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FINANCIALLY CANCELLED! Why US financial institutions are excluding American citizens living abroad

August 22, 2023 | Article

American expatriates living in Asia are being informed by US financial institutions their business is no longer wanted.

US expats financially cancelled


In today’s age, American expatriates in Asia are unexpectedly finding themselves ‘financially cancelled’ by their very own U.S. banks and brokers. As cross-border regulations tighten, many are discovering their long-standing financial relationships abruptly terminated, stranding them without access to professional financial advice and plunging them into uncertainty and stress.

US financial institutions leaving American expats in the lurch

The global financial regulatory landscape is shifting, with FATCA at the forefront. This act places an enormous compliance burden on non-U.S. institutions servicing U.S. clients, prompting many to cease servicing U.S. persons altogether.

Stories circulate about major institutions like Morgan Stanley, Merrill Lynch and others, placing severe restrictions or completely closing American expat accounts. These changes are not uniform; some firms shut down all accounts for non-U.S. residents, while others impose heavy restrictions or high minimum account values. Disturbingly, bans on U.S. mutual fund purchases by non-residents, including Americans, have become the standard.

While FATCA is a significant player, it isn’t the only culprit. The Treasury Department’s robust enforcement of anti-money laundering regulations, the 2001 Patriot Act, and new European cross-border investment regulations also play parts in this complex puzzle. The result? A maze of compliance and legal risks, prompting many U.S. institutions to limit their individual financial services across borders.

Why non-U.S. Residents are sidelined from U.S. mutual funds

U.S. mutual fund restrictions on non-U.S. residents, including American expatriates, aren’t new. Previously under-enforced, these regulations have come under the limelight due to enhanced cross-border compliance. Key reasons include:

Legal Constraints: U.S. fund groups cannot solicit international business for their SEC-registered funds, even targeting U.S. expatriates. Offering these funds to non-domestic clients might infringe upon the laws of the investor’s resident country.

Tax Treaty Claims: Mutual funds might claim tax treaties on their holdings, necessitating that all shareholders reside within the United States.

The need for reliable financial guidance

With these rapid changes and restrictions, the consequences of being ‘financially cancelled’ can be severe. Asset mismanagement, potential tax complications, and future financial instability loom large. Now, more than ever, expatriates need trusted financial partners.

Carl Turner Financial Success: A beacon of reliability

Carl is an international financial advisor well-versed in the intricacies faced by American expatriates in Asia. From cross-border regulations to personal finance strategies, Carl offers a haven for those feeling financially marginalised.

Voices From the financial frontier: Client Testimonials

“Carl’s services are exemplary. He offers clear and practical advice, making long-term financial planning less daunting. Thanks to Carl’s expertise, I now have a solid plan for the future. Highly recommended!”

– Oli Thompson, Production: Documentary Series, Netflix

“Carl’s advice on maximizing UK pension benefits was invaluable during my time in the USA. His deep knowledge and friendly demeanour make financial discussions a breeze. I highly recommend him.”

– Robert Fallon, Clay Modeling Manager at Lucid Motors

“Carl was great to work with. He managed to take the complex setup of my UK pensions and expat status and explain my options in simple terms. Despite there being no upside for Carl in the outcome of his analysis he took the time to also give advice for the future and also what to consider for my 401Ks.

I was very impressed with Carl’s communication, knowledge and approach that I have recommended him to several colleagues.

– James Allen, Director, BPO Technical Services

Reclaim financial control

Being cast adrift by your financial institution can evoke feelings of powerlessness and betrayal. Yet, with the right support, you can seize control of your financial journey once again. For Americans living overseas, solutions do exist. Often, they can surpass what you previously had before your bank or broker turned their back. I’m here to guide you in reclaiming your financial agency, safeguarding your assets, and defining a clear path forward. It’s time to retake the driving seat of your financial destiny. Reach out today for a no-obligation conversation and discover how I can assist.

Connect with me anytime at +66 869 955 071, WhatAppMe  or schedule a call at your convenience.