Retired expats or those who generate their income from companies in the United States may need just a U.S bank account. But if you are employed locally or start your own business abroad, you will need a local bank account. This is where the security consideration comes into play.
The process for opening a local account abroad can be difficult and a bit time consuming. It will require research on where you want to bank and the local requirements for opening an account. To help you in this area, we provide links to respected major banks that serve consumers in each of our countries in the Live/Financial section of each country.
Because of FATCA regulations, opening an account abroad may require you to provide foreign banks with compliancy documents, like a W-9 taxpayer identification form, in addition to other personal information required to open an account.
For flexibility, you may want to consider U.S.-based international banks, like Citibank and Bank of America. They have branches and ATM locations in many different countries and regions and could be your best bet if there is one located in your city. They provide access to all your accounts abroad for a small foreign transaction fee of around 1 to 3 percent. Quick transfer of funds from your U.S. accounts to your foreign accounts is another big plus. They also may even allow you to transfer your credit history.
“If you want or need to open an account in your new country, you should speak with your U.S. bank to see if they have any branch locations in your new city, or you can ask your bank if they would recommend a local bank for you to use,” Hennessey advised. “They should provide you with a recommendation and a letter of reference you can use to open your new local account.”
But with FATCA, there still is a very real possibility that you may not be able to open a local bank account. This may be changing, though. The U.S. government has completed bi-lateral agreements with about 40 countries so far this year. These agreements should make it much easier for Americans to establish local bank accounts in those countries.
You can get more details on FATCA in our article “FATCA Impacts American Expat Local Banking.”
Whichever banking option you choose, though, be sure to look for the flexibility and security that best meets your needs. And, start your planning well in advance of your move abroad.
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