Americans living abroad are generally treated about the same as non-resident aliens. It can be very difficult for non-resident aliens, including Americans living abroad, to maintain a US bank account in the US. With non-resident aliens now being thrown out of American banks in America, non-resident citizens will likely be treated the same.
With such cross-border economic activity, fueled in large measure by the maquiladora industry in Juárez, it is only natural for foreign businesses to maintain U.S. bank accounts in El Paso. Unfortunately, many of these commercial accounts are being closed by U.S. banks. Why is this happening?
…The regulatory cost to U.S. banks to comply with the Patriot Act and reciprocal reporting obligations under FATCA agreements limit the profitability of maintaining deposit accounts for non-resident aliens, and expose U.S. banks to hefty penalties for regulatory failures, as in HSBC’s case.
So what does a U.S. bank do under such circumstances, particularly when foreign deposit accounts are a small percentage of your book of business? Close the accounts and focus on more profitable, less risky investments.
Foreign investors: Why US bank may close your account Sunday, October 6, 2013 6:00 pm
At least non-resident aliens can have a bank account where they live, unlike some non-resident citizens who are being denied local banking services as well as US banking services.
But, don’t worry, Americans. The Mafia Bank still accepts American clients and business is booming!
