US bank account for non-residents: debunking the myths

In recent years, a growing number of people and companies have become interested in US banks, which has given rise to many myths and misunderstandings about the specifics of opening and maintaining accounts in the US. One such myth is the claim that you can open a bank account in the US entirely online, which is far from the truth.

In this article, we will debunk the most common myths about US bank accounts, explain the real requirements and process for opening an account, and help you understand what is the main guideline for US banks.

Top 5 myths about opening a US bank account

Myth 1: US banks do not open accounts for foreigners

There is an opinion that US banks are completely closed to foreigners and do not provide them with services. In fact, many US banks open accounts for foreign clients, but this requires certain conditions to be met. US banks can provide their services to foreigners if they permanently reside in the US or reside in several countries, including America. The process for such clients may involve providing additional documents such as a passport, ITIN or EIN, and proof of U.S. address, and often a personal visit to the bank.

Myth 2: You can open a bank account in the U.S. entirely online

Some people believe that opening an account in a U.S. bank is possible entirely online. In reality, this statement is only true for U.S. residents who can prove their residential address or registration. But even for residents, sometimes the preliminary online application is often accompanied by a requirement for a personal visit to complete the process. Non-residents, in turn, can only open an account by personally appearing at a U.S. bank, without exception.

Myth 3: All you need to open an account in a U.S. bank is a passport

There is a misconception that all you need to open an account in a U.S. bank is a passport. In reality, opening an account requires not only a passport but also additional documents such as an ITIN or EIN, a social security number, proof of residential address, proof of credit history, and sources of wealth. These documents are required to comply with identification and fraud prevention requirements, and without them, the bank will most likely refuse to provide services.

Myth 4: You cannot open an account in the US for a foreign company

You can often find information that foreign companies cannot open an account in an American bank. In fact, although US banks are primarily focused on the domestic market and resident companies, foreign companies can still open an account if they have a real connection with the US, local counterparties or do business in the US market. This is certainly a more complicated procedure, but it is still possible. To do this, you will need to provide all the necessary supporting documents, such as incorporation documents, tax numbers, identification documents of owners and managers, as well as supporting documents about the connection with the US, for example, contracts with American partners or evidence of trading activities in the US market. There is also an option to open a branch in the US for a foreign company, which will increase the chances of opening an account in America.

Myth 5: Once an account is opened in a US bank, there are no more problems

You might think that once an account is opened in a US bank, all problems are automatically solved. However, this is not entirely true – US banks have the right to close accounts without prior notice, and this can happen for a variety of reasons. The most common reasons for closing an account include:

1. Violation of terms of service: If the customer does not meet the terms specified in the agreement, such as the minimum balance or regular deposits, the bank may close the account.
2. Inactivity: Accounts that remain inactive for a long time may be closed by the bank.
3. Suspicious activity: If the bank detects suspicious or unusual financial activity that may indicate possible fraud or violation of laws, the account may be closed as part of measures to combat money laundering or terrorist financing.
4. Incorrect information: Incorrect or incomplete information provided when opening an account may also lead to its closure. For example, after opening an account, your documents were subject to additional verification by the bank’s security service a few days after the account was opened, and they have already conducted a more thorough analysis, which revealed discrepancies.
5. Change in financial policy: Banks may change their policies or stop servicing certain types of accounts or customers in accordance with new regulatory requirements or strategic changes. For example, they may refuse to serve citizens of Ukraine or other countries due to political changes.

Thus, when opening an account in an American bank, it is important to understand that, despite the existence of myths and misconceptions, the process is still complex and requires fulfilling many conditions. Understanding the real requirements and conditions will help to avoid unpleasant surprises and ensure effective management of your finances.

In conclusion, it is worth noting that it is impossible for foreigners to open an account in a US bank completely online. US banks require non-residents to have personal presence and impose a number of strict requirements and conditions. However, there is an alternative for businesses: opening an account in American payment systems, which allow you to do this completely remotely.

If you need help opening an account in US banks or payment systems, our lawyers from Azola Legal Services are ready to provide professional advice and support. Contact us for qualified assistance and solutions to all your questions.