U.S. Crackdown on Offshore Accounts Raises Concerns
FINANCIAL PRIVACYOctober 7, 2011
Foreign financial institutions will need to start identifying their American accountholders as part of the U.S. Foreign Account Tax Compliance Act in 2014 (FATCA), and Privacy Commissioner Jennifer Stoddart has warned it could "run afoul" of Canada's privacy laws, The Globe and Mail reports. Referencing a "little-noticed provision" pertaining to derivatives contracts, the report states that FATCA will "require that foreign financial institutions ensure all transactions dated after March 18, 2012, comply with the new rules," and, "Without changes, Americans living in Canada could eventually be denied service by Canadian financial institutions if they balk at providing their U.S. Social Security number or taxpayer ID number, as demanded by the IRS."