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Posted By: Mike Campbell New Lows - 01/06/11 12:06 AM
I have just been informed that my Ameritrade account has been cancelled because of my jurisdiction. Have we hit new lows?
Posted By: Diane Campbell Re: New Lows - 01/06/11 06:44 PM
What is Ameritrade?
Posted By: Inplub Re: New Lows - 01/06/11 07:43 PM
Online Trading - TD Ameritrade - Online Stock Trading Online Investing
Posted By: CaptOneIron Re: New Lows - 01/08/11 03:52 PM
Probably something to do with the Treasury's money laundering rules and the crackdown on tax avoidance schemes a la UBS.
Posted By: Cayemen Re: New Lows with Ameritrade - 01/15/11 02:24 AM
E*Trade and Ameritrade both don't do business with BELIZEANS anymore. The same happen with the Bahamas, Turks and Caicos Islands and Cayman Island, but it is illegal.

Ameritrade Case on http://www.caymannewsservice.com/

Quote:
Following further investigations today, the Cayman Islands government has said that the US Office of Foreign Assets Control (OFAC) has issued no orders telling brokers not to do business with Cayman as was suggested by a US based firm. Government said that the law firm of Sidley Austin LLP, which represents the CIG in the US has confirmed with the Director's office at OFAC that there are no orders, directives or other regulations that restrict US financial institutions or US citizens from doing business with the Cayman Islands, its financial institutions or residents. "It is now clear that any action TD Ameritrade may have taken was made without the knowledge or approval of OFAC," government said in a statement.

There are interesting comments at the end of this article. Some of them mention a unofficial Blacklist of 50 country's.


Another Article from sanctionlaw.com reads like this
Although I highly doubt that in the age of Wikileaks, OFAC would issue some sort of "secret" document to brokerage firms directing them to pull out of the Cayman Islands and the Bahamas...
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/15/11 01:19 PM
I do a lot of banking and financial transactions world wide and I can tell you that a lot of firms in a lot of foreign jurisdictions are refusing to do business with American citizens because of all the hoops that must jump through in the regulatory jungle. It really is ususally just a matter of cost versus benefit where the costs to comply with the US regulations is greater than the montetary gain from doing business with Americans. I would think this is more of the same just from the other side of the equation. There is nothing illegal about a company deciding it will not do business in a particular jurisdiction.
Posted By: Mike Campbell Re: New Lows with Ameritrade - 01/15/11 01:36 PM
The question is why the change in policy.
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/15/11 02:17 PM
The US Treasury Department is cracking down on all financial instituions. They are feeling their oats after brow beating UBS and forcing them to break Swiss laws in order to give the IRS information on US taxpayers. This has been going on for about the last 18 months. I have an accountant that specializes in this kind of foreign transaction and we have had to close several accounts because of it. My advice would be to just use a US address for your account. I use Ameritrade and I don't think they really care where you are as long as the address is in the US.
Posted By: Mike Campbell Re: New Lows with Ameritrade - 01/16/11 01:00 AM
Actually they do care. I know of one gentleman who tried as you suggested and got the following reply. The caps are in the original letter.


Dear xyz,

Thank you for updating your TD Ameritrade account records. We have received your Internal Revenue Service (IRS) Form W-8BEN regarding your account.

In order to remove the restriction limiting you to liquidating transactions only, we would need the following:

- A signed letter stating you no longer live or reside in and have no affiliation to BELIZE.

For your convenience you may fax this item to 816-243-3769 or mail to:

TD Ameritrade
1005 N Ameritrade Pl
Bellevue, NE 68005

Including your account number on all documents sent will ensure the most efficient processing.

If you have questions, please contact Client Services at 800-669-3900. We're available 24 hours a day, seven days a week (excluding market holidays).

Kind regards,

Elise Brown
Tax Services, TD Ameritrade Clearing
Division of TD Ameritrade, Inc.

If you have further concerns or inquiries, please e-mail us from our secure Web site's "Contact Us" link located in the "Help Center" or at the bottom of each secure page. For security reasons, we do not answer account specific questions that originate from a source other than the secure Web site.
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/16/11 02:54 AM
Well, I will find out since I have an account there. I just wrote to them and asked about this issue of living in Belize. I will let you know what I find out. I did look and on their online appplication for an account Belize is not listed as a place that they will accept an application from. Interestingly, you can be a Belize citizen but the restriction seems to be based only on residency. I'll let you know what they say.
Posted By: Cayemen Re: New Lows with Ameritrade - 01/16/11 06:46 AM
Originally Posted by CaptOneIron
I'll let you know what they say.


After waking up the sleeping dogs, you will have to search for another broker.

The question is, will Ameritrade cover your expenses for research and moving your stocks to another broker.
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/16/11 01:45 PM
Here is TD Ameritrade's response to my question which asked if I decided to move to Belize would there be a problem with my account:

Thank you for contacting TD Ameritrade. At this time, TD Ameritrade has made a business decision to restrict doing business with Belize. Unfortunately this country is now on the list of countries we are no longer able to support. This is based on an objective assessment of risks. We do not have further information to provide on this. Accounts with addresses in this jurisdiction will be restricted to closing transactions only and will not be able to deposit new funds.

Sincerely,

Rachael Peacock
Apex Client Services, TD Ameritrade
Division of TD Ameritrade, Inc.
Posted By: Diane Campbell Re: New Lows with Ameritrade - 01/16/11 02:47 PM
What a dumb letter. They would be doing business with PEOPLE, not the country as an entity.
The lady is a drone.
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/16/11 05:36 PM
I agree with you Diane, but when the US Government makes doing business within a jurisdiction so fraught with risk and compliance so onerous most businesses will do just what TD Ameritrade did, pull out. I really have had some experience with growing Federal imperialism and although they may actually be after drug dealers and money launderers they really don't care about the consequences for the rest of us.
Posted By: Diane Campbell Re: New Lows with Ameritrade - 01/16/11 05:56 PM


Mike - start trading via London.
Posted By: Mike Campbell Re: New Lows with Ameritrade - 01/16/11 06:22 PM
Charles Schwab will still work with Belizean, $25,000 minimum. My acct is so small it is of little consequence and I have not made a trade in years, I just liked having it. Not worth a bunch of hassle changing stuff around. I am sure for those who care enough there alternatives. I am not sure if there are online brokerages in UK?
Obviously they will let CapOneIron keep his acct even though he tells them he is living here his acct has a "good" address so no questions asked. Once they get Belize on your paperwork everything changes. They would accept an acct from any approved jurisdiction and never ask if you were living in Belize.
Posted By: Cayemen Re: New Lows with Ameritrade - 01/17/11 04:39 PM
Ameritrade a Bunch of Idiots, no explanation why Belize is restricted at all.:

This is there last official statement to me:

Dear ...

As long as you remain to have any affiliation with the restricted country in question we will be unable to allow additional funds to be deposited into your account. TD Ameritrade will not close your account or liquidate your positions. In the future if you have a change of circumstances you may provide us with this information and we would then be able to submit your account for review.

If you have further concerns or inquiries, please e-mail us from our secure Web site's "Contact Us" link located in the "Help Center" or at the bottom of each secure page. For security reasons, we do not answer account specific questions that originate from a source other than the secure Web site.



Vicki Jarrett
Tax Services, TD Ameritrade
Division of TD Ameritrade, Inc
Posted By: Diane Campbell Re: New Lows with Ameritrade - 01/17/11 04:55 PM
Who writes these letters - did they take 8th grade English and grammar?

"As long as you remain to have any affiliation ...."

Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/17/11 05:35 PM
Diane, this is a typical mistake for a non native English speaker especially those from Scandinavia. I have seen this hundreds of times and they think their English is great.
Posted By: Diane Campbell Re: New Lows with Ameritrade - 01/17/11 06:05 PM
I guess I should have more respect for the multi-lingual, especially since I'm essentially a very limited mono.

Anyway - this should be about Belize - let's get back to the sunshine coast.

Posted By: Cayemen Re: New Lows with Ameritrade - 01/19/11 11:53 PM
The United States government also publishes a list of countries where money laundering is believed to be taking place. A number of Caribbean nations are currently
listed as "jurisdictions of primary concern" for money laundering by the U.S, State Department:

Antigua and Barbuda, the Bahamas, Belize, Cayman Islands, the Dominican Republic, Haiti, and St. Kitts and Nevis.

Source: http://www.state.gov/p/inl/rls/nrcrpt/2010/vol2/137209.htm
Posted By: Phil Re: New Lows with Ameritrade - 01/20/11 04:37 PM
Now that makes me laugh........ Perhaps the US Gov should look a little closer to home rather than blaming everyone else. Where has more money laundered, the US or the Whole Caribbean put together?
Posted By: CaptOneIron Re: New Lows with Ameritrade - 01/20/11 04:59 PM
Everytime someone says US Government you should laugh as that is what the what the rest of the world does.
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