Stopping The Subordination And Destruction Of The Swiss Banking System
By: Christopher Roman
FATCA, in a nutshell, is an agreement for multi-jurisdictional banks (globally) to share information about US account holders to prevent tax evasion. If these banks do not comply with American demands. The banks will lose access to the US capital markets.
To the typical shortsighted — nihilistic — executive within the banking industry, it seems honorable.
Why help US citizens avoid taxes?
After all, their US client base is small, and losing access to the United States markets is far worse than losing a small number of wealthy American clients. The first warning sign concerning this United States law — the request is not logical from its inception.
Given the costs for the FATCA rollout and its illogical expectation for revenue collection, what is FATCA good for? Obviously, it must have a different purpose.
The only function FATCA really ensures is that multi-jurisdictional banks agree to an American administrative process. A process of discrimination based on national origin. Objectively, FATCA is a very complex law that multi-jurisdictional banks must comply with. The details of which are excruciating to read.
Therefore banking executive logic would follow as such, ” We will simply comply with US demands regarding discrimination of their citizens and they will leave us alone.”
This logic — IS DEAD WRONG.
The law isn’t meant for multi-jurisdictional banks to comply with and FATCA is not meant to help prevent tax evasion. It is designed to discriminate against– national origin. Discriminate against national origin to meet US Foreign Policy objectives.
Swiss banking is a perfect example. The Swiss, with great care, and meticulous attention to detail. Is working with the United States Government to implement FATCA.
Taking the path of least resistance, the banks have banned most American clients and have closed their accounts. Turning away hundreds of billions of dollars of US business in the process. The damage to…