European private banks are closing their doors to wealthy expatriate Americans to avoid falling foul of new US rules on tax evasion. Last month, four Credit Suisse bankers were charged with helping Americans evade taxes as part of the US Internal Revenue Service’s crackdown. By 2013, all banks outside the US will have to comply with the new act signed by President Barack Obama a year ago. The regulations oblige international financial institutions to reveal all accounts held by U.S. citizens that contain more than $50,000. Banks that do not comply will be subject to a 30% withholding tax on all payments made to them in the US. David Treitel, a tax director at UK and Switzerland-based US Tax & Financial Services, said up to 20% of his 1,000 US clients have had their bank accounts closed since the legislation was announced.
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio