Domicile Investment Issue

[Billy W]

We are now full-timers  and have selected South Dakota as our domicile.  When I provided my investment company (Charles Schwab) with my South Dakota address provided by Escapees they rejected the address saying it is not a residential address. It showed up as a commercial address and under the "patriot act" they could not use the address. Has anyone had this issue and if so how did you resolve it.

Thanks

BW

 

[hemsteadc]

Unless you're actually getting paper mail from them I don't know why it matters.  I'm not sure what a SD address 'provided by Escapees' is.

Edited July 4, 2019 by hemsteadc

[Barbaraok]

First, it is the Know Your Customer part of banking regulations.  Second, tell Schwab to pound sand and move your accounts to institutions that do not discriminate.   Give the Escapees office a call on Monday and they will help you sort it out.  Lots of lazy financial institutions do this.

[Billy W]

they claim it has to do with tax evasion and federal requirements 

 

 

[Kirk W]

Charles Schwab has a long history of that sort of problem. You can either get help by calling that Escapee business office or just choose an investment firm that is RV friendly. 

[Twotoes]

The Patriot Act expired several years ago. It is Schwabs nternal policy they are quoting but the rank and file employes don’t know the difference. 

[Zulu]

2 hours ago, Twotoes said:

The Patriot Act expired several years ago. It is Schwabs nternal policy they are quoting but the rank and file employes don’t know the difference. 

Not hardly -- see Patriot Act.

[Zulu]

3 hours ago, Billy W said:

they claim it has to do with tax evasion and federal requirements 

Yes, it's the banking rules (which are very much in effect) to prevent money laundering -- see page 480, bottom right column for the CIP (Customer Identification Program).

The CIP has provisions for dealing with your situation (ie, no residential address):

"For an individual who does not have a residential or business street address, an Army Post Office (APO) or Fleet Post Office (FPO) box number, or the residential or business street address of next of kin or of another contact individual"

So get in touch and get permission with someone who you want to use as a "contact". Then contact Schwab again with this info. If they still resist, ask to speak with their Compliance Officer or someone in Compliance.. This is the person(s) who should be familiar with these banking rules. If this still doesn't work, say goodbye to Schwab.

[Billy W]

Thank You Z for this information. I have contacted a daughter in Texas. No state taxes there either

[ChrisRVLiving]

of the VBloggers like the Wynns or Techomadia - seemed they both used the "next of kin" solutions.   I will be facing this same problem in 1 year, and don't have any family I can use.  Following and hoping the business office can help you Friday or Monday... following to hear the final solution you use.

 

[2gypsies]

We recently recommended our financial institutions to a new full-timing couple.  They had no issues with Vanguard & Fidelity.  Schwab is noted for refusing.  Try someone else.

[Billy W]

I have sent my financial planner a email and reminded him that Schwab needs to review their stance on this. Its obvious that many full-timers and those moving in this direction are not doing so because we can't afford to live in a brick and mortar structure. I reminded him that Schwab could be missing out on a growing market and could be losing some current clients. Thank you for your responses and I will keep you posted on the outcome

Billy W

[FL-JOE]

20 hours ago, Twotoes said:

The Patriot Act expired several years ago. It is Schwabs nternal policy they are quoting but the rank and file employes don’t know the difference. 

Not in this country it didn't.  There were parts that congress let expire but it didn't matter because they were covered under the USA Freedom Act and remain in effect today.  Maybe you read some fake news back then or something.

[FrisbyKK]

Billy W,  We use St. Brenden's Isle near Jax, FL.  They provide both the mailing address and a residential address if needed.  We domicile in Florida and have everything sent to the mailing address, but the bank required a residential address and will mail things to the mailing address.  Try them.

[Twotoes]

6 hours ago, FL-JOE said:

Not in this country it didn't.  There were parts that congress let expire but it didn't matter because they were covered under the USA Freedom Act and remain in effect today.  Maybe you read some fake news back then or something.

I love it when cops think they know the law and are wrong. The Patriot Act expired in 2011 and was replaced by the USA freedom Act which expires this year 2019. The Freedom Act is different and is not the Patriot Act. 

[richfaa]

We had that issue a few years ago and it had nothing to do with any investment firm. The address was listed as a commercial address  (campground) and there were certain types of mail that   could not be  delivered there.

[FL-JOE]

7 hours ago, Twotoes said:

I love it when cops think they know the law and are wrong. The Patriot Act expired in 2011 and was replaced by the USA freedom Act which expires this year 2019. The Freedom Act is different and is not the Patriot Act. 

However you want to look at it, who am I to argue with a retired lawyer and judge.  I'm sure you are 100% correct as always your Honor.  You should probably do a little research though, no need to come back with anything after you do your homework.

[Billy W]

Some of you had requested that I follow up with the reply from those at Escapes on this subject below is my email and their response:

My wife and I recently became full timers. I’ve read your articles on domicile locations and we have elected to use South Dakota. When I provided my financial institution (Charles Schwab) with the SD address provided by escapees they rejected the address. Schwab stated that due the Patriot Act they could not utilize a commercial address as my residence. Is this something you have heard of from the banking industry?

Response:

Yes, that is quite common now since the Patriot Act.  FINRA and the SEC are requiring that Brokers / Advisors obtain a sticks and bricks address in order to maintain investment accounts for purposes such as money laundering, etc.  If you would like to discuss this further, we have a financial advisor that works with RV'ers that can explain it to you and also explain how you can still maintain your accounts and be compliant with the Patriot Act.