USA's New Foreign Bank Regulations Affecting Expats

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Claudia1973
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USA's New Foreign Bank Regulations Affecting Expats

Postby Claudia1973 » Mon Jun 15, 2009 9:52 am

Lloyds Banking Group is ditching American customers based in Britain pending a change in international banking/investment legislation planned by President Barack Obama.

The bank's definition of clients that are effected included USA clients that hold green cards, pay American taxes, are American domiciled or even those where there is "any indication" that a client spent more time in the USA than "normal holidays currently or in the past or future."

Will Peruvian Banks follow the UKs policy changes? If so what is plan B for expats?


gypsy
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Postby gypsy » Mon Jun 15, 2009 2:56 pm

I have always had a problem with banks in regards to checks I receive from the US. I have to endorse and send back to deposit in US bank account. Then have a friend send me money via Western Union. I hope they do not make that difficult, too, at some point.

There was an article in MSNBC entitled something like 'US buying Chrysler? Is US another Russia? I wish I could say it is not.

I suppose if you get Peruvian nationality that will not be an issue. I knew there was a limit to having an account in a foreign country--the limit was $10,000 (dollars) and had to be reported.

But, a big one, dual nationality is very complicated nowadays.

gypsy
Claudia1973
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Postby Claudia1973 » Mon Jun 15, 2009 8:24 pm

We have money in an account, and did not know about the $10k limit reporting rule.

One of the reasons we left America was to be free of the micro management legislation and rules. O' well. Thanks.
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cajun jamie
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Postby cajun jamie » Mon Jun 15, 2009 11:13 pm

The rules are very lop-sided often times. Much has to do with money laundering and also the US wanting its share of taxes.

One thing I found interesting, I needed to Money Gram a few hundred dollars to the US from here in Peru and they insisted I have my ID or Passport.

A couple weeks later, I stroll into WalMart in the US and Money Gram $200 to Peru, no ID of any sort required. I just filled out the form, handed over the cash, out the door.

lop-sided.
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Postby Claudia1973 » Tue Jun 16, 2009 3:46 pm

One of the benefits, and disadvantages, to Peru is its small government.

In the USA, the government is hugh. Now they need money. So the government is look for ways to take (steal) money from the citizens. For example, in Ohio today a woman received a $25 ticket for parking in her drive way.

http://www.foxtoledo.com/dpp/news/local ... ons_061509

After my husband and I had dinner in the States, we were about 10 min late to a parking meter. For not putting in an extra quarter (we did not have - we only had 5 quarters not 6), the fine was $75 (the meal was only $13). That was the last time we ate near that place.

We have been in Peru for about a year, and have not gotten a parking ticket. Sweat. We love Peru.
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Postby craig » Tue Jun 16, 2009 7:44 pm

Claudia1973 wrote:One of the benefits, and disadvantages, to Peru is its small government.


Weak. Ineffective. Corrupt. Etc. But small it is not. However, if you don't want anything from it you can be largely left alone (unlike the US). Which is about as good as you can get in the present world.

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Postby Jimmy111 » Tue Jun 16, 2009 8:03 pm

The New Banking regulations are for the collection of taxes. The Obama administration wants their share of your money. The Banks are required to report money that you deposit in your acount in Peru to the US goverment so you can be taxes on it. It is mainly for the collection of more taxes from businesses that operate overseas but it will also affect the reqular person. Peru already does do most of the things that the USA wants so they will probably go along with the new rules.
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Postby Claudia1973 » Wed Jun 17, 2009 11:40 am

Craig said "But small it [Peru] is not."

According to a recent report at Heritage Foundation, Peru's "Total government expenditures, including consumption and transfer payments, are low. In the most recent year, government spending equaled 16.5 percent of GDP."

For government size, Peru scored 92 out of 100.

USA's "Total government expenditures, including consumption and transfer payments, are high. Government spending has been rising and in the most recent year equaled 36.7 percent of GDP." This was pre-Obama spending.

For government size, USA scored 60 out of 100.

Small government means freedom.

Next time Craig, you ought to take 30 seconds to Google.
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Postby craig » Wed Jun 17, 2009 12:45 pm

Claudia1973 wrote:Craig said "But small it [Peru's government] is not."

According to a recent report at Heritage Foundation, Peru's "Total government expenditures, including consumption and transfer payments, are low. In the most recent year, government spending equaled 16.5 percent of GDP."


I don't want to minimize the less bad features of the Peruvian government. But I was thinking of these things.

1) The percentage of the population the government employs. Unfortunately, like many other things, you get more bureaucrats for your money in Peru.
2) The degree of control its laws pretend to exercise over economic activity.
3) The suffocating taxation system.

In theory these are all appear worse than the US. However, as I indicated, in practice, it is much, much better than the US.

1) The countless bloated bureaucracies are ineffective and corrupt so they do much less harm than they might. Mostly they just are a waste of space.
2) Because Peruvians largely ignore the laws or get around them (via salutory corruption) economic activity is quite free on the small to medium scale. Mostly, all the government does is to prevent economies of scale and efficiency. This is sad but not prohibitive (as it is becoming in the US).
3) The government is so weak and ineffective that it is not able to collect much of the taxes theoretically due. As a result its revenue is very limited (and substantially dependent on income, like royalties, from large businesses) which, happily, severely limits its expenditures.

You need some historical perspective to understand that Peru's present government is basically the heritage of a communist state (the Velasco regime, the first Alan Garcia, etc.). It is now moving in a different direction, has improved enormously, and, in practice, the situation is much better than the lingering remnants of its past would suggest.

Remember the fable of the blind men and the elephant? There is more complexity to Peru than one Googled statistic collected by people who have never been here and have no context that gives meaning to the number. I wish, I really wish, that the dimensions and pervasiveness of the Peruvian government really were fully described by the comparative smallness of the percentage of the Peruvian GNP it spends. If so, Peru would be an even better place than it is. But that is not so.

Craig
Last edited by craig on Wed Jun 17, 2009 4:49 pm, edited 3 times in total.
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Postby cajun jamie » Wed Jun 17, 2009 1:23 pm

Craig wrote:
Claudia1973 wrote:One of the benefits, and disadvantages, to Peru is its small government.


Weak. Ineffective. Corrupt. Etc. But small it is not. However, if you don't want anything from it you can be largely left alone (unlike the US). Which is about as good as you can get in the present world.

Craig


I agree with this 1000%

One thing I love about Peru, you can move here and it can be as if you do not even exist. If you choose, you can never be contacted by any business or government people. It can be quite peaceful.

Also, yes, and is much as I like President Obama, he makes no secret that he is losing sleep over the deficit, and he is going after any money he can get - and if you fall into the "unsympathetic" category - meaning you have lots of money or invest your money in tax havens - well, better watch those pennies.
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Postby tupacperu » Tue Jul 07, 2009 1:14 pm

99% of countries tax on worldwide income. There is no way around it. You can put your money into a Panamanian bank and not be taxes on your worldwide income. Panama is an exception, an as long as you report it it is not a problem. Some people get an ATM Card from Panama and are only taxed on the money they draw out.


The thing that concerns me about being a unofficial tax resident (in Peru more than 6 month as a tourist), when Peru run the migration reports and comes to collect, a lot of foreigner will end up in Peruvian Tax Court.

Peruvian in the USA are also to report income in Peru (that is another loophole). There is plenty money out there to be collected. As mentioned, Peru's inefficient system.
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Postby Moncouer » Fri Sep 04, 2009 9:57 am

gypsy wrote:I have always had a problem with banks in regards to checks I receive from the US. I have to endorse and send back to deposit in US bank account. Then have a friend send me money via Western Union. I hope they do not make that difficult, too, at some point.

There was an article in MSNBC entitled something like 'US buying Chrysler? Is US another Russia? I wish I could say it is not.

I suppose if you get Peruvian nationality that will not be an issue. I knew there was a limit to having an account in a foreign country--the limit was $10,000 (dollars) and had to be reported.

But, a big one, dual nationality is very complicated nowadays.

gypsy


Hi,

Consider MoneyGram as an alternative. The rates is only about $10 per $1000 and can be picked up at any bank participating in the program. There are many of them out there. My wife & I save lots by doing this and it is easier.

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