Dominican depositing usd in US Banks

[Fulano]

One of my friends at work is about to close on some comerical property he has sold and will be paid in US dollars. He would like, for obvious reasons, to deposit this money in a safe, non-DR bank, as it will be his retirement nest-egg. He is a dominican, has a US visa, and asked me the details of depositing it in an account in a US bank. I really don't have a clue, so I thought that maybe someone could assist with some info.What does he need to open a bank account in the US? Is interest taxed and how (if he doesn't have a SS #)?
Any other recommendations are appreciated. Thank you for you comments.

 

[Stephen]

Past and Present................

In the past, I have opened two of my friends accounts in the US that have US TOURIST VISAS. I have opened them both a checking and savings account at FLEET Bank. All they needed was their passports and to sign a form (W-9) I believe. They still have these accounts and use them via "online banking".

Recently, post 9/11, I was there with another friend with the same situation. This time, Fleet stated, (incorrectly from what I understand) that under the new Patriot Act, they can only open up a NON interest bearing account. SO, we only opened up a checking account and I have just not gotten around to investigating how to open the savings account.

It is my understanding that under the Patriot Act, they can still have these accounts, (both checking and savings), but that the bank just has to make sure they have copies of all the documents, whereas before, they weren't that picky about all the documentation.

Hope this helps.

 

[ricktoronto]

There are other countries and banks, you know

One of my friends at work is about to close on some comerical property he has sold and will be paid in US dollars. He would like, for obvious reasons, to deposit this money in a safe, non-DR bank, as it will be his retirement nest-egg. He is a dominican, has a US visa, and asked me the details of depositing it in an account in a US bank. I really don't have a clue, so I thought that maybe someone could assist with some info.What does he need to open a bank account in the US? Is interest taxed and how (if he doesn't have a SS #)?
Any other recommendations are appreciated. Thank you for you comments.

Bahamas he can be anonymous and the interest isn't taxable. Cayman Is. also. If he has a US visa presumably he can get to Bahamas as well. US being the more doubtful as to issuing visas, he must be able to prove he's OK to the Bahamians.

Frankly Citi or Scotia in the capital and other locations are not likely to fail any time soon and are not Dominican at all.

 

[Robert]

He can open an account at BPD. It's related to Banco Popular. BPD is sort of the US arm of Banco Popular here.

If you use the search function you will find lots of great info on BPD.

I feel this will be the easiest option for him and his money will be safe as it comes under USA banking laws and it's FDIC covered. Basically BPD is a US bank.

 

[DCfred]

He will need a tax id# in orfer to open an account in the US, but those are easy to get. As to taxes that won't be much of an issue if your friend lives outside of the USA. Recommendation: Bank of America has an international division that deals with clients from outside the United States. They can guide your friend thru the process.

 

[Fulano]

Thank you very much!

Thanks for the replies everyone. This is exactly the type of info that I need in order to help him make an intelligent decision. And thanks again to DR1 for being such an excellent information forum!!

 

[monaco09]

??????

What possible reason could there be to go to the US for banking. Their system is questionable anyway, but mostly he just ends up paying tax.

The best banking in the world is in the Caribbean. Caymans, Turks, Bahamas etc. Any Dominican who puts his money in a US bank is being plain foolish.

 

[Formosano2000]

Really safe ??

Frankly Citi or Scotia in the capital and other locations are not likely to fail any time soon and are not Dominican at all. [/B]

While Citi and Scotia are sound, if the DR government decides to freeze US$ accounts held at these banks (as Argentina did early 2001), depositors have no recourse.

In fact, many civil lawsuits have been filed against Citi Bank and Scotiabank in Argentina by disgruntled depositors who alleged that their money should have been safe/accesible due to the foreign ownership of the said banks.

However, the banks countered that these banks branches, operating on Argentine soil, are subject to Argentine law and regulations and thus not exempt from government-imposed freeze. The banks further stated that they themselves fell victim to the crisis as a result of sudden Argentine peso devaluation and from the mandated freeze.

The only thing depositors could do was to sue the Argentine governmnt. Did it work ? I don't know. I haven't kep track.

I have heard (rumor ?) that there is a law in DR exempting the DR government from lawsuit. If true, should DR imposes dollar account freeze, depositors can kiss their US$ goodbye.

Caveat emptor !!

 

[Stephen]

NO TAX...............

A Dominican (or any foreigner for that matter) with no more than a tourist visa does NOT have to pay TAX on INTEREST INCOME earned in the US. ..................and, what is "FOOLISH", is believing that putting ANY type of money in ANY bank in the DR is safer than having it in the US.

 

[DCfred]

What possible reason could there be to go to the US for banking. Their system is questionable anyway, but mostly he just ends up paying tax.



This is funny. One of the reasons the peso has collapsed is that Dominicans with lots of money have sent their money to places like Miami, even with the paltry returns offered by US banks.

 

[Escott]

He can open an account at BPD. It's related to Banco Popular. BPD is sort of the US arm of Banco Popular here.

If you use the search function you will find lots of great info on BPD.

I feel this will be the easiest option for him and his money will be safe as it comes under USA banking laws and it's FDIC covered. Basically BPD is a US bank.

Bullshit

 

[Escott]

Re: ??????

What possible reason could there be to go to the US for banking. Their system is questionable anyway, but mostly he just ends up paying tax.

The best banking in the world is in the Caribbean. Caymans, Turks, Bahamas etc. Any Dominican who puts his money in a US bank is being plain foolish.

I have read posts of your that I disagreed with and never made a comment but this one is just damn foolish. You can't be for real.

 

[Pib]

Bullshit

You either didn't understand what Rob said or you have to check your sources. What Rob said is right.

 

[Robert]

Bullshit

Why?

BPD International Bank 152 West 57th Street Carnegie Hall Tower, 5th Floor
New York, NY_ 10019

FDIC Certificate # 26508
Bank Charter Class: Federal Reserve Member

Primary Federal Regulator: Federal Reserve Board
Date Institution Established: January 27, 1986

-----------------------

Whose deposits does the FDIC insure?
Any person or entity can have FDIC insurance on a deposit. A depositor does not have to be a United States citizen, or even a resident of the United States.

What types of deposits are insured?


All types of deposits received by a financial institution in its usual course of business are insured. For example, savings deposits, checking deposits, deposits in NOW accounts, Christmas Club accounts, and time deposits (including certificates of deposit, which are sometimes called "CDs") are all insured deposits. Cashiers' checks, officers' checks, expense checks, loan disbursement checks, interest checks, outstanding drafts, negotiable instruments and money orders drawn on the institution also are insured. Collectively, these types of instruments are referred to as "official checks." Certified checks, letters of credit, and travelers' checks, for which an insured depository institution is primarily liable, also are insured when issued in exchange for money or its equivalent, or for a charge against a deposit account.

All single ownership accounts established by, or for the benefit of, the same person are added together. The total is insured up to a maximum of $100,000, including principal and interest.

What is the deposit insurance coverage for funds deposited by a corporation, partnership, or unincorporated association?

Funds deposited by a corporation, partnership, or unincorporated association are insured up to a maximum of $100,000.

 

[goatfarmnga]

Banking info

Thanks Robert sounds like a good place to put money in the DR..I just happened to be looking for that info!

 

[monaco09]

Re: Re: ??????

Care to actually make a point? The USA will take withholding tax from any non-resident. You can later file and perhaps get it back or not. Again, why bother?

Citi, Chase, Hong Kong Bank, Barclays all are available in the Caribbean as offshore banks. All the protection of the parents, none of the witholding tax, plus complete privacy.

What exactly do you disagree with, or are you just spouting?

I have read posts of your that I disagreed with and never made a comment but this one is just damn foolish. You can't be for real.

 

[monaco09]

Re: NO TAX...............

I certainly was not advocating leaving money in the DR. Just simply pointing out that offshore banks in the Caribbean operated by the largest institutions in the world are available with no non-resident withholding. Yes, unless you submit to intrusive paperwork it is guaranteed you will have witholding tax.
There are much better options.

For those arguing the loudest, why do you suppose these countries have such vast sums in their banking institutions?

A Dominican (or any foreigner for that matter) with no more than a tourist visa does NOT have to pay TAX on INTEREST INCOME earned in the US. ..................and, what is "FOOLISH", is believing that putting ANY type of money in ANY bank in the DR is safer than having it in the US.

 

[Pib]

Monaco09

I would like to know if you are certain that non-residents will have to pay taxes on interest at BPD. I am very interested in this particular subject, so I await for your reply.

 

[Formosano2000]

No rocket science required

What possible reason could there be to go to the US for banking. Their system is questionable anyway, but mostly he just ends up paying tax.

If your friend is a non-US citizen or non-resident, as long as he submits proof of foreign citizenship (passport) plus sign a W-8 (I think that's the number) form (Certificate of Foreign Status), he does not have to pay a single cent of tax to Uncle Sam.

[/QUOTE]
This is funny. One of the reasons the peso has collapsed is that Dominicans with lots of money have sent their money to places like Miami, even with the paltry returns offered by US banks. [/QUOTE]

Funny ?

Lots of rich and well-connected Argentines smelled a rat and sent billions of their US$ abroad in the autum of 2001.

In January/2002, then President Eduardo Duhalde formally broke the one-to-one dollar-peso parity and mandated the exchange rate to be US$1= AR$1.4, but it promptly collapsed. By June/ 2002, US$1= almost AR$4.0

Only in the last year or so has the exchange rate stabalized somehow to hover around US$1= AR$2.8

See for yourself:

http://finance.yahoo.com/m5?s=USD&t=ARS&a=1&c=2


The rich and well-connected in DR have sent their US$ for the precautionary reasons.

While you are pitying them for the "paltry" 2% they earn in Miami accounts, they are laughing all the way to the bank exchaning their safe US$ back to 35 and upward peso per dollar whenever they need the money while local wage earners are suffering 50% of their purchasing power.

Now who gets the last laugh ??

 

[Formosano2000]

Crisis of Confidence

This is funny. One of the reasons the peso has collapsed is that Dominicans with lots of money have sent their money to places like Miami, [/B]

This is only partially true. The peso's decline is primary due to the lost of confidence in the currency as liquid/stable legal tender.

Let me give you a counter-example:


In summer/1995, China logged missiles into Taiwan Straight only dozens of miles from Taiwanese shore as a military threat to Taiwan because the US allowed the then Taiwanese president to step on US soil and give a speech at his alma mater Cornell University, where had had earned a Ph.D in agriculture in his youth. This was a big shock to China because Taiwanese had no official diplomatic relations with the US yet successfully lobbied for its president's US trip.

Taiwanese stock market tanked and its currency dropped against US$ as many people lined up at banks to buy US$ for fear of Chinese invasion and collapse of financial system.

Banks in California and western US were swamped by hundreds of millions of new US$ deposited from Taiwan.

To restore public confidence, Taiwan's then Central Bank chairman announced that it would supply UNLIMITED amount of US$ for a fix rate of US$1=TW$26.50 INDEFINITELY to the general public. Absolutely no restriction whatsoever.

The long lines at bank swiftly disappeared.


Of course, Taiwan could afford such strategy because it holds more than US$100 billion in reserve, the 3rd or 4th highest in the world.


I dread to think what would happen in DR if the DR Banco Central copied Taiwan's stratgey !