FACTA: bank transfer withholding happening to foreign banks in july?

[thezerg]

The following article has some description of a coming US bank withholding requirement for transfers to foreign banks.

http://www.businessinsider.com/the-us-will-unleash-the-irs-on-russian-banks-in-july-2014-5#!KdEkB

How will this affect transfers from the US to foreign exchanges? 

Also, slightly off-topic, does anybody know how you'll go about paying someone (wiring them $) with these rules in place?

[Peter R]

The more regulations and friction surrounding the movement of fiat currency, the less useful the fiat payment systems become.  The more commonplace it becomes for governments to seize assets held in the legacy financial system, the less legitimate the fiat ledgers appear.  

It almost seems like the US is actively trying to lose its dollar reserve status.  

[franky1]

The following article has some description of a coming US bank withholding requirement for transfers to foreign banks.

http://www.businessinsider.com/the-us-will-unleash-the-irs-on-russian-banks-in-july-2014-5#!KdEkB

How will this affect transfers from the US to foreign exchanges?  

if your bank is in a tax haven that does not disclose personal info to the recipients government. and does not agree to in the future, then expect wire transfer costs to increase for you. if the banks involved in your transfer are both in the data exchange agreement. then dont expect issues

Also, slightly off-topic, does anybody know how you'll go about paying someone (wiring them $) with these rules in place?

well in short the US government have told these forex guys to soon only deal with other international banks with the current cheap fee's if the banks provide customer data (no more tax havens basically) or be charged 30%

so what will we see:
in europe anyone can deposit their euros to Kraken and then convert to bitcoin. then move bitcoin to an american counterparty who will cash out via their american bank account into the american recipient you want. and vice versa while avoiding the IRS tracking and avoiding the 30% carge

basically bitcoin WILL become the new tax haven as the cheap method of international transfer for people hiding from the tax man,

[FeedbackLoop]

so what will we see:
in europe anyone can deposit their euros to Kraken and then convert to bitcoin. then move bitcoin to an american counterparty who will cash out via their american bank account into the american recipient you want. and vice versa while avoiding the IRS tracking and avoiding the 30% carge

basically bitcoin WILL become the new tax haven as the cheap method of international transfer for people hiding from the tax man,

But then Kraken declares to the tax man the personal data and the USD "income" from Bitcoin sales at Kraken anyway.

Unless you are talking of those unfortunate US citizens already paying tax abroad but that the US still deems as their cattle and that, for some reason,need to transfer USD to the US. Then I see this being useful.

[franky1]

so what will we see:
in europe anyone can deposit their euros to Kraken and then convert to bitcoin. then move bitcoin to an american counterparty who will cash out via their american bank account into the american recipient you want. and vice versa while avoiding the IRS tracking and avoiding the 30% carge

basically bitcoin WILL become the new tax haven as the cheap method of international transfer for people hiding from the tax man,

But then Kraken declares to the tax man the personal data and the USD "income" from Bitcoin sales at Kraken anyway.

i edited my post to include an answer for you..

but the bit about bitcoin becoming a new tax haven.

imagine your buying bitcoins on localbitcoins. you give your dollars to another guy in your state and he give you bitcoin. all the tax man see's is joe in america is paying jack in america..

they do not see the international bitcoin movement that would have cost you 30% if you sent it to alice in europe.

and on the kraken/euro side. you want to give your bitcoins to alice is belguim in the form of euros. well all the euro government see is kraken sending euros from one euro bank to alices euro bank. again completely acceptable and government only sees alice receiving euros. so they dont know she done a international dollar transaction either

[leopard2]

The following article has some description of a coming US bank withholding requirement for transfers to foreign banks.

http://www.businessinsider.com/the-us-will-unleash-the-irs-on-russian-banks-in-july-2014-5#!KdEkB

How will this affect transfers from the US to foreign exchanges?  

Also, slightly off-topic, does anybody know how you'll go about paying someone (wiring them $) with these rules in place?

There is this new thing I heard about, called BTC, it makes wires obsolete 

Fatcat is the guy who ran Gox?

Fatca is free advertisement for BTC, and anti-USD propaganda at the same time. How hilarious that the US (whose business model is exporting USD) shoots themselves in the foot by making USD harder to use in international business