IRS Canceling Passports and New Offshore Bank Restrictions Regarding Americans
Transportation Act Passed June 29, 2012 to affect Offshore Banking for USA Persons, Big Time –
This bill, passed on the eve of the Fourth of July Holiday, has taken the rights away from Americans big time.
They used the cover of the Supreme Court ObummerCare decision and the Eric Holder Contempt to conceal it from the public. It is an attempt to lock down the funds of the Americans in the USA where they are subject to confiscation by government and lawyers.
Obama supporters despise people who bank offshore.
We are at the end of another failed democracy.
Obama is desperately trying to switch the country over to socialism or communism.
He is using gunboat diplomacy to keep the dollar as strong as he can.
This too will fail over time as he prints more money.
What the Law Allows For
This law says that the US can take action against a nation or individual bank if they feel that said bank(s) or country is helping people evade taxes, and this they compound by saying it is tied to money laundering. Money laundering is a term that can be made to apply to any and every financial transaction. It is hardly a crime in the real meaning of the word. So if a bank does not “comply” they can punish all the banks in that country. Before we get into details, you should interpret this as a warning to depart from the USA.
They want the US persons to bring their money back to the USA from offshore jurisdictions.
They get hit with penalties and interest.
The USA wants to be able to confiscate these funds.
If they are overseas, there they will stay and the USA cannot get them. They want these funds back in the USA.
Penalties on Banks and Nations – OK the punishments
If they think a country or bank is helping people evade taxes, they can sanction them. By this we think they mean countries that do not sign Tax Information Exchange Agreements with the USA, allowing them to get into bank records at will. So the USA says it can cut said banks, or all banks within a country, from using the USA correspondent banks to conduct wire transfers.
This means a non-compliant bank will need to use banks in Europe or Asia for their correspondent banks. They will not be able to continue sending or receiving wires in USD. The EURO, Canadian, Aussie dollar and others will be popular. Without correspondent banks checks in USD, they will not be able to be cleared as well. This includes cashier checks, money orders and regular checks. It appears that wire transfers in USD going out of the USA to such banks or countries will not be possible either. It is close to impossible to have a wire transfer go out of the USA in a non-USD currency, so that is another issue that is significant. If you want your money out of the USA move on this right now.
Many offshore banks will, as a result of this law, be stopping Americans from opening new accounts. Do not delay. You are in real jeopardy, do not underestimate the threat. Your Congress did this. Your Supreme Court gave the nod of approval to ObummerCare. He has, back in March, assumed full dictatorial powers by executive order. They are getting ready to lock the place down, soon.
As another punishment, if there is an offending country or bank (according to the USA), credit or debit cards issued by said bank or banks in said country shall be programmed to not work in the USA. So, no cash advances, no ATM cash pulls, no purchases online or otherwise. So these banks will need to switch to Visa or MasterCard issued in Euros and/or just put up with their cards having a block for US transactions. The card companies affected that are American are Visa, MasterCard, American Express and Discover.
What Do We Think the Offshore Banks Will Do?
Well, we think it is going to vary from bank to bank and country to country. There are at least 40 countries that did not sign a Tax Information Exchange Agreement (TIEA) with the USA. Undoubtedly, some will give in and sign a TIEA with the USA. Too soon to tell who. Some will have a lot to lose if they sign such a TIEA and resist.
The price to pay is no more USD wires, plus credit cards and debit cards not good in the USA. Some banks will go this route, others will cave in. We need to wait and watch how the cookie crumbles. If a country already has signed a TIEA I doubt they will be affected by this law. This law goes into effect Jan 1, 2013. I expect it will literally be five times harder for Americans to get offshore bank accounts after Jan.1, 2013.
Will the offshore banks close accounts of Americans after Jan. 1, 2013? Probably not. If the USA goes after them they might do this. We think it will take the USA 6 months to 1 year to get this law going. It is a big job for them. They will need to negotiate with the countries and the banks first. It will take them some time to get going. Please bear in mind that they already can be getting started now.
We do not think that many nations and banks will submit to the USA. Some will resist and want to keep their USA persons and their deposits. They will need to switch over their banking to other currencies, not USD. This is something that can be done. Their US clients will not want to change banks and will put up with it. Having cards that do not work in the USA may not be such a big deal.
Gold and Silver
This is coming: First the confiscation or forced buy back of gold and precious metals will soon follow, probably after November's pseudo elections.
The real answer may require a second passport and citizenship. This will open up the banking and storage of gold for you.
In this bill there is a section that allows the IRS to cancel passports of any person that they claim owes them $50,000 counting penalties and interest.The IRS can just extrapolate a guestimate of taxes that you might owe based upon a guess about your offshore resources to get a $50,000 tax due number.
Many expats living overseas will be affected. A residency will not be that much help. Most residencies will be canceled after the country finds out the passport has been canceled. If the US knows about the residency they will be only to glad to inform the country that the person no longer has a passport. They could offer to deport the person back to the USA at their expense.
Some countries will not do so, but then the person is stuck without a passport. These people minus the passport may not be able to get their money out of the bank accounts offshore.
These are things that may precede the lockdown. They want the money returning home from offshore first. They will be heavily configured with penalties and interest. When the funds are in the USA they can be subject to confiscation and more taxes.
Your Congress, Supreme Court and President are going after you and your wealth. Do anything you can and prepare to get out.
Do you see any signs at all of the people not putting up with all this madness coming forth from Washington, D.C.? I don't, other than a few crackpots on talk shows saying the bankers are going to be arrested en masse, the prosperity packets are coming and the dinar is going to be revalued this week for the 87th time.The people are doing nothing except escaping into fantasies, or just putting up with it.
Those holding gold and silver at home or in depositories tied to their USA identities are going to be sorry. This is not much of a safe haven without a second passport and the metals then stored in a safe location under your second passport identity. You and your money should be getting ready to leave. If you are going to get it out of the country, do not do it in your own name. You must have an appropriate vehicle which is legal under US laws that the US Government cannot touch or gain access to.
Think your 401K’s are safe? Not so fast. The US Government is looking at those funds as part of its salvation. You need to invest them offshore while you still can. Remember, Obamacare, thanks to the Supreme Court, gave the government the right to openly seize your bank accounts for any or no reason at all.