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Where can a US citizen open a European bank account that allows SEPA transfers denominated in euros?
Hello! Thank you for using Wonder to ask about where a United States citizen can open a bank account that allows SEPA transfers in euros. The short answer is that after searching extensively through academic databases, and corporate websites, I've determined that the information you requested is not publicly available because there are no banks in Europe that have branches in the United States that accept SEPA transfers. I was also able to learn that European banks no longer allow United States residents to open bank accounts if they are not living in the country. However, I was able to learn that there are online banks that allow SEPA transfers and that starting November 2017, The European Payment Council will release a credit transfer service. Below you will find a detailed report and my methodology below!
METHODOLOGY
After searching exhaustively, I have not been able to find any European banks that allow United States citizens to open bank accounts that allow SEPA transfers. First, I looked into a list of banks or top-rated banks in Europe that are open internationally, and after searching extensively, I have concluded that this list does not exist. Next, I looked into European banks and their rules and regulations regarding United States citizens using their services, and it appears that European banks do not allow United States citizens to open bank accounts unless they relocate to Europe. Finally, after both of the above methods proved unsuccessful, I found bank services that offer online transfer methods. You will find a detailed summary of my findings below!
HELPFUL FINDINGS
While I could not find a direct answer to your question, I was able to gather some information about this topic, which I think will be helpful for your project.
the foreign account tax compliance act
According to CNN, United States citizens that live in Europe are having troubles with their bank accounts due to new regulations that "require banks to disclose all foreign accounts held by Americans. The Foreign Account Tax Compliance Act "requires foreign banks to disclose client information to the IRS" and there are more than 100 nations involved in cooperating with the United States. This act was first created to find American citizens that keep money from the IRS but the majority of banks in Europe decided it would be easier to not accept American citizens than to stay in regulation with the tax act.
UBS Switzerland is a prime example of how United States citizens need to meet requirements before opening a bank account. This website states that you can download their app on your iPhone or Android device and follow five steps. After you download their app, you have to choose the best bank account for your needs and register for it. After registering, United States citizens need to provide their passport or identification information available. The user then needs to electronically sign the contract on the app. The requirements listed at the bottom of the page states that their clients need to be a resident in Switzerland, have a smartphone with video calling services, need to be a new client, be at least 15 years old, and have a solid 4G connection.
online banking services
The next four websites I've included in this report detail online money transfer services that may provide useful methods for your trading setups.
Maxipay allows users to create an account anywhere in the world to accept or send transactions to all European banks. To send money into Europe, the website states that users need to "charge their account with PayPal or Bitcoin then make payments to any European banks with low fees". Maxipay states that they have no commission, a 1% fee for withdrawing funds, a one-banking-day processing time, and have a customer base of 44,000.
OFX is a money-transferring service that allows people transfer money into Europe from any location in the world. Their website states that their users need to be aware of certain factors before transferring money and those factors are how the money is going to be used, how much money is being transferred, what the source of the money is, and if the money has already been taxed. OFX states that they have a processing fee of $5 if a client is transferring under $5,000. If a client is transferring more than $5,000, there is no transfer fee. All the money processed takes about one business day to complete.
I used Europa's website to double-check information on online money transfers. This website states that most online money transfers will take about one business day to complete and if any transfers are made across country lines, each user needs to be aware of all the regulations, charges, and fees that vary for each country. Every electronic payment that qualifies for these rules are: transfers between bank accounts in different European countries, withdraws from ATMs in Europe, debit and credit card payments in Europe, debit transactions, and remittances.
The European Payments Council stated that in November 2017, there will be a program launched that allows instant credit transactions that include SEPA transfers. This program will allow people to transfer 15,000 euros in 10 seconds, 24 hours a day, seven days a week, and available every day of the year across 34 SEPA countries. This program is relying on the cooperation of payment service providers, or PSPs, that agree to the guidelines of the transfers.
POSSIBLE CONTINUED RESEARCH
In understanding what types of information are and are not publicly available on this topic, I've suggested a few other routes you may be interested in researching:
• Since we know that European banks do not allow United States citizens to open bank accounts unless they live in Europe, you could look into services that the United States banks offer regarding international money transfers.
• Given that The European Payments Council is opening an instant credit service in November 2017, it may be helpful to perform a deep dive on this service and investigate all the rules and regulations of this service.
CONCLUSION
To wrap it up, after searching extensively through academic databases and corporate websites, a direct answer to your question is not available because there are no banks in Europe that allow United States citizens SEPA transfers. I have also found out that European banks no longer allow United States citizens to open bank accounts unless they are European residents. However, in November 2017, The European Payments Council is starting a credit service that may prove useful to your banking transfer needs. If you would like to continue research on any of the other topics I've outlined above, just let us know!
Thanks for using Wonder!