How to open USA bank account for offshore company

[Nyep]

Ridiculous. You are not doing yourself any favors with that juvenile writing style and childish "it was all a trap!!!11" nonsense. No trap was required, the information wasn't being hidden.

It is high time you stopped posting half truths as people might actually listen to you and end up in hot water.

You do realize I'm not the person that you were futilely battling with earlier, right? Scroll up and read the poster names, Einstein.

I would be seriously shocked if you were able to get any business out of this forum, once prospects had the chance to read your posts.

 

[David97255]

Guys there is no sense at all to battle on forum.
It's an helping forum with guys with great knowledge, take what you need and let what you don't

 

[Martin Everson]

My posts you can view them all. I give opinion freely to people who have legitimate concerns about offshore world. No half truth should go unchallenged as this is what makes healthy debate

No one should get upset either at being exposed. It is life and failure should be considered progress in the offshore world.

 

[Suzy Emerald]

Whether it is wise or not to open a US bank account depends on each ones specifc situation and needs I guess. A few months ago I opened a US bank account with IBC bank in Texas just by walking in and giving them my EU address (no proof requested of this). Note I am not resident in the EU anymore. Colleagues of mine did the same with WellsFargo in Texas.

 

[Martin Everson]

Whether it is wise or not to open a US bank account depends on each ones specifc situation and needs I guess. A few months ago I opened a US bank account with IBC bank in Texas just by walking in and giving them my EU address (no proof requested of this). Note I am not resident in the EU anymore. Colleagues of mine did the same with WellsFargo in Texas.

That's interesting are you a non-resident alien living outside the US? You were able to open the bank account in Texas as an NRA with no proof of address?

 

[Suzy Emerald]

Correct... just walked in, gave them an address + passport and my account was opened and I walked out with a debit card. I am a EU citizen, resident in latin america. I just go to the USA for business every month or so. Was surpised myself too. My husband did the same many years ago with BoA but those were other times I think.

 

[Suzy Emerald]

I would have preferred my latin american address on the acount but they wanted the address to match the country of my passport...

 

[Martin Everson]

That is very interesting and helpful to people, although shocking

The bank name comes up a bit in my feed in regards to due diligence. I know IBC bank helps undocumented migrants and is sympathetic to their cause but this is taking the biscuit. Not asking for proof of address is wild in 2018.

Last feed I got was below which accidentally was them complaining about due diligence burdens...lol.

IBC Bank Executive Testifies at Congressional Hearing

 

[Suzy Emerald]

yes, the bank caters a lot to Mexicans / Mexican Americans in the USA and has branches mainly in southern Texas and the border area. With all the KYC these days I was very surprised but happy to leave the bank with account, card and checkbook. But I have my doubts on the enforcement of banking regulations in the USA sometimes. Banks seem often kind of mom & pop stores if you go outside the biggest cities.

 

[Martin Everson]

They also serve a lot of cross border Mexicans also but I am still shocked this is possible in 2018 and in the U.S.

How could the bank survive a basic compliance audit having foreign accounts with no proof of address. It doesn't make sense at all.

Imagine....

Auditor: Can I see proof of address for account XYZ sir
Staff: We don't have any and never asking for any
Auditor: WTF, have you heard of Section 326 of the USA Patriot Act?
Staff: Hey me no comprehend patriot act

 

[Nyep]

My husband did the same many years ago with BoA

BofA still doesn't require proof of address to open accounts.

 

[Martin Everson]

Section 326 of the USA Patriot Act is actually not very concise. In fact hard proof of address may not be needed at all. It just needs the address given and and that could be verbally and then it comes down to each banks individual discretion on KYC on whether they feel they have sufficiently identified a client.

 

[David97255]

No video call? No proof of address? No selfie? Wow bad that I have nothing to do with U.S account, it looks easier to open there than in an Emi located in an hole of east Europe

 

[Suzy Emerald]

but you have to appear in person... and then tell the bank what address you want on your account...

 

[Martin Everson]

but you have to appear in person... and then tell the bank what address you want on your account...

I know that when you turn up in person as an NRA and open an account you can provide any US mailing address and they will open it with very little proof if you have a ITIN. However to provide a foreign address on a U.S account with no hard proof of address requested? No ITIN or foreign tax ID goes against common sense. Yes the law allows it but this is beyond crazy for this to happen.

 

[Martin Everson]

No video call? No proof of address? No selfie? Wow bad that I have nothing to do with U.S account, it looks easier to open there than in an Emi located in an hole of east Europe

I totally agree. It is a recipe for disaster.

Someone remind me how the U.S is fighting terrorist financing and money laundering again.

 

[globalconsultancy]

Can you please tell us which exact U.S bank does this with no ITIN?

This would help those other than myself who wish to open a US account....thx.

Sure. Before the financial crisis (around 2005), I was able to open an account at Washington Mutual with a foreign passport without any issues. The account was open and active within minutes, and I immediately received a temporary checkbook and debit card. When WaMu collapsed, its banking operation was absorbed by JPMorgan Chase. The WaMu account was grandfathered in (with $0 maintenance fees which Chase does not offer anymore) and I believe is still active (as a Chase Checking account), even though I haven't used it in a while.

A more recent experience (around 2014) was a friend visiting California who was able to open an account with U.S. Bank with just his foreign passport. (I know the name "U.S. Bank" sounds fake, but it's a real bank - www.usbank.com.) They did ask him for a US address, but didn't require any proof he lived there.

Most banks in Chinatown/NYC will happily open a checking account without asking for too much. They mostly cater to visitors from China, but do apply the same rules to other foreigners. For example, Abacus Federal Savings Bank, Chinatown Federal Savings Bank, First American International Bank, Cathay Bank, United Orient Bank. All of these banks are FDIC insured, and are not much riskier than the behemoths like Citibank, JPMorgan Chase or Bank of America.

From the web page of United Orient Bank (United Orient Bank ):

"When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask you to see your driver's license or other identifying documents. In some cases, identification will be requested for current account holders if original documentation was not obtained with the opening of the account."

If you don't have an ITIN or SSN, your account will be subject to automatic backup withholding (which means the IRS will get 25% of any interest you receive on the account.) If you have an SSN or ITIN, you can send it to the bank and ask that backup withholding be lifted. Banks do not require that you have an ITIN or SSN to open an account.

 

[globalconsultancy]

I know that when you turn up in person as an NRA and open an account you can provide any US mailing address and they will open it with very little proof if you have a ITIN. However to provide a foreign address on a U.S account with no hard proof of address requested? No ITIN or foreign tax ID goes against common sense. Yes the law allows it but this is beyond crazy for this to happen.

Most banks will ask for a local address, which can be a hotel or a friend you are staying with. I don't see a problem, unless they ask for utility bills, which they don't.

An ITIN or SSN is not necessary to open a bank account. Some banks do ask for it (Citibank, JPMorgan Chase and BoA are particularly nasty), but many/most don't. It's not needed for anything other than the exemption from backup withholding. If you are happy for the IRS to keep 25% of the $0.07 you will earn on your checking account, you don't need an ITIN or SSN.

 

[globalconsultancy]

No ITIN or foreign tax ID goes against common sense. Yes the law allows it but this is beyond crazy for this to happen.

Why? You don't need to provide your National Insurance number when you open a bank account in the UK, or your PPS number when you open a bank account in Ireland. In most normal countries, banks are not umbilically connected to the tax authorities.

 

[globalconsultancy]

Section 326 of the Patriot Act does not specifically require proof of address, only that the bank maintains records of the information used to verify the person's identity. It requires a bank to exercise reasonable efforts to ascertain the identity of each customer.

They also serve a lot of cross border Mexicans also but I am still shocked this is possible in 2018 and in the U.S.

How could the bank survive a basic compliance audit having foreign accounts with no proof of address. It doesn't make sense at all.

Imagine....

Auditor: Can I see proof of address for account XYZ sir
Staff: We don't have any and never asking for any
Auditor: WTF, have you heard of Section 326 of the USA Patriot Act?
Staff: Hey me no comprehend patriot act