Financial challenges for American expats in Kazakhstan: challenge 3 – banking
Written by Dermot Monaghan on January 17, 2017.
Further to my previous two posts (investments, frozen IRAs and pensions, here’s a third challenge for US citizens residing outside the US: banking. Not only will many of the America’s largest banks cancel your account the minute you move abroad but opening a bank account in your adopted country could also prove difficult. Such are the reporting demands imposed on foreign banks by FATCA legislation that many foreign banks are simply refusing to take on US clients. Simply put, the upside to the banks of having those clients is not sufficient to outweigh the downsides of filling in the paperwork required to comply, not to mention the potential fines imposed for any inadvertent mistakes in reporting.
Not only are financial institutions turning down new US clients but they are also in some cases closing down the accounts of existing American clients. Understandably, many law-abiding US citizens are angry at being punished in this way and struggling with the realities of finding an institution willing to allow them to invest and benefit from the basic banking services we all take for granted such as internet banking and debit/credit cards.
One solution is offshore banking and this is an avenue that you should explore if you have had problems of this nature. Offshore banks usually refer to banks located in self-governing international financial centres located around the world. Examples include Singapore and the Channel Islands. As well as a willingness to open accounts for US expats, offshore accounts offer several additional advantages including:
• Easy access from wherever you are in the world
• The possibility of holding money in different currencies
• 100% legal
• Simple tax filing
• A safe haven for your money, especially useful if you live in a country with a volatile currency
• Tax efficiency
• Flexibility and convenience
To find out more about how offshore banking could make your life easier, either because you are a US citizen who has been refused an account elsewhere, because you want to diversify your currency holdings or because you move country a lot and would like the convenience of an account that is easily managed from wherever you are in the world, please don’t hesitate to get in touch with me by email firstname.lastname@example.org , call me on +7 (747) 837 0469 or skype me at dermot.m.monaghan.