Learn More - Click Here!

Thread Options
#1969671 - 10/16/14 12:27 PM Temporary Protected Status
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
We have our first TPS customer, and she is from Honduras. We have her US address, but our policy requires her permanent address. She has been in the US for years, and claims she doesn't have one. Her home was destroyed during Hurricane Mitch, which is why she is here. But if TPS status is not renewed (next time is Jan. 2015), she would have to return to Honduras. It seems she has to have some kind of address to return to.
Under this circumstance, is it correct that she has no permanent address other than her country?
Thank you!

Return to Top
Operations Compliance
#1969719 - 10/16/14 01:53 PM Re: Temporary Protected Status NotDoneYet
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Quote:
...our policy requires her permanent address.


I had to look up what temporary protected status meant, but I'm not sure that's the issue.

Your "policy" requires a "permanent" address... What policy? Or is it the W-8BEN?
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1969751 - 10/16/14 02:36 PM Re: Temporary Protected Status NotDoneYet
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
We require a permanent address for our NRAs on the W-8BEN. However, in this instance, I wonder if documenting Honduras as her permanent residence might be the best we can do.

Return to Top
#1969771 - 10/16/14 02:54 PM Re: Temporary Protected Status NotDoneYet
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
An older version of the W-8 allowed NRAs to provide a written statement explaining why they did not have a physical address in the country where they claimed residence. I find no parallel language in the current version of the form's instructions.

From my perspective, you have 3 choices:

* refuse to open the account,
* refuse to open an interest bearing account (no W-8BEN needed) or
* obtain a statement explaining why she does not have a permanent address beyond "Honduras." (I know, I just said the current instructions don't provide for it, but she's just opening a bank account, not claiming treaty benefits. So, there are no practical ramifications based on her country of residence and there is some logic to saying you really would not have a physical address in a country where you are legally recognized as being afraid to return.)
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1969874 - 10/16/14 04:49 PM Re: Temporary Protected Status NotDoneYet
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
Thank you! We will likely go with the third option.

Return to Top
#1970022 - 10/16/14 08:06 PM Re: Temporary Protected Status NotDoneYet
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
If you go with 3 make sure that your banks CIP does not prevent you from opening the account. A rewrite and approval of the CIP may be necessary for the exception.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1970088 - 10/17/14 01:38 AM Re: Temporary Protected Status edAudit
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The CIP regulation only requires a "physical" address, not a "permanent" address. That's why I was confused by the statement that it was required by bank policy; I would never expect a bank to have such a requirement in its CIP.

The concept of a "permanent" address only makes sense to the IRS and a grave digger.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1970109 - 10/17/14 12:22 PM Re: Temporary Protected Status NotDoneYet
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
Base upon the post I was not sure that there was a physical (or temporary) address as well.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1970120 - 10/17/14 01:09 PM Re: Temporary Protected Status NotDoneYet
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
Our CIP requires physical address which we have since the bank gave her a loan to buy a house. So we are okay there.
We collect permanent addresses for NRAs when they complete a W-8BEN. At times we have had to use that address to clear a customer of a potential OFAC hit. I saw this more as a BSA issue which is why I posted the original question there.
On occasion we do open interest-bearing accounts as well for NRAs, but not often.
I used "policy" too broadly. It's our procedures.

Return to Top
#1970146 - 10/17/14 02:20 PM Re: Temporary Protected Status NotDoneYet
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
"Our CIP requires physical address which we have since the bank gave her a loan to buy a house."

If they have an account with you they CIP would be a non-issue.

The TPS for Honduras has been extended (again ?)to January 5, 2016. Why would a bank give a home loan to a person who would only be here for a few years?
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1970446 - 10/20/14 12:55 PM Re: Temporary Protected Status NotDoneYet
NotDoneYet Offline
Gold Star
NotDoneYet
Joined: Jul 2010
Posts: 482
PA
The co-borrower is a US citizen and existing customer.

Thanks for the input. The topic is we have not had to deal with before.

Return to Top

Moderator:  Andy_Z, John Burnett