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Do American brokers and banks report client information (account size, balance, yearly profit) to client's country?

Question is ONLY for NON-US citizens.

Client's country refers to

  1. Where client lives. Tax residency

  2. Where client is a citizen. Not necessarily where they live.

1 Answer 1

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Do they always? No.

The US is not a participant of Common Reporting Standard (CRS) for Automatic Exchange of Information (AEOI) with other jurisdictions.

However, if a non-USA jurisdiction has signed a Model 1A agreement ("reciprocal basis") based on Foreign Account Tax Compliance Act (FATCA) of the US, there is always AEOI involved.

The exact list of jurisdictions is a mess. Try searching on Google "[jurisdiction] FATCA reciprocal".

Note that the lack of AEOI does not mean that the US will not share information on an ad-hoc / manual basis upon request from other jurisdictions.

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  • Thanks. I found a 50 page document published on home.treasury.gov. How do I figure out if USA shares information with this country without reading the whole thing? :)
    – user113261
    Dec 1, 2021 at 16:18
  • From a random website, I found that this country is categorized as "Model 1 Agreed". So American firms share client information with this country automatically? I thought I've read something like America had a reputation of not sharing financial data with others and that it is a tax heaven for that reason.
    – user113261
    Dec 1, 2021 at 16:22
  • At appears "signed" but it doesn't say "in force" like other countries. What could that mean?
    – user113261
    Dec 1, 2021 at 16:25
  • Look into the exact agreement and search "Reciprocity" and "reciprocal".
    – base64
    Dec 1, 2021 at 17:13
  • it basically says USA will share as much as it gets from the other country. But does that how it work in practice?
    – user113261
    Dec 1, 2021 at 18:00

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