A reader recently sent in the following questions:

Can you tell me would the IRS issue a diffusion notice in a civil tax audit involving offshore banking? Would Interpol even accept a diffusion notice on a non criminal case? And if so what does that mean to a person travelling?

The reader rightly questions whether

Continuing with the issue addressed in the last post, today’s post addresses banking and the effect of a Red Notice on a person’s ability to maintain an account at a financial institution.  Specifically, how does a financial institution know about a pending Red Notice?

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