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#80613 - 05/15/03 06:08 PM SSN required to open a bank account in US
Anonymous
Unregistered

Am I correct in thinking that for a Russian resident who is visiting the US on a business trip- he would not be able to open a bank account because he is not a US resident- especially since he would therefore not have a SSN.

In other words, can a non-US resident open a bank account in the US? Does anyone know?

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General Discussion
#80614 - 05/15/03 06:16 PM Re: SSN required to open a bank account in US
Anonymous
Unregistered

As far as I am aware, there are no Federal or State laws prohibiting a foreign non-resident from opening a bank account. Do your bank policies address what types of KYC identification are required to open an account. Additonally, would you be able to validate all of the customer id info, like address, phone, etc. . . ?

Regarding the possible tax implications of not having a SSN, your w-9 documents should address this.

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#80615 - 05/15/03 08:33 PM Re: SSN required to open a bank account in US
Lawrence T. Levine Offline
Junior Member
Lawrence T. Levine
Joined: May 2003
Posts: 37
Troy, VA
The 326 CIP regs make this interesting....

My read is:

A "U.S. Person" which is basically anyone person (including businesses or resident aliens) who wishes to open an account must provide a TIN (which could be an SSN, EIN, or ITIN) as well as name, DOB and address.

A "non-U.S. Person" only needs to provide reasonable proof of their true identity (to the guidelines established in the individual banks CIP).

I'm not sure how an anti-terrorism law managed to make it so that it's more stringent to open an account if you have a TIN then if you don't but leave it to washington to figure out a way to accomplish the opposite of what they intended.
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Lawrence T. Levine Managing Director SecurePipe, Inc. Direct: 4342932454 www.SecurePipe.com

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#80616 - 05/15/03 08:37 PM Re: SSN required to open a bank account in US
Lawrence T. Levine Offline
Junior Member
Lawrence T. Levine
Joined: May 2003
Posts: 37
Troy, VA
BTW - I 'think' the answer to your question is that the russian could open an account with 'reasonable proof of true identity'. read - you're papers must be in order.
_________________________
Lawrence T. Levine Managing Director SecurePipe, Inc. Direct: 4342932454 www.SecurePipe.com

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#80617 - 05/15/03 08:40 PM Re: SSN required to open a bank account in US
Anonymous
Unregistered

Because of our locations, opening accounts for non-resident aliens is a normal process. We require a copy of their passport or foreign government ID, have them complete the W-8BEN and insert a "plug" number in the SSN field. Our system is coded to identify these accounts as foreign so when the interest is reported to the IRS, it is identified as a non-resident. Canadians are the only customers we are required to report interest to the IRS on the 1042S form. The W-9 and W-8 instructions explain the steps for those customers with or without a TIN.

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#80618 - 05/15/03 10:02 PM Re: SSN required to open a bank account in US
Anonymous
Unregistered

How easily could the non-U.S. person transfer funds in and out, internationally?


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#80619 - 05/16/03 01:21 PM Re: SSN required to open a bank account in US
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
So long as you are not hitting OFAC countries it could be done. If this is just a visitor (temporary stay) and it is done a lot, I probably wouldn't want the account without understanding why funds would go back and forth.
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AndyZ CRCM
My opinions are not necessarily my employers.
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#80620 - 05/16/03 02:15 PM Re: SSN required to open a bank account in US
Anonymous
Unregistered

That's very interesting indeed.

Thank you everyone for your input... I guess I will verify everything else instead. I'm always suspicious!

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