[bradley13]

The US forced stuff like this - and much more - on other countries, with FATCA.

Just one example: Foreign banks must report all financial activities of Americans to the US. An American official wad asked in an interview if the US would then report financial activities of non-Americans to their home tax authorities. The answer was "lol, no, that would be too much effort".

I am having a moment of Schadenfreude...

[seanmcdirmid]

Not just citizens, it applies to American residents as well. A Swiss citizen friend of mine couldn't open up an account in Switzerland because the banks didn’t want to deal with FACTA and he had an American green card.

[JumpCrisscross]

> Foreign banks must report all financial activities of Americans to the US. An American official wad asked in an interview if the US would then report

The U.S. predominantly compels banks through FATCA. If a bank wants to do business in America, it has to follow FATCA for Americans abroad. There is, of course, some regulatory co-operation. But to my knowledge, most countries don't directly transmit these data to the U.S.–the banks have to report it instead.

The correct analogy would be a foreign country requiring U.S. banks to send them data on their own citizens abroad. Which, I think, e.g. India could probably do.

[jjk7]

>Reporting Mechanism: In countries with Intergovernmental Agreements (IGAs), such as Canada, financial institutions report to local tax authorities, which then share the information with the IRS.

[wtmt]

> The correct analogy would be a foreign country requiring U.S. banks to send them data on their own citizens abroad. Which, I think, e.g. India could probably do.

India does get information from the US and other countries about Indian residents having accounts (bank, brokerage, etc.) in other countries.

There are agreements across several countries that use CRS (Common Reporting Standard) to report such information to other countries for tax purposes. This is not India or US specific.

[unmole]

> US would then report financial activities of non-Americans to their home tax authorities. The answer was "lol, no, that would be too much effort".

I know for a fact that the US reports financial information about non-US residents to their home countries.

People get into trouble with Indian tax authorities all the time because they neglected reporting their US income and/or holdings.

[JuniperMesos]

This law is intended to harm immigrants to the US who the administration does not want here by making it harder for them to access US banking services. The ideal outcome here isn't that the US starts reporting financial information of non-Americans to their home countries' banks, it's that those non-Americans leave the US altogether.

[aboardRat4]

>US forced

"Forced"?

You're _way_ everestimating US influence.

Most countries not just "collect citizenship data", they require you to have a valid non-expired ID, valid non-expired residential registration, a fresh digital photo, verified phone number and a valid tax number. All of that without any US interference.

[mapt]

My crude understanding is that in the 90's, the US controlled basically all the world's large-scale financial clearing network, and after 9/11 declared a holy war against anything that didn't provide visibility to US intelligence (like the surviving medieval Middle Eastern 'Hawala' banking system) and the ability for the US to sanction it on a fine-grained basis.

Since that time, we have grabbed on tighter and tighter, and are finding that the world is starting to seek out a less politically volatile patron for a financial system.

[SauciestGNU]

It's pretty wild, I work in finance and hawala was specifically called out in my anti money laundering training. Really seems like cultural chauvanism and thinly veiled racism to eschew an entire traditional monetary support system.

[randerson]

I'm an immigrant to the US who still has a bank account in my home country.

After I told that bank I'd moved abroad, they required me to fill out paperwork for FATCA and give them my US SSN.

I also have to self-report all foreign accounts and their balances to the IRS. The penalties for not doing so are severe.