The Canadian IGA says:
Accounts under $50K are not reportable “unless the FFI elects otherwise”.
Accounts with unambiguous US birthplace are reportable by the FFI “unless it elects to apply subparagraph B(4)…” (which is to try to cure the indicia).
The CRA draft guidance says:
The CRA expects that financial institutions will generally attempt to cure indicia before determining that an account is reportable.
I persisted with my own financial investment advisor, saying I wanted none of our information to go to the CRA as we have CLNs (US-ness was known) and finally got this statement:
I have reviewed all of your documentation that I have for you here and in all of this; I have only noted Canadian Citizenship. Given this, yours and XXX’s status would be noted as Canadian Citizens only with no indication of indicia on record, therefore TD would be reporting to CRA for you as per every other Canadian Citizen.
Comments from persons I’ve been communicating with in Israel:
Well on Monday will be the last step for my wife and I to finally be Extricated from US Person Status at Bank Discount. I will be going in to sign a W8-ben and pick up the W9s we were forced to sign last year.
I was not able to convince the bank to do this on my own, they told us we were US Persons forever by staff at the main branch if we were born in the US regardless of having CLNs backdated to 2005.
I filed a complaint with the Bank of Israel 3 months ago which outlined our status and the reaction we got at the bank. I also requested they educate my Bank and help them develop procedures for persons with our status.
A few weeks ago Bank of Israel (The Federal Reserve Bank of Israel) contacted me to say they were working on my case.
Beginning about a week ago, we began to get a string of phone calls and Faxes from at least 3 persons working together at my Bank who were working on getting our status corrected. We provided some copies of paperwork to them via fax and answered a couple of follow up questions.
At least now we will be fully extricated, and there will be a procedure at Israel’s Third largest Banking Chain for others who are in the same situation.
While the two largest banks in Israel have processed family members of mine out of US Personhood without problems we found that it’s not universal, that some banks may not remove your account from those being reported despite evidence of a CLN.
The Bank has the OPTION of deciding if it wants to attempt to “cure” that indica. The IGA provides legal cover for the bank that does not want to cure the defective indica.
So the procedure is to AUTOMATICALLY report accounts based on US place of birth REGARDLESS of actual Citizenship.” A bank is under no obligation with the IGA to look at a CLN or even ask for one. I did not get this figured out until this week after seeing some posts from Israel on IBS. Then I looked at the document again and it was shazam.
I did an experiment with a major UK High Street Bank. To open an account online they ask both citizenship and place of birth. If you have a CLN then you are absolutely not a US Citizen. But I could see that programming as problematic. There was no question, “Do you have a CLN?” So I call the number to open an account by phone. Get passed along three times but get to someone who knows FATCA. I was advised that this bank would report any account I may open regardless if I gave them a CLN because I would be declaring a US place of birth. It did not matter to them that a holder of a CLN was absolutely not a US Citizen. The individual explained further that this bank was not making the election in the IGA to cure that defect and that I would have to take this up with HMRC.
In some ways it’s better in Israel. At least here, they say sign a w9, waive your privacy rights, or we close your accounts. It gives those Americans a choice.