Investor · Los Angeles, CA · Member since 2014 · 100 posts · 13 votes
Hello,
Do you know of any banks that will open bank accounts for foreigners that live outside of US? It seems like the banks require the person to physically come in to sign forms/docs. Even with a power of attorney, most banks will not allow it.
We lend to foreign internationals and we're having trouble setting up accounts for them.
Investor · Chicago, IL · Member since 2012 · 190 posts · 85 votes
10y
My first thought would be to set up an LLC or c-corp for each borrower. It's onerous, but may be worth investigating if the dollar amounts are high enough.
The problem (so to speak) with foreign nationals is of course that they usually have no SSN or EIN or other way for the IRS and other regulatory bodies to track income, taxes, money laundering, etc. But a corporation is a legal person, with an EIN and other legal trappings, and can open a bank account with an authorized agent (accountant, officer, lawyer, etc).
Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
10y
From what I seen the last few years client needs to be at the bank. I like to say that I heard Bank of America was one that would open account with out being their.
Investor · Fair Lawn, NJ · Member since 2014 · 384 posts · 189 votes
10y
@Alex FranksI tried opening an additional savings account at Bank of America online and they wouldn't do it without me being there because I had moved to a different state.
@Alex FranksI tried opening an additional savings account at Bank of America online and they wouldn't do it without me being there because I had moved to a different state.
Bare with me I was selling turn key 2010-2013. HSBC it might have been but you needed to put $100k or $500k I think, again it was a few years back,We dealt with a lot of Australian investors. . Peak Asset lending did all the loans for our international folks.
Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
10y
2 weeks ago I was trying to help my friend who has a B1 visa and travels on business here to open a checking account. But my comrade, who was a branch manager at local MN bank said that when he was opening a new account for my friend, the bank system has shown a high level of risk 150-160 points. When an American person opens a checking account even with bad credit score, the risk level is under 30. My banker comrade said, that we could open the checking account for my international friend, but the funds that would be coming to the checking account (even from a domestic wire transfer) would get frozen and it will take forever to unfreeze them.
To open a bank account under LLC or Corp's name where the foreigner is the owner of the business, one will need to have a tax id #. Aliens could not get a tax id number if they don't have SSN
If anyone knows another way how it could be done, please share.
Rockaway, NJ · Member since 2016 · 7 posts · 3 votes
10y
@Eric Kang How do your clients plan to fund the accounts? Do your clients have any ties to the US at all (address, visa, ssn/itin, etc)? Are business entities an option? If so, do your clients have any preference in entity types?
Currently, the compliance piece, especially AML (anti money-laundering) regulations, are the main reasons for your hurdles....but if you can give more details I might be able to shed some light.
Most of the clients already have everything setup and they have accounts here in the US. They probably opened all their accounts when they were here in the states. But time to time we get newer foreign investors that do not have accounts setup and we are having a bit of trouble helping them out.
They all must have a business entity. We require them to open a Single Purpose Entity for our loan programs. My understanding is that even then, they are required to come into a branch to sign in order to open an account.
Investor · Chicago, IL · Member since 2012 · 190 posts · 85 votes
10y
No one owns a c-corporation, they are their own entities with their own EINs, manager(s), and (maybe) shareholders.
A single-member LLC will have its own EIN, but since it's a disregarded entity, of course the single member will need an EIN/SSN (whether that member is a person or another entity). A multi-member LLC may have individuals or other entities as members, each with their own EIN/SSN. An LLC does not exist without its member(s) and it can't have shelf (sometimes called treasury) stock; that is, it can't own shares in itself.
A c-corp exists regardless of whether or not it has shareholders, so it doesn't strictly matter whether its manager is a US citizen with an SSN/EIN, or whether any of its possible shareholders are. It doesn't have to issue shares or issue dividends.
Just about anyone can open/start/found a c-corp, US citizenship is not a requirement. Once properly registered, the corporation is the US entity, and no one will care about any non-US involvement, at least as far as a bank account goes.
Rockaway, NJ · Member since 2016 · 7 posts · 3 votes
10y
C-corp is definitely your best bet due to the reasons mentioned above. I would check with some experienced bankers in your area and have them check with their compliance and policy guides. Based on their bank's particular rules, it is certainly possible you may find one that is willing to open with notarized signatures and certified copies of approved personal identification. It will not be easy though.
No one owns a c-corporation, they are their own entities with their own EINs, manager(s), and (maybe) shareholders.
A single-member LLC will have its own EIN, but since it's a disregarded entity, of course the single member will need an EIN/SSN (whether that member is a person or another entity). A multi-member LLC may have individuals or other entities as members, each with their own EIN/SSN. An LLC does not exist without its member(s) and it can't have shelf (sometimes called treasury) stock; that is, it can't own shares in itself.
A c-corp exists regardless of whether or not it has shareholders, so it doesn't strictly matter whether its manager is a US citizen with an SSN/EIN, or whether any of its possible shareholders are. It doesn't have to issue shares or issue dividends.
Just about anyone can open/start/found a c-corp, US citizenship is not a requirement. Once properly registered, the corporation is the US entity, and no one will care about any non-US involvement, at least as far as a bank account goes.
Leon, no doubt that anybody could register a C corp. The question was how you can receive a tax id # if a foreign person that is the owner of the C-corp doesn't have a SSN.
No SSN=no tax id for the C corp=No bank account could be open without tax id