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wondersailor

Documentary Stamps On Transferred Funds

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Headshot
1 hour ago, SkyMan said:

Remember that the FATCA reporting limit is for a total of all foreign holdings over $10k. 

All foreign monetary or security holdings. Property is NOT included.

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SkyMan
16 minutes ago, Headshot said:

All foreign monetary or security holdings. Property is NOT included.

The point is that it is a total of over $10k and so I believe less than that amount is reported by banks here. Having $6k in each of 2 accounts is not safe.

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to_dave007
6 hours ago, RogerDuMond said:

I don't know about other countries, but what you are talking about is an American law that banks from other countries have agreed to comply with. This is not a Philippine law. I am required by HSBC Philippines to fill in a box on my online transfer request from the US to the Philippines  stating the purpose of the funds to comply with FATCA. Now I don't think that Philippine banks are required to report anything to the US unless your Philippine account is over $10,000 at anyone time.

I am familiar with FATCA.  HSBC identifies me as a NON-USA citizen for FATCA purposes.  So supposedly they shouldn't NEED to identify the purpose of funds, but they do anyway.  Don't know why..  except maybe HSBC thinks other countries may opt IN to FATCA as well.  And really I don't see a big problem with it.  I understand WHY FATCA was put in place, and I agree with the rationale.

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Headshot
1 hour ago, SkyMan said:

The point is that it is a total of over $10k and so I believe less than that amount is reported by banks here. Having $6k in each of 2 accounts is not safe.

Correct. It is the total of all accounts, NOT each individual account.

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Cgu
2 hours ago, to_dave007 said:

So supposedly they shouldn't NEED to identify the purpose of funds, but they do anyway.

There are other regulation banks need to comply (the Philippines was on a black list and now is removed), mainly for tax fraud and evasion (HSBC got badly burned). So yes, they are monitored and audited and this is the reason you have to give proof where funds come from.

FATCA is just to ensure they comply with US and make US citizen aware that they will transfer financial information to the US without their consent ("transparent" citizen). They will of course not only transmit the asset you are holding at the time, but if requested all transactions (so it useless to keep it under 10k for this purpose). But I guess in a few years that will apply to more nations under AEOI.

(Addition: The US does not comply with FATCA:D....funny fact in itself)

Edited by Cgu

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RogerDuMond
2 hours ago, Cgu said:

(Addition: The US does not comply with FATCA:D....funny fact in itself)

Of course they don't, since the F in FATCA stands for Foreign.

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Cgu
3 minutes ago, RogerDuMond said:

Of course they don't, since the F in FATCA stands for Foreign.

Yes, of course - but it needs two. US has agreements with foreign countries to EXCHANGE information (reciprocal). However, the US is "behind the curve" and could not provide it yet (their "processes and infrastructure" are a little bit on the old side)..they still have to do some work until they comply...but I think this is would be outside the discussion here...

Anyway, it was just introduced to pay for the financial crisis and the tax payer in the US were not enough...so the gov tries to get every cent it can to fill the hole (which went to corporate big banks - paid by the US tax payer) 

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