New IRS Banking Regulations

[Texsox]

http://www.themonitor.com/articles/banks-6...sury-along.html

McALLEN -- A new Treasury Department rule could cause Mexican nationals to close their U.S. accounts, putting billions of dollars held in banks along the border at risk.

 

The regulation finalized this month requires U.S. banks to report interest payments made to foreign nationals, which the Treasury Department says will help their countries of residence combat tax evasion. But U.S. banks along the border say some Mexican clients —fearing the rule could jeopardize their personal safety if account information is obtained by drug cartels — will respond by moving their accounts overseas.

 

Such decisions would be a troubling outcome for border banks, where up to 45 percent of the deposits can come from Mexican nationals.

 

“It’s important to realize that these are deposits that people come to our country (for) for purposes of security,” said Gerardo “Gerald” Schwebel, an executive vice president overseeing the international division at the Laredo-based International Bank of Commerce. “There’s a major element of trust, not because they’re trying to evade taxes but because of the mere fact that the United States is seen as a country that is strong and secure.”

[Balta1701]

So, it cripples the local economy...but it also stops an illegal activity?

[Texsox]

So, it cripples the local economy...but it also stops an illegal activity?

 

Sure we can help Mexico collect taxes owed to them. The Mexican Nationals that deposit in the US are now more likely to be kidnapped when criminals know their net worth. And banks in the US have less capital to lend out. Of course one of the accounting types here can explain what happens when 40% of a banks deposits are withdrawn at about the same time. I'm guessing that isn't pretty.

 

But yes if any American has money deposited in Mexican banks and not paying taxes on the interest, we can prosecute them. I'm certain there are a lot of Americans depositing in Mexican banks.

[EvilMonkey]

Sure we can help Mexico collect taxes owed to them. The Mexican Nationals that deposit in the US are now more likely to be kidnapped when criminals know their net worth. And banks in the US have less capital to lend out. Of course one of the accounting types here can explain what happens when 40% of a banks deposits are withdrawn at about the same time. I'm guessing that isn't pretty.

 

But yes if any American has money deposited in Mexican banks and not paying taxes on the interest, we can prosecute them. I'm certain there are a lot of Americans depositing in Mexican banks.

So what you are saying is that the Mexican government is so rife with corruption that when banks report to a government body that the information is readily available to cartel and other unsavory characters to use for nefarious activities? i can believe that, seriously. With the oil down there the country should be rich, with no need to send its poor northward. But we all know it isn't

[kapkomet]

Mexico's equivalent of our UCC code is incredible. You have to register with the government to even invoice. You have to have a government stamp on all invoices. There is no cash, no checks, it's all wire. There's more to it then that, but the business practices down there leads to some of this becase there's tons less regulation and the government (hmmm, go figure) can't track it.

 

What's more, in order to be in business in Mexico, you must turn a profit. Again, there's more behind this then a blanket statement like this, but this is why Mexico only has shell companies doing business.

 

[Texsox]

So what you are saying is that the Mexican government is so rife with corruption that when banks report to a government body that the information is readily available to cartel and other unsavory characters to use for nefarious activities? i can believe that, seriously. With the oil down there the country should be rich, with no need to send its poor northward. But we all know it isn't

 

Perhaps in your end of the country they are sending their poor. Here, the wealthy arrive to invest, educate their families, and pursue the American dream. Over half of the real estate on South Padre Island is owned by Mexican Nationals, over 80% of the new business start ups in our area are started by Mexican Nationals. And think about all the professionals that immigrate here from everywhere else on the planet. It isn't because they are all poor.

 

Mexico has few privacy laws. Just like we know how much Obama gifts to his children each year, tax reports and such are public information.