Happy New Year everyone.
I have a tidbit I would like to share with you. For a few years now I have had a credit card with Cuscatlan Bank, which is a pretty good bank for expats, generally speaking. In 2007 they were purchased by Citibank.
Late last year I got a call asking me to go by the branch office to update my account information. As it turns out, they were asking all US citizens who have accounts there to file a form with the US government regarding their accounts. They had the form there, ready for me to sign. Plus a release form giving my permission according to Costa Rican banking privacy laws.
Fortunately, I knew that the rule on reporting is in regards to savings or checking accounts, not credit cards. The customer service rep had to make a few calls to confirm the situation, but it turns out that they did confirm that and I did not have to sign anything.
This is a first for me in Costa Rica, so I thought I would share this with you. Also since US tax season is coming you might check what you have declared. The rule is that if you have "a financial interest in signature authority, or other authority over one or more financial accounts in foreign countries.... No report is required if the aggregate value of the accounts did not exceed $10,000." (Form TD F 90-22.1 in the 2005 IRS Forms and Instructions for Overseas Filers 2004 1040 booklet)
So you should be aware of this. Costa Rica has very strict banking privacy laws, see our article
Offshore Banking in Costa Rica for more information. But apparently the banks that were purchased by US financial concerns in 2006 and 2007 may be also complying with US laws to cover themselves.
