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Topic: My bank wants to know if i am an american citizen  (Read 1094 times)

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My bank wants to know if i am an american citizen
« on: August 04, 2017, 10:35:51 AM »
I got a message from mt bank (Lloyds) to update my record as it hadn't been done in a while. They want to know i'm a dual national, in particular if I am an american citizen. I am in fact a dual EU (italian) and US citizen.
I have been living in UK for 7 years, filed my taxes regularly (never owned anything) and for the past two years i've complied with FACTA reporting. Since I read stories of banks kicking american clients out, I'm wondering whats the likelihood that this will happen to me? I have a current account and a mortgage with them.
any help is appreciated.
Damiano


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Re: My bank wants to know if i am an american citizen
« Reply #1 on: August 04, 2017, 11:56:47 AM »
The bank is required under UK domestic law to comply with CRS & FATCA reporting. This is of no concern to you. If you have always filed FBARs & Form 8938 for any year required, your US tax returns have been accurate and you have no income or assets offshore that have not been declared to HMRC or the IRS there will be no issues.

Having a Sterling mortgage as a US citizen is a big problem because of the sharp fall in the value of Sterling; but that is your issue to address rather than the bank's.


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Re: My bank wants to know if i am an american citizen
« Reply #2 on: August 05, 2017, 07:33:27 AM »
The OP should prevaricate in responding to the bank. Only respond when account closure is threatened. Current accounts do not usually get closed but other financial accounts may be closed due to being a US person.

Quote
Having a Sterling mortgage as a US citizen is a big problem because of the sharp fall in the value of Sterling; but that is your issue to address rather than the bank's.

Michael Bloomberg purchased a mansion near Grenfell Towers. If he used a mortgage, he might worry about this. But for normal people with consumer loans for mortgages, cars, credit cards etc. taken out and paid in UK pounds, there is little evidence that such calculations are expected. Consumer tax preparation software used by expats does not mention it and nor do most other tax professionals.

In feudal times, the king would sell the right to tax an area to nobles for a large sum. The nobles would then often extract far more from the peasants. The practice was known as "tax farming" - it's where the word "farm" comes from. It was abandoned because it caused peasant unrest. We are now seeing the modern version of tax farming.


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Re: My bank wants to know if i am an american citizen
« Reply #3 on: August 05, 2017, 05:36:51 PM »
I do online banking with Bank of America (had the account for years) and recently when I log in they've started asking where I live (I still have a home in US) and if I'm a dual national.  I guess even American based banks are going to be required to report overseas residency?
>^.^<
Married and moved to UK 1974
Returned to US 1995
Irish citizenship June 2009
    Irish passport September 2009 
Retirement July 2012
Leeds in 2013!
ILR (Long Residence) 22 March 2016


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Re: My bank wants to know if i am an american citizen
« Reply #4 on: August 05, 2017, 06:51:21 PM »
I do online banking with Bank of America (had the account for years) and recently when I log in they've started asking where I live (I still have a home in US) and if I'm a dual national.  I guess even American based banks are going to be required to report overseas residency?
The United https has entered into FATCA IGAs with all the countries listed here: https://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx

Naturally US financial institutions need data to meet the requirements of these IGAs.


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