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 banks (or through experienced bankers), that allow US citizens to open accounts remotely without physically going into the branch for identity verification.
Fortunarely, in this article, we’ll share some of the challenges (and solutions) you’ll likely face. But, we’ll also give you an insight into the application process.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE USA Banking Starter Guide. It’s designed to help non-residents open accounts with top banks in the US.
Now, some people might be curious why a US citizen living abroad would ever struggle to open accounts in the first place. They are US citizens with SSNs and still pay US taxes! But, bank regulations are changing and getting stricter. And many US banks 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 US, and whether or not you intend to make international 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.
Restrictions That Dictate Whether or Not a US Citizen Living Abroad Can Open a Bank Account
As discussed in past articles, opening bank 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 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, such as:
- 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 US citizens living abroad that apply for bank 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 US 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 banks 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.
Required Documents to Open a US Bank 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 deposit can vary. Not to mention, banks 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 US bank account by meeting the above requirements.
That said, before opening accounts in the US, you should probably consider all options…
Where Else Can a US Citizen Living Abroad Open a Bank Account?
If you’re looking to open a US bank account 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 banks stopped accepting US citizens as clients entirely. This was due to the added costs, complexities, 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 banks 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 banks 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 to Open a US Bank Account 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 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 US. But, it also covers account opening at credit unions. And, also discusses which US fintech 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.
How a US Citizen Living Abroad Can Open a Bank Account Today…
Whether you’re ready to open a bank account as a US ciziten or you’re just starting to explore your options, we can help.
GlobalBanks USA is our dedicated US bank account opening service.
GlobalBanks USA gives you everything you need to start finding and opening US bank accounts for you and your business.
When you join GlobalBanks USA, you receive a dedicated account manager to help you navigate your US account opening options.
Plus, you receive access to our library of premium (members-only) US banking reports. This includes proven account opening strategies, client-specific lists of banks, and successful tactics to make the most of US banking.
Of course, you’ll receive direct introductions to US bankers who are ready to help you navigate the account opening process at top US banks.