Printer friendly version
EmailUSA PATRIOT Act and Access to Financial Institutions in the United States
The Department of State has been contacted by numerous individuals alleging that, under the USA PATRIOT Act, their U.S. bank accounts have been closed or that they have been prohibited from opening an account due to foreign citizenship or a foreign address. The USA PATRIOT Act does not prohibit foreign citizens or individuals with foreign residences from opening or maintaining a U.S. bank account. Such activity is done frequently and is necessary in a global economy.
Notably, however, the USA PATRIOT Act does require financial institutions to complete enhanced security procedures in certain circumstances. For example, under Section 326 of the Act, financial institutions must implement reasonable procedures for (1) verifying the identity of any person seeking to open an account; (2) maintaining records of the information used to verify the person's identity; and (3) determining whether the person appears on any list of known or suspected terrorists or terrorist organizations. In addition, foreign individuals are generally required to provide a government issued number that is similar to a social security number.
Enhanced due diligence is also required under Section 312, which requires financial institutions to take reasonable steps to determine the owner and the source of funds deposited into private banking accounts that financial institutions maintain for non-U.S. persons and conduct enhanced scrutiny of such accounts maintained for senior political figures.
In developing their customer identification procedures under Section 326 or in the enhanced due diligence procedure under Section 312, a financial institution may request information of a customer that had not been previously solicited. However, the USA PATRIOT Act does not prohibit foreign persons or those with foreign addresses to open or maintain bank accounts in the United States. For questions or for a copy of this information on Department of State letterhead, please email askpri@state.gov.
