Author Topic: General Banking Questions  (Read 1778 times)

Offline Art, just a re(tired) Fil-Am

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Re: General Banking Questions
« Reply #15 on: July 17, 2017, 09:32:43 PM »
While some people have no problems with BoA I have heard of them closing accounts for others when they found out that they lived in the Philippines, so make sure they do not know you live there permanently.
 
As for mail drops, I think that was the reason BoA closed one guys account, they knew the mail drop was not an actual address, I guess when they see a lot of people living at the same address they must look into it and then may close peoples accounts who use them.

Good luck.
That's hard for me to beleive that a U.S. bank would close people's accounts for those reasons.
We've been using our Philippines address with our U.S. bank and credit card companies for years without any issues. When updating our profiles, they even ask for an overseas address. They even mail our new cards here to the Philippines. So, I'm baffled with your post concening this matter.
We also use a Texas mail forwading servce without any issues.
Our Magic Jack no longer works, but we still use Skype with a U.S. phone number, which works fine.
« Last Edit: July 17, 2017, 09:41:49 PM by Art, just a re(tired) Fil-Am »
"Life is what we all make it to be"!
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Offline Lee2

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Re: General Banking Questions
« Reply #16 on: July 17, 2017, 09:54:27 PM »
That's hard for me to beleive that a U.S. bank would close people's accounts for those reasons.
We've been using our Philippines address with our U.S. bank and credit card companies for years without any issues. When updating our profiles, they even ask for an overseas address. They even mail our new cards here to the Philippines. So, I'm baffled with your post concening this matter.
We also use a Texas mail forwading servce without any issues.
Our Magic Jack no longer works, but we still use Skype with a U.S. phone number, which works fine.
Possibly it has to do with investment accounts at the same bank, I have no idea why as it did not happen to me, I just mention it as a word of caution since it could really mess up an expat.

Some research, apparently it is happening at more than BoA
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Living Abroad Causing Issues

A number of US banks, including Charles Schwab, have made the decision to close brokerage accounts of those living outside the US, one of the most recent being Merrill Lynch. A letter was sent to certain clients living abroad that stated their accounts would be closed as of October 1, 2016. This was due to a review of non-US resident clients by the bank, which determined that it couldn’t effectively serve the needs of the US expat population due to current business requirements and regulatory restrictions. The letter went on to say that the client would be better served by a firm who can meet the comprehensive needs of an American abroad.

The caveat here is not all clients were forced to move to another bank – reportedly, only those whose brokerage accounts are below $1 million received this letter and had to find a new bank. https://www.greenbacktaxservices.com/blog/us-expat-financial-accounts-closing/
 

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  Banking Service Restrictions Present New Problem for Americans Abroad

Expat Brokerage Accounts are Being Closed in the United StatesAmericans abroad are being informed by U.S. banks and brokerage firms with increasing frequency that their accounts have been restricted or even closed due to their status as non-U.S. residents.  These actions are being taken by a broad range of U.S. financial institutions and notably include Morgan Stanley, Fidelity, Merrill Lynch and Wells Fargo.  This follows on the heels of widespread action by non-U.S. financial institutions to revoke and refuse services to expat Americans as a result of the Foreign Account Tax Compliance Act (FATCA).  Consequently, Americans abroad find it increasingly difficult to locate banking and investment services both in the U.S. and abroad.  Even where they remain welcome as clients, the range of services and product availability is typically restricted.

This Thun Research article briefly discusses reasons behind brokerage account restrictions and proposes solutions for frustrated U.S. expat investors. Please also view the American Expat Account Closure webinar for more information on this topic.
https://thunfinancial.com/us-brokerage-accounts-american-expats-closed-2015/

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Americans Residing Overseas are Denied Bank Accounts
Overseas Americans are Caught in a Catch 22!

Americans residing overseas are denied access to banking facilities in the United States, solely because of their foreign address. The number of such instances has risen sharply since passage of the Patriot Act. Banks refer to “Know Your Client”¯ rules in this legislation as the reason for refusing clients with overseas addresses, even if they are U.S. citizens. Overseas American citizens are consequently being denied the basic right to maintain normal commercial relationships with their country.

Furthermore, the Qualified Intermediary rules of the IRS for overseas banks with American clients have already discouraged many foreign banks from accepting American clients. For example, as noted in the IHT (02.27.2008), ABN AMRO, announced on February 27, 2008 that “it was closing any portfolio investment accounts held by customers with a U.S. passport within 30 days, citing “strategic reasons.”¯”¦The Dutch financial newspaper De Telegraaf reported that the decision to cancel the accounts was the result of high costs to comply with U.S. regulatory laws.”¯ As of January 1, 2010, reinforced QI rules will be so restrictive that very few overseas banks will continue to accept American clients; the reporting requirements are too costly and the legal and compliance teams do not want to assume the risks.

When loyal tax-paying American citizens face prejudice from both domestic banks and foreign banks, they are placed in a Catch 22 situation. Americans with a foreign address become outcasts, a security risk, potential money launderers or tax evaders. At a time of ever-increasing globalization and mobility of population, the damage inflicted by U.S. law on the estimated 5 million overseas American citizens is very serious. Congress must remedy the situation.

And more, continue reading at the link
https://aaro.org/38-position-papers-2009/22-position-americans-residing-overseas-are-denied-bank-accounts-2009
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

 


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