One buzzin’ Brocker, Bubblebustin, doesn’t give up easily. Here’s the report I got by email.
There’s been a small development on the Canadian Bankers Association front that came about from a series of letters I initiated between Ms Drew-Lytle, their Director of Media Relations and Communications, and myself.
Brockers may remember Ms Drew-Lytle when she communicated with us here: http://isaacbrocksociety.ca/2012/07/16/canadian-bankers-association-maura-drew-lytle-responds-to-the-isaac-brock-society/.
I persuaded her to revise the CBA’s FATCA consumer info page (http://www.cba.ca/en/consumer-information/40-banking-basics/597-fatca-and-the-canada-us-intergovernmental-agreement-iga-information-for-clients-) to better reflect the options available to a Canadian banking customer should they fail to be in possession of a CLN or other documentation that might prove they are no longer a US citizen, OR, never were one.
My intention was to have the CBA include a direct reference to a “reasonable explanation” in their answer to FAQ “How do banks determine which accounts have to reported to the CRA?”, provided in the “Guidance on enhanced financial accounts reporting” (http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.pdf). Instead, she provided a link to the guidance itself and agreed to change the wording on their answer to no longer deny the possibility of a “reasonable explanation” in all cases. Her reason for doing so, she said, was so the CBA wouldn’t have to revise its info page should the IGA change.
I also hoped the CBA would take the important initiative in providing our banks with guidance to determine what a “reasonable explanation” is (instead of leaving it up to individual bank employees to decide) but she said that’s the CRA’s job, not theirs.
The old wording on up the CBA’s website read:
Canadian Bankers Association
How do banks determine which accounts have to be reported to the CRA?
Under the IGA, banks are required to review new and existing client accounts to look for any indication that an individual may be considered a U.S. person. Indicators that someone may be a U.S. person include U.S. identification used to open an account or a U.S. address associated with the account. Your financial institution may ask you to self-certify that you are not a U.S. person by providing additional documentation. If you choose not to provide this additional documentation upon request, your financial institution will be required to send your account information to the CRA which may share it with the IRS.
For more information on financial institution requirements under the IGA, visit the CRA website:
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtn
The new wording is:
How do banks determine which accounts have to be reported to the CRA?
Under the IGA, banks are required to review new and existing client accounts to look for any indication that an individual may be considered a U.S. person. Indicators that someone may be a U.S. person include U.S. identification used to open an account or a U.S. address associated with the account. Your financial institution may ask you to self-certify that you are not a U.S. person by providing additional documentation. Depending on the situation, if this additional documentation is not provided, your financial institution may be required to send your account information to the CRA which may share it with the IRS.
For more information on financial institution requirements under the IGA, visit the CRA website:
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/ndvdls-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.pdf