16 thoughts on “New Zealand Bank (ASB) Sends Out Its Pre 4th of July #FATCA Roundup Notices”

1. The good news IMO is contained in the last two bullets cited re their Privacy Policy, namely how the client can access and correct the information (including presumably about US status) as well as a complaints procedure. Neither things have appeared as far as I recall in Canada’s enabling legislation nor in anything I’ve seen or heard of from any of the Canadian FIs. Let’s hope that, at absolute minimum, our government and our FIs are required to provide both these features as part of their trolling for so-called US persons. But I have very little, if any, faith in either the so-called Harper Government (it’s actually the Government of Canada of whom Harper is currently, one hopes temporarily, the Prime Minister) never mind the Canadian Bankers Association and its members. I would hope and expect credit unions, at least, to be more responsible to their members in these regards.

   Also this correspondence seems to indicate the financial institution issuing it will, in fact, be contacting all clients they’ve flagged as US persons and make them aware of the flagging (and providing at least some opportunity to correct or contest this) before throwing their account information to the federal tax authorities and hence to IRS. Again, that’s something our bone-headed and treasonous government hasn’t required in its legislation, and Canadian clients appear to be utterly at the mercy of their FIs in this respect.

   In these respects it seems to me Australia’s and New Zealand’s governments, whatever their other warts, are superior to Canada’s and Canada’s FIs. Muted congratulations.

2. It’s actually positive news they’re sending out these notices. At some point a notice will go to the wrong person who will mount a legal challenge.

   It’s free FATCA publicly paid for by the banks.

   As it was once said, ‘the best way to get rid of a bad law is to enforce it.’

   This is certainly case in point.

3. Well said, Schubert and Don! NZ residents/citizens are at least being given a heads-up that this legislative/regulatory change has occurred. We’re getting nothing from the folks responsible here in Canada. The government and the banks are leaving it to the media to educate everyone! The media didn’t make these laws. It’s not their responsibility.

4. Agreed. False positives are inevitable. And it appears that one will not be able to challenge a false positive because no notification will be given before handing over financial info to the CRA and thus to the IRS.

   My question: should a person discover that they’ve been *incorrectly* identified as a USP and that they’re financial info has been handed over to the IRS, will they be able to sue their F.I.?

5. Great info. I have accounts at ASB & Kiwibank. I just contacted both banks regarding this. My basic message below:

   —————
   Hello,

   This is a question in regards to recent USA FATCA Tax compliance issues involving International banks and US Persons. I am a current account holder with Kiwibank. I used to be a US citizen but recently received my CLN (Certificate of Loss of Nationality) from the US Dept. of State. My CLN is an official document stating as of 2008 I am no longer a US Citizen. Since 2008 I have NOT been a “US Citizen” or “US Person”, only a New Zealand Citizen. Yet, it is possible my bank records may incorrectly deem me a “US Person”. Do I need to send Kiwibank a copy of my CLN? I want Kiwibank to be crystal clear that none of my personal information is to be given to a foreign government. If this happened I’m sure such a privacy breech would result in unfortunate legal action. How can I be assured this will not happen?
   ————-

6. In the New Zealand Herald today…

   NZ will use its asset sales to fund the IRD FATCA compliance round up. What a great waste of money…!!? I guess it costs something to be a member is full standing of the 5 Eyes Spy network.

   http://m.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11287975

   The Budget documents also show just under $5 million this year has been committed to implement New Zealand’s compliance with the US Foreign Account Tax Compliance Act (Fatca). The act requires overseas financial institutions including New Zealand’s banks to submit information about their customers who may be subject to US taxes to the US Internal Revenue Service (IRS).

   The law is detested by many expat Americans and may affect a significant proportion of the estimated 20,000-30,000 US citizens or tax residents living in New Zealand.

   The money in the Budget is being used to fund Inland Revenue to collect the information before passing it on to the IRS.

   Wellington IT consultant Simon Titheridge, who fears his financial records will be harvested and sent to the US because of the joint bank accounts he holds with his US born wife, said the Fatca money was “very poor” spending.

   “It’s appalling that the Government has sold these assets supposedly for the benefit of taxpayers but is instead using it to comply with the requirements of a foreign government.”

7. @pukekonz

   Firstly, congrats on getting your CLN. Perhaps you posted elsewhere but I missed it. I know you had some concerns that it might not be approved. If you don’t mind, it would be nice to know if these banks reply to you and what their answer is. The “official” guidance on the IRD website does not give the same feeling of comfort that people with US indicia will be given the chance to cure them. I assume they will be updating it at some point but they have not done so yet.

8. @Just Me

   Got spot. I had not seen that article. Surely a wasted $5 million might tempt other NZ media to highlight this?

9. Good spot ….

10. http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments/comment-page-34/#comment-2170329

    Govt ‘using asset sales to plug holes in a leaky budget’, including $5 million on implementing New Zealand’s compliance with the US Foreign Account Tax Compliance Act (FATCA)

    How much of Canada’s resources to be depleted the same way — and each other formerly sovereign country as well?

11. @calgary411
    The cost to the Canadian IRD will be some multiple of the NZ cost, I would think.

    @Osgood…
    Wish I could say it was good spotting, but was tipped off that the article was coming! Also, my Farmer John friend who reads the actual paper version every day, spotted it too.

12. @Just Me
    Was it in the paper version?

13. It must have been, as Farmer John told me he had seen it, and he does NOT read the internet, unless I send him a link that his wife prints out for him to read….

    🙂

14. Looks like the UK taxpayer is also footing the bill.

    British public footing a £1bn bill – to aid the U.S Tax man

    http://www.telegraph.co.uk/finance/personalfinance/investing/10944585/British-public-footing-a-1bn-bill-to-aid-the-US-taxman.html

15. pukekonz
    did you just get a cln that youve been fighting for since 08 or was this back dated somehow?
    if the latter how does one go about it?
    if the prior what the heck kind of problems could there possibly be in renouncing your citizenship?
    separately
    i dont know how to start a thread in this site so if someone can help me with that or perhaps answer my question it would be appreciated
    the new streamlined process requires submittal of a certification of non willfulness but the cert posted on the irs website is marked “draft” in very large letters
    what is one to do?

16. @K,

    Welcome to Brock!

    Pukekonz will probably reply soon. Meanwhile, here are links to some comments he made about his CLN experience.
    http://isaacbrocksociety.ca/relinquishment/comment-page-14/#comment-581939
    http://isaacbrocksociety.ca/relinquishment/comment-page-17/#comment-657297
    http://isaacbrocksociety.ca/relinquishment/comment-page-17/#comment-664780
    He performed his relinquishing act in 2008. He booked his consulate meeting in October 2013, had his meeting in November 2013 and received his CLN in June 2014. His relinquishing act was naturalising as a citizen of New Zealand with the intention of relinquishing his US citizenship (Immigration and Nationality Act, s. 349(a)(1)).

    ***

    From what you wrote, it’s not clear if you’re currently a US citizen and are planning to renounce and get a CLN, or if you relinquished your US citizenship some time ago (eg, upon becoming a New Zealand citizen) and are planning to get a CLN attesting to that fact. In either case, here are links to some threads:

    Ask Your Questions About: Renunciation and Relinquishment
    
    Consulate Report Directory
    Currently 185 page of people’s accounts of their expatriation experiences, arranged by consulate location. To find which people’s stories are about renunciations or relinquishments, check the Appendix: “Time Charts of Meetings and CLN Delivery Time.” This list, also arranged by consulate location, indicates at a glance if a person’s method of expatriation was “Renounce” or “Relinquish.”
    
    Links to threads about pre-2004 relinquishments
    This has links to 5 threads. The information on them may be of interest and of use even if your relinquishing act was after 2004.
    
    Department of State Forms and Procedure Manuals for Renouncing/Relinquishing

    Information Session Synopsis
    Lynne Swanson (Blaze)’s synopsis of John Richardson’s Info Session at London, Ontario, is a good overview of this whole situation we find ourselves in and what we can do to deal with it.

    ***

    Don’t do anything in a hurry. If you’ve just found out about this whole US mess, read, read, read, ask questions, and think a lot before taking any action, so you make the decision/s that are right for you.