Capital markets rose and fell this week in an increasingly volatile response to the economic confidence crisis in Greece. The Euro, much lauded over the last few years, as the new global currency and focused on heavily by investors who scorned those good old greenbacks, came under increased pressure while continuing a downward slide in valuation against the US dollar.

Whenever markets come unglued, or are perceived to be so, investor eyes and ears will focus on safety. Read the signs, there is a pattern to this flight to safety, the US dollar - while fleeing from volatility in emerging markets and unstable economies.

That's the way the other part of the world has viewed the United States in many market crises, whether mini or maxi in depth, as a safe harbour. The United States is also viewed as "the place" where anyone can succeed, if they work hard. It is the champion of individual rights and freedom of press, and so much more. Many current US citizens don't see being a part of a, yes, still strong country the same way. In fact, the number of US citizens who have opted to renounce their citizenship has increased dramatically in the last year.

What constitutes US citizenship? An individual born in the United States has a guaranteed right to US citizenship under the 14th amendment of the US Constitution: All persons born or naturalised in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

Naturalisation. Individuals born outside of the United States to one US parent or other situations may not automatically be considered US citizens unless certain conditions are met. Those that do meet the criteria as individuals, are generally citizens of other countries, too. In Bermuda, many people have dual-citizenship; with the United States, Canada, UK, Ireland, Italy, Portugal, and others. They exist comfortably with these multinational backgrounds, focusing on their lives in Bermuda.

There is a third category - the unknown US citizens. These individuals have no idea that they are entitled to claim US citizenship. This may seem hard to believe given the ability to garner instant information electronically today. The causative reasons can be wrapped up in family secrets, separation and divorce of the parents at the child's young age, inability to trace parents, change in immigration laws over time and so on. Anyone who may feel that they have a legitimate claim to US citizenship should evaluate whether this is a course to pursue. Be forewarned. There are advantages and disadvantages. Understand fully what this discovery will mean to you.

Citizenship, residency, and domicile. Other countries tend to define full citizen participation in country laws, tax, regulatory, and social structures by one being or taking up residency and domicile; if you aren't there, in other words, out of sight, out of mind. The United States defines citizenship as all or nothing. No matter where you live in the world, or how many other citizenships you may have (within reason), allegiance to the United States comes first.

New intense reporting disclosure initiatives by the United States, put in place in the wake of the UBS undeclared offshore accounts case, has been focused on pressuring foreign financial institutions to disclose all US citizen account holders or face high withholding taxes and restrictions on US securities business markets.

These targeted groups of American citizens, living in the United States, while holding significant assets outside the United States in tax evasion schemes have caused peripheral damage to ordinary US citizens living ordinary lives within in their multi-national environments offshore. American Citizens Abroad (ACA) and other media organisations are reporting many instances of US citizens being asked to close their foreign bank/investment accounts even though the foreign country is their home. Conversely, homegrown US institutions don't want these offshore US clients either.

Crossing borders has become more exacting and tedious. It is suggested but not confirmed that US Immigration, US Treasury and US Internal Revenue Service are acting in concert to isolate those citizens still insistent on operating outside the law.

The result, while the numbers are still small, Americans are expatriating in record numbers. Rumours are that there are many more applications in the pipeline.

Expatriation, giving up the right to citizenship, is a serious decision affecting not just you, but those closest to you. The Act of Expatriation, on the surface, is relatively quick, but the implications surrounding this choice should be thoroughly addressed. Literally, it requires a soul searching review and evaluation of your life, current, future, goals, family, financial, everything.

The US Consulate in Bermuda is available to assist you in this decision. Details of the process can be found in Part I of this article sseries published on July 4, 2009 Rights and responsibilities of US citizenship: The Royal Gazette and Will 'pondstraddling' get too ponderous for some? Published May 23, 2009.

Meeting with a US Consular Official to renounce your US citizenship is step one in the decision process.

The second is, you will have guessed it, your US tax filing and reporting obligations must be current to date. If you have not met this obligation, or were unaware you had this obligation, you will continue to be treated as a US citizen for tax purposes by United States Internal Revenue Service.

This is a very general overview of the US expatriation process. Please review the article published on May 23, 2009 for a full description of the renouncement process. The information provided is not intended to be used, nor can it be used as individual advice for your personal situation. You are advised to seek qualified professional counsel for your individual situation.

Martha Harris Myron, CPA, CFP(US) TEP(UK) JP- Bermuda is an international Certified Financial Planner™ practitioner in private wealth management. She specialises in independent fee-only cross border investment, tax, estate, and strategic retirement planning services for Bermuda residents with cross-border and multi-national connections, internationally mobile people and US citizens living abroad. For more information, contact martha.myron@gmail.com">martha.myron@gmail.com or 296 3528 Patterson Partners Ltd.