Foreign Depositors Rule Is Welcome

By Nicole Tichon

This article was originally published by The Orlando Sentinel.

To the Editor:

Regarding “Florida bankers object to disclosing identities of foreign depositors,” OrlandoSentinel.com, April 18: The Florida Bankers Association, U.S. Sen. Marco Rubio and U.S. Rep. Bill Posey are off base in their reactions to the new Treasury Department rule requiring banks to report information to the Internal Revenue Service on deposit accounts held by foreigners. They already are required to do this for accounts held by U.S. citizens, U.S. residents and Canadians.

Warnings of massive capital flight from Florida banks are without merit.

There are many legitimate reasons that foreigners deposit money in American banks. Foreign corporations operating in the U.S., foreign individuals financing their children attending Florida schools and universities, foreign investors looking to invest in the American real-estate market, or foreigners hoping to park their assets in a stable financial atmosphere would all logically deposit money in U.S. banks. This is the bulk of the money foreigners have in U.S. banks, and none of it will flee as a result of this new regulation.

The new Treasury rule is a welcome development in the fight against international tax evasion at home and abroad.

Nicole Tichon

This article was originally published by The Orlando Sentinel.