Game On: Set Up International Bank Accounts on the Fly

So, you are a foreigner and you need a bank account abroad. Congratulations, you’ve hit a completely new level in this Jumanji game. To conquer it successfully, you should know the rules to play by. In the case of banks and accounts, it means you need to be aware of the documents required for non-residents to open a bank account in a foreign state. This is where your challenge starts as you may face requirements that vary depending on the country and the bank you choose. However, the benefits of a non-resident bank account far outweigh all the efforts you’ll have to put in to achieve the goal. Are you with us in it? This is where the game starts!

Why non-residents should consider international banking

If you are a non-resident who wants to open a bank account abroad, you may be wondering what the advantages of doing so are. Well, just take a look at some of the main benefits that you will enjoy as an international bank account holder:

• Protect your assets: With a bank account abroad, you will shield your money from political or economic risks, currency fluctuations, or confiscation in your home country. Do you need to diversify your assets and reduce exposure to a single market or currency? This is no issue at all if you hold a bank account abroad.
• Access different currencies and markets: An international bank account is an instrument that gives you to different currencies and markets. You will be able to take advantage of favorable exchange and interest rates unavailable back home. Willing to increase your earning potential and investment opportunities? Go ahead and do it by exploring foreign stocks, bonds, funds, or real estate!
• Save on fees and taxes: If you set up a bank account abroad, you’ll save on banking fees and taxes, especially if you live or work in a country with high banking costs. Plus, you will have an opportunity to avoid extra charges for international transfers, which may add up over time. Nice bonus, isn’t it?
• Expand your financial options and opportunities: Searching for new business horizons? With an international bank account under your belt, the world is open and your opportunities are limitless. Enjoy multiple financial products and services, prepare for your future (such preparation may include plans for retirement, studies, work, or travel abroad), or obtain second citizenship or residency, all by having a financial base and flexibility in another country!

Checklist for success

So, you are all set and ready to act? Wait, first make sure that you have all your bases covered! Do you have all the necessary documents to apply for an account with a foreign bank? Let’s play it safe and double-check!

Proof of identity

One of the primary documents you will need to open a bank account abroad is your proof of identity. This typically involves a valid passport, as the latter is an internationally recognized form of identification. Banks need to verify the identity of the account holder to comply with anti-money laundering (AML) and know your customer (KYC) regulations. In some cases, a national identity card or driver’s license may also be accepted.

Proof of residence

Establishing your place of residence is vital for banks to comply with regulatory requirements. To confirm their address, non-residents are often asked to provide utility bills, rental agreements, or a letter from an employer to the bank. Some banks may accept a hotel reservation or a letter from a local sponsor as proof of residence. The goal is to ensure that the account holder has a stable and verifiable address.

Visa or work permit

Non-residents usually have to provide a valid visa or work permit as evidence of their legal status in the country. This document helps banks confirm the account holder’s eligibility to stay and work in the jurisdiction. NB: Depending on the country’s immigration laws, certain types of visas may be more acceptable than others. Banks may also inquire about your visa duration to assess the stability of the account holder’s residency.

Reference letters

Some foreign banks request reference letters from a current or previous banking relationship. These letters can vouch for the applicant’s financial stability, responsibility, and trustworthiness. Reference letters are particularly useful for non-residents who are establishing their first banking relationship in a new country. To understand their specific requirements for reference letters, check with the bank beforehand about these issues.

Income proof

To assess the financial capacity of the account holder, banks often require proof of income. Non-residents may be asked to provide recent pay stubs, employment contracts, or tax returns. This information helps the bank determine the source and stability of your income. In some cases, a letter from an employer confirming your employment and income details may suffice.

Social Security Number or Tax Identification Number

In certain countries, banks may request a Social Security Number (SSN) or a Tax Identification Number (TIN) as part of the account opening process. These numbers are used for tax reporting purposes and aid in verifying your financial history as a potential account holder. Hence, keep ahead of the game and check the specific requirements of the country to ensure compliance with local tax regulations.

Bank-specific forms and applications

Each bank may have its own set of forms and applications that non-residents need to complete during the account opening process. These forms typically include personal information, details about the source of funds, and the intended use of the account. Please note that it is important to carefully review and accurately fill out these forms to avoid delays in the account opening process.

Minimum initial deposit

Many banks require a minimum initial deposit to activate the account. Non-residents should be aware of this requirement and ensure that they have the necessary funds available before they attempt to set up a bank account overseas. The minimum deposit amount varies between banks, and some institutions may offer different types of accounts with varying deposit requirements.

Do you want to open a bank account abroad? Count on International Wealth to help you! We offer free advice on how to collect and notarize the required documents, fill out the forms correctly, and prepare for an interview with foreign banks. Expert consultations from our top industry pros will efficiently guide you through the whole process!