I’m giving you all a heads up that if anyone has investment accounts in the US, you may find yourselves receiving a letter from your bank or financial institution as I did that you need to provide “acceptable proof” of a US legal and mailing address. If you can’t provide this proof, they will restrict your accounts to liquidating transactions only and they will be subject to closure. If they don’t hear from you by the specified date in the letter, they will liquidate your account and mail you a cheque for the proceeds to the address they have on file. They warn: “There may be tax consequences to you associated with a liquidation of investment assets in your account, so please plan accordingly.”
If you live in Canada your only option is obviously to liquidate the accounts.
Luckily I was already planning on transferring my IRA to an RRSP here in Canada, but this comes a bit of a shock. Even the US banks don’t want to deal with the FATCA headache!
Click the picture below to see the letter in full size. I have deleted any personal info.