American Paranoia and Canadian Business

A regular commenter pointed out a story on CBC where The Royal Bank is refusing to open American Fund accounts for Canadians with certain backgrounds. (It also mentions the Bell Helicopter contract as well, but that's a different kettle of fish)

Apparently, if you hold citizenship in

Iran, Iraq, Cuba, Sudan, North Korea or Myanmar

, the US Treasury Dept. doesn't want you holding US Dollar investments.

Now, I can fully appreciate that were I to go into a Wells Fargo branch somewhere in the lower 48 states that whatever rules are in force from the Treasury Board regarding my ability / right to open a bank account would be applied - no matter how racist, stupid or otherwise idiotic they may be.

However, walking into a Canadian Bank (in Canada), and opening a US Dollar account is a different discussion altogether. This is Canada, and the contract for services is being established in Canada, subject to Canadian Law. Canadian law does not permit us to discriminate against people based on their ethnicity - PERIOD. Why the Royal Bank is allow the United States to export its unique brand of paranoid bigotry into Canada is beyond me. The fact that an account is measured in US Dollars is a bookkeeping trick, not a statement of where the account in fact resides. (Or, if it is, then I really have major objections to Royal Bank's handling of foreign currency accounts!)

Remember, the US policy is based on someone being born in those countries. (Most of whom have no concept of allowing people to renounce their citizenship - if you were born in Iran, I doubt that the country would acknowledge either renouncement or dual citizenship - remember the journalist they tortured and killed a couple of years ago?) So, essentially, under this policy, someone is guilty by birth. These people have not necessarily been convicted of (or even associated with) anything even remotely criminal, yet because the Royal Bank is implementing US government policy outside of US territory, we find certain Canadian citizens being treated as second class citizens simply because of their ethnicity.

This is not only running against the grain of Canadian law and society, it is arguably as illegal as it is immoral.

One minor differentiator with the Bell Helicopter situation: The Bell Helicopter case involves a specific contract with the US Government. Presumably, the terms of that contract include the imposition of numerous US Government policies on the contractor. As long as Bell is will to ensure that the staff in question will remain gainfully employed, I'm somewhat less concerned about this situation. (although it annoys me on general principles)