As of July 2007, across Europe, PayPal also operates as a Luxembourg-based bank. Tax Warning For Those Who Have an ePass Account 12 Mar, 2010 Found another interesting little post on GFY today and this one is rather disturbing, especially considering the fact that it's tax time here in the U.S.A. I never really thought about Paypal or EPass when doing my taxes but holy fuck, what this guy says is right. Many adult webmasters love to use ePass but did you know they are, or could be considered, a foreign bank? ePassporte is headquartered in St. Kitts, part of the Federation of Saint Kitts and Nevis, the smallest independent nation in the Caribbean. So if you have an account at ePassporte it's a foreign bank account. If you're a U.S. citizen and your high balances in any foreign bank accounts when added together add up to $10,000. or more, you must file Form TD F 90-22.1 and check the box on Schedule B. If you willfully don?t file Form TD F 90-22.1 the minimum fine is $100,000. So if you have foreign bank accounts and meet the threshold of reporting make sure you comply! *** Correction, they are registered in Curracao, while only the bank account is in St. Nevis, which either way still makes them a foreign bank.