The Ripple Effect is Here

 

Americans unable to open financial accounts. In CANADA!

 
 


 
 
While I don’t believe this is the first instance, I think we should start keeping a record of these and will look into a sidebar link so the discrimination is all in one place.
 
 

9 thoughts on “The Ripple Effect is Here

  1. There is a more important issue Provincial Bonds held by Computershares Canada which could be a violation of IGA.
    regarding CDF
    CDF like a number of High interest saving accounts (PC Financial, Bridgewater Bank, Hubert & Canadian Tire Financial) do not offer services to Quebec resident because of cost of complying with Quebec tax code.
    https://www.highinterestsavings.ca/chart/
    This would not be basic bank account unlike Canadian Western Bank.
    If Quebecer do not raise an issue with not having a various high interest account American Citizen do not have a stronger case.

    Regarding Provincial Bond held by Computer Shares
    under guidance for
    “3.42 The Government of Canada, provincial, territorial and aboriginal governments in Canada, and municipal-level governments in Canada are regarded as non-reporting Canadian financial institutions under Part XVIII by virtue of qualifying as exempt beneficial owners, as set out under paragraph (c) of the definition of “non-reporting Canadian financial institution” in subsection 263(1) of the ITA. An agency or instrumentality of any such government is only a reporting Canadian financial institution if it is described in paragraph 263(1)(m) of the ITA. Otherwise, it is a non-reporting Canadian financial institution.”
    http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.html
    “Guidance on enhanced financial accounts information reporting”
    We need an answer from a lawyer about 263(1)m and if Computer share will report income from them. People who own provincial bonds do not normally trade in them and hold to maturity. The need of a brokerage for these bonds would limited.
    A person who is not a US person under the IRS rule should be the only one testing it out. The IGA has weaker rules than IRS for non US person.
    See what Computer shares ask,

  2. I received the same “FORM letters” from Mr. Lorimer that others are getting so won’t bother reprinting them. He did NOT answer my question: ” Please let us know why you are excluding Canadian citizens and residents who also happen to be US citizens from opening an account with Canadian Direct Financial.”

    I agree with Kevyn Nightingale that“ It’s discrimination based on nationality,” Shame on Canadian Direct Financial.

  3. Globe and Mail is reporting Alberta online bank first in Canada to shun U.S. clients.

    After more than five years of reporting on this, Barrie McKenna still doesn’t seem to get that most of us are Canadian citizens.

    Even compliance condor Kevyn Nightingale sees that:

    “It’s discrimination based on nationality,”

    Again, I repeat. Our nationality is Canadian. Why is that so hard to understand?

    Nightingale expects more banks to do the same.

    Tricia Moon points out this “demonstrates the harm” of FATCA.

  4. Unfortunately, as I understand Canadian tort/civil law, there would not be a remedy in civil court unless there are financial damages. I am sure this institution did their homework with their lawyers.

    In any case, I would cheerfully lie to them. I have already done that with my broker.

  5. This is the response I just received to my e-mail from Canada Direct Financial. I will also post this in the credit union thread where I posted my enquiry to them.

    Good afternoon Ms. Swanson,

    Thank you for your inquiry.

    Canadian Direct Financial (CDF), a division of Canadian Western Bank, is focused on providing our clients with responsive, personalized service in our selected areas of expertise. The information and documentation required to open an account for a citizen or resident outside of Canada are prohibitive to providing the responsive, personalized service our clients expect.

    U.S. citizens or residents who would like to do their banking with our institution can do so through Canadian Western Bank. We offer personal and business banking service through 41 branches across Western Canada.

    Sincerely,

    Lawrence Lorimer
    Manager Canadian Direct Financial
    Suite 3000, 10303 Jasper Avenue
    Edmonton, AB T5J 3X6
    Phone: 877 441-2249
    Fax: (877) 441-2250

    • It looks like Mr. Lorimer has not answered the fundamental question which was implied in your correspondence. I stated it as follows in my email to CDF in the last sentence:

      “Please let us know why you are excluding Canadian citizens and residents who also happen to be US citizens from opening an account with Canadian Direct Financial.”

      I haven’t heard anything back yet from CDF.

  6. Please see the following which I sent to Canadian Direct Financial today:

    “This inquiry is in reference to your application process indicating discriminatory practices. Please note the following from Canadian Direct Financial online application. It is in response to a “yes” answer regarding citizenship.

    “Unfortunately Canadian Direct Financial is unable to open accounts for U.S. Citizens or U.S. Residents.”

    I am a Canadian citizen who has renounced US citizenship. Renouncing US citizenship is a complicated, painful and costly process. As a participant in the Maple Sandbox and Isaac Brock Society websites, I would like to know why you are discriminating against US citizens. There are many Canadian citizens with US connections trying to deal with FATCA and extraterritorial taxation by the US.

    When the question of citizenship came up on your online application, I could truthfully answer “no” to being a US citizen. The fact that you are asking the question caused me to terminate the process. As with many others, I will keep my business with local credit unions exempt from FATCA. On principle, I would not open an account with a financial institution asking this question which excludes certain Canadians on the basis of national origin.

    Please let us know why you are excluding Canadian citizens and residents who also happen to be US citizens from opening an account with Canadian Direct Financial. Thank you.”

    Lynne sent in correspondence as well posted under “Are other Canadian credit unions being as responsible as Vancity?”

    Let’s see if there is a reply from CDF.

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