The FATCA Hunt Is On in Canada

Keith Redmond is reporting on Facebook that BMO has sent this FATCA letter to Canadian businesses. As Keith posted, this is truly alarming.

BMO Letter Page 1
BMO page 2

The letter requires forms to be completed or accounts will be reported to CRA to hand over to IRS.
BMO Form page1
BMO Form Page 2

Note: This includes accounts of “valued customer” closed after June 30, 2014. Keith is further reporting all Canadian banks will do the same.

Angel Beoughter confirmed TD sent the letter in January–and goes even further requiring reporting of persons who have the ability to direct funds:

Yes, Lynne Swanson…TD sent them out January 2016. I have personally handle the mail from the TD. It’s a little bit different in that it also asked for person or persons who also have the ability to direct funds. I was so happy that I am no longer an American citizen. I can go back to just being an ordinary boring book keeper instead of the big fish hiding money.

I don’t know if Canadian banks are sending letters to individuals where they do not already have a record of U.S. taint.

10 thoughts on “The FATCA Hunt Is On in Canada

  1. Thanks for this post, Lynne, on BMO’s FATCA Hunt.

    As Outraged Canadian says, “I am just so tired of all this. It feels like a nightmare that just won’t go away, and just gets worse every night. I just want to be left alone to live my life. My Canadian life.”

    Well what really bothers me is the hypocrisy of the Good Old USA in not allowing us to lead our normal Canadian lives.. Please see the following:

    Which states, “While traditional offshore centers have folded due to pressure from Fatca and the OECD, the battle to attract the untaxed dosh has started in earnest between various U.S. states.”

    Here we are in Canada, paying our Canadian taxes and trying to lead normal lives, while this goes on.

  2. I am just so tired of all this. It feels like a nightmare that just won’t go away,  and just gets worse every night. I just want to be left alone to live my life. My Canadian life. I feel like the CRA, our banks, and our gov’t has abandoned us, betrayed us, and treats us as if we are not people, just inconsequential numbers.

  3. “Effective July 1, 2014, Canadian legislation requires Canadian financial institutions to identify, document and report relevant information on accounts held by U.S. persons to Canada Revenue Agency. This includes all business entities operating accounts in Canada.”

    Bank of Montreal is a business entity operating accounts in Canada. Therefore accounts held by Bank of Montreal are included in accounts held by U.S. persons. Therefore Canadian financial institutions are required to identify, document and report relevant information on accounts held by Bank of Montreal to Canada Revenue Agency.

    “The undersigned certifies:
    That the FATCA Entity Classification Type (FECT) for
    Bank of Montreal (insert Legal Name)
    (hereinafter called the ‘Business’) is”
    [various kinds of foreign entities and various kinds of US entities, but no possible kind of Canadian entity -- though this is based on an assumption that Bank of Montreal is a Canadian entity not a foreign none]

    “If the undersigned is not able to confirm today the US Citizenship or US Residency of the owners/partners who have a 25% or greater beneficial ownership of the Buiness, the undersigned is required to provide this information to the Bank within 90 days; otherwise the Business owner/partner and account information will be reported to CRA.”

    So Bank of Montreal has 90 days in which to confirm that Bank of Montreal’s shareholders hold US Citizenship or US Residency. If Bank of Montreal can’t confirm this, for example if too many Bank of Montreal shareholders might hold Canadian Citizenship and Canadian Residency, Bank of Montreal shareholders and account information will be reported to CRA.

    Oh noes! Bank of Montreal’s information will be reported to CRA! Bank of Montreal had better run and hide. Maybe the world’s biggest tax haven would be a good place for Bank of Montreal to run to.

  4. Thank you for posting this Lynne, and thanks to Keith. I have posted it in various threads at IBS, though it probably could/should have its own thread there?

  5. RBC investing sent a FATCA letter to my wife. She pointed out that her account was a RRIF and non-reportable and she refused to sign either a W9 or W8-Ben. They backed off and apologized because her adviser knew she would have pulled the account.

    • Is your wife considered a U.S. Person?

      Could we get a copy of the letter? CRA responded to Dusseault and Arvay that RRSPs are not reportable. As I have said, not reportable is very different than not reported. This is a perfect example of that.

    • E-mail from RBC Documentation notification

      Good Afternoon,

      As you know, the regulatory environment that we operate our business within is ever-changing due to increased global criminal activity. As such, our industry is always initiating changes to the kinds of documentation that we are required to collect from clients. One of the documents that is required is called a W-8BEN form and this form is required as part of the new U.S. Foreign Account Tax Compliance Act (FATCA). The W-8BEN form confirms that you are not a US person or entity and it ensures that if you hold individual U.S. securities that pay income, you are benefiting from the lower withholding tax as a result of Canada and the United States having a tax treaty. I have attached an article that explains in further detail what FATCA is and how it applies to Canadians.

      I will be mailing the form to your home address today. When you receive it, please sign and date where indicated, and then mail the original document back to us in the postage-paid envelope enclosed.

      Please let me know if you have any questions.

      Kind Regards

      I called, said we wouldn’t fill it in and threw the form in the bin. Interestingly, it was filled in as ” i am not a US person” even tho. the account manager knew that wasn’t true.

    • Angel Bougethner is reporting TD’s letter says person with ability to report funds. I have not seen that letter but I’m trying to get a copy.

      A friend who has no US connection asked me this morning why Canadian businesses are screaming about this. Why aren’t organizations like the Chamber of Commerce, etc speaking out?

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