Sweden begins to implement FATCA by sending out FATCA questionaires in a spray to Swedish citizens.
Since FATCA only has minimum reporting requirements, each bank and each customer in any country is deputized to do anything it wants to US citizens. This fulfills the opposite of the function of a government—which is supposed to PROTECT its citizens from harm no matter where they are in the world. Not to deputize foreign banks and foreign countries to violate the rights of their citizens.
Please note the VERY intrustive questions. Have we returned to the McCarthy era?
Sweden has a weak government—it will do whatever is demanded-and then some.
“Are you a politically exposed person, have you or have you ever had a high political post, high government office or close family member of such a person?”
“What is the origin of the capital that is currently on your Nordea account?”
“What is the purpose of your current banking relationship with Nordea?”
ROUGH TRANSLATION: “Any Swedish bank customers must shortly certify that they are not taxable in the United States. The reason is a new cooperation agreement between the United States and Sweden. An agreement under which both critics endangers both the privacy and may violate EU laws.
“Are you a politically exposed person, have you or have you ever had a high political post, high government office or close family member of such a person?”
“What is the origin of the capital that is currently on your Nordea account?”
“What is the purpose of your current banking relationship with Nordea?”
When a letter from the bank with these issues tumbled down the home of Janne Bengtsson in Alingsås, he became suspicious.
– I thought it was the imposter and was thinking of going to the police, but on the way there, I took the turn for Nordea to ask them. They said it was about an agreement with the USA and Sweden signed and that I would answer the questions, he says. Did not bother to answer
But he still thought it was creepy and thought it could not happen anything serious if he did not care to answer the questions, because he is a customer of the bank since long. It turned out to be wrong.
The reason that Janne Bengtsson got the letter on the other side of the Atlantic.
After the American financial crisis, the United States imposed a new law that would help them find tax evaders in the world, even in Sweden. As recently as August, the then Swedish government an agreement with the United States, known as FATCA Agreement.
The agreement is the basis for a bill that the Finance Ministry is working on right now and that parliament is expected to approve this spring. The legislation will come into force on 1 April by 2015. collects information
Nordea says to SVT that all who become customers after July 1, 2014, and further, some people get the questions from the bank. Although the legislation has not yet entered into force, one has in gathering information for the United States. The next step is that banks violate bank secrecy and hand over customer information to the Tax Office, but it requires a change in the law.
According to sources in the Ministry of Finance, the banks in the future be required to terminate accounts if customers do not provide the information requested.
Swedes in the US shall be reported
The debate surrounding FATCA has been rather lukewarm, although criticized by heavy bodies Swedjsh Bar Association and the Swedish banking association.
According to the Ministry of Finance is an agreement between the countries better than the American law applies over the head of the Swedish authorities. Now Sweden has an exchange, since the United States in the contract (IGA) agrees to the return report Swedish taxpayers in the United States.
In the end, Janne Bengtsson in Alingsås responded to the questions, but only after Nordea informed him that he would not be able to use their bank account in full if he did not respond.
– I’m dependent upon being able to transfer money, I send money to friends in Tanzania to help with medical care and food, so I had to fill out. But I think it feels like Sweden sold to the United States, says he said.”
Surprise ! Wakey Wakey !
To even buy a car insurance policy … or any insurance policy of any kind … here in Jamaica one has had to answer such intrusive questions … like “where will you get the money to pay the premium” and the one about whether you have held ay political post and so on ….
Even credit cards are “impacted” according to TD:
Here is the TD link for the above comment.
http://www.td.com/fatca/
Very interesting! The international accountant in Calgary for MNP told me that credit cards were NOT reportable on the FBAR.
So international accountants are saying they are NOT reportable on the FBARS, but banks are reporting them anyway? To what end? She also told me that lines of credit weren’t either.
The real fun begins when Swedes have to do this for every nation in the world! Why only pick on US persons?
@Ann#1, erring on the side of caution and reporting everything is likely best. Some include gift cards, utility company deposits, pay as you go phones etc on FBAR.
The upside is if you hit 25 accounts, you check a box and do not need to provide a list of any of the accounts!!
Are we back to the supposed crazy talk that you have to declare your London oyster card on the FBAR?
I always thought you likely had to declare them.
Well we knew they were coming, the false-positives.
Yeah, you can launder all kinds of money through your Oyster card. And they pay such a great rate of return!
@George
I’ve always wondered whether doing this results in a red flag of some sort that increases your chances of closer scrutiny? I imagine it definitely would for a domestic filer, but what about us offshore types? What do others think?
Since my position is that I relinquished in 1993, I will be declaring nothing. But if I were to declare anything, I am going with the accountant that the lines of credit, credit cards, etc. are not reportable especially since she is a co – hort of Mr. Kevyn Nightingale @ MNP.
Unless, giggle, giggle, giggle, it makes them waste time! Then , I might just report the kitchen sink and the dog house as banks with accounts.
Just as an aside – although the statute of limitations for a FBAR violation is 6 years, the FBAR forms filed with FINCIN are in the system forever and are searchable by federal law enforcement and intelligence.
Ann#1 Just curious. Since you relinquished in 1993, you need not file anything. No need to talk to the folks ( I was going to use a more pejorative term) at MNP.
All; the credit cards etc. are only an issue if they have a large positive balance- not often the case. OTOH if we reported our starbucks cards and Aeroplan miles we might help gum up the works.
Duke of Devon – I had talked to the folks at MNP when I first found from my co-worker that her Uncle who is in the banking sector had approached her about possibly having a green card because she had lived and worked in NY. I didn’t have a clue in the beginning what to do or where to start. I was in panic mode! I have a friend who is an accountant with MNP who put me in touch with MNP Edmonton/Calgary. Then, I started searching the web and found Isaac Brock. I actually spied for awhile before I joined. That’s how terrified I was! I haven’t spoken to her since.
Duke, I was taking steps to file and renounce until I found out two things: I have a case for arguing relinquishing and that my boss, who I respect a lot, would have all of his information disclosed to a foreign country. It seems that nobody understands or they don’t tell you that you have a case for relinquishing. The US has changed the rules so many times. My parents were told 1980’s that they lost their citizenship, but then told they didn’t. They draw Social Security. I, on the other hand, feel that I relinquished and would have gone to an Embassy if I had been told at the time I needed to go. I have never done anything American and don’t plan on it because I AM CANADA just like everyone else.
It looks as if Swedish banks “protect” you from becoming a criminal—by demanding to know your political connections. No doubt the reporter merged two bank investigations into one—FATCA and an internal inquiry according to Swedish law.
In Sweden, you could be a criminal and you would never know it—until your bank asks the right questions.If you live abroad
“If you live abroad, special rules apply. Bank need to know if you have a high political post or high post in the state, a so-called politically exposed persons, or if you are a close relative or a known associate of such a person. These stringent regulations aimed primarily at combating corruption.
With a high political post or high post in the State referred
• Heads of State or government, ministers and deputy or assistant ministers;
• Members of Parliament,
• Judges of the Supreme Court, judges of constitutional courts or other similar judicial bodies at the high level,
• senior audit of the boards of central banks;
• ambassadors, diplomatic envoys and high-ranking officers in the armed husband, and
• persons who are included in the state-owned company’s management bodies
With close relative meaning
• wife / husband,
• partners who by law is equated with wife / husband,
• children and their spouses or partners, and parents
The information the Bank receives about you is treated as confidential and subject to banking secrecy and the Personal Data Act.”
http://www.penningtvatt.se/fragor/bo-utomlands
I recently received a letter from my bank asking my place of birth among other things. The letter claimed to have been sent based on some legislation about “politically exposed persons.”
My country of residency does not yet have an IGA nor does it have any FATCA enabling legislation. I suspect the banks may be trying to use legislation about “politically exposed persons” for some kind of dodgy legal cover to enable them to get around data protection laws for FATCA.
I could be completely wrong. But it may be worth keeping an eye on banks considering persons with American taint as being “politically exposed persons.”
Further to the above, I don’t live in Sweden.
@John Smith,
There were news articles a few months back with claims that some US anti-corruption laws cause the bank accounts of diplomats to be closed because banks didn’t want to deal with the need to label ‘politically exposed people’. It’s more extra-territorial crap from the US.
@Neill
I am not a diplomat but I do have some US taint.