Who Qualifies as a Non-Resident?
“Non-resident” means you don’t hold standard residency status in the country where the bank is located. Banks may also label these as international, offshore, or expat accounts. Each bank defines eligibility differently—often by your passport, visa type, source of funds, and country of tax residence.
What Banks Actually Check (KYC/AML)
All banks must verify identity and assess financial crime risk under global anti-money-laundering rules. Expect KYC (Know-Your-Customer) and CDD (Customer Due Diligence) questions about who you are, where your money comes from, and how you’ll use the account. Enhanced checks apply if you’re higher risk (for example, certain industries, sanctioned or high-risk countries, or politically exposed persons). See internationally accepted standards by the Financial Action Task Force (FATF).
Documents You’ll Usually Need
- Passport (valid; some banks accept national ID or driver’s license for certain nationalities).
- Proof of address (can be your home-country address). Banks often accept utility bills, bank statements, tenancy agreements, or government letters dated within 1–3 months. UK-based examples: Barclays info.
- Tax Identification Number (TIN) — e.g., U.S. ITIN/SSN, or local TIN in your country of residence.
- Visa/residency status (if relevant), and sometimes proof of income or employment/contract.
- Source-of-funds evidence (pay slips, contracts, sale agreement, etc.).
- Selfie/video verification if remote e-KYC is used.
Tip: If you don’t have a local address, some banks accept foreign addresses or offer international/expat accounts that don’t require local residency (e.g., HSBC Expat).
Where to Apply: Jurisdictions & Provider Types
You have three broad paths:
- International divisions of major banks (e.g., Barclays International, HSBC Expat, Citi International Personal Bank). These often support multi-currency and remote onboarding, but may require higher minimum balances.
- Local banks open to non-residents (varies by country). Call ahead and confirm their current non-resident policy.
- Licensed e-money/payment institutions (EMIs) and digital providers. Convenient, but verify licensing and deposit-protection differences (see “Fees & Safety”).
Note for the UK/EU: After regulatory changes, some UK banks restrict services for customers living outside the UK. Always check the bank’s latest policy if you’re an expat keeping a UK account.
Common Account Types & Features
- Current/checking accounts for everyday spending, cards, and transfers.
- Multi-currency accounts to hold/send several currencies (offered by many international banks).
- Savings/deposit accounts (sometimes with minimums or residency restrictions).
- Wealth/expat packages that bundle investments, FX, and dedicated support (often with high minimums).
Fees, Deposit Protection & Safety
Compare monthly fees, FX spreads, outbound transfer costs, ATM usage, and minimum balance requirements. Also check how your money is protected:
- United States: FDIC insurance generally protects deposits up to $250,000 per depositor, per ownership category, at FDIC-insured banks. Learn more at the FDIC.
- United Kingdom: The FSCS currently protects eligible deposits up to £85,000 per person, per firm (proposed increase to £110,000 has been consulted). Coverage rules differ for joint/temporary high balances.
- EMIs / e-money providers: Funds are typically safeguarded (segregated), not covered by deposit insurance. Read the provider’s licensing and protections carefully.
Tax Reporting (CRS & FATCA): Don’t Skip This
Two regimes dominate cross-border account reporting:
- CRS (Common Reporting Standard): Most jurisdictions exchange non-resident account information with your home tax authority. See the OECD’s CRS consolidated text for current rules.
- FATCA (for U.S. persons): U.S. taxpayers with foreign financial assets may need to file Form 8938 and banks may report accounts to the IRS. Details and thresholds: IRS FATCA for Individuals.
Compliance matters: Provide accurate tax residency and TINs. Mismatches or missing data can block or close applications and may trigger account reviews later.
Step-by-Step: How to Apply Successfully
- Define your use case: Salary receipt? Holding multiple currencies? Investing? This narrows providers.
- Choose jurisdiction & provider type: Compare international banks vs. local banks vs. EMIs.
- Check eligibility & minimums: Some international accounts require significant balances or certain nationalities/visas.
- Prepare documents: Passport, address proof (home country usually OK), TIN, employment/income, and source-of-funds evidence.
- Complete e-KYC or in-branch visit: Many banks support remote onboarding with video ID; some still require a branch visit.
- Fund & activate: Make a first deposit if required, set up online/mobile access, and add beneficiaries.
- Stay compliant: Update the bank when your address, tax status, or residency changes. Respond promptly to periodic reviews.
Troubleshooting & Edge Cases
- No local address? Target banks that explicitly accept foreign addresses or offer expat accounts (e.g., Barclays International documentation list, HSBC Expat).
- High-risk nationality/industry? Expect extra documentation or refusals under risk-based AML rules (FATF).
- Keeping a legacy account after moving? Policy varies; some UK banks restrict non-UK addresses. Check the bank’s page for customers living outside the UK (Barclays).
- U.S. accounts without SSN? Some U.S. banks may accept a passport + ITIN/other ID; see FDIC’s GetBanked resources.
FAQ
Can I open an account entirely online as a non-resident?
Often, yes—especially with international divisions and some digital providers using remote e-KYC. However, certain countries or banks still require an in-person visit. Always check the current onboarding policy before applying.
Is a “multi-currency” or “offshore” account legal?
Yes, when declared properly. Your bank and tax authority may exchange information under CRS/FATCA. Keep records and report income where required.
Will I get a debit card and local account numbers?
Usually. Many international accounts issue debit cards and provide local IBAN/account details in supported currencies. Features vary by bank and jurisdiction.
How is my money protected?
In the U.S., FDIC insurance generally covers deposits up to $250,000 per depositor, per insured bank. In the UK, FSCS covers eligible deposits up to £85,000 per person, per firm (subject to change). EMIs typically safeguard funds but don’t offer deposit insurance.
What if the bank refuses my application?
Ask for the reason (risk policy, documents missing, sanctions screening). You can try a different provider type (e.g., an international division) or a different jurisdiction with clearer non-resident policies.
References
- OECD — Common Reporting Standard (CRS) consolidated text
- IRS — FATCA information for individuals
- FATF — The FATF Recommendations
- FDIC — Understanding Deposit Insurance & GetBanked
- FSCS — What we cover
- Barclays International — International Bank Account & Account opening documentation
- HSBC Expat — Non-resident accounts
- Citi IPB — Open an international account (Singapore)
Disclaimer: This article provides general information, not legal or tax advice. Banking and tax rules change frequently. Always confirm current requirements with the provider and a qualified advisor.
