What is particularly terrifying to Swiss bankers is the new tax system being formulated called FATCA [Foreign Account Tax Compliance Act] which came into effect in 2010, but will only be fully in effect in 2014 with IRS agreement. In this system there are features that will affect financial institutions worldwide. Here are some of the reasons why Swiss banks are changing their handling of clients: -
FATCA will impose all sorts of reporting requirements on U.S. taxpayers with foreign financial accounts. This is in ADDITION to form TDF 90-22.1, which is due to the Treasury Department each year by June 30th, and IRS form 1040 schedule B. Transparency will become the order of the day.
The law requires ALL financial institutions across the world to share personal customer information with the U.S. authorities. Undoubtedly, all allies of the U.S. such as Canada as well as the rest of the developed world will cooperate with them quicker than others. Under certain conditions this could be extended to include gold and other precious metals, easily.
So Swiss banks are opting for the pain-free option of having their clients own their gold in their own name, in ‘allocated’ accounts. This allows them to duck the issue of disclosure to the authorities and passes it to the clients themselves. It also allows Swiss Banks to step out of the way should the U.S. authorities want to reach out and take that gold! And we feel that this is a real reason behind their move.
NOTE: This post was split off from from this thread: http://www.pmbug.com/forum/f13/swiss-banks-now-offer-allocated-gold-silver-accounts-2064/You can be sure that the Swiss banks foresee a coming situation that will keep them out of the crosshairs of the U.S. monetary authorities. It’s on the direct owners of that gold that the crosshairs of the authorities will settle.
Last edited by a moderator: