*Bank changes for US Citizens in Thailand

[hercdogules]

Heads up,

Was opening an extra account in BKK Bank yesterday. The lady told me that I was lucky I was in that day because the US has added restrictions (to ensure we all pay Obama taxes so he may re-distribute them accordingly lol), seriously, for tax purposes. She said cannot just go into branch and open an account anymore. The paperwork is sent to head office for review by senior people.

So extra time, extra scrutiny.

Not sure when this new ruleset applies.

-giving back

[Langsuan Man]

I question her statements that it is because of new US restriction or if it is because almost every branch screws up the opening of accounts for any foreigner

Most still think that you need a work permit to open an account so you have to tell them to call Bangkok to sort it out. So maybe headquarters got tired of all the phone calls so they decided that they would do it in the future

[Jingthing]

Some changes for Americans is a real thing. I'd say open now if you can. Hopefully they won't be closing existing accounts.

Sent from my Lenovo S820_ROW using Thaivisa Connect Thailand mobile app

[dinger]

Just my 2 baht worth: was in BKK Bank on Thursday to open an account. Branch office in shopping mall up north. Told the woman I wanted to open an account, she asked my for my passport. 20 min later out the door with bank book and ATM card in hand, account in my name only not with wife. To get internet access she said she had to send account info to main bank and they would mail me user ID and password in 1 week. No problems

[TallGuyJohninBKK]

Pretty much all the Thai banks have already registered with the U.S. on this issue, being tax compliance for foreign accounts held by Americans.

We had another recent thread on this where all the details were addressed.

http://www.thaivisa.com/forum/topic/731262-good-news-for-us-ex-pats-regarding-fatca/

If anything's likely to change here for Americans, it likely will be that we'll be required to provide our Social Security numbers to the Thai bank when opening a new account -- and perhaps even for existing accounts at some point -- whereas in the past, that wasn't requested or required.

There's nothing in the cards about closing existing accounts of Americans at Thai banks, or denying new accounts -- other than the longheld Thai banks tradition of sometimes/often trying to claim you need a work permit in order to open an account.

Edited June 29, 2014 by TallGuyJohninBKK

[Jingthing]

Most Americans are well aware of these enforcement changes (2014 is the BIG year for that) which impact all banks in the world dealing with Americans, and some banks in the world have reasonably chosen to not deal with Americans. My information says Bangkok Bank, SCB, and Kasikorn and most likely all major Thai banks WILL deal with Americans. That means they MUST comply with the regulations from the USA. How that impacts specific AMERICAN customers at specific Thai banks in Thailand we don't yet fully know. It may impact NEW accounts in different ways than existing accounts. Stay tuned. By this time next year we will surely know a lot more. The sky most likely is NOT falling, but stay tuned anyway.

To be clear to non-Americans (I think also spouses of Americans and others with ties to the USA may also be impacted) this is something mandated by the U.S. government to financial institutions globally, including Thailand of course. If not American (or affiliated) this has NOTHING to do with you.

Edited June 29, 2014 by Jingthing

[dinger]

Agree with Jingthink. I would think for BKK Bank, SCB and some others having branches in the U S it would be a bit awkward for them to stop dealing with Americans here

[Jingthing]

Agree with Jingthink. I would think for BKK Bank, SCB and some others having branches in the U S it would be a bit awkward for them to stop dealing with Americans here

It's more about it has been officially announced that BB, SCB, and K-bank have signed agreements about this already. That signals to me at least all or most MAJOR Thai banks have already or will do the same. Some of the smaller banks, I don't have a guess.

Edited June 29, 2014 by Jingthing

[thrilled]

Thai banks in the future Supposely will be letting the IRS know if you have more than $10,000 in their bank.If they fail then Supposely the US will fine them.

I'm hearing Maybe China,Russia,a North Korea are ignoring the US on this.

[Jingthing]

How many Americans live in North Korea?

There is a set of reporting regulations. I don't think it's as simple as presented above.

[Suradit69]

According to the IRS website they list 765 bank branches in Thailand that have met FATCA requirements.

See the first few in the multi-page list by clicking on thumbnail below -- dated as of 23 May.

It seems at least once a week someone starts another thread predicting that Americans will be prevented from opening a bank account ever again in Thailand (or Singapore or Hong Kong) or that their account will be suddenly closed without warning or some other dire FATCA warning.

http://www.thaivisa.com/forum/topic/737965-singapore-usd-account-good-idea/page-4?hl=%2Bfatca#entry8031799

http://www.thaivisa.com/forum/topic/731262-good-news-for-us-ex-pats-regarding-fatca/page-2?hl=%2Bfatca#entry8012842

http://www.thaivisa.com/forum/topic/699107-opening-a-bank-account-this-just-gets-more-bizarre/page-5?hl=%2Bfatca#entry7992860

And many more ...

Edited June 29, 2014 by Suradit69

[BKKSnowBird]

Does anyone know if it possible to close a Thai account if I am now back in the US?

I do not want to deal with all this. I use to teach there and never closed my account when I left. I think there is now just a few hundred Baht left.

I think the day is coming when you will have to report all accounts regardless of balance.

Edited June 29, 2014 by BKKSnowBird

[mania]

Does anyone know if it possible to close a Thai account if I am now back in the US?

I do not want to deal with all this. I use to teach there and never closed my account when I left. I think there is now just a few hundred Baht left.

I think the day is coming when you will have to report all accounts regardless of balance.

No not possible but you need not worry if you only have a few hundred it will be empty shortly & closed.

Because most Thai banks will take 50 baht a month for each month your account is below 2000 baht.

Not to mention the yearly fee if you had a ATM card of 200 baht

As to the rush for folks to open accounts before X date

According to Sunbelt Asia Legal who said they had just met with Bangkok

Bank this week on this issue existing customers will also receive a notice

to give more/verify information ( I underlined in their quote that section )

I do not think there will be any problems keeping or opening accounts just more scrutiny like most countries.

The Sunbelt Asia Legal Advisors team met with Bangkok Bank on this very issue just this week. Since Thailand's big financial institutions have done and will continue to do businesses and monetary transactions with US business entities, it is likely that these banks will be entering into the FATCA regime and meetings are being held at the major Thailand bank head offices between their management team and IRS representatives this week on implementation. Implementation will first affect their individual customers and account holders and then the corporate account holders in regards to procedures and documentation. Likely more application forms screening foreign applicants and their attachment to the United States will be added to the application package when opening a bank account, while existing account holders will receive a notice asking for the same additional personal details. The bank's level of attention to this will be high, and they will also be screening if the applicant's contact details (phone number or post mail address) are US-based as failure to comply will also result in the financial institution being liable for a direct fine. Customers or Account Holders will need to cooperate and fulfill all banking requirements. Failure to cooperate, the bank (at their discretion) may refuse you in either opening a new bank account, transfers and exchanges.

Edited June 30, 2014 by mania

[wandasloan]

I question her statements that it is because of new US restriction or if it is because almost every branch screws up the opening of accounts for any foreigner.

Then you have not kept up with the US law which goes into effect in Thailand [sic] on July 1, because the bank employee gave perfect, indisputable information.

It's kind of interesting.

http://goo.gl/N3K17i

.

[TallGuyJohninBKK]

Here's a link to my posts earlier this spring on Standard Chartered Thailand notifying its American account holders of their needing to submit their SSN info as part of FATCA compliance. Once I complied with their request, no further problems. And subsequently opened a new account with them, again, no problems.

http://www.thaivisa.com/forum/topic/681569-thai-govt-approves-tax-law-negotiations-with-us/?p=7898502

At least in Thailand, for Americans, this is at most a molehill, not a mountain.

Edited June 30, 2014 by TallGuyJohninBKK

[OMGImInPattaya]

According to press reports, the USA and Thailand are on the verge of completing an agreement on the implementation of FACTA reporting requirements for Thai banks. The respective financial regulating authorities have hammered out the details for implementing reporting requirements under FACTA and all that needs to be done is for the respective governments to sign-off on the agreement. Therefore, all the henny-penny the sky is falling postings and rantings over the past couple years about Americans not being able to keep/open Thai bank accounts in the future have, like so many other such scares in the past, come to nothing. All will be the same as before, with the only difference being Thai bank will report account details to the US Federal tax authorities. So unless you are actually trying to hide assets there will be nothing to be concerned about.

Edited June 30, 2014 by OMGImInPattaya

[purushanti]

Very smooth-----my visit to local K-Bank branch today. I offered additional info if they needed for American Fatca, and was given a page, in Thai, from some Thai banker's association, and handed a telephone to converse with a higher-up, in English.

Upshot of my understanding, as interpreted from their understanding: existing account holders have to do nothing, but new account applicants, starting July 1, will need to provide more info than before.

Another item that Thais handle very efficiently, in my estimation: ------banking.

[Pib]

According to press reports, the USA and Thailand are on the verge of completing an agreement on the implementation of FACTA reporting requirements for Thai banks. The respective financial regulating authorities have hammered out the details for implementing reporting requirements under FACTA and all that needs to be done is for the respective governments to sign-off on the agreement. Therefore, all the henny-penny the sky is falling postings and rantings over the past couple years about Americans not being able to keep/open Thai bank accounts in the future have, like so many other such scares in the past, come to nothing. All will be the same as before, with the only difference being Thai bank will report account details to the US Federal tax authorities. So unless you are actually trying to hide assets there will be nothing to be concerned about.

Can you provide some links to those press reports? Thanks.

I expect an IGA would be better/easier for Thai banks/financial companies based on what I've read at the IRS FATCA website and should also bypass the need for them to setup individual agreements like most have already done as shown as this FATCA Lookup Search Page which shows 768 such individual agreements by Thai banks/financial companies. Why 768...why some many? Well, from looking at the list it appears in many cases an agreement is setup by financial "product"...like in some cases just for one particular mutual fund...just go to the list and do a search on Thailand and you'll see what I mean.

[OMGImInPattaya]

According to press reports, the USA and Thailand are on the verge of completing an agreement on the implementation of FACTA reporting requirements for Thai banks. The respective financial regulating authorities have hammered out the details for implementing reporting requirements under FACTA and all that needs to be done is for the respective governments to sign-off on the agreement. Therefore, all the henny-penny the sky is falling postings and rantings over the past couple years about Americans not being able to keep/open Thai bank accounts in the future have, like so many other such scares in the past, come to nothing. All will be the same as before, with the only difference being Thai bank will report account details to the US Federal tax authorities. So unless you are actually trying to hide assets there will be nothing to be concerned about.

Can you provide some links to those press reports? Thanks.

I expect an IGA would be better/easier for Thai banks/financial companies based on what I've read at the IRS FATCA website and should also bypass the need for them to setup individual agreements like most have already done as shown as this FATCA Lookup Search Page which shows 768 such individual agreements by Thai banks/financial companies. Why 768...why some many? Well, from looking at the list it appears in many cases an agreement is setup by financial "product"...like in some cases just for one particular mutual fund...just go to the list and do a search on Thailand and you'll see what I mean.

Today's Bangkok Post, Business front page.

I should add that according to the reports, the agreement would cover not just banks and their financial products, but other financial service providers as well, like brokerages and insurance companies which provide stock trading, mutual funds, and other such products.

Edited June 30, 2014 by OMGImInPattaya

[Pib]

Today's Bangkok Post, Business front page.

I should add that according to the reports, the agreement would cover not just banks and their financial products, but other financial service providers as well, like brokerages and insurance companies which provide stock trading, mutual funds, and other such products.

After about 5 minutes of looking I can't find it anywhere on the Business page...or any page. Maybe its a snake and it would have bitten me but I can't find it....I'll look some more.

[Pib]

Today's Bangkok Post, Business front page.

I should add that according to the reports, the agreement would cover not just banks and their financial products, but other financial service providers as well, like brokerages and insurance companies which provide stock trading, mutual funds, and other such products.

After about 5 minutes of looking I can't find it anywhere on the Business page...or any page. Maybe its a snake and it would have bitten me but I can't find it....I'll look some more.

I did a search and found it under the 10 June edition, not the 30 Jun/today's edition....but maybe it's on the 30 Jun edition but I just don't see it.

[OMGImInPattaya]

Today's Bangkok Post, Business front page.

I should add that according to the reports, the agreement would cover not just banks and their financial products, but other financial service providers as well, like brokerages and insurance companies which provide stock trading, mutual funds, and other such products.

After about 5 minutes of looking I can't find it anywhere on the Business page...or any page. Maybe its a snake and it would have bitten me but I can't find it....I'll look some more.

Sorry...I think it was Saturday's or Sundays paper...I'm a little behind. I left my copy at the coffee shop this morning so I can't be sure. Just use their search engine or google and it should come up...it was a prominent front page article in the business section if I recall.

Here it is...like the 2nd link on a google search:<removed> You're right...it's this June 10th article...I'm way behind...just grabbed it off the top of my 'to read' pile

Edited June 30, 2014 by Tywais
Sorry, but links to Bangkok Post are not allowed.

[Pib]

Well, I hope Thailand and the U.S. do sign a FATCA Inter governmental agreement (IGA) soon to make reporting easier on the Thai banks/financials companies, which in turn makes it much less likely of any banking impact on Americans other than providing a little additional info when opening an account. But it wouldn't surprise me if the signing of such govt-to-govt agreements may be put on hold until Thailand returns to a democratically elected govt versus a military junta headed govt. But I expect the U.S. will "not" push back on signing such an agreement especially since a FATCA agreement is beneficial to the U.S. IRS and does not imply the U.S. supports the military headed govt in any way. However if there is a delay the Thai bank/financial companies still have their individual agreements in place with the IRS so hopefully that will prevent any significant impact to Americans wanting to open/keep financial accounts in Thailand....the IGA just makes things easier for the banks/financial companies and recognized at the Thai govt level.

[OMGImInPattaya]

Today's Bangkok Post, Business front page.

I should add that according to the reports, the agreement would cover not just banks and their financial products, but other financial service providers as well, like brokerages and insurance companies which provide stock trading, mutual funds, and other such products.

After about 5 minutes of looking I can't find it anywhere on the Business page...or any page. Maybe its a snake and it would have bitten me but I can't find it....I'll look some more.

Sorry...I think it was Saturday's or Sundays paper...I'm a little behind. I left my copy at the coffee shop this morning so I can't be sure. Just use their search engine or google and it should come up...it was a prominent front page article in the business section if I recall.

Here it is...like the 2nd link on a google search:<removed> You're right...it's this June 10th article...I'm way behind...just grabbed it off the top of my 'to read' pile

Sorry about that, couldn't remember if it was just quotes or actual links too...and too lazy to make a couple clicks to check the rules :/

[UbonOz]

Something I read earlier in the link below may be of interest to Americans.

http://rt.com/business/169316-fatca-american-tax-law/

[UbonOz]

Another link.

http://www.bloomberg.com/news/2014-06-30/offshore-tax-crackdown-opens-with-30-penalties-for-banks.html

[Pib]

Well, I hope Thailand and the U.S. do sign a FATCA Inter governmental agreement (IGA) soon to make reporting easier on the Thai banks/financials companies, which in turn makes it much less likely of any banking impact on Americans other than providing a little additional info when opening an account. But it wouldn't surprise me if the signing of such govt-to-govt agreements may be put on hold until Thailand returns to a democratically elected govt versus a military junta headed govt. But I expect the U.S. will "not" push back on signing such an agreement especially since a FATCA agreement is beneficial to the U.S. IRS and does not imply the U.S. supports the military headed govt in any way. However if there is a delay the Thai bank/financial companies still have their individual agreements in place with the IRS so hopefully that will prevent any significant impact to Americans wanting to open/keep financial accounts in Thailand....the IGA just makes things easier for the banks/financial companies and recognized at the Thai govt level.

Well, well, I see on the U.S. Treasury FATCA website that Thailand is listed as one of the "Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):" Thailand's inclusion date is 24 Jun 14. See this Link.

[Naam]

Well, well, I see on the U.S. Treasury FATCA website that Thailand is listed as one of the "Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):" Thailand's inclusion date is 24 Jun 14. See this Link.

the inclusion on the "list" doesn't mean anything yet Pib. whether it is Thailand or any other country the actual specific (not "in substance") agreement has to be ratified by the relevant parliament.

i am not sure whether Thailand has presently a functioning parliament

[Pib]

Well, well, I see on the U.S. Treasury FATCA website that Thailand is listed as one of the "Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):" Thailand's inclusion date is 24 Jun 14. See this Link.

the inclusion on the "list" doesn't mean anything yet Pib. whether it is Thailand or any other country the actual specific (not "in substance") agreement has to be ratified by the relevant parliament.

i am not sure whether Thailand has presently a functioning parliament

Could be....I know "trade" agreements usually have to be ratified by a country's parliament, but this agreement is really just an information exchange agreement for Thailand financial companies/banks to provide financial info on Americans to the U.S. Treasury...and of course this agreement should prevent Thai banks/financial companies from been tagged with 30% withholding tax when doing business in/with the U.S.. Hopefully it has satisfied the U.S. Treasury Dept and it makes things easier on Thai banks which should make things easier on American opening/keeping accounts. Plus the U.S. Treasury Dept already showed 768 Thai banks/financial companies/financial products complying with Treasury reporting requirements. I think everything will be good to go...but I'm sure there will still be a good amount of ThaiVisa Chicken Little posts on this subject.

[Sophon]

Well, well, I see on the U.S. Treasury FATCA website that Thailand is listed as one of the "Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):" Thailand's inclusion date is 24 Jun 14. See this Link.

the inclusion on the "list" doesn't mean anything yet Pib. whether it is Thailand or any other country the actual specific (not "in substance") agreement has to be ratified by the relevant parliament.

i am not sure whether Thailand has presently a functioning parliament

Could be....I know "trade" agreements usually have to be ratified by a country's parliament, but this agreement is really just an information exchange agreement for Thailand financial companies/banks to provide financial info on Americans to the U.S. Treasury...and of course this agreement should prevent Thai banks/financial companies from been tagged with 30% withholding tax when doing business in/with the U.S.. Hopefully it has satisfied the U.S. Treasury Dept and it makes things easier on Thai banks which should make things easier on American opening/keeping accounts. Plus the U.S. Treasury Dept already showed 768 Thai banks/financial companies/financial products complying with Treasury reporting requirements. I think everything will be good to go...but I'm sure there will still be a good amount of ThaiVisa Chicken Little posts on this subject.

768 Thai banks being on the U.S. Treasury list also means very little. It just means that these financial institutions have reported back that they will comply with the requirements, and one way of complying would be not to have any U.S. customers.

Sophon