Facta is the reason. What is Facta? Facta stands for Foreign Account Tax Compliance Act. This is a law passed in 2010 which goes into affect on 1/1/2013. This law is supposed to prevent tax evasion by Americans with offshore accounts.
The United States is demanding financial institutions outside of the United States to report financial information about American clients. The are over 400 pages of proposed rules by the IRS. The cost to comply with these rules exceeds profits. The results make these accounts undesirable. The purpose of the law is so that the United States will know who and how much is being held offshore. Talk about big brother.
I am all for people and corporations paying their taxes but this seems to be so intrusive. Most of the hedge funds in Asia won't touch US money. Asia has the fastest growing number of people with one million is investable assets. 3.3 million people fall into that Asian category. Bank of America is the world's largest wealth manager with 1.9 TRILLION dollars under management.
It is very scary how the government wants to know everything that we have and do.