An American in Denmark is de-banked—for the third time—because of FATCA

“After being a loyal customer for many years, two banks recently demanded that I close my accounts solely due to FATCA. This is now the third time this has happened to me. Each time, it’s the same message: ‘We’re sorry, but we can no longer keep American clients.’ “

— Susan in Denmark

Dear Members of Congress,

My name is Susan. I was born and raised in the United States, vote in Colorado, and live in Denmark with my husband and children. I've always been proud to be an American and to maintain a strong bond with the United States while living abroad. This connection is being tested because of one law that has made my everyday life nearly impossible: FATCA.

After being a loyal customer for many years, two banks recently demanded that I close my accounts solely due to FATCA. This is now the third time this has happened to me. Each time, it’s the same message: “We’re sorry, but we can no longer keep American clients.” I now have to yet again transfer my accounts at short notice and at significant personal expense. So far, it has been difficult for me to find banks willing to take on an American citizen. My husband, who is not a U.S. citizen, and I have been forced to separate our finances so that he is not penalized because of my nationality. All this, simply because of FATCA.

Foreign banks see Americans as an administrative risk because of FATCA’s reporting requirements. For them, it’s easier to exclude us entirely than to deal with the paperwork and the threat of U.S. penalties. Most institutions refuse to take on Americans, let alone handle retirement savings or investments. 

Endless reporting and compliance obligations

I pay my taxes here in Denmark. Yet the United States continues to treat me as a potential taxpayer and subject me to endless reporting and compliance obligations. This system protects no one — it only isolates ordinary, law-abiding citizens who simply want to live their lives abroad without being treated as financial suspects. 

This is why I strongly support Representative Darin LaHood’s bill, “The Residence-Based Taxation for Americans Abroad Act.” This legislation offers a practical solution: it would allow Americans living overseas to obtain a certificate of non-residency from the IRS. With this type of certificate, foreign banks would no longer have to treat us as “specific United States persons” under FATCA. They could finally offer us normal banking services without fear of penalties. This simple change would allow people like me to regain financial stability and dignity.

Our own government, through this one law, makes it nearly impossible to hold a bank account, save for retirement, or plan for the future.  I am not asking for privilege — simply the right to live normally.

Members of Congress, please hear us. Millions of Americans around the world are living through the same struggle. Please support this reform. Help us regain the dignity that FATCA has taken away.

With all my respect and hopes for change,

Susan

Denmark