Hiding Money From The European Taxman

[travelbucho]

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this, I wanted take this money outside of the EU and put it on an Asian Bank account (Thailand) where it can hopefully stay in peace... I presume there are some people in this forum who have experience with this kind of stuff and am calling for your advice.

Question: how much money can one bring into the country without it being flagged, marked as suspicious (I don't know how this works). The amount is not fenomenal, but I could use it to buy a house or so. Will money sitting on a Thai bank acc. be out of view of the European taxman?

what do I need to do for all this? I have been here a couple of years on tourist visa's, next year I'll have a non immigrant education visa for one year and after that I plan to get WP or start business etc (get legal status for working).

I tend to think it's just a question of opening a bank account here, transferring the money and ready, but I just want to check if it is that simple. When getting the money in from abroad, I will need to get one of those TT..? forms if I want to take this money back out of the country one day right?

cheers guys

[Thaipwriter]

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this, I wanted take this money outside of the EU and put it on an Asian Bank account (Thailand) where it can hopefully stay in peace... I presume there are some people in this forum who have experience with this kind of stuff and am calling for your advice.

Question: how much money can one bring into the country without it being flagged, marked as suspicious (I don't know how this works). The amount is not fenomenal, but I could use it to buy a house or so. Will money sitting on a Thai bank acc. be out of view of the European taxman?

what do I need to do for all this? I have been here a couple of years on tourist visa's, next year I'll have a non immigrant education visa for one year and after that I plan to get WP or start business etc (get legal status for working).

I tend to think it's just a question of opening a bank account here, transferring the money and ready, but I just want to check if it is that simple. When getting the money in from abroad, I will need to get one of those TT..? forms if I want to take this money back out of the country one day right?

cheers guys

there are simple answers to all your questions and more already posted in this forum, use the search facitlity at the top op the page, your quest for peace and quiet from Eurotaxman is a well trodden path, we can supply enlightenment.

[LivinLOS]

I wouldnt bring it into Thailand due to currency controls and my own view that rights are not often geared to protect the overseas investor.. I would consider a well known caribean or Swiss bank for this..

Also can point out your bank will only report to the euro Authorities if you are a Euro resident.. If you are a resident of Thailand they will not make any reports even if requested.

[Topprofile]

Use a bank in Luxembourg... They won't let any info out..

[richardb]

I Love talk of tax fraud in the morning

[GuestHouse]

What's the damage - a flat rate 5% tax on the offshore money?

Wereas, move it to Thailand and you get clobbered by the currency control laws that will make it almost impossible to take your money back out, while at the same time you risk loosing far more with fluctuations in the Thai Bhat....

..methinks taxes are not the problem!

[LivinLOS]

Use a bank in Luxembourg... They won't let any info out..

<{POST_SNAPBACK}>

They signed the agreement.. I realize you may mean they are saying they will comply yet wont in reality but you have no legal assurances of this..

By brother in law works in banking in Luxemburg.. He doesnt reccommend Luxemburg banks to Europeans any more for haven status.. I guess that syats something. .

[Digger]

If you want to get the money out of Europe, I would suggest that you deposit it in Singapore. Singapore is quietly carving out a niche in this area and there are no restrictions on money movements in and out plus, not many countries have the ability to support their currency in the way they can. Another option would be just to open an account in the currency that the money is in. However, if there is anything dodgy about the money - dont expect Singapore to play dumb - they will squeal on you quicker than you can say money laundering. But if its legit - there are not many safer places in Asia to keep it.

Also HKG is another option but there currency is linked to the US$, which may not be a good thing depending upon your point of view.

[susah_sih]

Thailand is no good. You will need to convert it into Baht and more over Thai banks will not open account if you are a foreigner who have no work permit or residency permit. Even though those documents have been satisfied,some Thai banks discriminate between foreigners and local residents. Foreigners money is no good and therefore gets no interest vs local money which is good and therefore deserves interest. Such are mentality of the banks in Thailand.

Singapore and Hong Kong dont treat you well, unless you bring lots of money. I like my bank to treat me well. So in this case, I dont even bother banking in Singapore and Hong Kong cause they dont even bother to call you back or response to your email.

Perhaps you want to try to put it in Indonesia. A small deposits like USD50,000 will get you first class treatment. Under IMF pressure, they passed the law that guarantees free capital flow in and out of the country. By law banks cannot reaveal any information to anyone including Indonesian Tax authority. Your interest is automatically deducted for tax purposes.

You may want to put it in USD rather than local currency, and put your USD with the country's largest banks that have internet banking facility that allows you to monitor and transfer money out. The following banks use double protection for its internet banking: a pin and a device that you carry to access the system so it is double protection:

Bank Mandiri

http://www.bankmandiri.co.id/english/index.aspx

Bank BCA

http://www.klikbca.com/index_eng.html

BCA and Mandiri are two largest banks in Indonesia. BCA is owned by Newbridge Capital and Mandiri belongs to the government of Indonesia 70%. They are both listed on the stock exchange and you can details of their financial information through Bloomberg, Reuters and Yahoo. Moreover all deposits are now insured by the government of Indonesia.

Bank Mandiri

http://today.reuters.com/stocks/overview.aspx?ticker=BMRI.JK

http://finance.yahoo.com/q?s=bmri.jk

Bank BCA

http://today.reuters.com/stocks/overview.aspx?ticker=BBCA.JK

http://finance.yahoo.com/q?s=bbca.jk

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this, I wanted take this money outside of the EU and put it on an Asian Bank account (Thailand) where it can hopefully stay in peace... I presume there are some people in this forum who have experience with this kind of stuff and am calling for your advice.

Question: how much money can one bring into the country without it being flagged, marked as suspicious (I don't know how this works). The amount is not fenomenal, but I could use it to buy a house or so. Will money sitting on a Thai bank acc. be out of view of the European taxman?

what do I need to do for all this? I have been here a couple of years on tourist visa's, next year I'll have a non immigrant education visa for one year and after that I plan to get WP or start business etc (get legal status for working).

I tend to think it's just a question of opening a bank account here, transferring the money and ready, but I just want to check if it is that simple. When getting the money in from abroad, I will need to get one of those TT..? forms if I want to take this money back out of the country one day right?

cheers guys

<{POST_SNAPBACK}>

Edited September 5, 2005 by susah_sih

[susah_sih]

Use a bank in Luxembourg... They won't let any info out..

<{POST_SNAPBACK}>

Luxembourg & Switzerland are now under pressure.

More and more they succumb to European tax authorities.

[Digger]

Thailand is no good. You will need to convert it into Baht and more over Thai banks will not open account if you are a foreigner who have no work permit or residency permit. Even though those documents have been satisfied,some Thai banks discriminate between foreigners and local residents. Foreigners money is no good and therefore gets no interest vs local money which is good and therefore deserves interest. Such are mentality of the banks in Thailand.

Singapore and Hong Kong dont treat you well, unless you bring lots of money. I like my bank to treat me well. So in this case, I dont even bother banking in Singapore and Hong Kong cause they dont even bother to call you back or response to your email.

Perhaps you want to try to put it in Indonesia. A small deposits like USD50,000 will get you first class treatment. Under IMF pressure, they passed the law that guarantees free capital flow in and out of the country. By law banks cannot reaveal any information to anyone including Indonesian Tax authority. Your interest is automatically deducted for tax purposes. You may want to put it in USD rather than local currency, and put your USD with the country's largest banks that have internet banking facility that allows you to monitor and transfer money out. The following banks use double protection for its internet banking: a pin and a device that you carry to access the system so it is double protection:

Bank Mandiri

http://www.bankmandiri.co.id/english/index.aspx

Bank BCA

http://www.klikbca.com/index_eng.html

BCA and Mandiri are two largest banks in Indonesia. BCA is owned by Newbridge Capital and Mandiri belongs to the government of Indonesia 50%. They are both listed on the stock exchange and you can details of their financial information through Bloomberg.

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this, I wanted take this money outside of the EU and put it on an Asian Bank account (Thailand) where it can hopefully stay in peace... I presume there are some people in this forum who have experience with this kind of stuff and am calling for your advice.

Question: how much money can one bring into the country without it being flagged, marked as suspicious (I don't know how this works). The amount is not fenomenal, but I could use it to buy a house or so. Will money sitting on a Thai bank acc. be out of view of the European taxman?

what do I need to do for all this? I have been here a couple of years on tourist visa's, next year I'll have a non immigrant education visa for one year and after that I plan to get WP or start business etc (get legal status for working).

I tend to think it's just a question of opening a bank account here, transferring the money and ready, but I just want to check if it is that simple. When getting the money in from abroad, I will need to get one of those TT..? forms if I want to take this money back out of the country one day right?

cheers guys

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

If thats the case why is that every expat I know and that includes ones working for foreign owned banks in Indonesia, keep their money in Singapore? Personally I could not think of any country I rather keep money out of, but its down to your individual risk I guess. Unfortunately Indonesia has very little credibility with international investors and has a habit of changing rules at the drop of a hat.

[susah_sih]

Thailand is no good. You will need to convert it into Baht and more over Thai banks will not open account if you are a foreigner who have no work permit or residency permit. Even though those documents have been satisfied,some Thai banks discriminate between foreigners and local residents. Foreigners money is no good and therefore gets no interest vs local money which is good and therefore deserves interest. Such are mentality of the banks in Thailand.

Singapore and Hong Kong dont treat you well, unless you bring lots of money. I like my bank to treat me well. So in this case, I dont even bother banking in Singapore and Hong Kong cause they dont even bother to call you back or response to your email.

Perhaps you want to try to put it in Indonesia. A small deposits like USD50,000 will get you first class treatment. Under IMF pressure, they passed the law that guarantees free capital flow in and out of the country. By law banks cannot reaveal any information to anyone including Indonesian Tax authority. Your interest is automatically deducted for tax purposes. You may want to put it in USD rather than local currency, and put your USD with the country's largest banks that have internet banking facility that allows you to monitor and transfer money out. The following banks use double protection for its internet banking: a pin and a device that you carry to access the system so it is double protection:

Bank Mandiri

http://www.bankmandiri.co.id/english/index.aspx

Bank BCA

http://www.klikbca.com/index_eng.html

BCA and Mandiri are two largest banks in Indonesia. BCA is owned by Newbridge Capital and Mandiri belongs to the government of Indonesia 50%. They are both listed on the stock exchange and you can details of their financial information through Bloomberg.

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this, I wanted take this money outside of the EU and put it on an Asian Bank account (Thailand) where it can hopefully stay in peace... I presume there are some people in this forum who have experience with this kind of stuff and am calling for your advice.

Question: how much money can one bring into the country without it being flagged, marked as suspicious (I don't know how this works). The amount is not fenomenal, but I could use it to buy a house or so. Will money sitting on a Thai bank acc. be out of view of the European taxman?

what do I need to do for all this? I have been here a couple of years on tourist visa's, next year I'll have a non immigrant education visa for one year and after that I plan to get WP or start business etc (get legal status for working).

I tend to think it's just a question of opening a bank account here, transferring the money and ready, but I just want to check if it is that simple. When getting the money in from abroad, I will need to get one of those TT..? forms if I want to take this money back out of the country one day right?

cheers guys

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

If thats the case why is that every expat I know and that includes ones working for foreign owned banks in Indonesia, keep their money in Singapore? Personally I could not think of any country I rather keep money out of, but its down to your individual risk I guess. Unfortunately Indonesia has very little credibility with international investors and has a habit of changing rules at the drop of a hat.

<{POST_SNAPBACK}>

Really? then please tell me why Newbridge Capital even want to control BCA?

Being an equity investor is worse off than being a depositor? NO? or am I missing something here?

You go look at Bloomberg and run PHDC and look at the shareholders of those two banks. For Mandiri 20% are mutual funds from America and BCA is run by Newbridge Capital in San Francisco through its FARINDO INVESTMENT.

Countries change rule when it needs to. Just look at the US of A, it just implemented Patriot Act for its banking regulations. Under Patriot act, every single transfer, deposit into your bank accounts are under close watch by uncle Sam. Next time you fail to report your interest or say your bank give you extra $100 for opening accounts and you fail to report it to IRS, IRS will freeze your account and penalize you.

Edited September 5, 2005 by susah_sih

[Digger]

I dont think its a question of the foreign investor company but more of government rules and how they interpret them. I have no qualms with the financial situation of somebody such as Citibank or Stan Chart banks both of whom operate in Indonesia, but equally they could if they chose to just walk away from those investments and write them off. To my knowledge none of the foreign institutions have unlimited liability in Indonesia and in particular guarantee any deposits. That in itself is not unique, many countries have similar situations, but conversly other countries have a better track record of ensuring that things are handled correctly with proper checks and balances in place.

For example, if a hyperthetical 50,000 US$ just disapeared from your account, how confident are you that Indonesia has sufficient ability and credibility to find it and return it? Have you ever tried the legal system in Indonesia? Thats all I am saying and perhaps thats why most Indonesian wealth is invested in Singapore. My view has been built up after having worked for MNC's that operate in Indonesia and seeing first hand how things operate. You may believe your money is watertight, but its not a risk I would take.

[wolf5370]

Stick it under your mattress

Many tax free states offering internet based accounts. Countries like Panama rerly totally on banking to keep them alive, they have told the USA to F-Off when pressure was applied for their banks to give up American account holders. Many American companies now have the HO in Panama to keep their books closed!

[susah_sih]

It's me probably who dislike Citibank and all those foreign banks. They have those attitude that "I dont need you" or "who are you" and "where you get your money from" I feel the need to beg a service from institutions like Citibank. I am well aware of their intention to prevent money laundering, but they are overdoing it. And on top of that, they hire daughters/sons of high so people to work for them. Obviously these people will never want to serve you, they think they are over you and have much more money than you. Pretty much the attitude of Air Hostess of Thai Airways in the early days. They work there because of who their parents are.

Basically if you are a "WALK-IN" customer to Citibank, you are equal to a thief in their dictionary. So you need to wait Citibank knocking to your office door, then you will get a good service. In such case, I would congratulate you. This means you are the next Bill Heinecke. Would someone who works for Citibank or other foreign banks please response to this.

Basically I feel comfortable with the banks in Indonesia since I have used them and I know their system. The central bank was among the first in the region to use RTGS (real time gross settlement). This is in contrast to Federal Reserve system that still use netting at the end of the day to settle who owes what in the banking system. With the RTGS, you prevent the collapse of one bank having a domino effect to the entire banking community.

The clearing system of the checks are well monitored by real people in Indonesia who painstakingly check every single signature on the check with those in their profile. Try writing a slighlty different signatures, the bank in Indonesia will reject it. This is in contrast to the US banking system. They never check signatures on the checks. So even if you write checks with no signatures, those checks will clear your funds.

Moreover....

US banking system allows someone to debit your account without your authorisation. I will not tell details how to do it cause this is teaching people how to do scams (I have tons of articles on this as well from media such as msnbc). But basically, if you have a checking accounts or money market accounts in the US, from now, please do not write any more checks on that account. And for safety reasons also you should put your money in time deposit or something like that so that no one can withdraw the money except you.

Have you received letters asking you, your bank accounts numbers? Those scam letters can really take your money away. Those letters do not necessarily come from Nigeria. Many comes from the US itself. Poor Nigerian, they are being used as scapegoat. And if you are greedy, agree to cooperate and reveal your US bank accounts, dont be surprised that they can siphon all of your money in the account without even your realizing it. All of this can happen in the US of A, since the banking system is so loose there, no life person controls it; only computers. In case you dont know many people lose money and the banks do not compensate it. So much cover up from the US banking community now and also from the US government.

Same way with direct debit card linked to your account, you are exposing your accounts to someone who could potentially siphon all of your money.

Have you heard those call centers in India which are hired by British and US banks actually sells information with regards to credit/debit card numbers, account numbers or Social security numbers of their bank customers?

I feel a lot safer to put my money in Indonesia rather than in the US or UK.

I dont think its a question of the foreign investor company but more of government rules and how they interpret them.     I have no qualms with the financial situation of somebody such as Citibank or Stan Chart banks both of whom operate in Indonesia, but equally they could if they chose to just walk away from those investments and write them off.   To my knowledge none of the foreign institutions have unlimited liability in Indonesia and in particular guarantee any deposits.    That in itself is not unique, many countries have similar situations, but conversly other countries have a better track record of ensuring that things are handled correctly with proper checks and balances in place.   

For example, if a hyperthetical 50,000 US$ just disapeared from your account, how confident are you that Indonesia has sufficient ability and credibility to find it and return it?    Have you ever tried the legal system in Indonesia?      Thats all I am saying and perhaps thats why most Indonesian wealth is invested in Singapore.  My view has been built up after having worked for MNC's that operate in Indonesia and seeing first hand how things operate.  You may believe your money is watertight, but its not a risk I would take.

<{POST_SNAPBACK}>

Edited September 5, 2005 by susah_sih

[Topprofile]

Use a bank in Luxembourg... They won't let any info out..

<{POST_SNAPBACK}>

Luxembourg & Switzerland are now under pressure.

More and more they succumb to European tax authorities.

<{POST_SNAPBACK}>

I guess we'll see..

I just had a talk with "my bank" the other day and they assured me that nothing would happen in the near future. But if something would happen I'm pretty sure they have a solution for it already (maybe branch in another part of the world where they will just move the money to...)

I'm not worried.

[taxexile]

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this,

i havent read all the posts here so sorry if i'm repeating anything.

as far as i know , the offshore banks (the ones that have agreed to co-operate with this new directive.....jersey , iom , guernsey etc.) will withhold tax on the interest gained by your investment and pay that tax to the country that your residential address is registered.

if all you want to do is to avoid paying the withholding tax , then you have to give them a residential address outside of the eu.

when they are satisfied that you are living out of the eu , then you will receive your interest in full , with no deductions of tax.

be prepared for lots of paperwork to back up your ex-eu address.

july 31st 2005 was , i believe the last date to sort things out to avoid having to have tax paid automatically on your interest.

if you are wanting to hide all your "savings" from the prying eyes of the euro tax men , then i would imagine switzerland is the best place.

bringing it to thailand would seem foolhardy to put it mildly.

[Heng]

Scotiabank. With conveniently located branches in Bangkok, Chonburi, and St. Kitts.

Sorted.

[travelbucho]

I have some money in Europe on an off shore bank account that will soon have to be declared to the tax departement because of some new regulations in the EU. In order to avoid this,

if all you want to do is to avoid paying the withholding tax , then you have to give them a residential address outside of the eu.

when they are satisfied that you are living out of the eu , then you will receive your interest in full , with no deductions of tax.

be prepared for lots of paperwork to back up your ex-eu address.

july 31st 2005 was , i believe the last date to sort things out to avoid having to have tax paid automatically on your interest.

if you are wanting to hide all your "savings" from the prying eyes of the euro tax men , then i would imagine switzerland is the best place.

bringing it to thailand would seem foolhardy to put it mildly.

<{POST_SNAPBACK}>

Cheers for all the replies guys (and girls if there are any)

Yes, I get the picture now from reading this and other threads in the forum. Excellent.

I have to say it is someone else who wanted to put this money in my name if I would manage to have an ex-eu address, but he could have made it clear that I didn't need to figure out how to get the money to Thailand. Grrr

so the question for me realy is, what I need to do to be considered domiciled in Thailand? As far as i know that is not the same as getting residency status here, correct? (which I know is momentarily impossible for me). Next year I have a non immigrant education visa here, with which I can register at my embassy (Belgium)

(those Belgian's again, I hear some of you thinking, haha). I'll have an address here and be scrapped out of the population register (or what's the correct term) in my home town. That's simple. This is only for one year. Afterwards i plan to start business here or at least get a WP from employer to continue being here on non immigrant visa's. (need those to stay registered at the embassy)

But "taxexile" mentioned it would take quite a lot more paperwork to back up my ex-EU address. Am I missing some things here? (probably) What other things should I be looking into?

Anyways, thanks for your patience with me, appreciate your help.

[taxexile]

to verify your residential address you will need two of the following (originals or certified photocopies)

1.a gas , elec, or water or land line phone bill , in your name and with your address.

2.credit card statement in your name and address.

3. reputable bank statement in your name and address.

one of the above plus one of the following.

1. vehicle reg. document

2. motor insurance cert.

3. drivers licence where address is printed.

4. house registration document in your name.

certified as true by an embassy official or lawyer.

any non-english documents must be accompanied by a fully certified english translation.

to get all this together in thailand , translated, certified and then certified by the embassy would be an expensive and time consuming exercise.

[craigt3365]

susah sih: Not true that if you don't report interest income the IRS will freeze your account and penalize you. That is crazy. I do it all the time. Just got a notice a few months ago for not reporting about $30 from a new account I opened. ANY bank account you open requires either a tax ID or a Social Security Number. And that gets reported by the bank to the IRS. And then automatically checked by computers to see if you reported it. I paid my minimal penalty and tax due and it was over with. No worries, no hassles. Though an unexpected letter from the IRS did get my heart rate up a little!

You must really have something in for Citibank. What you say is crazy talk. I have been a supplier to them for years here in NYC. Know folks all the way to the "C" level. None of them have relatives working there (in fact it is against most corporations rules to do that). And if you walk-in and deposit money, they just don't care. You are dealing with a $15 an hour worker. What do you expect? Walk in with a million dollars and you get different service, and you deal with different people...like the ones at that swank office on 5th avenue! No Joe Blows there. Walk in with $50k and you are in the ranks of all the other millions of investors.

Now, to your other point, they suck to deal with. I quit banking with them years ago as there are better options out there. And cheaper. But still kept my ATM card to show to them when I make sales calls...helps a little!

If I am not mistaken, the biggest banking collapse in the history of the world occured in the US. And nobody lost a penny (if your investment was under the FDIC cap of $100k). Now that is where I want my money. Indonesia? Not sure about that...

You are correct about not giving out your account numbers. There are a lot of phishing scemes going on. Reason? There are enough dumb people who give out their account number, pin, SSN, home address, and phone number. That is pretty much all you need in any country to access an account. And transfer money....

[bakachan]

Poor Nigerian, they are being used as scapegoat

<{POST_SNAPBACK}>

<{POST_SNAPBACK}>

LOL now thats funny!

[Sunny Valentine]

I have an account at one of these european island's banks since 7 or 8 years. Last Year I moved to Thailand, wrote them my new address, and this spring they sent me the info sheet about the new EU tax regulation, mantioning in the accompanying letter that they consider me as non-EU resident. No paperwork or documents necessary, but the fact that I really live here and therefore also receive (and react to) letters from them surely helped!

Sunny

to verify your residential address you will need two of the following (originals or certified photocopies)

1.a gas , elec, or water or land line phone bill , in your name and with your address.

2.credit card statement  in  your name and address.

3. reputable bank statement in your name and address.

one of the above plus one of the following.

1. vehicle reg. document

2. motor insurance cert.

3. drivers licence where address is printed.

4. house registration document in your name.

certified as true by an embassy official or lawyer.

any non-english documents must be accompanied by a fully certified english translation.

to get all this together in thailand , translated, certified and then certified by the embassy would be an expensive and time consuming exercise.

<{POST_SNAPBACK}>

[LivinLOS]

When you moved house they didnt ask for a copy of the house lease or ownership ?? A copy of a bank statement or utility bill ??

I have moved twice in the last couple of years and both times had to have certified passport copy and house bills.. Pain in the ass as my bills are not in my name but in the name of the management company of the villa..

[susah_sih]

I am referring to Citibank in Asia in particular in Thailand. In New York, they dont have attitude. Cause they know the staff would get fired the minute they behave like that. I have kept my EZ checking in Citibank New York for more than 10 years now. But it is different here in Thailand. High so daughters and sons work for Citibank's marketing (front office). They work there for status and Citibank is afraid that they would lose their loan business to the companies of the parents of these high so staffs and also the private banking business to their parents. These high so staff are "immune" in Thailand. Why dont you come here and try it for yourself and see the difference. Thailand is a country full of nice people about 95% of them, the remaining 5% are high so rich who are enslaving the 95% of the population. And these 5% work in the front office of many companies in Thailand including Citibank.

Well you know what, my colleague got his account frozen by IRS for failing to report the $50 he got as a bonus for account opening. Perhaps you are lucky. The IRS is giving you a reminder. Do it again, and I am sure they'll freeze all of your bank accounts.

susah sih: Not true that if you don't report interest income the IRS will freeze your account and penalize you.  That is crazy.  I do it all the time.  Just got a notice a few months ago for not reporting about $30 from a new account I opened.  ANY bank account you open requires either a tax ID or a Social Security Number.  And that gets reported by the bank to the IRS.  And then automatically checked by computers to see if you reported it.  I paid my minimal penalty and tax due and it was over with.  No worries, no hassles.  Though an unexpected letter from the IRS did get my heart rate up a little!

You must really have something in for Citibank.  What you say is crazy talk.  I have been a supplier to them for years here in NYC.  Know folks all the way to the "C" level.  None of them have relatives working there (in fact it is against most corporations rules to do that).  And if you walk-in and deposit money, they just don't care.  You are dealing with a $15 an hour worker.  What do you expect?  Walk in with a million dollars and you get different service, and you deal with different people...like the ones at that swank office on 5th avenue! No Joe Blows there.  Walk in with $50k and you are in the ranks of all the other millions of investors.

Now, to your other point, they suck to deal with.  I quit banking with them years ago as there are better options out there.  And cheaper.  But still kept my ATM card to show to them when I make sales calls...helps a little!

If I am not mistaken, the biggest banking collapse in the history of the world occured in the US.  And nobody lost a penny (if your investment was under the FDIC cap of $100k).  Now that is where I want my money.  Indonesia?  Not sure about that...

You are correct about not giving out your account numbers.  There are a lot of phishing scemes going on.  Reason?  There are enough dumb people who give out their account number, pin, SSN, home address, and phone number.  That is pretty much all you need in any country to access an account.  And transfer money....

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Edited September 7, 2005 by susah_sih

[susah_sih]

Either your bank relationship officer is lying to comfort you, or totally ignorant about the whole thing. EU directive already imposed that banks must reveal the information. Even Swiss banks which are out of the EU regions are getting the heat, let alone Luxembourg, right in the backyard of EU.

Banks in Liechtenstein and Austria are also under pressure.

That's why UBS and CSFB are advising some of their European private banking clients to move their money to Singapore. Singapore is beefing up to become the Swiss of Asia in terms of private banking. However, you need to be wealthy to get descent service from these banks in Singapore.

UBS requires a minimum deposit of USD5 million or EUR5 million to become their client. They are not eager with cash deposits. They want clients who play stocks, buy mutual funds, structure & manage Trusts companies, etc. Definetely not holding cash deposits.

Why for a start, dont you try with USD10,000 to enroll at Bank Mandiri Prioritas

for example or any other of Citigold or HSBC Premier equivalent of local banks in Indonesia. And you see a real service from a bank. Truly affordable service - which is luxury nowadays at some of these global banks like Citibank, etc.

Use a bank in Luxembourg... They won't let any info out..

<{POST_SNAPBACK}>

Luxembourg & Switzerland are now under pressure.

More and more they succumb to European tax authorities.

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I guess we'll see..

I just had a talk with "my bank" the other day and they assured me that nothing would happen in the near future. But if something would happen I'm pretty sure they have a solution for it already (maybe branch in another part of the world where they will just move the money to...)

I'm not worried.

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Edited September 7, 2005 by susah_sih

[Firefan]

Susah is partly right. The new directive is already approved and will start sometime in 2006 (not certain abot the date).

Both Switzerland and Luxembourg(by the way; LU IS part of EU) as well as Austria(who fought the hardest, and LU and Switzerland used that to hold back) and all those British isles have agreed BUT the client can decide whether it will be withheld anoumously, OR to have all interest reported to home country.

It will go all the way to 30 or 35% withholding.

Cheers!

[craigt3365]

Susah: Ok, I understand. Sorry about that. Yes, I am sure nepotism in Thailand is horrible. I can't imagine dealing with High So youngsters in jobs like banking where they have some power to make our lives difficult.

I lived in Thailand for 2 years, but got all my money from ATMs. USAA does not charge for this and I could get $400 a day. So, no reason to open an account there. I am moving back next summer and will probably do the same thing...especially after hearing your comments!

Thanks!

[susah_sih]

Moreover interest at banks in Indonesia are higher.

Bank Mandiri

http://www.bankmandiri.co.id/english/resource/suku_bunga.asp

USD savings deposit:gross 4% pa (net of tax: 3.2% pa)

USD 1-month Time deposit: gross 4.25% pa (net of tax: 3.4% pa)

Bank BCA

http://www.klikbca.com/website/english/pri...erest_rate.html

USD savings deposit (BCA Dollar): gross 3.25% pa (net of tax: 2.6% pa)

USD 1-month Time deposit: gross 3.50% pa (net of tax: 2.8% pa)

Versus

0% for many banks in Singapore for any deposit below $50,000 such as DBS bank.

Why would anyone want to deposit money in Singapore?

http://www.dbs.com/ratesonline/fdacu.html

Edited September 8, 2005 by susah_sih

[craigt3365]

Moreover interest at banks in Indonesia are higher.

Bank Mandiri

http://www.bankmandiri.co.id/english/resource/suku_bunga.asp

USD savings deposit:gross  4% pa (net of tax: 3.2% pa)

USD 1-month Time deposit: gross 4.25% pa (net of tax: 3.4% pa)

Bank BCA

http://www.klikbca.com/website/english/pri...erest_rate.html

USD savings deposit (BCA Dollar): gross 3.25% pa (net of tax: 2.6% pa)

USD 1-month Time deposit: gross 3.50% pa (net of tax: 2.8% pa)

Versus

0% for many banks in Singapore for any deposit below $50,000 such as DBS bank.

Why would anyone want to deposit money in Singapore?

http://www.dbs.com/ratesonline/fdacu.html

<{POST_SNAPBACK}>

Those rates are for USD based currencies. I was amazed at the rates for their local currency. 9% is pretty amazing. Too bad it is a losing proposition.