If you are an American with means you might think it prudent to diversify some of your wealth into other countries. With a dollar in decline and uncertain economics in the U.S. citizens of this country have used their freedom to open offshore bank accounts, buy real estate, invest in businesses.

Unfortunately the tyrants of the IRS have seen to it that at least one of your options for overseas diversification, opening an offshore bank account, is pretty much dead for any American.

Offshore banking was for years used by the rich to shelter funds from taxation. The IRS didn’t much like not being able to access that money so they began tightening the noose and creating draconian restrictions with regard to offshore banking.

The end result is that it is extremely difficult to get your money out of this country and into a safer place. Even if you are tax paying, law abiding citizen, simply wanting international diversification. Canadians have no trouble opening up a bank account in Switzerland. Brits can easily open an account in Singapore. Not you American.

Daily Reckoning explains via Bloomberg:

US Millionaires Told Go Away as Tax Evasion Rule Looms

That’s what some of the world’s largest wealth-management firms are saying ahead of Washington’s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc (HSBA), Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. (DBS) all say they have turned away business.

Renato de Guzman, chief executive officer of Bank of Singapore Ltd., said in industry meetings of private bankers he attends in Singapore, not accepting US clients is “quite a prevailing sentiment”.

“I don’t open US accounts, period,” said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia’s largest lender, who described regulatory attitudes toward US clients as “Draconian.”

The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the US to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all US citizens living abroad, which could affect their ability to generate returns.

It’s class warfare. It’s an empire in decline looking for every scrap of money they can collect. It’s a tyrannical government seeking to control every aspect of  a U.S. citizens life.

Most offshore hedge funds will no longer take US clients. Overseas banks don’t want their money either.

Why? Because there are over 400 pages of new regulations in the FATCA legislation. Way too much for a sane person.

Everybody wants to tax the rich, investigate them, crucify them…

The end result is that people with means are simply using their wealth to purchase citizenship in another country and surrendering their U.S. passport.

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