by Mike Vogel
The IRS now requires financial institutions to report interest paid to non-resident alien (NRA) depositors. Many international banks operating in Florida had opposed the regulation, arguing that their clients would withdraw their money if the governments in their home countries were informed of where they had deposited their money. Florida Trend asked international bankers how the new regulation will affect international banking in Florida.
“A lot of people act based on their fear. We’ve met with the IRS, and they’ve asked us to transmit to our members and customers that the way it’s written it’s not an automatic exchange of information with the 70 countries on the list. The only automatic exchange is with Canada.”