Expert: Doug Ingram - 4/23/2010

Question
QUESTION: When I buy government bonds through a private bank or a broker, is the bank or the broker obliged to divulge my name and nationality to that particular government? If he is, then how can I remain anonymous?

ANSWER: In the United States, every broker has a 'know your customer' rule.  It is to prevent money laundering and evasion of taxes.
I don't know the laws in other countries, but you can't remain anonymous in the U.S. or as a U.S. citizen.

---------- FOLLOW-UP ----------

QUESTION: Sorry but you haven't answered my question. Of course every broker knows the name of the person buying the bonds. My question was: Does he automatically inform the government that I have bought the bonds, without the government asking him. Thank you.

Answer
Actually, I did answer the question - but only for the U.S.  The government here does this as a matter of checking taxes.  It's not immediate, but they do get informed, and your question was how can you remain anonymous, and that answer is no for the U.S.

As I said, I don't know the laws in other countries, but when an American submits a tax return, there is a list of every purchase and sale of bonds and equities (including all investments, dividends, etc.).