FATCA News from Israel

Check this out

http://www.haaretz.com/business/leumi-orders-american-clients-to-declare-u-s-knows-of-their-assets-1.421375

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17 thoughts on “FATCA News from Israel

  1. It is unclear from the article whether Bank Leumi is simply following the lead of, for example, Swiss banks with respect to the accounts of Americans resident in the US or whether its policy will also apply to Americans resident in Israel.

    Whatever it is doing or why, it is equally clear that Leumi is NOT simply denying its services to all its existing or future American clientele – only those existing clients who might ultimately prove to be “recalcitrant account holders” when it comes time for Leumi to start combing its files for Americans.

    Why it is proceeding without central bank guidance – and thereby risking fallout under applicable Israeli law – is a mystery.

  2. There will likely be many Leumi account holders who, perhaps because they were born in Israel to a parent with US citizenship, will not confirm their US citizenship because they are totally unaware that they are US citizens. No different in Israel and in Canada or other countries around the world. So far I haven’t seen anything on how the IRS intends to address this problem in enforcing FATCA on dual citizens resident abroad.

  3. @rogerconklin- I don’t understand why the IRS and Congress cannot see just how basically unfair FATCA and FBAR are to non resident U.S. persons. Bascially non resident U.S. persons are the only U.S. persons who cannot EVER have local financial and unreportable accounts because a foreign bank account is defined according to U.S. geography. So bascially if a U.S. person lives outside of the U.S. then he/she is in effect being denied equal treatment under U.S. law.

  4. Pingback: And, FATCA news from Lebanon too | The Isaac Brock Society

  5. Not to change the subject from Israel, but read this and liked the description… If Google Translate is right… (probably not) Maybe there is a German lurking here who could help out!

    http://www.kunos-kuppel.ch/2012/03/fatca/

    It is a monstrous development of the American Steuereintreiberei.

    Read the article must also know who is delektieren a) to control monsters, or b) wants to inform you about imperialism

  6. Many Israelis are dual nationals of the US. But, Israel’s army is conscripted. If I were an Israeli I would ask my government: “I fight in the army and give one month of my life per year towards the preservation of the country’s safety and security and I can’t have a bank account?” How can they make a person be in the military in that country yet ban them from banking?

  7. Hey that Israeli bank that claimed to be FATCA compliant as early as November 5, 2010 has some customers that are in trouble with the IRS.

    US investigating Leumi customers for tax evasion

    Bank Leumi said in response, “The IRS is conducting an investigation into Leumi customers who are US taxpayers on suspicion of violating US law. Leumi is cooperating with the authorities with regard to these customers and the banking services they received from Leumi by providing information that the bank is legally permitted to provide.”

  8. Israel will probably get a reporting exemption or if it doesn’t it will make the USA pay for the cost of its banks becoming FATCA compliant. After all, Israel has a nuclear weapons exemption and a human rights abuse exemption and a foreign government lobbying (AIPAC) exemption and so on and so on. Israel is the epitome of exemption.

  9. @em….
    Maybe they can trade a few US expat bank records for a few new bunker busting bombs. They do know how to negotiate! 🙂

  10. More news from Israel. They’ve got all kinds of trouble. A billion dollars withdrawn in a few months is alot for a country as small as Israel.

    Meanwhile, the Israeli web site NRG reported on Monday that Americans have withdrawn more than a billion dollars from Israeli banks over the last several months.

    IRS ramps up audits of taxpayers in Israel

  11. So Israel has alot of US residents hiding money in Israeli banks as well as residents of Israel who are dual citizens cheating on their US tax returns.

    It doesn’t look like they’ll be getting any kind of preferential treatment.

    A billion dollars withdrawn from Israeli banks in a short period of time is a huge red flag. One might even say they’ve been acting as a tax haven.

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