If individual holds stocks and cash in offshore bank accounts and brokers, how to prevent risks of CRS?

DavidS · 2021-02-15T13:35:57+00:00

Let's say individual is from EU. Managed to cash out part of crypto successfully in 2017 via several crypto exchanges (registered in individual name). Transferred some of this money to individual name registered bank account in USA. Then transferred that money to US broker account to buy stocks (also on individual). Diversified and transferred some money to Interactive Brokers EU entity also on individual) to buy more stocks. Reported NOTHING to local tax man. Planning on selling more crypto in future. So apparently lots of this will probably get reported as per CRS. And this might become a HUGE problem. Specifically: Individual US bank account reporting Crypto exchange accounts reporting US broker account reporting EU Interactive Broker account reporting Need a strategy to MITIGATE RISK (elimination might be impossible) and hopefully transfer the largest amounts to an offshore company. Can't figure out best strategy. Here are ideas: 1) Start closing out non-vital accounts and clearing them of balances 2) Before closing mangle the data, so inaccurate data gets reported. Even if you register an offshore company and then open a brokerage account and crypto exchange accounts... the money institutions (banks, brokers) will require Beneficiary Owner information and that includes address and tax residence. Then they will note the beneficiary owners tax jurisdiction. Then the brokers and banks will send that information to the individual BOs jurisdiction. How to avoid this? How to make sure that the original residence of the beneficiary owner can't be determined by banks, interactive brokers and crypto exchanges? Is registering a second passport a solution? And if yes in which country? But I read that Interactive Brokers will still want to determine your original, actual jurisdiction and require specific proof.

DavidS15 Feb 2021

replies: 23
views: 622

Martin EversonOffshoreCorpTalk moderator

Joined: Jan 2018
Messages: 11,922

29 Apr 2021#21

DavidS said:
I'm not sure if FATCA does automatic reporting.

It does its a bilateral agreement. Long debate and thread on this if you search.

Cetme308winActive Recruit

Joined: Aug 2017
Messages: 315

1 May 2021#22

Martin Everson said:
It does its a bilateral agreement. Long debate and thread on this if you search.

Actually is one of the most discussed topics of this forums

orangeyeFake user - Alias of JohnLocke

Joined: Feb 2011
Messages: 501

25 Nov 2021#23

Is there anyone that has a link to that thread. I would like reading it.

Martin EversonOffshoreCorpTalk moderator

Joined: Jan 2018
Messages: 11,922

25 Nov 2021#24

orangeye said:
Is there anyone that has a link to that thread. I would like reading it.

This link read from beginning to end:

https://www.offshorecorptalk.com/th...-report-non-us-person-deposits-in-them.22676/
This has a little more added info like FI's self reporting under FATCA etc.

offshorecorptalk.com/threads/euro-pacific-ba…22807/page-2

More in Mentor Group Gold

All 1,017 threads

True power moves in silence.

Begin application

If individual holds stocks and cash in offshore bank accounts and brokers, how to prevent risks of CRS?

More in Mentor Group Gold

Diamonds as investment!

THE 2025 ZERO-TAX RESIDENT’S PLAYBOOK FOR AN ESTONIAN OÜ

You need a real address and director for a UK LTD?

CRS reporting of vIBAN?