Setting up a US bank account from Australia

I have been opening US Bank Accounts at Wells Fargo for clients without any problems.

I did approach HSBC going back a while ago, they did say they could open accounts for Australians in the US, but when I told them i wanted it opened in days, I was told that it would take approx 3 months with all the red tape etc, so that was that.

I hear about others having opened accounts without to much bother, and of course, others that have been told you still have to go over there and be present, but knowing the right contacts at a senior level at the bank who understand the legalities and how to go about opening the account for foreigh nationals, is a great help.

So yes, it can be done.

Thanks

Jeff

Lot's of people are now getting 'dear john' letters from Wells Fargo.

It seems anyone who opened an account without actually being physically present is having those account summarily closed and they will send you a cheque for the funds remaining in the account.

The deadline for the closure is early September.

Seems that the Patriot act the the root cause of the problem.

Wells Fargo was previously setting up accounts through attorneys however this has now changed.

This is their process.

A non-U.S. citizen without a taxpayer identification number may not open or be added to a deposit account, IRA/ESA plan, Express Send agreement, or safe deposit box as an owner or with transaction authority unless they are face-to-face in a store, business, or alternative banking location or an offsite location within the United States and in the geographic proximity of the team member's home store or Business Banking location.

In other words the client must visit the US and set up the LLC in the state the LLC is registered to do business. Some allowances may be made to set up in another state but this will need aproval so its best that clients travel to the state in which they are buying to set up the accounts.

Ozforex can set up LLC accounts in the name of the LLC (not all states but in Atlanta they can). This is a way to be able to wire money home and still have a paper trail through the LLC. Most property managers would have wire capability to be able to send the US$ to ozforex and the beneficiary of the funds can be an Australian bank account.

Ideally though it would be preferable to get to the US and set up a bank account. For anyone that owns US property I believe this can be claimed as a tax deduction.

Disclaimer – Please seek professional advice for all tax and legal matters from a licensed professional. This is not advice and no liability accepted.

Lot's of  turmoil at Wells Fargo it seems, I had been working with a senior person at Wells Fargo in Kansas City for a long time, and never a problem. Now he has left, it reverts right back to how it has been for most others using WF, No one wants the responsibility or even willing to consider looking at opening accounts for overseas non present investors.

So right now, I'm talking to a few different sources, and also have others on the ground there also looking into it for me, and I think I've found another Bank that might be okay with opening accounts, but you must meet their strict criteria.

Hopefully, this can be sorted out very soon.

I always say that doing business in the US, certainly has it's moments..!! But it's never dull.

Its my understanding that you just need to sign a form that will allow you to transfer a wire without being there in person

I suggest that if anyone is interested in opening an account they get legal advice before acting. There have been people here singing Wells Fargos praises when I heard months ago that Homeland security was demanding that the accounts be closed down because they were opened without correct noterizing and without authority

Hi Karina,

They shut down every were not just in Atlanta. Caused a lot of drama for many finance companies and also investors.

Yes, attorneys tend to have relationships with smaller private banks where all decisions are kept in house.

There is no guarantee that accounts will be opened forever tho. If the words spreads and everyone start flocking to the bank eventually it could raise a few flags and then dramas again.

Thanks.

Thanks Ben,

Its very frustrating if the investors open accounts and than the bank decides to shut them down. It makes things very inconvenient. 

There must be a better solution figured out for foreigners wanting to open up accounts.

I mean we are pretty much buying the whole country haha

Thanks and have a great day.

Every bank in the US has to follow the Patriot act.. NO bank can just make there own rules. If they do they will get their hands slapped.

Crazy stuff guys,

I agree the best way is to flight to the US and open the account. You can also see the product and operation first hand.

I always get from investors "its too good to be true" lollol

Thanks Ben and Jay.