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Post by federix on Jan 12, 2016 12:34:37 GMT
Hi all,
I have some money in a US bank account that I would like to invest but I am a UK resident. All the U.S. platforms I have looked into require US residence to allow lenders in :-( Is there really no way to make that money grow than to move it back to Europe? I would also look into setting up a company in the U.S. for the purpose, but I'm not sure how much red tape and tax would be involved... Anyone has any experience of this?
Thanks
Fed
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james
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Post by james on Jan 12, 2016 13:02:01 GMT
A company should do the job because it'll be US resident but I can't help with the cost and work it'd take. A person who is not a US citizen or green card holder would need to get an Individual taxpayer Identification Number (ITIN) to invest in the US or alternatively it might be possible to use a W-8BEN form to reduce that tax liability. This is more work for the US P2P business. US citizens or green card holders who haven't renounced citizenship are taxable on worldwide income and there are extremely adverse tax costs for US persons who use most forms of UK or EU collective investments. P2P is probably less painful but I haven't looked at the details. It can be so painful that using US investments can beat using UK or EU investments just on tax grounds. If this paragraph might apply to you you're going to need more US tax advice than can be given here, it takes a pro who knows your full situation and both US and UK tax law to do it properly. Those firms do exist, specifically to help US people who live in the UK or elsewhere.
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adrianc
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Post by adrianc on Jan 12, 2016 13:04:04 GMT
Combining p2p loans with currency exchange uncertainty AND US regulation and taxation? Sounds like a ball-ache to me.
Are the rates over there REALLY that much better? I'm guessing, by the fact that you'd be happy to get involved in company costs, that it's a substantial sum - I think I'd be looking to separate the currency bets and the interest... Maybe I'm just a big scaredy cat...
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bigfoot12
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Post by bigfoot12 on Jan 12, 2016 13:28:24 GMT
Hi all, I have some money in a US bank account that I would like to invest but I am a UK resident. All the U.S. platforms I have looked into require US residence to allow lenders in :-( Is there really no way to make that money grow than to move it back to Europe? I would also look into setting up a company in the U.S. for the purpose, but I'm not sure how much red tape and tax would be involved... Anyone has any experience of this? Thanks Fed Hi, I don't really understand what you are trying to do. Are you trying to avoid paying the FX costs of moving the money to GBP or EUR? Or do you need to keep the money offshore? There are funds you can buy which are heavily invested in US P2P loans and many brokers allow investments in US equities, but you might have to bring the money into the UK first, and pay charges. If the amount is large enough it might be worth speaking to a private bank, or at least one of the more internationally minded banks such as Citibank or HSBC.
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registerme
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Post by registerme on Jan 12, 2016 13:50:38 GMT
Off topic for the OP but actually (and this surprised me), a friend of mine who works for a hedge fund tried to open a USD account with HSBC (who he banks with). Even with their "premier" service they were unable to do this for him. In the end he just walked into a Barclays branch and they were able to do it without any hassle at all.
Citibank would be worth a try. Years ago I banked with them when my father died. He lived in France at the time. I called them and explained the situation, and asked them to set up a Euro account for me in case there were funeral / legal etc costs. The cheque book arrived the next day. I was very impressed. I only moved my account from them because I was unable to pay my O2 bill. What was particularly annoying was that they were O2's primary broker at the time.
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shimself
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Post by shimself on Jan 12, 2016 19:35:34 GMT
Off topic for the OP but actually (and this surprised me), a friend of mine who works for a hedge fund tried to open a USD account with HSBC (who he banks with). Even with their "premier" service they were unable to do this for him. In the end he just walked into a Barclays branch and they were able to do it without any hassle at all. HSBC opened a usd account for me about 2 years ago while I was in the office. I had to go in to do identity bollocks (despite being a customer for decades), but apart from that it was ok. Several brokers (TD for one) have currency accounts which might work. I too have failed to get onto any US platform, yes the collectives might be a way. Thanks for the suggestion - any in particular?
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Post by xyon100 on Jan 13, 2016 10:50:50 GMT
Any contact with the USA such as a bank account should be considered dangerous. UK banks, indeed banks around the world are running scared of FATCA and any customer with an unusual dealing with the USA is running a risk. Google 'I paid a US cheque into my Barclays account - and became unbankable' to see what can happen. The bloody fools are building a wall around their country and they can't even see it.
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james
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Post by james on Jan 13, 2016 14:23:44 GMT
That incident wasn't FATCA but apparently suspected fraud, though given the nature of the payment I don't see how any reasonable person could think it was fraud.
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adrianc
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Post by adrianc on Jan 13, 2016 15:23:41 GMT
...I don't see how any reasonable person could think... Oh, sorry. I thought it was Barclays we were talking about?
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james
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Post by james on Jan 13, 2016 16:34:25 GMT
...I don't see how any reasonable person could think... Oh, sorry. I thought it was Barclays we were talking about? Initially. then we are talking about how the Financial Ombudsman Service rules and whether they can direct Barclays to change the information or to pay redress.
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Post by batchoy on Jan 13, 2016 16:57:09 GMT
Any contact with the USA such as a bank account should be considered dangerous. UK banks, indeed banks around the world are running scared of FATCA and any customer with an unusual dealing with the USA is running a risk. Google 'I paid a US cheque into my Barclays account - and became unbankable' to see what can happen. The bloody fools are building a wall around their country and they can't even see it. As James has said this one isn't FATCA related it is AML related and has hit the headlines because the guy is a white male, there many many AML related stories where Banks have shutdown peoples accounts with major knock on effects for reasons which on the face of it appear to be simply to do with the fact that the person concerned has an Islamic sounding name and getting the banks secretive internal anti-fraud teams to supply the evidence on which they have acted and to reverse decisions is nigh impossible as a colleague can attest.
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Post by xyon100 on Jan 13, 2016 17:09:55 GMT
That incident wasn't FATCA but apparently suspected fraud, though given the nature of the payment I don't see how any reasonable person could think it was fraud. They don't have FATCA button to press. The banks are VERY scared and this guy was a danger. Hence, they pressed the danger button. The linked article has nothing to do with NYC or AML, it's about a bank that has a customer that could potentially shut down their company if not handled as per US regulations. If in doubt, throw them out.
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james
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Post by james on Jan 13, 2016 18:07:21 GMT
They don't have FATCA button to press. The banks are VERY scared and this guy was a danger. Hence, they pressed the danger button. The linked article has nothing to do with NYC or AML, it's about a bank that has a customer that could potentially shut down their company if not handled as per US regulations. If in doubt, throw them out. According to the story the bank placed a fraud marker. They apparently accept that it wasn't fraud. You don't need to place a fraud marker when you want to close an account, nor when you don't want yourself to accept future business from a person. The FOS will handle complaints of this sort as well as about account closure processes in general. The Information Commissioner would presumably handle the complaint about knowingly providing misleading information in a credit report.
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Post by xyon100 on Jan 14, 2016 7:35:20 GMT
An identified customer banking a valid check is not fraud, it's that simple. As the article correctly states, banks are free to share their concerns about a risky customer and do, but there is no FATCA button to press. And any customer banking US checks could indeed be very dangerous for them, but not due to fraud. A UK citizen banking a US cheque is not committing fraud, but he IS ringing alarm bells with the FATCA compliance team who are in the business of making sure the bank is not shut down by the USA for incorrectly reporting the presence of "US persons" on their books. I'm not sure how anybody can come to the conclusion that this is about fraud when there was no evidence of fraud. Mind you, many are completely unaware of the monster that is FATCA and don't understand why the banks are treating Americans like a dose of clap. Regardless, I will be giving the USA a wide berth, if nothing else because any US "indicia", such as a check for $11,000 and I will be kicked out of my Belgian Deutschebank account.
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pikestaff
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Post by pikestaff on Jan 14, 2016 8:08:47 GMT
...I'm not sure how anybody can come to the conclusion that this is about fraud when there was no evidence of fraud...
Because the bank placed a fraud marker? Or are you suggesting that they placed the fraud marker in lieu of something else that their systems (or possibly the law) would not let them do?
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