If you’re a U.S. citizen, I understand it’s getting darn near impossible to open a safe deposit box at a foreign financial institution these days. From The Wall Street Journal’s Laura Saunders (who I’ve mentioned before on this blog) a couple weeks back:
Americans living abroad are being cut off by banks and brokerages as financial institutions seek to steer clear of a U.S. crackdown on money laundering and tax evasion…
Several factors are contributing to the squeeze. One is the Foreign Account Tax Compliance Act, called Fatca. Congress enacted it in 2010 after learning that foreign banks, especially in Switzerland, had profited by encouraging U.S. taxpayers to hide money with them abroad. The main provisions of Fatca took effect in July.
As a result, foreign financial firms must report to the Internal Revenue Service investment income and balances above certain thresholds for accounts held by U.S. customers. Nearly 100,000 banks and other companies have registered with the IRS. If they hadn’t, all their customers would have 30% withheld from income received from U.S. sources, such as interest and dividends.
Still, many registered firms are closing accounts for Americans abroad or declining to open new ones, in order to avoid increased compliance costs and the consequences for potential errors…
(Editor’s note: Bold added for emphasis)
Seeing that safe deposit boxes are typically offered only in conjunction with accounts at such foreign financial institutions- no account, no box.
Siri Srinivas added on The Guardian (UK) website on September 24:
Scared of running afoul of US banking laws, foreign banks are taking extreme steps to limit US citizens to a narrow range of services.
The result for expats has been a chaotic brew of closed bank accounts, mysterious excuses and a scramble to find local banks that would allow them to park their money…
(Editor’s note: Bold added for emphasis)
At least a non-bank safe deposit box in an offshore private vault may be an option for the disenfranchised.
Sources:
Saunders, Laura. “Expats Left Frustrated as Banks Cut Services Abroad.” The Wall Street Journal. 11 Sep. 2014. (http://online.wsj.com/articles/expats-left-frustrated-as-banks-cut-services-abroad-1410465182). 16 Oct. 2014.
Srinivas, Siri. “‘I was terrified we’d all lose our money’: banks tell US customers they won’t work with Americans.” The Guardian. 24 Sep. 2014. (http://www.theguardian.com/money/2014/sep/24/americans-chased-by-irs-give-up-citizenship-after-being-forced-out-of-bank-accounts). 16 Oct. 2014.