Wells Fargo Closes Accounts for Americans Abroad (2024)

FAQs

Is Wells Fargo closing accounts for Americans abroad? ›

Wells Fargo also pulled out of the international market, and as of January 19, 2021, no longer opens new brokerage accounts for residents living outside the U.S.

Not enough activity with your account

According to the deposit agreement accounts of major banks such as Chase, Wells Fargo and Bank of America, a bank may close your account if you maintain little to no activity and keep it at a zero balance.

Wells Fargo Closes Accounts for Americans Abroad – Creative Planning Can Provide an Alternative. Wells Fargo has announced that it is closing accounts for non-U.S. residents, including the accounts of their many American expat clients.

Some expats in fact choose to relocate to a low or no-tax state before moving abroad, so as to be able to keep their US financial accounts without paying state taxes when they move abroad. You might also consider changing your US bank to one that charges less to withdraw and transfer money internationally.

The primary rationale is likely a combination of increased U.S. regulation of financial institutions and a perceived compliance risk that U.S. banks have about operating in certain foreign countries.

It highly depends on the tax treaty between the US and your new country of residence. If you expect to return to the US, it is often best to just keep the accounts, but inform yourself how they are taxed, while you are away.

Keeping a mailbox in the US while living abroad

For some, maintaining a US mailing address simply involves updating their primary address to that of a parent, another family member, or a trusted friend. Others might opt for a US virtual mailbox or retain their US property to preserve their address.

Wells Fargo & Company provides financial services in Asia, Canada, and Latin America through its duly authorized and regulated subsidiaries.

Is it illegal for a U.S. citizen to have a foreign bank account? No, it's not illegal for a U.S. citizen to have a foreign bank account. However, it is essential to ensure all IRS and compliance requirements are met, including the disclosure of such accounts.

Levy on Foreign Bank

The IRS generally cannot levy on a foreign bank account. But it can levy on a domestic branch of a foreign bank. The rules for this type of levy can be found in 26 C.F.R.

Do I need to tell my bank I'm moving abroad? ›

Yes, one of the most important things you need to do before going abroad is informing your bank. You want to make sure you'll be able to access your funds and use your debit or credit card while you're on vacation.

Yes, non-U.S. citizens can open a bank account in the U.S. When you open a bank account at Bank of America, you'll need to provide two forms of identification, a tax identification number and documents that show proof of both a foreign and U.S. address.

You'll be able to use your Wells Fargo card when you travel — just check the network your card is issued on — usually Visa or MasterCard — is accepted by the merchant or ATM you pick.

And, because there are no U.S. laws against transferring funds or foreign-earned income from other countries, you can continue investing any surplus cash in your U.S. investment account. Just be careful you're contributing to the correct types of accounts to meet your specific needs.

Fortunately, opening a bank account in a foreign country is totally possible — and totally legal, as long as you're not doing so for tax evasion purposes. However, it may take a few more steps than opening a domestic account would. Read on to learn the details.