Thanks to @HelenBurggraf for this about the upcoming problems created by the Dutch banks. You can see the actual video from the Dutch banks here – is this information accurate or not? https://t.co/WW1K973T4l https://t.co/wR3hhghhO7
— U.S. Citizen Abroad (@USCitizenAbroad) August 31, 2019
Thanks to Helen Burggraf at American Expat Finance for reporting on this story. Helen was recently interviewed by the BBC on this topic. (See also this article that appeared on the STEP blog.)
The most important issue in the world today (forget about the demonstrations in Hong Kong) is whether US born people can supply banks with a US Social Security Number! Yes, it’s time to formally document, those undocumented US born people, who have always lived in other countries!
By way of background, the FATCA IGAs require that the banks include an individual’s TIN (Social Security Number) as part of FATCA reporting. Because the “powers to be” in U.S. Treasury, never contemplated that there might be accidental Americans (what in the world are those?), who did not have a Social Security Number, Treasury relaxed the requirement of a Social Security number until December 31, 2019. It is NOT clear what happens on January 1. 2020. Do the banks cease to be compliant with their obligations under the FATCA IGAs? Are the banks required to close the accounts of those life forms, who were born in the USA and are living as “undocumenteds” without a US Social Security Number? It looks like the Dutch banks think that account closures may be appropriate. There have also been “bank noises” coming out of the UK and France suggesting the same thing.
The UK, France, Netherlands (and Canada) have the same kind of IGA. Actually, most of the world has the same FATCA IGA. This means that “accidental Americans” the world over may be having problems. It’s just that “USness” (usually based on indentification of place of birth) is more visible in some countries (Europe) than in others (Canada).
Since it’s the IGA that governs what is required to be disclosed, it’s helpful to look to the IGA to see what is actually required. Not a single media article has referenced the section of the various IGAs that would require the closing of accounts. But, no matter …*
As Ms. Burggraf writes:
In the latest development in what is becoming a fast-moving international story concerning the bank accounts of tens of thousands of “accidental Americans” living outside of the U.S., it has emerged that the Dutch Banking Association has posted an animated video on the home page of its website in which it warns such clients of the need to get their U.S. Social Security numbers – if they don’t wish to lose their Dutch bank accounts.
A spokesperson for a European accidental Americans organization said that the video appeared to suggest that Europe’s banks were “well on their way to becoming the willing agents of the U.S. Internal Revenue Service.“
The actual video (which is well worth the look) is referenced in the following tweet: