Opening a bank account as a US citizen in a foreign country has become progressively more difficult over the years. Today it is more difficult than 2 years ago, 5 years ago it was easier, 10 years ago, not a problem at all. Most of this has to do with the fact that the United States of Hypocrisy, the self-procaimed "land of the free" has bullied all foreign banks to comply with its demand to provide the IRS with information on every single US citizen's account information, with the threat that if they don't comply, the US will essentially cripple that bank's ability to do international wire transfers.
I opened an account in Panama with HSBC in 2006. The process took about 5 weeks from the time of application to the time of approval. Panama is a fantastic country to bank in, for all the reasons that you have already read about if you are reading this article. Even today, some banks in Panama will open your account with little fuss, even if you do not have a residency visa. Most banks require more than just a tourist visa. Some may still require a mountain of documents and a month or more waiting period.
I just moved to the Dominican Republic.
Before I arrived, I made sure my Panama banks gave me a "carta de referencia" (reference letter). I was nowhere close to getting my residency visa yet, so I asked a few Dominican lawyers what I could do to open a bank account without one.
Long story short, I visited the Law Offices of Guido Perdomo on the 2nd floor of this picture in Sosua. He gave me a reference letter to Banco Popular, the largest bank in the DR, that says he is helping me obtain a residency visa. As I was leaving, Guido advised me, "Listen, Banco Popular will open your account, but it will take a week or two for the application process. If you want a bank account today, just go downstairs to Banco Leon, show them my letter, and they will open your account right now."
As you can see from the picture, Banco Leon is just below Guido's office.
I went in to the bank, sat with a banker. He took my passport, HSBC reference letter, Guido's letter and a "source of funds" document to prove how I earn the money I wish to deposit (standard anti-money laundering that all banks do). He did not require a residency visa. My tourist visa was good enough. But you do have to live in the DR. No proof necessary. He asked me what my address and phone number was. I pulled out the business card to the hotel I was staying at and gave him that phone number and address. No verification necessary.
"US Dollar account or Dominican Peso?"
"Dollar only for now."
"How much would you like to start with? Minimum is $100."
"Here's $300." I handed him three $100 bills.
A few minutes later he came back to me with one of those old fashioned savings account booklets that our grandmothers have us when we were kids. It had my account number on it and the $300 deposit was already logged in.
In less than an hour, I had opened up a bank account in the Dominican Republic.
Now, understand, I am not saying that the DR is the mecca of international banking. It will never be the next Switzerland or Panama. But, who cares? I value simplicity and safety when it comes to banking. This is a strong bank, solid financials. The expats that hold account here all swear by Leon. I can sleep at night. But just to make sure, I am also opening an account with Banco Popular.
I will give them one week to approve me. If they don't, then I will just walk across the street to Banco Santa Cruz, who offered me 7.2% interest for a one-year CD in DOP. They said they willl also open my account in one day, with the same criteria that Leon asked me for. Leon will give me 8.5% if I am willing to do two years.
There are places that you can open bank accounts remotely, such as Hong Kong and Australia, but you will always need a bank account in the country that you live. This is the way it is in the Dominican Republic, and one of the main reasons why I love it here. Need a bank account? Don't worry, we'll get it done. Need a residency, citizenship? Don't worry, if there appears to be a problem, we will work around it and get it done. Lots of things that are tangled in rules and procedures in other countries are no problem in the DR.
Everything here is tranquilo... no problema.
I opened an account in Panama with HSBC in 2006. The process took about 5 weeks from the time of application to the time of approval. Panama is a fantastic country to bank in, for all the reasons that you have already read about if you are reading this article. Even today, some banks in Panama will open your account with little fuss, even if you do not have a residency visa. Most banks require more than just a tourist visa. Some may still require a mountain of documents and a month or more waiting period.
I just moved to the Dominican Republic.
Before I arrived, I made sure my Panama banks gave me a "carta de referencia" (reference letter). I was nowhere close to getting my residency visa yet, so I asked a few Dominican lawyers what I could do to open a bank account without one.
As you can see from the picture, Banco Leon is just below Guido's office.
I went in to the bank, sat with a banker. He took my passport, HSBC reference letter, Guido's letter and a "source of funds" document to prove how I earn the money I wish to deposit (standard anti-money laundering that all banks do). He did not require a residency visa. My tourist visa was good enough. But you do have to live in the DR. No proof necessary. He asked me what my address and phone number was. I pulled out the business card to the hotel I was staying at and gave him that phone number and address. No verification necessary.
"US Dollar account or Dominican Peso?"
"Dollar only for now."
"How much would you like to start with? Minimum is $100."
"Here's $300." I handed him three $100 bills.
A few minutes later he came back to me with one of those old fashioned savings account booklets that our grandmothers have us when we were kids. It had my account number on it and the $300 deposit was already logged in.
In less than an hour, I had opened up a bank account in the Dominican Republic.
Now, understand, I am not saying that the DR is the mecca of international banking. It will never be the next Switzerland or Panama. But, who cares? I value simplicity and safety when it comes to banking. This is a strong bank, solid financials. The expats that hold account here all swear by Leon. I can sleep at night. But just to make sure, I am also opening an account with Banco Popular.
Everything here is tranquilo... no problema.
I want to open a account I'm a resident what should I do
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