By Raphael Ahren
Obedient to intensifying U.S. government pressure to crack down on offshore tax evaders, in January Israeli banks began ordering clients they identify as "Americans" or "U.S. tax residents" to close investment accounts they hold in Israel. It is apparently an anticipatory measure, ahead of changes in U.S. law. Local banks are apparently responding to changes in American regulations as their legal counsels interpret them.
The Bank of Israel hasn't handed down instructions to the banks on the matter, which doesn't fall under its purview.
In February, for instance, Bank Mizrahi-Tefahot informed clients that as a "result of current U.S. regulations" it can no longer provide "securities services to U.S. persons," and explained the termination procedure. "You are receiving this letter because you are identified in our records as a customer who may be a U.S. person, within the meaning of the applicable regulations," Mizrahi wrote. The letter said that clients who fall into this category have until April 7 to tell the bank how to dispose of their holdings, adding that the bank will continue to provide "banking and non-securities services, including deposit accounts and CDs as well as foreign currency, checking and credit card services".
"If we do not receive your instructions by March 16, 2010, we may liquidate the securities in your account," Mizrahi warned.
What they are doing is actually very wise...interesting too how Iran and ME countries will interpret this move...Biden and his wife arrived in Israel today...for meetings.
thanks
sorry about that . . . false alarm indeed