Americans in Israel are under the scrutiny not only of Israeli banks, but American financial institutions as well, according to a letter to an Israeli shareholder with the New York City-based Dreyfus Family of Funds.
"We wanted to remind you that the Dreyfus Family of Funds are intended for investment by U.S. resident investors," according to letter dated August 31 and obtained by Anglo File. "We have identified you as an account holder who lives in a foreign jurisdiction, and because of this, we regret to inform you that effective October 15, 2012, we will no longer be able to accept from you any additional investments into your Dreyfus Family of Funds."
Dreyfus did not respond to requests for comment.
"Some of our clients are receiving letters from U.S. banks, brokerage firms and mutual-fund companies refusing to allow them to make new investments since they are disclosing a foreign address," said Shrensky, of Don Shrensky & Co. "It is also very difficult, if not near impossible, to open a new U.S. bank account if you indicate that you live in Israel. So the U.S. citizen living in Israel is being squeezed from both ends."
"We may have to go back to the 'mattress' economic model," Shrensky joked.