| Hi Tom
We are writing to let you know of some important changes to how we collect and manage your personal information. These changes are being made to ensure we continue to meet our compliance obligations under laws and regulations both in New Zealand and internationally; and are a direct result of:
- The Foreign Account Tax Compliance Act (FATCA), which came into effect on 1 July 2014. FATCA is specific United States (US) legislation that aims to reduce tax evasion by US citizens, US tax residents and US entities. We started collecting foreign tax information as part of our existing application process from June 2014.For many customers there will be little or no impact as a result of FATCA. However, if you fall into the definition of a US citizen or US tax resident, there will be a requirement to report information about your accounts that exceed certain thresholds. You’ll be contacted separately about that if necessary. More information about FATCA can be found on the Inland Revenue website.
- Changes to the Privacy Act 1988 (Privacy Act) in Australia, which meant changes were needed to the ASB Securities Privacy Statement and Commonwealth Securities (CommSec) Privacy Policy, as well as CommSec’s Trading Terms and Conditions.
You don’t need to do anything as a result of these changes, but it’s important we make you aware of them. The amendments to the relevant documents are detailed below.
Changes to the ASB Securities Privacy Statement and CommSec Privacy Policy
The ASB Securities Privacy Statement and CommSec Privacy Policy have been amended to reflect new regulatory changes to the Privacy Act in Australia. These changes impact how we and our Australian Securities Exchange trading agent, CommSec, collect, use or exchange your personal information. The updated Privacy Policy includes additional information about:
- The way we collect information about you.
- Who we exchange your information with.
- In what circumstances we may send your information to other countries.
- How you can access and correct your information.
- Our complaints handling procedures.
You can view the updated ASB Securities Privacy Statement here. You can also view the updated Privacy Policy for CommSec here.
Changes to CommSec Trading and CHESS Terms and Conditions
The Commsec Trading Terms and Conditions (T&Cs) were updated and came into effect on 12 March 2014. Changes to the Customer Information and Privacy section of the T&Cs include:
- Updates to reflect changes in the Privacy Act, which came into effect on 31 March 2014.
- Privacy Policy updates, which reflect the changes to how we collect and manage your personal information.
- Changes to our compliance obligations we have under laws and regulations both in New Zealand and internationally.
- The Terms and Conditions of Clearing House Electronic Subregister System (CHESS) Sponsorship.
You can view the updated T&Cs here.
Changes to ASB Securities Terms and Conditions
We have amended clause 35 of the ASB Securities Client Service Agreement (ASB Securities Conditions), which relates to the confidentiality of your information and who it can be shared with. The new ASB Securities Conditions will apply to all products and services provided to you by ASB Securities from 17 July 2014.
You can find a copy of the updated ASB Securities Conditions here.
We’re here to help
If you have any queries or require further information, please email us asbsecinfo@asb.co.nz or call us on 0800 272 732 between 7am and 6pm, Monday to Friday.
Yours sincerely
David Le Breton
National Sales Manager, ASB Securities |
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.
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.
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.
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.?
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?
————-
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
@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.
@Just Me
Got spot. I had not seen that article. Surely a wasted $5 million might tempt other NZ media to highlight this?
Good spot ….
https://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?
@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.
@Just Me
Was it in the paper version?
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….
🙂
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
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?
@K,
Welcome to Brock!
Pukekonz will probably reply soon. Meanwhile, here are links to some comments he made about his CLN experience.
https://isaacbrocksociety.ca/relinquishment/comment-page-14/#comment-581939
https://isaacbrocksociety.ca/relinquishment/comment-page-17/#comment-657297
https://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.