The Bank of America and Citibank are being forced by a court order obtained by the US government, to disclose information about all US taxpayers who hold offshore accounts at BBIL (Belize Bank International Limited) or BBL (Belize Bank Limited).
Both banks have provided corresponding banking services for the partner banks located in Belize.The IRS (Internal Revenue Services) is authorised by the Miami federal court to give the Belize banks anonymity. However, the IRS will have the ability to obtain any bank records from the correspondent accounts at the US banks. Any kind of transactions made through the partner account, leaves a trail of records, something that will be used to identify their US clients and track funds that are transferred to other jurisdictions.
The US Department of Justice’s tax division has obtained the judicial order on behalf of the IRS, suggesting that the investigation is aimed at concealed assets and offshore tax schemes. Meanwhile, this will probably contribute to fears in Belize and other Caribbean countries that other banks in the US may switch their correspondent banking services to smaller IFCs if they receive pressure from US regulators.