Mentor Group
Turner Little - Company Formation Agents & Banking Intermediaries.Chat to a member of our sales team.

Brokerage with non CRS bank question

NEW! We offer text link placements in two of the busiest forums.
Requires active Mentor Group Gold membership!
If you are looking for professional assistance and information about everything that people do not write about.

juul2

New member
When opening a brokerage account with a non CRS bank will the broker report?
For example Ameria bank (Armenia non-crs) offer their white label Interactive Brokers account, will there be any reporting on behalf of IB?
 

KimJongsBrother

New member
All depends on your residency you validate with the Bank and IB, eitherway IB will require you to complete W8BEB form and do their own KYC.
Digging into the IB website from the Bank in question. if the IB Branch linked to the Bank Account is in CRS juristication such as HK then they will report as you would be an account holder in IB HK. I see there is also Global IB account, that discusses FACTA & CRS.

Also IB want your TIN/SSN, employer details, they may even ask for residency proof, Bank Statement may placate them or if not in country of passport they may ask for visa proof, rental agreement depends on how strict they are for KYC.

IB focused on US Markets then the reporting will be based on your country of residence & US DTA, in some DTA there are articles of "automatic exchange of information". (not sure if it is automatic or by request because most Banks/Brokers report or reject US citizens automatic based on FACTA, someone in the know may jump in I hope).

So if you seeking to circumnavigate reporting while investing it is doable but just by going thru a non CRS may not make a difference read your DTA.

Some discussion here on similar

I did see an article recently where some swede or danish nationals where caught out from their home country having USA Broker Accounts but thus thru their use of the USA Based Broker MasterCards they were using at home. This suggests they may havechad the accounts and they were not being reported automatically but their card use put them on the radar.

Your relevant DTA agreement, in example some specifically state the DT Agreement is only related to US and not its territorial islands such as Puerto Rico that therefore gives on option for some residents to bank there on this basis. (risk remains but less maybe) for EPB though their Brokerage is in a CRS reportable jurisdiction.

Your DTA though would allow you to recover some of your Tax, paying 30% on dividends etc. there are better ways to invest in the US indirectly.

If you are in a non CRS country then invest in a reportable CRS, to reduce the 30% US WHT, but again look at the DTA with that country and yours, there may not be automatic exchange of info by governments definitely wont be by banks/ brokers
 
Last edited:
Fast Offshore - Company Formations Since 1998
Mentor Group

Latest Threads

Mentor Group
Top