Americans Unable To Open Mutual Funds With Thai Banks

[jt936]

I have had an account with a Thai bank for several years investing in Thai mutual funds. Saturday (March 16) I got a letter informing me that I could no longer buy units in their bank. I went to several other banks and was told the same thing.

Have any other Americans had this experience? I am at a lost as what to do with my money for future investments.

Thanks for all info.

[FunFon]

Yes, many people have been complaining about this sort of problem over the past year or so in Thailand.

The country has been slower than the international money-laundering (AKA tax collectors) regime enforcement people would like to put in effective automated measures to give the US gov information on our financial activities around the world.

You will also find it quite difficult to open even the most legitimate accounts with banks and especially other investment companies as an American - it seems most of this part of the world is simply finding it easier to turn away any dealings with Yanks rather than have to comply with the reporting requirements.

I suggest complaining to your legislators, there has been talk about them making the requirements a bit more reasonable.

[gosompoi]

Did you try HSBC? Another option is a Hong Kong or Singapore account.

[sbk]

Unhelpful baiting response removed.

You know there are times when people post on this forum for ADVICE rather than smart alecky useless answers. If you don't have anything useful to offer sometimes its best to just not post at all.

And that, my dear, is not open to picking on my sense of humor

[jamesthailand]

My suggestion would be to buy TDEX, which is an ETF tracking the SET50. Since it's an ETF rather than a mutual fund, you can buy it through any broker, and there aren't any restrictions on foreigners holding it. If you don't have a broker yet, I would suggest trying KGI, which manages TDEX. I don't know for sure whether KGI accepts US customers, but I haven't yet heard of any brokers refusing US customers.

[chiangmaikelly]

What bank?

[davejones]

If you are American, you could invest via a broker in the USA. Or maybe invest in local projects instead of investment funds. Don't think this is a real problem unless you are trying to hide your investments. Most of my mutual funds are with my UK broker. Simply because I find them easier to deal with. Should be just as easy in USA.

[yankee99]

Went to kasikorn today and had the same issue. Bangkok bank securities said i can open a account but i am not sure if i can buy mutual funds.

[yankee99]

If you are American, you could invest via a broker in the USA. Or maybe invest in local projects instead of investment funds. Don't think this is a real problem unless you are trying to hide your investments. Most of my mutual funds are with my UK broker. Simply because I find them easier to deal with. Should be just as easy in USA.

Your UK broker offers thai mutual funds?

[Mike45]

I could be remembering this incorrectly but I spoke to Scwab International about opening an account with them years ago . I explained that my intent was to retire in Thailand. They told me once I moved out of the USA I would not be allowed to purchase through them individual stocks in the USA.

[starship]

Is this only an issue for Americans? I have considered these types of funds before. If you go through a Thai broker do they offer a discount on the fund compared to what you might be charged through a bank? (as in U.K) What other reasons would it be best to go through a broker and what are the pros and cons?

[Time Traveller]

Did you try HSBC? Another option is a Hong Kong or Singapore account.

Singapore is strongly anti-American for new accounts. Not only American citizens, but anyone that has to file American taxes will be refused.

[Misty]

I could be remembering this incorrectly but I spoke to Scwab International about opening an account with them years ago . I explained that my intent was to retire in Thailand. They told me once I moved out of the USA I would not be allowed to purchase through them individual stocks in the USA.

Just to clarify: Americans outside of the US can use Schwab accounts to purchase individual stocks inside the US. However, they will not be able to purchase US-domiciled mutual funds.

Some Thai asset management companies will still take US customers. Some will not, due to FATCA. Others haven't yet decided.

[Soutpeel]

Did you try HSBC? Another option is a Hong Kong or Singapore account.

Singapore is strongly anti-American for new accounts. Not only American citizens, but anyone that has to file American taxes will be refused.

Singapore is not anti-american LOL.... ....Singapore banks do not want to deal with US citizens because of the measures imposed by the US goverment on the banks as regards bank accounts for US citizens which is their perogative, they can pick and choose who they want to do business with and because of the "paper work" hassles US citizens bring they choose not to deal with them

BTW

Citi bank in singapore is an "American" bank and they dont to deal with US citizens either....so by your logic you accusing an american banking institution of being anti-american...

At the end of the day its your own goverment causing this, not the banks themselves..

[Soutpeel]

Is this only an issue for Americans? I have considered these types of funds before. If you go through a Thai broker do they offer a discount on the fund compared to what you might be charged through a bank? (as in U.K) What other reasons would it be best to go through a broker and what are the pros and cons?

Provided your not an American citizen, green card holder or pay tax in the US..you have no problems at all

[CaptHaddock]

My suggestion would be to buy TDEX, which is an ETF tracking the SET50. Since it's an ETF rather than a mutual fund, you can buy it through any broker, and there aren't any restrictions on foreigners holding it. If you don't have a broker yet, I would suggest trying KGI, which manages TDEX. I don't know for sure whether KGI accepts US customers, but I haven't yet heard of any brokers refusing US customers.

For an American is an ETF sold on the Thai stock exchange subject to IRS Passive Foreign Investment Company reporting and tax requirements, which are truly onerous?

[jamesthailand]

My suggestion would be to buy TDEX, which is an ETF tracking the SET50. Since it's an ETF rather than a mutual fund, you can buy it through any broker, and there aren't any restrictions on foreigners holding it. If you don't have a broker yet, I would suggest trying KGI, which manages TDEX. I don't know for sure whether KGI accepts US customers, but I haven't yet heard of any brokers refusing US customers.

For an American is an ETF sold on the Thai stock exchange subject to IRS Passive Foreign Investment Company reporting and tax requirements, which are truly onerous?

Interesting question. In terms of Thai law, I don't believe there's any difference in the legal structure between an ETF and a regular mutual fund: an ETF is just a mutual fund that is traded on the SET. In Thailand, a mutual fund is a separate legal entity (under the Securities and Exchange Act) but is not a company. A bit of googling suggests that the IRS is nonetheless likely to treat it as a PFIC. So I think if you're an American the safest course of action is not to hold any Thai mutual funds (including ETFs). Ouch. (Disclaimer: I am not a lawyer and not an American.)

[ThailandInvestmentGuide]

Some Thai asset management companies will still take US customers. Some will not, due to FATCA. Others haven't yet decided.

Misty, What is the easiest way for someone (from USA) to determine which funds they may or may not invest in ... esp. bearing in mind the frequent disconnect between what head office says and what counter staff say?

[Misty]

Some Thai asset management companies will still take US customers. Some will not, due to FATCA. Others haven't yet decided.

Misty, What is the easiest way for someone (from USA) to determine which funds they may or may not invest in ... esp. bearing in mind the frequent disconnect between what head office says and what counter staff say?

Hi, whether a Thai Asset Management company (TAM) will decide to continue to accept US citizens who are Thai residents as customers should become clearer as this year wears on. This is a company level decision - either all of a TAM's funds will be open to Americans, or none of them will. It's difficult to get a straight answer on this right now even from head offices - some TAMs haven't yet decided or at least announced how they plan to handle FATCA. (Although from what we understand, at least they're all now aware of the new regulations - at last it's being discussed at the industry level.) Should see more decisions on a firm-by-firm basis as the end of the year approaches, which is when FATCA reporting requirements are forced on foreign financial institutions.

[fotog]

Some Thai asset management companies will still take US customers. Some will not, due to FATCA. Others haven't yet decided.

Misty, What is the easiest way for someone (from USA) to determine which funds they may or may not invest in ... esp. bearing in mind the frequent disconnect between what head office says and what counter staff say?

Hi, whether a Thai Asset Management company (TAM) will decide to continue to accept US citizens who are Thai residents as customers should become clearer as this year wears on. This is a company level decision - either all of a TAM's funds will be open to Americans, or none of them will. It's difficult to get a straight answer on this right now even from head offices - some TAMs haven't yet decided or at least announced how they plan to handle FATCA. (Although from what we understand, at least they're all now aware of the new regulations - at last it's being discussed at the industry level.) Should see more decisions on a firm-by-firm basis as the end of the year approaches, which is when FATCA reporting requirements are forced on foreign financial institutions.

Well this has been an interesting read, as I was digging around trying to find a Thai Brokerage to possibly open an account for trading stocks. However with Misty's explanation about FATCA, I guess I will not pursue it any further.

I have two U.S. brokerages that I use regularly but what is on offer from Thai stocks is limited. THD has been a good ETF that has a selection of Thai companies and TTF is a closed end fund that also trades on the NYSE. I wanted to open an account here locally so I could buy Thai stocks individually. I have absolutely no interest in dealing with a Thai bank or purchasing any of their products.

To the poster who has the Schwab account: As long as you have a U.S. address I believe that is what they were referring to.

I was told the same thing some years ago by another brokerage; but they have no clue where I am trading from as long as they have a U.S. address on file. I even get duplicate statements sent to my address here in Thailand.