[throwawayiionqz]

The best way out of this is the EU asking for reciprocal measures in future trade agreements and tax treaties (fatca reporting, residency based taxation).

If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts, this absurd situations of being denied banking relationships in the country you work and reside would stop promptly.

[Mediterraneo10]

> If US banks had the same reporting requirements to EU countries regarding EU dual citizens accounts

US banks wouldn’t. The reason that the EU is wary of ending up on the USA’s bad side, is that European banks rely on large New York banks for clearing international transfers. They can’t not do business with the USA. American banks don’t have the same dependency on the EU.

[throwawayiionqz]

FATCA is an agreement signed between countries, not between the US and foreign banks. The US certainly has more leverage with the USD than the EU with the EURO but trade agreements are made of various things and the US cannot simply bully the EU and Asian countries with FATCA indefinitely. I can't wait to see how this plays out in the next 10 years.

[eesmith]

There's the US involvement with SWIFT, including seizing intra-EU payments - https://en.wikipedia.org/wiki/Society_for_Worldwide_Interban...

[voisin]

They don’t have to ask. These reciprocity agreements were made during the FATCA implementation process. People have filed Freedom of Information Act requests (local versions) in countries all over the world to identify how many records were sent back to these countries by the US and it appears the number is zero. Not a lot of reciprocity it seems.

[nickkell]

Why would the EU ask for that? They don't tax their citizens when they're not resident in the EU

[throwawayiionqz]

The US has some reciprocity in terms of information flow in the original FATCA agreement. The US (and US banks) does not comply.

Many countries would need information flow about their former or current tax residents to enforce tax obligations, similar to the information the EU banks report to the IRS about US persons. E.g. several EU countries have an exit tax on worldwide income and they would need the reporting from US banks to enforce it.

At the point this is also a competitivity issue for the EU to attract talent and capital. Coming to the EU after having been a US person (citizen or green card) is such a hassle for banking and to manage stock investments in the $100,000s. Just so much pain in terms of paperwork and tax uncertainty that staying in the US and not coming back to the EU solves a lot of hassle.

[rini17]

They can. Would probably end up same as extradition treaties (hint: there is none from the US, only from other countries to US)