eMail Reveals Overseas Banking Concerns For 2014


There are growing 2014 overseas bank concerns for Americans as the email below shows.

Last month I shared a US dollar recap and how it is important to live in one country, bank in a second country and invest in at least three currencies.

During the past 40 years, the US has slowly eroded the ability of Americans to bank outside the USA.   This effectively locks the savings of most Americans into the US dollar which has lost almost 95% of its value against other major currencies in these four decades.

Now as this email thread between me and my Ecuador attorney shows it is becoming harder for even for Americans who live abroad to bank overseas.

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On October 7, I wrote to my Ecuador attorney:

Mensaje original—–
De: Gary Allen Scott [mailto:gas@garyascott.com] Enviado el: lunes,
07 de octubre de 2013 9:52
Asunto: FATCA

Have you heard more about how Ecuador banks will respond to the FACTA regulations that come into effect in 2104?

On Oct 7, 2013, at 5:05 PM, my attorney wrote:

Hola Gary,  Let me check to see if there is any additional / new info on this.  I  trust to send you my comments by tomorrow at latest.  Very few people, even in the banking sector are actually aware of this.  Take care,

I replied: —–Mensaje original—–

De: Gary Allen Scott [mailto:gas@garyascott.com] Enviado el: lunes, 07
de octubre de 2013 17:30
Asunto: Re: FATCA

Because some Ecuador banks have US branches they are vulnerable to US pressure.

On Oct 7, 2013, at 6:31 PM my attorney wrote:

I am wondering what will be the ultimate position of the Government of President Correa on this. There would first need to be legal changes for Ecuadorian banks to be able to fall in compliance with FATCA and I am not seeing them coming (yet).

President Correa is very nationalistic and frowns on encroachment or demands from other countries so I see it difficult that he would allow this to pass.  I am checking.

The legal adviser to President Correa is somewhat of a friend. I will send him a note to see if he has anything to say.

I am checking with friends on a top positions on a couple of banks. I will let you know.  All the best,

I replied: —–Mensaje original—–
De: Gary Allen Scott [mailto:gas@garyascott.com]
Enviado el: lunes, 07 de octubre de 2013 17:46
Asunto: Re: FATCA

This extra territorial jurisdiction is terrible and it is amazing that the world lets America get away with this but the way they made the Swiss cave in is first to seize assets of Swiss banks in the US and the second actually arrest Swiss bankers as they came into America.

The way I see this happening is that #1: some American criminals either involved in drugs or terrorism or a US tax evader would turn out to have an Ecuador bank account.

#2: The US would demand that the Ecuador bank would turn over information.

#3: The Ecuador bank would refuse as providing the data and or assets would be against Ecuador law.

#4: The US would fine the Ecuador bank and seize assets at one of the US subsidiaries of the bank until they complied.

#5: The bank would put pressure on Correa to change the law.

#6: Then the Ecuador banks would have to provide a list of all US citizens holding accounts.

This is what happened with Switzerland.

On Oct 7, 2013, at 7:08 PM my attorney wrote:

Agree…. or Ecuadorian banks may stop opening accounts for US citizens to avoid the troubles…

From: Gary Allen Scott <gas@garyascott.com>
Date: October 7, 2013 7:14:21 PM EDT
Subject: Re: FATCA

This is what most banks in many other countries have done.

On Oct 9, 2013, at 1:08 PM my attorney wrote:

Hola Gary,  Yesterday I spoke with a friend of mine who is a former manager in a large Ecuadorian bank. He told me that this bank was going to get/seek  a release from their US customers when the time comes in order to  comply with FATCA. It is possible that other banks will do the same. They will need to get a release from their US clients so as to be able to comply with FATCA reporting. It is evident that pretty much every bank in the world has too much riding on this and will feel inclined to comply.

I see some US expats here getting around well enough through ATMs. Then again, their funds need to be in a bank somewhere. Best regards,

I replied: —–Mensaje original—–
De: Gary Allen Scott [mailto:gas@garyascott.com]
Enviado el: miércoles, 09 de octubre de 2013 12:36
Asunto: Re: FATCA

Thanks.  We have a program where people living in Ecuador can have funds held in Denmark, one of the five safest banking centers in the world at 2nd largest Danish Bank.   This bank is also a specialist in multi currency accounts and the funds are managed from Canada (Denmark and Canada are two of the safest banking centers in the world).    A Visa debit card is issued by the bank so that cash available through ATMs and or wire transfer to anywhere in the world.

Bank customers can have their Social Security and pension payments wired directly to the Danish bank so it becomes easy for them to hold assets in a really safe country but spend anywhere.

This is the way we have always done this in Ecuador after we lost $11,000 (we had $30,000 in an Ecuador acct and were paid back $19,000) during the bank shutdown.

This gives a safer bank and avoids the 5% exit tax, plus stops any exposure of a clients assets to Ecuador government in case they decide to increase tax on expat income.

There is greater privacy and asset protection as well because Danish banking has privacy regulations plus no law suit abroad can be enforced in Denmark without a trial in Denmark under Danish law.

Gary

Get a full report on how to bank in Denmark, have the savings managed from Canada and have access to funds via ATM or wire transfer almost anywhere in the world. Order the report here $79  Multi Currency Report

Save $79.  Join the Ecuador Living Club $119 and receive this report FREE.

Enroll in the Ecuador Living Club $119.

 



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