What does the IRS plan to do to overseas banks that don’t comply?
seems they only have compliance by consent.
this law is probably one of those designed to catch “little people” since the larger depositors rarely use their own names and instead use trusts and simply keep profits offshore.
Which foreign countries’ banks have declined to comply?
This is stealth capital controls.
Even if you just want to be prudent and have some money out of immediate US gov’t reach, and you report it, the foreign banks won’t take your business, and the IRS has rules that are so difficult to interpret that you can easily make a mistake and be subject to a confiscatory penalty.
This will likely encourage “trusted” offshore underground microbanks, that will likely be lumped together with “money launderers”, though they are just avoiding this economic imperialism.
The underlying arrogance is in effect declaring all US citizens to be “subjects” of American law, no matter where they are. This is little different than what other tyrannical regimes have done by dispatching agents around the world to force compliance of their expat communities.
The groundwork for this was laid when congress passed a law that authorized US Federal Marshals to effectively kidnap, overseas, Americans and others the US government was irritated with, if the country they were in refused extradition.
But as long as these microbanks remain discreet, they can get away with it.
This sounds like a golden opportunity for the First Sovereign Bank of Sealand to accumulate some massive wealth from depositors who wish their financial affairs kept confidential.
Setup overseas with a foreign national to hold escrow collateral funds in their travel & expanse account not in a bank [or in a foreign real estate escrow account, not a bank.] matching those funds in a US bank; then Cash Out when you need it overseas.
It all sounds like a great excuse for a bank-run. Everybody withdraw it all, ALL at once!