This week, meet Michael K. Salemi, professor emeritus at the University of North Carolina-Chapel Hill. His many writings include Money, Banking, and Financial Markets: What Everyone Should Know. What do you need to know about your finances and the world of banking? Find out by listening to this weeks show.
Posts Tagged ‘banking’
What can you say about banks? While ATMs and online banking mean that you can do transactions and watch your account 24 hours a day, most people have never met their bank manager and the cozy feeling of having a local bank has been lost. This week, Doug speaks to Anat Admati, author of The Bankers New Clothes and a professor of economics at Stanford University, who explains the ins and outs of the banking system today.
John Kraft of D.A. Davidson explains the future of banking and finance in the modern world. John has been researching banking technologies for a number of years, and he talks about what lies ahead for the consumer in the current world of developing technology and know-how. So are today’s banking practices soon to become a thing of the past? Find out more by tuning into tonight’s show.
Globes cites sources claiming that the Ministry of Finance is working to sign an agreement with the U.S. Department of the Treasury on the transfer of information regarding bank accounts belonging to foreign nationals in both countries.
According to Globes, Israel Tax Authority director general Doron Arbeli last week met Internal Revenue Service (IRS) acting commissioner Steven Miller to advance this effort. Should an agreement be signed, Israel will establish an organization to monitor and enable the transfer of the necessary information to the U.S., and the IRS will send to Israel details of bank accounts belonging to Israeli residents in the U.S.
The initiative was born by an effort of the Ministry of Finance to help Israeli banks deal with draconian U.S. regulations under the Foreign Account Tax Compliance Act (FATCA), which applies to US citizens residing overseas.
Under FATCA, banks in foreign countries—including Israeli banks—must provide the IRS with lists and details of accounts belonging to U.S. citizens, including declarations from said citizens that they have paid the required taxes back in America.
The IRS has been known to impose sanctions against a bank which knowingly permitted customers to violate FACTA rules.
According to Globes, banks around the world have sharply criticized FACTA’s hard nosed policies, but one way of dealing with the law’s requirements is signing an agreement of cooperation between the foreign country and the U.S. the agreement allows local banks to send bank account details to their own government, which then passes them on to U.S. authorities.
Banking secrecy? We don’t need no stinking banking secrecy…
Globes cited a U.S. Department of the Treasury document published in November, which states that the U.S. administration was in talks with Israel’s Ministry of Finance to draw up an agreement, under which the US authorities would also provide the Israeli authorities with information about the bank accounts of Israeli citizens residing in the U.S.
Uncle Sam is in similar talks with Argentina, Hungary, New Zealand, and South Korea.
The agreement will not be symmetrical. The U.S. will be required to transfer less information than the Israelis will be doing, but Globes suggests that even partial information could help the Israeli government fight tax evasion by Israelis in the U.S.