Ironically, the first thing I would think of doing if I were living abroad and found myself unable to obtain a bank account due to how local banks are impacted by U.S. extraterritorial laws would be… go talk to the consular department at the nearest U.S. Embassy and ask for advice on finding a bank that will do business with U.S. citizens.
ETA: And I totally believe that lack of a bank account is a major problem in many countries. The U.S. system of being able to pay rent or utilities by mail or in person is virtually extinct in many places.
“…pay rent or utilities by mail…”
Ummm… What would you send through the mail? Wads of cash?
For the last half-century, anyone with a middle class lifestyle here is pretty much required to have a bank account.
I suppose the way to store huge sums of money safely at home would be to buy money orders payable only to yourself, if the local banks would allow that.
I know in Canada you can have a credit card that is not part of a bank account and other services, but perhaps that option is also blocked by your local banks. Presumably you could show up at a branch with a money order or cash and pay your credit card (or even prepay some) without having an account.
We’re spoiled by first world countries where you can eventually obtain citizenship as an immigrant. Desert places, especially rich ones that hire a lot of guest workers, tend not to hand out citizenships to most visitors, especially, insha’Allah, if they are of the wrong religion.
Living without a bank account or credit card might be feasible in theory but you soon realize it is not possible in practice. Paying utility bills might mean wasting a morning waiting in line at the office of the phone company. Many hotels, car rentals and other businesses would not want your business without a credit card. Buying a travel ticket with cash might be difficult or impossible and puts your name on the American secret list of suspects because… you know… only suspects of terrorism would not use a credit card.
What are you going to do with your money? Keep it under the mattress? No way to save? What if you travel? You carry all your cash with you? Some countries may frown on people traveling with large amounts of cash. Arrive in America with wads of cash and some border person might decide it could be drug money and invoke forfeiture statutes to relieve you of the cash. Specially since you bought your air ticket with cash.
In today’s world living without a bank account is really only possible for people living at a subsistence level.
Can you get an account at a US bank, with a credit card from that US bank and pay all of your bills with that credit card? This would require that your job can direct deposit your pay in a US bank.
AFAIK, no Canadian bank has barred US citizens from having accounts. I don’t know what I would do if they did. I have accounts at three Canadian banks and two US banks, but my pensions all go into the Canadian accounts (except for a small amount, about $200/mo) of US SS. I cannot renounce, although it is tempting, since I have to anticipate the likelihood that I will have to return to one of my kids when I get too sick to live independently. I don’t what I would do if Canadian banks didn’t allow accounts from US citizens. Although I do vote, I know that realistically I have no power to influence policy.
I mean that the practice of writing a check, or buying a money order, and mailing it in to pay a bill is becoming far more rare in other countries than it is here in the US. Direct debit is virtually the standard in most countries overseas.
Also in the U.S., even though it is much less common now, many utility companies allow people to show up and pay in cash.
As noted, this has not become much of a problem yet in Thailand. Even though some banks are not accepting anymore new American customers, others still are including, AFAIK, the biggest one, Bangkok Bank. But the OP’s is not the first horror story I’ve heard from elsewhere.
So I’m wondering if the US government is taking note of the chaos and planning to ameliorate the situation. Does anyone know?
In regards to your money problems, why not just withdraw all your money and buy a safe to store it in. Then go about sorting out your citizenship problems.
Can you set up a corporation in the CZE and use that? I know that when I wanted to buy a small apartment in Praha 10 that I could not as a person, as I was not a citizen. However, it is posisble for a foreigner to setup a company in the CZE which can then own property. So, that would be my suggestion.
Form a company in CZE and see if you can get a bank account that way for deposits and withdrawls.
Constitutionality question:
The 16th Amendment allows taxation of income, not assets (death tax not withstanding). So why is the IRS making such a big deal about tracking assets for expats? When I hopefully start living in London and I report to the US that I made #40000 and paid Her Majesty my UK tax, why does it matter how much I have in the UK bank.
I understand why there may be concern over US residents putting money in foreign banks but let’s face it, I don’t think anyone is using the UK or Germany as tax haven.
FWIW, there may be an office of a big name bank in many financial centers. That doesn’t mean they will do retail banking.
There is an office of Bank of America in Grand Cayman. I asked about opening an account but their Cayman office does not accept deposits of cash, checks, or direct deposit. It is, as best I can tell, wire transfers only.
So for mundane everyday banking like the vast majority of American expats do, they need a bank that will deal with ATM cards, car loans, and all the usually retail banking transactions. If a local bank will have us.
Yes. Bank transfer is used for everything. Even buying furniture, they expect you to pay by bank transfer and for some things it is the only way to pay (property tax for example).