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My understanding is that NT is essentially an offshore account and that the debit cards are untraceable. No way of Big Brother tracking $$ in or out if used for cash withdrawals.

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Aside from being a bad idea, I think this is untrue. I think the NETeller debit card works through a US-based bank.

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Yep - untrue. The simple fact is that if you get audited, they'll find out about your Neteller account, get the details from Neteller, which will show all your debit card transactions.