dual US UK citizen refused savings account, but UK tax resident

yush67

I opened a fixed term savings account with Zopa, based on info from moneysavingexpert and good reviews. I asked for bank statements for my FBAR records. They then said that as I am a US tax resident I can't bank with them and they are closing my account. This is bafflingly incompetent and unprofessional, as they clearly do not understand the fact of US citizens being required to file in the US even if they are tax resident here. 

Any bank I have used in recent years always has asked if I am a citizen of another country, and when I say US as well as UK, I give them my US tax info (SSN) and then I can go ahead with an opened account. Spread the word. Zopa have offered this new 2 year fixed term savings account, and it has had excellent reviews, but this is way out of order. US citizens take note!

ThisnotThat

They just don't want to get involved with the nightmare that is the US tax system.  By not taking on US citizens they avoid that. Can't say I blame them.

Linton

Zopa clearly do understand the fact of US citizens being required to file in the US and the penalties/risks that could leave tthe company open to.  Which is why they dont want them as customers.

EdSwippet

FATCA

Account closures. Due to the costs and complexity of implementing this legislation, many banks have been excluding US persons from holding financial accounts at their institutions. These closures, based upon nationality, have not been halted by government authorities. In fact, the EU affirmed the practice of closure based upon nationality, by stating "Banks have the right, under the contractual freedom principle, to decide with whom they want to contract. They can in any event refuse clients for sound commercial reasons." These closures are despite the fact that countries who have signed IGAs had also promised to not close the accounts of US persons.

Zopa are not alone in this. Marcus also rejects US citizens outright. And most UK investment platforms will also simply refuse accounts for US citizens -- for example, Youinvest, Interactive Investor, and Vanguard UK.

dunstonh

They then said that as I am a US tax resident I can't bank with them and they are closing my account. This is bafflingly incompetent and unprofessional, as they clearly do not understand the fact of US citizens being required to file in the US even if they are tax resident here. 

It is neither incompetent or unprofessional.  It is mirrored across many financial services firms.  My own included.

The consequences of FATCA and the ability of US citizens to use US courts to sue companies in the UK is usually the most common reasons given.

kuratowski

This is the inevitable consequence of an extra-territorial approach.

wmb194

Complain to your congressman about the US' insane laws.

bostonerimus

As a US/UK dual citizen myself, if I ever return to the UK I will leave my investments in the US. Anything outside of a pension wrapper will be held in UK reporting ETFs. I will need a UK bank account, but those still seem to be available to US/UK dual nationals resident in the UK, and if they are not I'll use an account in IOM or Channel Islands.

EdSwippet

FYI ...

https://www.zopa.com/help/article/i-m-a-u-s-citizen-or-tax-resident-outside-of-the-uk-can-i-open-an-account-with-you

I’m a U.S. citizen or tax resident outside of the UK - can I open an account with you?

Updated 9 months ago

Unfortunately, not right now. To open a Fixed Term Savings account with us you must have tax residency only in the UK.

This also applies to all U.S. citizens, even if you no longer pay taxes in the U.S.

EthicsGradient

A few years ago, Marcus refused to open an account for me because I had been subject to US tax, living there for 2 years, nearly 20 years before. I have only ever been a UK citizen, and haven't had to do US taxes since coming back to the UK. So I'm not surprised at Zopa deciding not to open account for someone who still has to deal with the US authorities.