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Banks lock out Americans over new tax law

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Instead of complying with the U.S. Foreign Account Tax Compliance Act, foreign banks are turning away and closing accounts with American who park their money offshore in order to avoid paying taxes. Banks technically don’t have to stop doing business with Americans, but complying with the act, which includes reporting everything from savings accounts and up, could cost banks millions each year. Instead of charging Americans higher fees to offset the costs, banks are choosing to sever accounts.