A Brocker from Switzerland sent me this – the Ambassador there sent a letter in September to the Swiss banks concerning the ongoing problem of closed accounts.
The original (German) from Handelszeitung is here
Perhaps one of our German-speaking Brockers could translate/paraphrase from the comments section.
An explanation (English) regarding the Ambassador’s acts & the situation is here
Excerpts:
The top U.S. representative in Switzerland deplored the fact that Swiss banks closed the accounts of U.S. citizens and turned away new clients. LeVine wrote that she had received numerous letters from fellow Americans complaining that they didn’t have access to basic banking services in Switzerland.
…..Unfortunate Timing
The letter was sent to numerous banks, for instance Migros Bank and at least to one bank that still awaits a fine in connection with the tax dispute in the U.S., according to the «Handelszeitung» report. The timing of the letter thus appears a little unfortunate and will have caused some irritation.
A string of Swiss banks this year still were occupied with closing the tax dispute with the U.S., with fines the normal outcome of the U.S. investigations. The institutes not just had to plead guilty to violating U.S. laws in conjunction with their business with U.S. clients, but also had to promise to remain on a righteous path in the future – at least in respect to the U.S.
…The criticism leveled at Swiss bank by LeVine isn’t just tough to take because of the timing, but also because of what it implies. Some banks were ruthless in closing the dossiers of U.S. citizens, no doubt. But today’s reluctance to have any dealings with U.S. clients has more to do with hard business facts.
Banking for the Rich
Banking in compliance with U.S. regulation is so expensive that business with the normal, moderately wealthy expat doesn’t pay off. And given the unpredictable behavior of the U.S. authorities in tax issues, the risks and costs far outweigh the potential benefit of offering services to the 20,000 U.S. expats.
Swiss banks of course still do business with U.S. clients. About 40 companies have specifically licensed unit for that purpose. But of course: those services are restricted to the very rich, making it worthwhile. Several asset managers are also working on their onshore services in the U.S.
Swiss banking is still interested in U.S. customers. But not exactly in the way U.S. Ambassador LeVine had hoped for.
The letter is here: Letter from Susie
To: ivana.kottasova@cnn.com
subj: Your cnn money article “U.S. to Swiss banks: Please let Americans open accounts”
Hi,
You might like to compare what you are reporting in this story to the official position of Robert Stack of the IRS:
https://www.treasury.gov/connect/blog/Pages/Myth-vs-FATCA.aspx
Myth No. 2: Some claim that U.S. citizens living overseas will become outcasts in the international financial world.
Clearly what you are reporting is at odds with that. Are you sure you are not mistaken .
Neill.
Maybe I should have mailed Robert.Stack@treasury.gov to gloat.
Bravo for Swiss Banks
As long as the U.S. maintains laws that put terrible and threatening pressure on “foreign” banks which lead to U.S. citizens being discriminated against in many more countries other than just Switzerland, then it is completely understandable and justified that more and more global banks refuse banking services to U.S. citizens and U.S. persons. Equally as worrying, and due to the same U.S. laws imposed upon the rest of the world’s sovereign nations, is the fact that more and more “foreign” companies will no longer hire U.S. citizens or U.S. persons, particularly in financial positions where they have authority and signatory rights over company accounts. U.S. citizens and persons are sadly toxic for any business today and since there are so many English speaking people from other countries that don’t torment, threaten, fine and impose reporting requirements on foreign banks and businesses in contact with their citizens, then those businesses should, by all means avoid any connection to U.S. tainted individuals. When U.S. people start to fight this outrage for real, then perhaps they will be welcomed back into the international community. Until then, they are too much of a risk and their presence causes too many problems, in a world where things are already difficult enough, without adding the U.S. nightmare into the mix. My own company has categorically stated and has circulated an internal memorandum saying that any U.S. citizen hires must be approved by the Chairman and to give other nationalities precedence in the hiring process due to the issues that the presence of a U.S. person in the company poses to the security and well-being of the company in general. Strong words, sad story, but totally understandable.
“Swiss Ambassador Reaches Out to Swiss Banks”
I think you mean US Ambassador to Switzerland Reaches Out to Swiss Banks? Otherwise it’s pretty hard to understand.
Anyway, if a US ambassador wants to stop US law from forcing US citizens to renounce, the ambassador ought to be able to figure out who to reach out to.
I doubt that the ambassador appreciates how Swiss people feel about Americans these days.
“When U.S. people start to fight this outrage for real, then perhaps they will be welcomed back into the international community.”
Let me introduce you to a web site where people do try to fight this outrage for real. Even though I was already an non-US person when I discovered the web site.
All roads lead to renunciation.
Sauve qui peut.
“I doubt that the ambassador appreciates how Swiss people feel about Americans these days.”
Nor how US people feel about American government practices these days. Nonetheless the ambassador should be able to figure out that US law is made by the US government not by Swiss banks.
http://www.finews.com/news/english-news/24119-u-s-tax-enforcement-swiss-banking-submission
‘U.S. Tax Enforcer: «These Are the Countries We Will Target Next» ‘
Caroline Ciraolo, DoJ, principal deputy assistant attorney of the US, knows to put the US at the top of the list, right?
Oops no, the US isn’t even on the list.
One former US citizen would like to see the US enforce US tax law instead of protecting the IRS’s embezzlers and penalizing honest filers. But it’s not going to happen.
Exactly the reason why I know my account in Japan will one day be closed. The US has made it far to costly with no benefit to banks to keep accounts of USpersons open. Unless, of course, the USC is the fatcat that FATCA was to catch.
“I doubt that the ambassador appreciates how Swiss people feel about Americans these days.”
I doubt that any US ambassador appreciates how USCs feel about America these days.
@Norman Diamond
I doubt the US ambassador to Switzerland even knows about FATCA; and if he’s anything like the man who signed FATCA into law, his boss, the criminal Obama, then I doubt the ambassador really gives a damn in the end.
oops, I mistakenly assumed the US amb. to Switzerland was a man…my bad. Anyhow, man or woman Levine is as clueless as they get. She’s also clumsy. Imagine just getting a billion dollar fine from the US for the sin of banking as you’ve done for the last two hundred years, followed up by a letter from some idiot American ambassador telling you to stop being meany-pants to US citizens. After they got done laughing and/or cursing I’m sure the various bank presidents were cutting Ambassador’s letter into little squares to be used as toilet paper.
“As long as the U.S. maintains laws that put terrible and threatening pressure on “foreign” banks which lead to U.S. citizens being discriminated against in many more countries other than just Switzerland, then it is completely understandable and justified that more and more global banks refuse banking services to U.S. citizens and U.S. persons.”
@Tom.
Well said Tom. FATCA was signed into law by, possibly, the most lawless presidents in American history-and that is saying a lot. The entire foundation of CBT and then FATCA, FBAR etc., etc., is outside of anything even remotely constitutional. All that aside, it is abundantly clear after reading US Treasury Secretary Robert Stack’s propaganda piece, disguised as a myth buster in defense of FATCA, that the entire US administration from the POTUS on down is in denial of the dark consequences of what they have wrought through FATCA.
“U.S. people” won’t fight this outrage. Some will take what steps they need to protect their own interests. Some believe that it is up to the governments of their country of residence to protect them. Some think that the Marines will protect them. Some think that Democrats will protect them. Most of them are too afraid of their own (U.S.) government to do anything at all. Perhaps fear of the U.S. Government (along with FBAR) is the defining feature of what it now means to be an American.
Swissinfo.ch has posted an English-language story on its website “US ambassador asks Swiss banks to service Americans” at:
http://www.swissinfo.ch/eng/frozen-out_us-ambassador-asks-swiss-banks-to-service-americans/42532156
It references the print edition of the lengthy Handelszeitung article (the Handelszeitung link above is to a short article on the newspaper’s first page).
Also, thank you Patricia for the write-up.
@Innocente
And thank you for the information!
“I’m sure the various bank presidents were cutting Ambassador’s letter into little squares to be used as toilet paper.”
Better not. They wouldn’t be able to shit straight afterwards.
Oh great , it’s been 5 yrs since the start of Swiss bank closures and 4 yrs since I got a reply letter from the last US Ambassador to Switzerland stating that unfortunately I was co-lateral damage in the hunt for US tax evaders.
Too little, too late. What about the closed mortgages , lost jobs, destroyed relationships.
What a crock of shit they espouse!
Under the Hillary Clinton administration, perhaps they can propose a new Federal Department of Blowback.
That might be too far – perhaps a “Blowback Czar” for now.
‘That might be too far – perhaps a “Blowback Czar” for now.’
That would be her husband’s job, right?
If so, the scope would be global…
Here is the Bloomberg article on the Levine Letter:
https://www.bloomberg.com/news/articles/2016-10-19/u-s-ambassador-tells-swiss-banks-to-open-doors-to-americans
There are other discussions going on about this letter on FB:
https://www.facebook.com/groups/AmericanExpatriates/673782099454532/?comment_id=673993342766741¬if_t=like¬if_id=1477048149383843#
https://www.facebook.com/groups/citizenshiptaxation/#
@Eric in Switzerland
I agree that the ambassador is not too bright, but I know she knows about FATCA. She’s just chosen not to mention it anymore because Mythster Stack and US courts have decided that the bank account closure have nothing to do with FATCA. It’s wink-and-nod time.
I wonder what she said behind the scenes to get UBS, Credit Suisse and Cornèr Bank to change their minds, or are they so shaken by their recent experience with the DOJ, even a ‘suggestion’ from anyone to do with the US government packs a lot of punch?