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Comment by embedding-shape

18 hours ago

That doesn't sound like "the EU are being de-banked by local banks because of US pressure" at all, it sounds like EU banks or de-banking US residents/citizens, which is wildly different from the initial claim, or how I understood it at least. I thought EU residents/citizens were being cut off from EU banks.

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embedding-shape

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immibis  17 hours ago

The reason banks do this is that if they don't comply with US tax laws they'll be cut off from all US-based banking systems including international payments (universally conducted in USD), cut off from issuing any credit or debit cards (they are all US-based networks) and the CEO will be arrested if he ever steps foot on American soil. So basically, the US is forcing them to do this and they don't have a choice unless they want to stop being a bank. It's the same situation as dealing with US-sanctioned individuals. HTH.

  • pas  12 hours ago

    yes, but that's not de-banking. it's banking being shitty.

    (it's the same problem as healthcare and construction, a shitton of regulation, some competition, but no real big differences, and a lot of global dependencies [from generic pharma producers to HVAC/heatpumps and global commodity prices for construction materials and patents and prefab systems and ...], but ultimately local bottlenecks.)

    obviously it sucks that FATCA compliance is hard, but it shouldn't be, and ... it's on the banking industry that it's not using some kind of common reporting backend ... oh wait, it does! (CRS!)

    (okay, I'm being probably unfair here, of course it's still more work, more support requests, more papers to push, than the counterfactual, but banks already have their reporting systems integrated to the various tax and financial-authority agencies) ... and FATCA is implemented in part through intergovernmental agreements (IGAs), and the "model 1" is a reciprocal tax info sharing between the parties, the bank reports to the local tax service, and that's it.

    see also https://www.deloitte.com/us/en/services/tax/articles/common-...