Being a victim of Intelligent backlash against Ignorant legislation.

I was shot down by a bank representative on Thursday about my account when I tried to reorder a bank card. From what I understood, my bank account may be shut because I am an American citizen. She kept repeating 'Qualified Intermediary' to me as I was trying lower my blood pressure (I just knew this was coming). She explained all US citizens of Bank Cantonal Vaudois (BCV) will be notified of their situation by letter, this month. She finished by apologizing and explaining that at this moment, BCV can not issue me a card because of the 'qualified intermediary' issue. Which sent me on very frustrating information search marathon.

The Qualified Intermediary (also known as an Accommodator) should be a corporation that is in the full-time business of facilitating 1031 exchanges. The role of a QI is similar to, but not identical to, the role of an escrow company.

-Wikipedia.org

(Anyone doing financial business on behalf of an American, even just opening a simple checking account for an American)

Well I have been digging around and I have found that Charlie Rangel with HR 3933 and Max Baucus with S 1934 are planning to beef up the tax collection policies of the IRS by requiring that any 'qualified intermediary' to report on the account activities of all Americans doing business with them under FATCA. According to American Citizens Abroad, a non-profit advocacy organization for United States citizens,

'With regard to American citizens residing abroad, a group of major UK banks has already stated
that they will close accounts of American citizens if the proposed QI regulations of January 1, 2010 become effective. We know for a fact that Swiss, Dutch and Spanish banks are refusing American citizens residing in their countries as clients and are closing accounts. Do not forget that there are over 5 million American citizens residing abroad. These people need to maintain foreign bank accounts in the country where they reside to make current payments receive salaries and hold their investments. The proposed legislation and reinforced QI* regulations will make it all the more difficult for overseas Americans to maintain a bank account where they reside. '
*(Qualified Intermediary)

This is what the bill does via Open Congress.com

Foreign Account Tax Compliance Act of 2009 - Amends the Internal Revenue Code to revise and add reporting and other requirements relating to income from assets held abroad, including by:
(1) requiring foreign financial and nonfinancial institutions to withhold 30% of payments made to such institutions by U.S. individuals unless such institutions agree to disclose the identity of such individuals and report on their bank transactions;
(2) denying a tax deduction for interest on non-registered bonds issued outside the United States;
(3) requiring any individual who holds more than $50,000 in a depository or custodial account maintained by a foreign financial institution to report on such accounts;
(4) imposing an enhanced tax penalty for underpayments attributable to undisclosed foreign financial assets;
(5) extending the limitation period for assessment of underpayments with respect to assets held outside the United States;
(6) requiring certain tax advisors who assist U.S. individuals in acquiring a direct or indirect interest in a foreign entity to file an information return disclosing the identity of the foreign entity and the individual investors;
(7) requiring shareholders of a passive foreign investment company to file informational returns;
(8) enhancing tax rules and penalties relating to foreign trusts with U.S. beneficiaries; and
(9) requiring withholding of tax on dividend equivalent payments received by foreign individuals.

The odds:

From my experience and business empathy, they will close my account. I don't blame them. I don't support tax evasion nor tax fraud. Yet, I don't support imposing laws that punish the innocent to justify the enforcement of laws broken by a few. It's inane and very draconian. Why should my bank keep me when it would be cheaper and less of a burden to force me to find another institution? Understood, but what I don't understand, why a blanket enforcement with such apathy for the complications that come along with such legislation?

To my friend Josh in China, this includes you. This bill does not specify nations, just American citizens. Banks will be hard pressed to find any benefit in assisting Americans with their finances if it means answering to the IRS (which in their eyes is a foreign tax collection agency with no true jurisdiction within their borders). I as well as any American abroad (I am not clear about service members, diplomats, corporations, private businesses, etc.) are being punished for a few bad apples. I pray I can find a banking institution that isn't repulsed by my citizenship.

Oh, about the american banks abroad, the common (mis)perception of any American abroad is that we are rich. That we work for some major corporation or on military leave. Last year my income was a record $25,ooo thanks to working as a receptionist for a Swiss owned and operated small business. The banks, American or international, have raised the minimum to astronomical levels- $250,000. This will insure that there aren't any shananigans. (I received email today from ACA.org with a list of banks and the minimum deposit requirements all were above $500,000 with exception of Charles Schwab- still developing).

In the end, the PosteFinance.ch, seems like a viable option. Crossing fingers.

If anyone has any info about this issue, I would greatly appreciate it. I will post the letter once received. I will pass more info upon reception on my end.

Ciao!