Thursday, October 17, 2013

SHOCK: HSBC USA Joins Chase in Limiting International Money Transfers

Yesterday, I reported that JPMorganChase will start to limit cash withdrawals and ban ceratain business customers from sending international wire transfers, from November 17 onward. 

Now, word comes via Simon Black that starting October 20th, HSBC USA's Premier clients will have to wait a minimum of five days before transferring funds to their OWN international accounts! 

This is not good. The cover story for these measures is to "protect" banks and customers from theft. In reality, this is a major move toward limiting movement of capital overseas. Black writes:
This is the very nature of capital controls-- restricting the free flow of capital across borders until it is trapped inside the country and forcibly denominated in a rapidly devaluing currency.  
And this is exactly how it starts... making it more difficult to move money abroad.
A word to the wise, it will only get worse. Act accordingly.


  1. I'm glad I've got bitcoins. Capital controls are meaningless to me.

    1. As long as you find partners willing to accept bitcoin as a medium of exchange - because if you think capital controls are meaningless, certainly exchange point controls will be meaningful if you want to convert your bitcoins into a recognized fiat currency

    2. Those are my thoughts sitting on my bullion as well.

      Of course, I have the added bonus of not worrying about any potentially identifying information tied to an account number that someone may have associated with a shipping address in a database anywhere.

      Not that that would happen to a Bitcoin user.

    3. With Bitcoin, anonymity is "user-defined". Severing the Bitcoin transaction link is easy enough if you take the time to learn how to do it. Technologies are currently being developed to make this much easier. Of course, you don't have to worry about that with bullion because it's much harder to spend it in the first place. Also, good luck smuggling that bullion across borders.

      Don't get me wrong, I have a decent amount of gold and silver too but I recognize their shortcomings and I make up for them with a decent amount of Bitcoin in my portfolio.

    4. capital controls may be meaningless to bitcoins...but the inflation that follows will not! Your purchasing power will be eroded, one way or another...

    5. Bullion + Bitcoin will be the lifejacket when everyone else is drowning in bad paper.

    6. "you don't have to worry about that with bullion because it's much harder to spend it in the first place"

      lol..I've read some stupid things in the commenting section here from time to time, but this one is close to "Jerry Wolfgang" level.

    7. Let's compare: This past year I've bought all of the following with Bitcoin - easily and from the comfort of my own home:

      - bullion
      - books, music, etc. from
      - Office supplies from Staples
      - hosting services & domain names from Wordpress &
      - Hosting from Iceland
      - Consulting services fro Switzerland
      - lots of cash (at a profit) from friends and
      - numerous gift cards from and (Walmart, CVS, Home Depot, etc., etc.)

      I've also traveled to many places carrying a small fortune in a "brainwallet" irrespective of "currency declaration" requirements.

      I've seen the value of my holdings go up by 1,000% since January.

      I've been a longtime "goldbug" but bullion just can't touch the ease, convenience and utility of Bitcoin. I'm beginning to believe that gold really is a "barbaric relic" unsuited for the modern age.

    8. At least bitcoin is a good protection against devaluation of the $$$

    9. @GoldSilverBitcoin
      "I'm beginning to believe that gold really is a "barbaric relic" unsuited for the modern age."

      At least, until the power goes out.

  2. I am a Chase business customer and called them yesterday. They stated these controls are for two business checking accounts types. and that if you need to have an account that still has wire transfer capabilities and exceeds the 50k per month transaction limit, you have to upgrade your one that has a min monthly balance requirement of 50k and costs 20 per month.

    1. This is true. You have the option for an account that will allow international wire transfers. If you have a relationship manager, they will even waive the $20/month fee if you fall below the average daily balance of 50K. Needless panic. If you want to panic, panic over Obamacare -- if you haven't been kicked off your plan, or received your new premium, you are in for a shock.

    2. One wonders at the function of the "Relationship Manager" in all this. Is it to ask impertinent questions, maintain separate dossiers on customers engaged in certain activities, talk customers out of doing things the government/bank doesn't like and into doing things the bank/government does like, what?

      A couple of years ago, the manager of the Chase branch in an affluent part of San Jose was arrested, along with her husband, for swindling an elderly customer out of his entire life's savings. Among the uses to which they put the money were matching necklaces, with diamond-encrusted pendants in the shape of an obscene hand gesture and bearing the logo, "Tha' Finga!" (If we can have a criminal enhancement for gang affiliation, why can't we have one for tackiness?) I assume this is the type of "risk" Chase claim to be mitigating, though it doesn't help when the crime is perpetrated by the managers themselves.

  3. where does simon black say HSBC will do this? The hyperlink leads to a Simon Black Bio, not his source.

  4. "where does simon black say HSBC will do this? The hyperlink leads to a Simon Black Bio, not his source."

    Ditto to that. I couldn't find any info on google or HSBC's site either.

    Does anyone have a valid link to more info on this matter?