth…
Have the banks not already begun to implement some parts of FATCA through the W8-BEN form that some people are having an issue with whilst trying to sell or trade some US shares?
Not knowing exactly what this form is for…..I am reading about RBC US accounts being ‘locked’ until said person fills out the form(?).