Letter To The Honorable Barney Frank, Chairman, House Financial Services Committee; The Honorable Spencer Bachus, Ranking Member, House Financial Services Committee

Letter

Americans Abroad Caucus Co-Chairs, Rep. Carolyn Maloney (D-NY) and Rep. Joe Wilson (R-SC) sent a letter to Chairman Barney Frank and Ranking Member Bachus of the Financial Services Committee, of which Rep. Maloney is a senior member, requesting a hearing to look at current U.S. banking laws and regulations that may prevent Americans living overseas from accessing U.S. banking services.

The Caucus Co-Chairs' efforts, stretching across two administrations, to resolve these issues have not received a satisfactory response. Despite assurances from the Treasury Department that Americans abroad are not restricted by current U.S. regulations, there continue to be increasing numbers of American citizens overseas being denied access to basic banking services.

"That Americans living overseas are being denied banking services in U.S. banks, and increasingly in foreign banks, is unacceptable," Rep. Maloney said. "We are urging Chairman Frank to hold hearings to examine these issues and take action to ensure all Americans have access to the same banking services."

"I hope Chairman Frank will hold hearings to examine the unnecessary roadblocks to many Americans living abroad continue to face not only at U.S. banks, but increasingly at foreign banks as well. The requests for assistance continue to come in at a startling rate and I believe it is crucial for the Financial Services Committee to review these circumstances and work to resolve the roadblocks," said Congressman Joe Wilson.

The full letter sent to the Treasury Department under the former administration and their response. The full letter and response sent to the Treasury Department under the current administration is viewable here and here. The full letter sent to the Financial Services Committee requesting a hearing.

Background. After being contacted by Americans living abroad that have been denied accounts or have had existing accounts closed, often with Patriot Act provisions and the lack of a U.S. address cited as cause, Reps. Maloney and Wilson sent letters to both the current and previous administrations requesting action on this issue.

Letter Follows:

The Honorable Barney Frank The Honorable Spencer Bachus
Chairman Ranking Member
Committee on Financial Services Committee on Financial Services
2129 Rayburn House Office Building B371A Rayburn House Office Building
Washington, DC 20515 Washington, DC 20515

Dear Chairman Frank and Ranking Member Bachus:

As Co-Chairs of the Americans Abroad Caucus, we write to urge a timely hearing
about reports of American citizens living overseas being denied access to U.S. banking
institutions. The Caucus was contacted by many Americans living abroad who have been
denied new accounts or had accounts that have existed for some years terminated, with the
U.S. banks citing current U.S. regulations, namely the "Know Your Customer" requirements
of the Patriot Act, as the reason. We also have heard from many overseas Americans that
foreign banks are refusing American clients because of potential legal and administrative
costs to comply with newly adopted measures in the Qualified Intermediary Rules. This
could leave Americans abroad with no place to bank.

Our efforts to resolve these issues stretch across two Administrations. In the 110th
Congress, we sent a letter to the Treasury Department to make sure they were aware of and
taking action on the issue of American banks rejecting American customers living abroad. In
the 111 th Congress, we again made the Caucus's concerns over a large number of American
citizens residing abroad being denied accounts with American banks apd with the new
proposed Qualified Intermediary (QI) regulations that went into effect January 1,2010
known to Secretary Geithner. Each time, we were reassured that no current federal
regulations or financial law should make it impossible for Americans living abroad to access
U.S. financial services.

Despite these assurances, we continue to receive reports from many overseas
Americans that these problems persist. We look forward to working with you to address the
issue and find out the specific steps the Treasury Department will take to ensure taxpaying
American citizens living abroad are given access to the same banking services available to all
Americans.

Sincerely,

CAROLYN B. MALONEY JOE WILSON
Member of Congress Member of Congress

Source