Memo from UBS in regard to non-US person status

Hey posters!

I set up an account with Interactive Brokers and set up a standing order of 1k monthly from a UBS account into my IB account.

Now I received a letter/memo from UBS stating I have one of the following “US Indicia” under FATCA

  • US place of birth
  • standing order to an account in the US
  • US mailing or residence address
  • US phone number
  • an in care of address

This is true as I now have a newly set up standing order.
Then it says they need to update their documentation on file regarding my US or Non-US person status.

They then attached a W8ben for me to sign and return in addition to a “declaration of status as a non-US or US person” form.

I’m wondering if anyone got this memo after setting up a standing order to IB?
And why would they need a W8ben on file? I have no US products at UBS.

I guess I’m just a bit concerned about my status as a non-US person being compromised and the implications that come with it.

If anyone could put me at ease it would be appreciated.

Thank you!

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Thanks for the response. This was my understanding as well which is why confusion set in when receiving this memo.

I have zero ties to the US. All that has changed is that I now have a standing order to my IB account. I’m assuming this is the case for many moustashian posters.

But your IB account is technically “in the UK”, not US, no?

Yes, the same happened to me once I set up a standing order to IBKR.

I have no relations with the US in any other form whatsoever.

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I don’t think that’s correct. When booked at IBKR UK you normally deposit CHF on either a GB or CH account if I remember, but certainly not a US one. Who is behind is irrelevant.

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This is indeed correct. The standing order is to that account owner. Still a weird workflow rule to me

I know that. What I am saying is that it shouldn’t have triggered it because for FATCA are only relevant standing instructions to transfer funds to an account maintained in the US. Whether a US company or individual holds the foreign account is irrelevant. Just wanted to point that out.

Ok well as long as my non-US status isn’t affected I’m happy :slight_smile:

Quick question with regards to the US-person standing. The initial plan for this year was to get an expat assignment for a position in Shanghai. However due to the current situation there is a freeze of this plan until further notice. However, there is now a possibility showing on the horizon to get a temporary assignment in the US.

Is there any recommendation from a tax/investment standpoint? If I go to the US with an L1 visa and not a green card will that mark me as a US person for life?

Just looking at all the potential benefits and down sites right now.

No. If you’re neither US citizen nor green card holder, you’ll be considered a US person only as long as you meet the substantial presence test for the calendar year: https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test. As I understand it, you may be considered a US person for a while after leaving the US but at most for an additional year (if you don’t reenter the US).

Thanks a lot that is already quite helpful