Banking

“If neither foreign nor American banks will take American customers, how will the millions of citizens living abroad bank?” -Representatives Carolyn B. Maloney and Joe Wilson, co-chairs of the Americans Abroad Caucus

banking During Overseas Americans Week 2009, meetings were held with the American Bankers Association (ABA) and with FinCen in the Treasury Department (Financial Crimes Enforcement Network, which develops regulations on banking operations). We discussed the fact that our organizations have received multiple complaints from Americans overseas that U.S. banks either forcibly closed their account on short notice or have refused to open a bank account because of their foreign address, most often citing the Patriot Act as the reason.

Both the ABA and FinCen confirm that there is no provision either in the Patriot Act or in the FinCen regulations that prohibit banks from opening and maintaining accounts for American citizens with a foreign address. The ABA also made a telephone survey with top officials in large American banks to find out if there existed anywhere an official internal bank policy to refuse overseas Americans as clients. The answer was no. It was specifically stated that if one has a U.S. bank account and moves overseas, there should be no problem in maintaining that account. Yet the problem exists.

icon Steps to follow if a U.S. bank refuses to open or to maintain an account because of an American client's foreign address. (You must be logged in to view PDF.)

For a more detailed analysis of the issue, please consult AARO's Position Paper on Banking.

Contact Congress about Overseas American Banking Issues!

During Overseas Americans Week 2010 (OAW), the co-chairs of the Americans Abroad Caucus, Carolyn Maloney (D-NY) and Joe Wilson (R-SC) formally requested that the House Financial Services Committee hold hearings on the difficulties overseas Americans encounter with opening and maintaining bank accounts in the US and overseas.

Now we need your help to ask the leaders of that committee to listen. Just go to http://financialservices.house.gov/contact.html and complete the form to send your message to the committee.

We suggest that you insert into the "city" and "state" fields either the city and state where you vote or the city and country where you live overseas.

For your background, click here to read the letter sent by Representatives Maloney and Wilson. Feel free to use the following brief model to prepare your message. If you have any questions, do not hesitate to contact Andy Coyne.

Model Letter:

Dear Chairman Frank and Ranking Member Bachus,

As a member of the Association of Americans Resident Overseas, I urge you to take note of the letter sent to you on April 21 by Representatives Carolyn Maloney and Joe Wilson, the co-chairs of the Americans Abroad Caucus, and promptly hold hearings on the difficulties encountered by overseas Americans in opening and maintaining bank accounts in the United States and abroad. We are counting on the Committee on Financial Services to investigate these issues and ensure that overseas Americans have access to necessary financial services under reasonable conditions.

Regards,

[Your name and location; for example, Andy Coyne, Riyadh, Saudi Arabia]

Reps. Maloney & Wilson to Treasury: Protect Overseas Americans from Wholesale Bank Discontinuance

Press Release from the Americans Abroad Caucus
June 10, 2009

WASHINGTON, DC – Responding to reports that taxpaying Americans living abroad are being denied access to bank accounts due to regulatory uncertainty, Representatives Carolyn B. Maloney (D-NY) and Joe Wilson (R-SC) sent a letter to Treasury Secretary Geithner asking him to outline what steps are being taken to protect overseas American’s access to financial services. “We must protect the ability of overseas American to have access to financial services,” said Rep. Maloney. While I certainly support fighting tax evasion, and believe that banks must do their due diligence with all customers, wholesale bank discontinuance is not only unfair but unnecessary. I call on the Secretary of the Treasury to ensure that appropriate steps are taken to prevent oversees Americans from this double squeeze and preserve their access to the banking system.”

“American citizens living abroad should not have their access to financial services impeded by otherwise well-meaning efforts to combat tax evasion and ensure our banks have accurate information about their customers,” said Rep. Wilson. “This is a renewed and important effort on the part of the Americans Abroad Caucus to share the concerns of overseas American citizens with Secretary Geithner, to raise awareness among our colleagues about this effort, and to encourage the Secretary’s involvement in addressing this issue.”

Background:
According to organizations representing Americans living abroad a large number of American citizens residing abroad have been denied accounts with American banks citing difficulties in complying with the “know your customer” requirements of the Bank Secrecy Act as added by the USA Patriot Act. Additionally, there are reports that British and other foreign banks will refuse American clients if the new measures proposed for the Qualified Intermediary rules are adopted as expected on January 1, 2010.

Read the letter to Secretary Geithner here: pdf Dear Secretary Geithner

AARO Issues

FYI - Banking

How New US Banking Laws Threaten Overseas Americans A recent article in the Wall Street Journal headlined "Toxic Citizens?" examined the potential dangers of recent US legislation for overseas Americans who want to open or even maintain bank and financial...
Banks blasted for fee smokescreens June 02, 2010 – Banking charges in France are becoming more complicated and more expensive, an investigation by a consumer group has revealed. Read more: http://www.connexionfrance.com/banking-charges-fees-france-complicated-expensive-consumer-group-investigation-11727-view-article.html...