Ex-pat here.
Allegedly because of the Patriot Act (but in reality because of the fear by corporate heads of "claw-back" after the 2008 crash and subsequent legislation), Americans living abroad are finding it increasingly difficult to maintain banking connections in the U.S.
More and more banks are demanding a U.S. postal address. Investment houses (Merrill-Lynch et al.) are unilaterally cancelling the accounts of Americans living abroad.
Yes, I'm sure that there are various ways to "finesse" the system (involving slight subterfuge - like maintaining a joint account with a brother who resides in the States), but lifeline after lifeline is failing. It may one day become impossible for an "average" American to do.
Regards,
It’s an Electronic “Iron Curtain”.
The challenges of getting FBAR and FACTA perfect in any situation ensure that, even with professionals, the taxpayer ends up with bearing a high degree of risk.
Both foreign and US banks are tired of the cost of compliance.
It is entirely a man-made problem with such variable enforcement ... oh, wait, that is what the gov’t always does when they want power over a group or an individual.
“More and more banks are demanding a U.S. postal address. Investment houses (Merrill-Lynch et al.) are unilaterally cancelling the accounts of Americans living abroad.”
And vice versa. My wife has some inherited money in Denmark. One of the 2 banks she used dropped her completely because...filthy onerous demands by IRS. The remaining bank is still accommodating her but requires new documentation every year. The IRS and tax code are a national disgrace. If I were a foreign bank I’d tell IRS to shove it.
I didn’t say it had to be an American bank—just not Mexican.