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Rep. Carolyn B. Maloney, New York Democrat, and Rep. Mick Mulvaney, South Carolina Republican, co-chairs of the congressional Americans Abroad Caucus, last month petitioned the House Financial Services Committee to look into complaints that Americans living overseas were being denied banking services because of the law.

RNC resolution

The RNC, at its Jan. 22-25 meeting at the Renaissance Hotel in Washington, is expected to pass a resolution calling for repeal of the law.

A repeal petition is the brainchild of RNC members who have taken the lead in forming the Republican Overseas organization.

“For many years, the Democrat Party used its overseas group, Democrats Abroad, as a political weapon against our candidates in elections,” said Arizona RNC member Bruce Ash, chairman of Republicans Overseas.

“In fact, just last month when Cory Booker won his U.S. Senate contest in New Jersey, he proudly thanked Democrats Abroad who helped him win his election,” Mr. Ash wrote in a letter to fellow Republicans.

Democrats, in fact, appear to have a considerable head-start in wooing voters living in foreign countries. with Democrats Abroad marking its 50th anniversary this year. The group has chapters throughout Europe, the Americas, the Middle East, Africa and Asia, as well as a support office in Washington.

Mr. Ash said the legal provision in FATCA violates overseas Americans’ right to privacy by “seizing 30 percent of their bank deposits without due process, and by causing foreign banks to deny financial services to overseas Americans as clients in order to avoid incurring the extra costs of complying with the U.S. law.”

Mr. Ash said the foreign banks face “increased costs associated with IRS reporting requirements. As a result, those Americans are forced to choose between their citizenship and their right to privacy and livelihood.”

Mr. Paul’s more limited bill seeks to repeal what he calls the “anti-privacy provisions” of the law. He argues that far from accomplishing its goal, the law “infringes upon basic constitutional rights. … Private data of anyone considered a ‘U.S. person’ would have details of their financial assets provided to the IRS without a warrant requirement, suspicious activity report or any other allegation of wrongdoing.”

Mr. Yue’s repeal resolution has attracted 26 co-sponsors, including the entire nine-member RNC Resolutions Committee. The early support almost guarantees passage by the 168-member RNC.

In a sign of business community support, the World Council of Credit Union, with 200,000,000 members and 56,000 credit unions in 101 countries, has endorsed the resolution.

Mr. Yue, born and raised in communist China, said the issue hit a raw nerve with him. “I escaped Chinese communist tyranny in 1980 and worked hard to earn my U.S. citizenship as an international trade economist. My American passport is my freedom. I just can’t imagine giving up my U.S. citizenship since I have no place to go.”

Patrice Hill contributed to this report.