Over the last twelve months, an increasing number of US expats have asked us “Can a US citizen living abroad open a bank account in the US?”. Well, here’s the answer.
If you’re a US citizen living abroad you can open a bank account in the US. To do so, you must apply to banks that accept US citizens abroad. But also, maintain the US-specific ties that the bank requires and pass the bank’s standard identity verification and compliance procedures.
Unfortunately, most US banks do not fall into this category.
In fact, while other articles claim you can simply apply to any US bank with an online application and get accepted, this is false. US banks are reasonably tech-savvy, have safeguards in place for compliance, and aren’t easily fooled.
Instead, you need to focus on applying to the right US financial institutions (or through experienced bankers), that allow US citizens to open accounts remotely without physically going into the branch for identity verification.
Fortunately, in this article, we’ll share some of the banking challenges (and solutions) you’ll likely face. But, we’ll also give you an insight into the application process.
Now, some people might be curious why a US citizen living abroad would ever struggle to open accounts in the first place. They are citizens of the US with SSNs and still pay US taxes. But, bank regulations are changing and getting stricter. Many US financial institutions have adopted stricter internal policies and will flat-out refuse anyone applying from a) outside the US, b) who is not a US resident, or c) who doesn’t meet certain criteria.
These restrictions range from residency status, ties to the USA, and whether or not you intend to make international bank transfers. Not to mention, which state you have an address in. But also, your physical location at the time of application–more on this below.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can US Citizens Living Abroad Open International Bank Accounts?
- What Do I Need to Open a US Account When Living Abroad?
- Where Else Can a US Citizen Living Abroad Open a Foreign Bank Account?
- How Do I Open a US Bank Account When Living Abroad?
- Frequently Asked USA Banking Questions
- Do You Want Help Opening Bank Accounts?
Can US Citizens Living Abroad Open International Bank Accounts?
As discussed in past articles, opening accounts is not as straightforward as most people think. In fact, account opening is a nuanced procedure where you’re put under the microscope. And, each bank has different account requirements and procedures.
Typically, you’ll get “scored” against the bank’s internal risk matrix. Which can be either auto-generated or managed by the bank’s compliance department. This then determines whether or not you (or your business) are a suitable client for the bank. And, if so, what type of additional documentation and identity verification procedures you’ll need to jump through.
When it comes to whether a US citizen living abroad can open a bank account in the US, this risk matrix often includes a few unique parameters.
- Are you located in a foreign country at the time of application?
- Are you located in a different state from the bank at the time of application?
- Do you have the right address to apply for an account?
- Do you have the right supporting documents to open an account?
- And much more…
These items might seem trivial, but if you don’t navigate them correctly, your application will be denied. Or worse, the bank will require you to physically come into a branch to apply.
And, this is just the tip of the iceberg.
Many USA citizens living abroad who apply for accounts end up being asked to visit the branch in person. This is because the bank needs to verify your identity and their system couldn’t properly cross-reference your particulars. While that might not seem like a big deal, this can be massively inconvenient if you’re not physically located in the United States at the time of application.
Fortunately, as we’ll share below, as long as you have the right information, a bit of direction, and know which financial institutions to apply with, you can overcome all of these challenges and more. Plus, even if the bank you choose to open with doesn’t allow for online account opening, you can sometimes overcome this by simply applying through the right banker.
But first, it’s important to know what you need to open a bank account as a US citizen living abroad.
Do You Want to Explore All Your Offshore Banking Options?
What Do I Need to Open a USA Account When Living Abroad?
If you want to open a bank account in the US while living abroad, you’ll need to meet bank-specific requirements. And, depending on the bank you choose to open with, requirements can and will likely vary.
With this in mind, we’ve outlined the most common requirements for you below.
- Two forms of government-issued identification
- Proof of source of income & wealth
- Completed bank account application forms
- Acceptable US address
- Minimum account opening deposit
Of course, depending on your client profile, the minimum account opening deposits can vary. Not to mention, financial institutions can request additional information. Including proof of a US tax identification number and a US phone number.
But, generally speaking, a US citizen living abroad can open a bank account in the USA by meeting the above requirements.
That said, before opening accounts in the United States, you should probably consider all options.
Where Else Can a US Citizen Living Abroad Open a Foreign Bank Account?
If you’re looking to open a bank account in the USA from abroad, you might consider banking in other countries as well.
Fortunately, US citizens living abroad are not restricted to banking in the United States. In fact, US citizens can open accounts in most countries, just like anyone else.
But, there are some strings attached…
Of course, following the roll-out of the Foreign Account Tax Compliance Act (FATCA) in 2013, many foreign financial institutions stopped accepting US citizens as clients entirely. This was due to the added costs, complexities, and administrative burdens associated with US reporting requirements for US citizens.
In other words, onboarding and servicing a US customer is expensive for foreign banks. This is because of all the extra special reporting that the US government requires under FATCA. So, instead of implementing FATCA, many financial institutions simply opted to not accept US citizens as clients anymore.
But since FATCA was implemented, a lot has changed. Many foreign banks invested heavily in their internal compliance systems to comply with increasingly strict AML, KYC, CTF, and CRS regulations. As a result, many financial institutions became FATCA-compliant. And, it’s now profitable to accept US clients again.
So, if you’re a US citizen living abroad looking to open a bank account in a foreign country, you’re in luck. Whether you’re interested in private banking, retail banking, or business banking, there are options available. Granted, you’ll still have a more difficult time finding a bank to open with than the average non-US citizen or resident.
How Do I Open an Account in the USA When Living Abroad?
As mentioned, the question of “Can a US citizen living abroad open a bank account?” has been coming up frequently over the past year. So, we had an idea. Our team set out to not only answer this question but also to create the most comprehensive banking report that exists on the topic.
This report includes detailed instructions, US bank recommendations, and strategies for specific client groups. But also, we give you specific suggestions on how to overcome just about every possible challenge you could face.
This report explains how to open accounts with some of the top brick-and-mortar banks in the USA. But, it also covers account opening at credit unions. And, also discusses which US fintech banking options are worth exploring for US citizens living abroad. In all, we cover more than 25 different banking options.
To access this report, all you need to do is join GlobalBanks Insider. You will then receive immediate access to all of our reports, including US Remote Bank Account Opening for US Citizens. More on this below.
Frequently Asked USA Banking Questions
Below are three of the most common questions we receive from people exploring if a US citizen living abroad can open a bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can I Open a Bank Account if I Live Abroad?
Yes, you can open a bank account if you live abroad as long as you choose the right bank, meet the bank’s account opening requirements, and have a suitable client profile. That said, the financial institutions available to you will depend on your citizenship, residency, banking needs, and deposit level.
Can US Citizens Own Foreign Bank Accounts?
Yes, US citizens can own foreign bank accounts. That said if a US citizen has a foreign bank account with more than $10,000, they are required to report their account to the IRS. Failing to do so can result in major penalties and fines.
Can I Keep My US Bank Account if I Live Abroad?
Yes, you can keep your US bank account if you live abroad as long as your financial institution allows you to do so. That said, depending on where you live abroad it may be more convenient to have a local bank account. This is especially true if your US bank charges fees for international transactions. It’s important to understand your account restrictions and terms before deciding to keep your US account when living abroad.
Do You Want Help Opening Bank Accounts?
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As an expert in international banking and financial services, it's evident that the article you provided delves into the complexities of US citizens living abroad trying to open bank accounts in the United States. My expertise allows me to break down the key concepts discussed in the article:
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Challenges for US Citizens Living Abroad: The article highlights the challenges faced by US citizens residing outside the country when attempting to open a bank account in the US. It emphasizes the misconception that applying to any US bank online is a simple process, debunking this notion and stressing the need to choose banks that specifically accept US citizens abroad.
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Banking Regulations and Stricter Policies: It discusses the changing landscape of banking regulations, with many US financial institutions adopting stricter internal policies. The reasons for refusal include the applicant being outside the US, not being a US resident, or not meeting certain criteria, such as residency status, ties to the USA, and intentions for international bank transfers.
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Risk Matrix in Account Opening: The article introduces the concept of a "risk matrix" used by banks to evaluate the suitability of clients. Parameters in this matrix include the applicant's location during the application, the state of residence, the address provided, and the supporting documents. Incorrect navigation of these factors can lead to application denial or the requirement to visit a branch in person.
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Requirements to Open a US Bank Account Abroad: The article outlines the general requirements for US citizens living abroad to open a bank account in the USA. These include two forms of government-issued identification, proof of income and wealth source, completed application forms, an acceptable US address, and a minimum account opening deposit. Additional requirements may include a US tax identification number and a US phone number.
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Options Beyond US Banks: It explores the possibility of US citizens living abroad opening foreign bank accounts in countries other than the US. The article acknowledges that, post the implementation of FATCA, some foreign financial institutions stopped accepting US citizens due to added costs and administrative burdens. However, many institutions have become FATCA-compliant, allowing US citizens abroad to open accounts.
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FAQs and Common Concerns: The article addresses common questions and concerns related to US citizens living abroad opening bank accounts. It clarifies that the feasibility depends on choosing the right bank, meeting specific requirements, and having a suitable client profile. It also touches on reporting requirements for foreign bank accounts held by US citizens and the option of maintaining a US bank account while residing abroad.
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GlobalBanks IQ Solution: Towards the end, the article introduces GlobalBanks IQ as a solution for individuals seeking assistance in opening international bank accounts. It emphasizes the platform's features, including expert insights, step-by-step reports, an international bank database, and assistance for high-risk, offshore, and non-resident clients.
In summary, the article provides a comprehensive guide for US citizens living abroad who are navigating the complexities of opening and maintaining bank accounts, covering various aspects from regulations and challenges to potential solutions and alternatives.
