A New Yorker working in Switzerland can’t find a bank that wants his money - because he’s American

I must tell you it is quite shocking to discover that an American passport makes you unbankable in both Singapore and Switzerland.  Literally, banks don’t want to serve Americans because of the high compliance costs and severe penalties for non-compliance.

— Fred, a New Yorker living in Switzerland

Dear Congress,

I am writing today to share personal testimony of the harm that citizenship-based taxation inflicts on Americans abroad.  As background, I was born and raised in Manhasset, New York.  My international business career in the biotech industry began in 2003 and has given me the opportunity to live in Singapore for 11 years and Switzerland for the past seven years, with four years in Boston, Massachusetts in between.

I have lived with the negative impact of citizenship-based taxation on Americans living abroad and the onerous regulatory requirements created, including FATCA and FBAR legislation.

Unbankable – for being American

Aside from the costly accounting fees and annual form filling exercises, I must tell you it is quite shocking to discover that an American passport makes you unbankable in both Singapore and Switzerland.  Literally, banks don’t want to serve Americans because of the high compliance costs and severe penalties for non-compliance.  In both cases, I was able to open basic personal bank accounts to receive my paycheck because my employer had a substantial presence in the country.

This is more than a casual inconvenience for Americans living abroad.  It is a real obstacle to citizens who have invested their time and efforts to build American businesses around the world.  Citizenship-based taxation does not advance America’s interests.  This is particularly true in the high-tech industries in which America seeks to maintain its leadership, and which require no small amount of direct international engagement for success.

Counting on President Trump

I’d like to thank President Trump for his campaign commitment to end the double taxation of Americans abroad. On the campaign trail, President Trump said: “I’m going to end double taxation on our overseas citizens. You’ve been wanting this for years and no one has listened to you. And you deserve it. And I’m going to do it. It’s the right thing to do.”

I am pleased to voice my support for Rep. Darin LaHood’s Residence-Based Taxation for Americans Abroad Act, which addresses the needs of the vast majority of Americans abroad, and for anything the administration can do to prioritize an urgent solution to this non-political, bipartisan issue affecting millions of Americans abroad.

Thank you for your attention to this matter,

Fred in Switzerland