101 responses to “Are Other Canadian Credit Unions Being As Responsible About FATCA as Vancity?”

1. 

   George III

   February 19, 2015

   I made a mistake I guess computershare was founded in Australia
   Lynn, Can you please ask the various lawyer whether Computershare Canada, the transfer agent for most corporation and provinces will report information to FATCA? Computershare is an Australian company and it store it info in USA, I think Canadian Tire bank does this as well, If you have share with a lot of capital gain and provincial bonds you can just collect you dividend and interest directly instead of being in a brokerage accounts. They will also forward the bond principal when they come due. Provincial payments should never reported and unless you are a controlling owner of a corporation I do not think dividend need to be reported.
   A transfer agent forward dividends and interest if you have the certificates in your name.
   It may be helpful for some people if brokerage firm freezes their assets and ask them to transfer out.

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2. 

   George III

   February 20, 2015

   Portland They have frozen some trading accounts.
   All I am interested is giving the correct advice.
   It is extremely likely that any Canadian government will use the non withstanding clause on Supreme Court decision if the USA government applies 30% sanctions.
   The Liberal and NDP are allies of Obama
   Former Obama aides advising NDP, Liberals on campaign strategy
   http://www.theglobeandmail.com/news/politics/ndp-liberals-using-grassroots-mobilization-tactics-from-obama-campaigns/article22216447/
   No government will accept millions of unemployed people, increased interest rates and devastated personal investment plans so that a small number of people can avoid IRS nasty letters. Russia signed an FATCA IGA in June last year even though they faced lesser sanction because of Ukraine.
   Do they ask if you are A US person for new accounts?
   Are all they interested in Canadian addresses and SIN number.
   Avary & other lawyer John Richardson should know how Computershare is considered and whether it follows USA internal rules or Canadian IGA rules.
   I had a Green Card over 30 years ago and left that same year. I was told it was not valid if I left after 1 year. I even had an I 407 which I lost. I only entered USA with Canadian passport..
   The Canadian government already have given green card holder a get out of jail free card somewhat similar to Lynn get out jail free card. If you told you renounced when you got Canadian citizenship.
   Someone may transfer some provincial bond and see what happens.
   If you ever call Computer share you hear there phone call are recorder and store in USA.
   Th other question up to John Richardson is that on the Canadian government website they only talk about US citizenship. Even though US considers you a US person until you do the exit tax crap. Is that his interpratation

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3. 

   George III

   February 20, 2015

   Please note I only went back to Issac Brock site to pass on information to KalC about IRS being so busy. I would not even go there if he was still around to protect newbies. Has anybody see anything from him?

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4. 

   PatCanadian

   February 20, 2015

   Please note interesting comments entered today on ISB website under FATCA Discussion thread part two. WhatAmI and tdott noted that Canadian Direct Financial credit union won’t open accounts for US citizens. The following is the link to their online application:
   https://www.canadiandirectfinancial.com/Personal/GetStarted/CustomerApplication
   I tried it as well and came up with this reply when checking yes to being a USC:
   “Unfortunately Canadian Direct Financial is unable to open accounts for U.S. Citizens or U.S. Residents.”
   Fortunately I am no longer a USC but aborted the application anyway. This is a great reminder to always check your FI’s FATCA status.
   Apparently this credit union has not opted for the local client based exemption from FATCA or for some reason is unable to qualify. It looks like Canadian citizens who are also US citizens would be denied bank accounts at this FI. Is this not discrimination? Thanks for the information tdott and WhatAmI.

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5. 

   GeworgeIII

   February 20, 2015

   Canadian direct is not a credit union it is an online subsidiary of Canadian Western Bank. It has 18.5 billion assets 100 times limit and has commercial clients. Almost all FFI with business client will be FATCA compliant. Business want to export and import from USA.

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   1. 

      PatCanadian

      February 20, 2015

      Yes, it is a division of Canadian Western Bank. It was referred to on IBS as a credit union but the FI website does not indicate this.
      The main point being made here is that their practices appear to be discriminating against Canadian citizens and residents with US connections. Canadian Direct Financial is denying banking services to these individuals as indicated by the online application.

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6. 

   Lynne Swanson

   February 20, 2015

   PatCanadian Yikes! That appears to be discrimination to me. The problem is the Implementing Act overrides the Humann Rights Code and other Canadian laws. I will send this on to Joe Arvay,
   They ask if the applicant is a U.S. citizen. If someone does not consider himself or herself as such, they can honestly say no. However, I think this is the first we have seen this in Canada. I can understand them not opening for U.S. residents but I don’t understand how they can refuse to open for a U.S. citizen living legally in Canada.
   @George Before I ask John your question, have you seen http://maplesandbox.ca/wp-content/uploads/2015/02/ComputerShare-FATCA.pdf? This seems to be for UK clients, but ComputerShare certainly is singing the FATCA hymn.
   FATCA and Computer Share information for Canada is somewhat older. but again it appears they are in compliance mode.
   @All: I have been quiet and slow to respond here and elsewhere because I am having new health complications relating to my injury last year and M.S. spinoffs. Please bear with me.

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   1. 

      PatCanadian

      February 20, 2015

      @Lynne
      Thank you for passing this on to Joe Arvay. It’s another OMG moment that this is happening in Canada. Refusing banking services on the basis of national origin / US taint must be discrimination.
      Take all the time you need for your health concerns. I’ve found that taking good care of oneself is the best path for helping ourselves and others. The Maple Sandbox and IBS websites are much appreciated.

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   2. 

      EmBee

      February 22, 2015

      Do whatever you need to do, in whatever amount of time it takes, to get feeling top-notch again. You are an inspiration to all of us to keep on trying to wake up the unaware and shake up the governments which created this chaos in our lives … and to keep on donating to ADCS.

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7. 

   Goerge III

   February 21, 2015

   Canadian Bank must offer basic bank accounts to all Canadian resident people.
   Check if Canadian Western Bank offer basic bank accounts?
   Canadian Direct may not be considered a basic bank account. It is a higher interest online saving account. They may not want to spend a bunch of money to do the FATCA compliance computer check & accounting even though their parent company is required to be compliant. There procedure is just to refuse American clients. In addition because it is an online bank they can not check people driver licenses at a branch. Usually you need a driver license and a recent letter from government or utility to set up a bank account. I always bring a driver license and my Canadian passport. Born in Canada to Canadian parents. In my case I want them to have my passport information.

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8. 

   Lynne Swanson

   February 21, 2015

   I just submitted the following to Canadian Direct Financial:

   I am the co-administrator of the website Maple Sandbox. I am not a U.S. citizen. It has been brought to our attention that your organization will not allow U.S. citizens to open accounts with your organization.
   Could you explain why you are discriminating against U.S. citizens? Many of these individuals have been Canadian citizens for decades or from birth.
   Those who visit our website will be interested in your reply.

   I will advise of the response if I receive one.

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   1. 

      PatCanadian

      February 22, 2015

      Thanks Lynne…I submitted similar correspondence to Canadian Direct Financial this morning. It is posted in a comment under the new post, ” A Ripple Effect Is Here”.
      We have spoken. Let’s see if there is a response from CDF.

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9. 

   GeorgeIII

   February 23, 2015

   Has anybody called up Canadian Western Bank to check if they offer basic banking to US citizen?

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   1. 

      PatCanadian

      February 23, 2015

      Why don’t you do it? I am busy and have already sent correspondence to CDF. Hopefully they will reply and explain why they are excluding US persons who are Canadian citizens and residents.

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   2. 

      Lynne Swanson

      February 23, 2015

      @GeorgeIii it would be great if you made that call and post the reply here.  Thanks.

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10. 

    Lynne Swanson

    February 23, 2015

    Here is the response I received from Canadian Direct Financial:

    Good afternoon Ms. Swanson,
    Thank you for your inquiry.
    Canadian Direct Financial (CDF), a division of Canadian Western Bank, is focused on providing our clients with responsive, personalized service in our selected areas of expertise. The information and documentation required to open an account for a citizen or resident outside of Canada are prohibitive to providing the responsive, personalized service our clients expect.
    U.S. citizens or residents who would like to do their banking with our institution can do so through Canadian Western Bank. We offer personal and business banking service through 41 branches across Western Canada.

    Sincerely,
    Lawrence Lorimer
    Manager Canadian Direct Financial
    Suite 3000, 10303 Jasper Avenue
    Edmonton, AB T5J 3X6
    Phone: 877 441-2249
    Fax: (877) 441-2250

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11. 

    GeorgeIII

    February 23, 2015

    Lynn
    Look at what I have written and CDF response. Someone with basic business skills would know that. CDF is not a basic bank account. Credit unions do not have corporate clients.
    If you can appreciate my understanding of business and how the economy works (do not call it economics which is BS): You can see my point that any government of Canada is going to use the non withstanding on the Supreme Court decision, if USA apply sanctions, In fact compared to the original European deal, ours is a much better deal. The Canadian IGA has given you an get out of jail card.
    If you think the non withstanding is a bad political issue ask yourself what happened to the Swiss referendum, The Swiss understand finance and business better than any other citizens. A few TV ads from Canadian exporter will convert the vast majority of people. Canada export hard to move commodities to our closet neighbor USA. We also many import stuff like I-phones. Commodities you can get from a number of countries.
    In addition
    a) Canadian Investor will be pissed off with a 30% withholding on USA investment. People want global diversification. The USA stock has outperformed Canada and the rest of the world.
    b)Interest rates will rise
    c) Tourist will have a 30% withholding on trips to USA.
    The USA will not make special rules for Canada because they will have to change every other countries IGA. This is not going to happen with Democrats and the Republican will need 60 vote in the Senate plus the US Presidency to cancel this law. You may not even getting all Senate republican agreeing to this.
    A better use of a Supreme Court challenge would be the changes in Canadian law due to 1995 USA Canada tax treaty. It also sort of recognizes USA tax law in Canada, but they can only collect from non Canadian citizens (at time it occurs). My understanding 1/2 of USA citizen in Canada are not Canadian citizens. Ensure that Canadian government & court will not enforce any USA tax law for not filling. Let the IRS send people nasty letter but as long as you do not cross border, you are fine. Almost no country has that agreement. Which was signed by the Liberal who are natural friends of Obama. Labour union will push the NDP to go along once they suffer job losses due to sanctions.
    I wish KalC was still around and taking care of newbies at Issac Brock.

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12. 

    PatCanadian

    February 25, 2015

    I thought I would post this link here as well. Lynne has posted it under the Ripple Effect is Here and it is also on IBS website:
    http://www.theglobeandmail.com/report-on-business/international-business/alberta-online-bank-first-in-canada-to-shun-us-clients-amid-tax-rules/article23186804/
    This article about Canadian Direct Financial states, “It’s discrimination based on nationality,” said Kevyn Nightingale, a U.S. tax specialist at accounting firm MNP LLP in Toronto.
    Those who are concerned with their “understanding of business and how the economy works” might take notice that there are other factors to consider such as discrimination and violation of fundamental human. rights.

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13. 

    CDN

    March 19, 2015

    Update on Alterna; Last week, a friend visited a branch (which shall remain nameless) to open a chequing account. They still require only a driver’s licence and credit card as proof of I.D., HOWEVER, during the application interview, she was asked about place of birth ! I’ve seen her application form, and there is a line for “foreign taxation,” and underneath in brackets, “list all countries to which taxes accrue and are payable”, with nothing typed in that space. Below that, lines for country of citizenship and residence status which depending on the answer, would be filled out appropriately. There was no direct question about place of birth on the application, but apparently, the Alterna rep had her name on a framed certificate signifying compliance officer training. The online version of the application had none of those questions as of a few weeks ago. Hard to say how that fits with Alterna’s status as a “deemed compliant institution”. I suppose that an optimist might say that it could be a case of local branches not getting the message, or, perhaps their status has changed. Either way, not good news.

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    1. 

       PatCanadian

       March 20, 2015

       Thanks for the update, CDN. It seems the FATCA situation is a changing landscape. We need to be vigilant, especially when it comes to the compliance condors.

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14. 

    Lynne Swanson

    March 22, 2015

    @Thanks Cdn. That is concerning. I cannot figure out why Alterna would be asking place of birth or foreign taxation questions if they are local client base status like VanCity.
    I know someone who opened an account within the last few weeks at my new credit union (Your Neighbourhood Credit Union). She was not asked any questions about place of birth or citizenship.
    I still hope there will be people out there willing to take on the project of surveying credit unions to find out which are taking the local client base approach.
    For some reason, Your Neighbourhhod does not seem to be local client based (I do not understand why not), but they seem to be using CRA guidelines which are clear that FIs are not required to ask for place of birth. I also do not understand why all financial institutions are not doing that.

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15. 

    Crackermoo

    March 29, 2015

    I renounced my U.S. citizenship six weeks ago at the Toronto Consulate and am now waiting for my CLN.
    While I wait, my bank wants a copy of my CLN. I can’t give it to them, of course, and they say my receipt is not good enough, even though the IGA says that “a reasonable explanation” should suffice.
    Regardless I am planning to open an account at my local credit union. I’ve just taken a look at the application form and it asks for my citizenship (Canadian) and then asks “Are you a U.S. person for tax purposes?”
    On the other hand, I am technically no longer a U.S. citizen.
    I’m not sure how to truthfully answer that question. After all, I still have to file a U.S. return for 2014 and the first several weeks of 2015 (up to my the date of my renunciation).
    I was just wondering if anybody else has dealt with this situation.

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    1. 

       PatCanadian

       March 29, 2015

       I have not dealt with the exact same situation but a similar one. I closed all my accounts with the big banks prior to July 1, 2014 when FATCA took effect. If the bank won’t accept your receipt for renunciation, it looks like they are really in overdrive with FATCA compliance. I have to wonder if people could bring lawsuits about this?
       My credit union is local client based so doesn’t ask about being a US person for tax purposes. Maybe you could find an LCB credit union?
       On the other hand, once you renounce I believe that you should not be considered a US person for tax purposes by financial institutions in Canada and could truthfully answer “no”.
       I renounced in December, 2014 and consider that from the date of renunciation, I am not a US person for any purpose.
       I hope others can help you with this as well. Good luck.

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16. 

    Crackermoo

    March 29, 2015

    Thanks PatCanadian. “Maybe you could find an LCB credit union?” Not in my area, I’m afraid. But I’m paying attention to the questions asked.
    For example, the application for another of the local credit unions asks “Are you a U.S. citizen? Are you required to file income tax to the U.S.?” (Technically, I am required to file U.S. income tax returns until I file my final return in 2016.)
    Maybe I can’t do this until I get my CLN.

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17. 

    Portland PLC

    March 29, 2015

    Crackermoo. What’s the problem? Tell the CR the truth. You are not a ‘US person for tax purposes’.

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18. 

    Lynne Swanson

    March 30, 2015

    @Crackermoo: I agree with Portland PLC. You are no longer a U.S. Person for tax purposes effective the day you renounced. So, the answer to that question is an honest and simple No.
    Are you willing to say which bank is demanding a CLN? The FATCA regs and the IGA are clear that a “reasonable explanation” of why you do not have one is acceptable. Your reasonable explanation is it has not been received yet. However, I know that TD’s website says they will only accept a CLN. I do not know if other banks are doing the same.
    One problem you may face after closing your account is that the bank may still report up to the day of closure.
    How did your bank know of your U.S. Status?
    Are you willing to say which credit union is asking those questions?
    Thanks for sharing. Please keep us informed. good luck!

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19. 

    Schubert

    March 30, 2015

    This is perhaps a little off-topic, but I thought I’d report it here.
    I have an RRSP with QTrade (Vancouver-based investment firm). QTrade is affiliated with Alterna Savings, my credit union, and has an office inside the local branch office of Alterna Savings, and they have access to Alterna’s account information on me FWIW. Not an issue for me as I’m not a USC and have had a CLN for decades.
    Recently I met with my QTrade agent in the Alterna branch office, to convert my RRSP to a RRIF. We hadn’t met for two years, so he wanted to update his Know Your Client form. Which we did.
    QTrade’s KYC form has one line (page two, item 6 “Other Interests in the Account(s)” that is relevant to FATCA. It says, quoted in its entirety:
    “Are you a US person for US tax purposes? (Note: A US person includes a US resident or citizen) If ‘yes’ please complete an IRS Form W9 and Waiver of Client Client Confidentiality. Primary Account Holder No/Yes Joint Account Holder No/Yes.”
    During the interview I was asked verbally two separate questions, “are you a US citizen” and “are you a US person for US tax purposes.” I truthfully answered No to both questions. My account isn’t joint, but my wife’s answers would truthfully have been the same.
    At the bottom of the page you must sign the statement “I acknowledge and certify that the information notes above in the Account Holder Information & KYC Update Form is true and complete … I acknowledge that QAM (my note: QTrade Asset Management) can rely on this information until I send written notice of any significant changes to QAM.” (I was also asked the question below about whether I’m a Politically Exposed Foreign Person and a few other questions mainly about my risk tolerance and investment preferences etc.)
    At no point on the form nor during my meeting was I asked where I was born (never mind where my parents were born). I was asked to verify their information on my date of birth, however (relevant in this case for RRIF purposes).
    I was asked to submit photo ID for photocopying and updating in their records. My Ontario Driver’s License was accepted for that (no mention of place of birth on it).
    The US person question appears right after another question that asks if you are a Politically Exposed Foreign Person as defined in Qtrade’s Customer Agreement and Disclosure Documents Booklet, also asked of everyone. I certainly am not one of those, nor is it likely that anyone visiting this website fits that definition. But “due diligence” requires that they ask that question too (unrelated to FATCA AFAIK; their Booklet says it relates to potential foreign money-laundering).
    My reading of the form and the way the agent conducted the interview, is he and QTrade are simply covering their butts and not probing unless they have something on file or you say something that would give them reason to probe on this issue.
    Individual agents of financial institutions (or any other bureaucracy) may always differ in terms of how they misread or interpret their rules and mandate, but my sense is that as an organization, QTrade is not going on a US-person jihad. They just want to cover their butts. Which is very likely their interpretation of “due diligence.”
    In my last meeting with my QTrade agent a couple of years ago, he mentioned that QTrade is a Qualified Intermediary under IRS rules (as are all FIs in Canada that handle US-based investments). It is my understanding that they therefore have been required to notify IRS of US-person accounts for about ten years now, before FATCA, but my understanding of that may not be precise or totally accurate. Anyway it isn’t an issue for me. I am down on my Alterna and QTrade documentation as a Canadian citizen, which I have been since before I ever opened accounts with either of them (and my CLN was issued to me before I’d ever opened accounts with them, back in the 1970s in the case of Alterna).
    I’ve never been asked to show my passport, my birth certificate, nor for that matter needed to produce my CLN, either at QTrade or at Alterna. I’m not about to raise these issues with them, but I did have a copy of my CLN with me tucked securely in my shoulder bag, during the interview, in case I felt I needed to show it. Didn’t need to.
    My best guess is that if any employee of either QTrade or Alterna is asking for birthplace information, they’re exceeding the requirements of their job and arguably their authority.
    I also suspect that the lawyers of both organizations have decided that the “US person” question is legal under the enabling legislation for FATCA and the IGA (what happens after the charter challenge is another matter, but as the law currently stands they’re probably right IMO). Asking place of birth is not required under the IGA, IMO would clearly contravene Section 15 of the Charter, and I suspect their lawyers are making that distinction very carefully. But that is pure supposition on my part and not based on any conversation or written material with or from either organization.
    FWIW.

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    1. 

       badger

       October 4, 2016

       Schubert, that detailed description of Qtrade’s practices, Alterna, and your commentary was very helpful to me. Though I have my CLN, I resent having to potentially produce it. So far I haven’t been asked, but perhaps that is due to thresholds or type of accounts. One of my credit unions knows I was a US citizen – I spoke with the manager of my branch at great length before the signing of the IGA and passage of the enabling legislation. At that time they did not think that Canada would comply, because of Flaherty’s public letter opposing it in the press. Though I had told them also of my intention to relinquish they have not asked me about it one way or the other – so far.
       Thank you very much.

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20. 

    George III

    April 13, 2015

    For the Canadian FATCA you are not a US person for tax purposes. The USA may still consider you a US person for tax purposes
    “19. Does the agreement require Canadian financial institutions to report to the CRA on any individuals who relinquished their U.S. citizenship?
    No. Canadian financial institutions do not have to report on any individuals who have relinquished their U.S. citizenship and are not residents of the U.S.
    Financial institutions may ask individuals who have relinquished their U.S. citizenship for documentation to this effect. ”
    http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/fq-eng.html#q2-5

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21. 

    George III

    April 13, 2015

    3.29 For the purposes of Part XVIII, a Canadian financial institution will be either a reporting Canadian financial institution or a non-reporting Canadian financial institution. The distinction is important because Part XVIII obligations generally apply only to reporting Canadian financial institutions.
    Note
    from Guidance
    http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.html#Toc390079650
    “There are a few scenarios in which a non-reporting Canadian financial institution must report to the CRA. One example is when an entity that is a financial institution with a local client base under paragraph A of section III of Annex II of the Agreement identifies a U.S. reportable account. In this case, the financial institution must report the account as a U.S. reportable account (unless the account is closed in the year, in which case, no reporting is required on the account or its closure).”
    A local bank may have to report you if they find out you are American.
    A credit check usually has a lot of old addresses.

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    1. 

       WhatAmI

       April 13, 2015

       @George said: “A local bank may have to report you if they find out you are American.”
       George, I believe your last post is incomplete and very misleading. As written, it sounds like you’re saying that a LCB (Local Client Base) credit union will report an account if they find out the holder is a US person. This is absolutely not true. Read the IGA. This applicable section is only one paragraph (one sentence, in fact). It’s on page 40.
       A US citizen resident in Canada may hold an account at a LCB credit union without being reported as long as they remain a resident in Canada. If this US person permanently moves to another country other than the USA, then the CU must either report the account or close the account.
       If anybody would like a 3rd opinion, read VanCity’s interpretation and how they are applying the rules as I have just described:
       https://www.vancity.com/PrivacyAndSecurity/YourPrivacy/FATCA/
       Oh hell, VanCity uses the unfortunate poor wording of “non-Canadian resident” instead of “non Canadian-resident”. Let’s not argue that again! The issue is clearly with account holders who are US persons but not resident in Canada. The IGA does it right and specifies “a US Person who is not a resident of Canada”.

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    2. 

       GeorgeIII

       April 13, 2015

       My mistake. I should have pulled the IGA as well. Hopefully no local banks makes that mistake.

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22. 

    May Smith

    April 13, 2015

    My local credit union made me sign a Fatca Form the other day because I became a new signer on an account. I volunteered on a local organization board, and now sign on their account. I had a little freak out in the credit union (the staff know I am U.S. born, half the people in my border town are, or are born to a U.S. parent) and said No to being a U.S. citizen and No to being a U.S. resident. The next time I went in the supervisor asked me if I’d bring in a copy of my passport because they have to enter something other than my drivers licence into the computer and what they have is my U.S. birth cert (given to them 20 years ago). I told her I would trade a copy of my passport for a copy of my U.S. birth cert if she wouldn’t enter my place of birth. She agreed. She is also a non compliant U.S. person.
    Ugh. I feel the noose tightening.

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23. 

    George III

    April 13, 2015

    Mary you may also use the Blaze rule that if you thought you relinquished USA citizen when you became a Canadian citizen you can use that explanation.
    “Unambiguous U.S. place of birth
    8.27 When the indicium found is an unambiguous indication of a U.S. place of birth, the account must be reported unless the financial institution obtains or currently maintains a record of all of the following:
    a self-certification showing that the account holder is neither a U.S. resident nor a U.S. citizen;
    evidence of the account holder’s citizenship in a country other than the U.S. (for example, a passport or other government-issued identification); and
    a copy of the account holder’s Certificate of Loss of Nationality of the United States or a reasonable explanation of why:
    the account holder does not have such a certificate; or
    the account holder did not obtain U.S. citizenship at birth.
    8.28 In the context of an electronic record search, an “unambiguous indication of a U.S. place of birth” must include identification of the U.S. as the country of birth. Identification of a city and/or a state as the place of birth, without identification of the country of birth as the U.S., is not considered to be unambiguous.”
    http://www.cra-arc.gc.ca/tx/nnrsdnts/nhncdrprtng/gdnc-eng.html

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24. 

    OutragedCanadian

    April 14, 2015

    A friend told me yesterday she opened an account with ATB Financial. She was asked if she was a US citizen (she’s not) and at the end was given FATCA material to take with her. ATB is an Alberta provincial crown corporation.
    Yep, noose is tightening, all right.

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25. 

    PatCanadian

    April 14, 2015

    Thanks to Joe Smith, the following article was recently posted on Brock regarding credit unions and exceptions to FATCA reporting. It is quite clear on the three types of exceptions:
    1.the Local Bank exception
    2.the Local Client Base exception, and
    3.the Low Value Account exception.
    It is written by BDO, a Canadian accounting and advisory firm.
    http://www.bdo.ca/en/Library/Services/Tax/pages/Tax-Alert-FATCA-and-Canadian-Credit-Unions.aspx
    Many are concerned about this now. Although I am no longer a US person, there is peace of mind in belonging to a credit union not asking questions about FATCA.

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26. 

    PatCanadian

    April 29, 2015

    The big banks are increasing their fees. Wonder if this has anything to do with FATCA compliance costs? Please see global news below:
    http://globalnews.ca/news/1938310/canadas-big-banks-rolling-out-higher-fees-on-account-holders/
    This article states “Each of the country’s five biggest banks has recently introduced new account policies and higher fees, or is in the process of doing so.” It doesn’t say anything about the credit unions. I would think a credit union which is totally or partially exempt from FATCA would have fewer costs to pass along to the consumer.
    Anyway, this will certainly affect all Canadians and not just “US persons”.

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27. 

    PatCanadian

    August 10, 2015

    Also put the following on IBS as comment under Your Experiences Banking Post:
    RE INVESTING:
    Credential Financial Inc., the investing company associated with Vancity in BC, appears to be fully FATCA reporting with no exemption status. I spoke with a representative who says they ask the usual questions about US citizenship, US place of birth, etc. and report to CRA on any reportable accounts of US persons. This even though Vancity credit union has Local Client Based exemption.
    Where do we invest? I have renounced and could invest with them but do not wish to do so. I object to investing with any FI who turns over sensitive financial information on suspect US persons to CRA who then gives to US IRS!
    This is a whole new question to investigate in our post FATCA world.

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28. 

    Lynne Swanson

    September 6, 2015

    Someone in B.C. (who is neither a U.S. citizen nor a Ù.S. person) sent me the following in an e-mail. I am posting it with that persons consent:
<blockquote>I thought I would pass this info on to you. My oldest son and his wife recently opened a new savings account at the Sunshine Coast Credit Union. They have banked there for more than 20 years - cheque accounts, savings accounts, Mortgage is there, RESP accounts for the kids and the kids bank accounts.Sunshine Coast credit Union is not very big. When they opened the new account last week, the staff member asked them to sign an additional form that she referred to as THE FATCA FORM. My son could not remember all the details but basically they had to sign they were not liable for U.S tax forms. (<em></em><em>Name Removed</em>) could not remember if the form actually asked where they were born or if the staff person just asked them that.
He will try to get me a copy of the form but it sounds illegal to me and worrisome as it is a small credit union and I had hoped they were safe from the bullies.</blockquote>
I advised the person who sent this that the enabling act overrides all other Canadian laws so it is no longer illegal to ask where someone was born to open a bank or credit union account (even though CRA has been quite clear that they are not required to do that). This happened to a long-time customer (or member whichever word is appropriate), not to someone who is trying to open their first account there.
I did a search on Sunshine Coast Credit Unions website for FATCA and got this:

    Your Search for FATCA returned no results. If you are having trouble finding the information you are looking for, please phone us at 1-877-801-9069.
    Did you mean: fat ca?

    This is one more to add to the list of B.C. Credit Unions. It appears this small credit union is giving in to the bully just like the big banks.

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29. 

    calgary411

    September 7, 2015

    At Brock, US_Foreign_Person says
    ” Someone should move @LakeSuperiorGuy comment into the banking experience section about the credit union. This is important info to know… ”
    Thus, here is a cross-post of that comment here — the specific credit union not identified:
    ” I hate to make this worse, but be careful when putting your trust in credit unions as well. I called the CEO of mine and she said they were fully compliant with FATCA rules despite being eligible for the local exclusion! She also said that accounts over 10k were reportable…not the 50k that I thought the maximum was. I told her I was a shareholding member for 25 years. The gist of her answer was “it sucks to be you.” Good thing my call was anonymous from the last payphone on the planet! “

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30. 

    PatCanadian

    September 7, 2015

    Looks like LakeSuperior Guy did his research. Even when the credit union can qualify for LCB status, I guess some of them don’t bother to obtain this designation. And reporting on accounts over 10K, they are in over drive as well. Good idea to call from a pay phone.
    We can’t be too careful. As I’ve said before, always check out a credit union yourself as to its FATCA status. Some credit unions are fully exempt due to low total assets (less than 175 million US$)although their assets could grow into the FATCA compliance zone. Some credit unions are partially exempt if they are Local Client Based and will not do FATCA reporting on residents of Canada. .Others are fully FATCA compliant and should be avoided just like the banks.

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31. 

    George III

    October 10, 2016

    Lynn thank you
    But I think I wanted the thread talking about all the Credit Union not complying. I believe the list came up due to Canadian Direct Financial not allowing American Citizen. They also do not allow Quebec residents.

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    1. 

       George III

       October 10, 2016

       Sorry I made a mistake
       I did not look back far even to see the oldest comment. This is thread I wanted. I believe it lists Achieva, Accelerate and Implicity not being FATCA compliant. Try and stick this part as an must read important thread.

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32. 

    George III

    October 10, 2016

    “calgary411 on September 7, 2015 at 8:44 am said:
    At Brock, US_Foreign_Person says
    .
    .
    “Good thing my call was anonymous from the last payphone on the planet! “
    Lynne
    I think you should tell Calgary 411 and others that if you dial *67 you phone number will not show up. It may not work on all cell phones. Wait to hear message your name and number will not be delivered for this call.

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