Lawful Permanent Residents: Opening Bank Accounts Explained

Lawful permanent residents (LPRs) or green card holders are non-citizens who are lawfully authorised to live permanently in the United States. While there is no law or regulation requiring banks to ask for citizenship information, banks and credit unions must follow stricter guidelines when verifying the identity of a non-American account applicant. LPRs can open a bank account in the US, but they may need to provide more identification than US citizens.

Lawful permanent residents are also known as green card holders

Lawful permanent residents (LPRs), also known as ""green card" holders, are non-citizens who are lawfully authorised to live permanently in the United States. While LPRs can open a bank account in the US, they may face additional requirements and restrictions compared to citizens.

LPRs can generally open a bank account with a US bank or credit union, but the specific requirements may vary across institutions. It is recommended to check with the bank or credit union in advance to understand their specific requirements and processes for non-US citizens. Some banks may require an in-person visit to a branch to complete the account opening process.

To open a bank account, LPRs typically need to provide valid identification documents to verify their identity, name, date of birth, address, and ID number. Acceptable forms of ID may include a Permanent Resident Card (green card), foreign passport, consular ID, foreign driver's license, or other government-issued ID. Some banks may also require an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) for tax purposes.

It is important to note that while banks generally allow non-US citizens to open accounts, there have been reports of banks denying accounts to non-citizens, citing policies or requirements for specific identification documents. However, discriminating against lawful permanent residents based on race, colour, religion, or national origin may be illegal under US law.

LPRs can use alternative identification forms to open a bank account

Lawful Permanent Residents (LPRs) or "green card" holders are non-citizens who are lawfully authorised to live permanently in the United States. LPRs can open a bank account in the US, but the process may be more complex and time-consuming than it is for citizens. Banks and credit unions must follow stricter guidelines when verifying the identity of non-US citizens, and the specific documents required vary depending on the bank or credit union.

In most cases, a non-US citizen cannot open an account online and must visit a branch in person. Some banks, such as Santander Bank, accept online applications only from US residents or resident aliens with a Social Security Number or Individual Taxpayer Identification Number (ITIN). An ITIN is provided regardless of a person's immigration status and can be obtained by applying through the IRS. ITINs are used for tax reporting purposes and are available to certain non-resident and resident aliens, their spouses, and their dependents who cannot obtain a Social Security Number.

It is important to note that while LPRs can generally open bank accounts in the US, there may be exceptions. For example, there have been reports of Bank of America denying accounts to non-citizens, arguing that it is legal to do so. However, it would be illegal for a bank to distinguish between lawful permanent residents and citizens based on discrimination laws.

A bank cannot refuse to open an account for an LPR based on discrimination

Lawful Permanent Residents (LPRs), or "green card" holders, are non-citizens who are lawfully authorised to live permanently in the United States. While a bank can refuse to open an account for an individual, it cannot do so based on discrimination.

According to 42 USC 2000a, it is illegal for places of public accommodation to discriminate based on race, colour, religion, or national origin. This law applies to physical bank branches, and banks cannot refuse to open an account for an LPR based on their national origin or immigration status. FDIC Regulation 500 specifically prohibits discrimination in lending on the basis of "national origin".

Banks are required to verify the identity of anyone opening an account, and this process may be more stringent for non-citizens. LPRs may need to provide additional identification documents, such as a Permanent Resident Card, foreign passport, or Individual Taxpayer Identification Number (ITIN). However, the absence of a Social Security Number (SSN) or ITIN does not automatically disqualify non-citizens from opening bank accounts, and some banks offer alternative identification methods.

While the application of anti-discrimination laws to online services is still unclear, banks cannot refuse to open an account for an LPR based on discriminatory factors, and must offer the same services to all customers, regardless of citizenship status.

LPRs may need to apply in-person at a physical bank branch

Lawful Permanent Residents (LPRs) or "green card" holders are non-citizens who are lawfully authorised to live permanently in the United States. While LPRs can open bank accounts in the US, they may need to apply in person at a physical bank branch.

Firstly, it is important to note that there is no law or regulation requiring banks to ask for citizenship information or to deny accounts based on citizenship status. However, banks are required to verify the identity of anyone wishing to open a bank account, and this verification process may be stricter for non-US citizens.

For LPRs, providing the necessary identification and documentation is key to successfully opening a bank account. While some banks may allow customers to start the account opening process online, many will require non-citizens to visit a branch to complete their applications. This is due to heightened security measures implemented after 2001 to prevent terrorism-related money laundering.

When applying for a bank account as an LPR, it is recommended to bring multiple forms of identification and documentation. This may include a foreign passport, permanent resident card, government-issued ID, and proof of address. Some banks may also require an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) for tax purposes.

It is worth noting that different banks may have varying requirements for opening an account, so it is advisable to check with the specific bank beforehand to ensure you have all the necessary documents.

LPRs may need to provide an Individual Taxpayer Identification Number (ITIN)

Lawful Permanent Residents (LPRs) are non-citizens who are lawfully authorised to live permanently in the United States. LPRs, or "green card" holders, can open a bank account in the U.S. and may need to provide an Individual Taxpayer Identification Number (ITIN) to do so. An ITIN is a nine-digit number issued by the IRS for tax purposes and can be obtained by anyone regardless of their immigration status. This is because U.S. tax filing or reporting may be necessary for both residents and non-residents.

To obtain an ITIN, LPRs must complete Form W-7 and mail it to the IRS, along with proof of identity and foreign status documents. The process can also be done in person at an IRS-authorised Certifying Acceptance Agent. While the process is not speedy, with approval taking around seven weeks or more, it is possible for LPRs to open a bank account without a Social Security Number.

LPRs may also need to provide other forms of identification, such as a passport, permanent resident card, or government-issued ID. It is worth noting that some banks may not accept an ITIN in place of a Social Security Number, and LPRs should check the requirements of their chosen bank in advance. While there is no law requiring banks to ask for citizenship information, some banks may refuse to open an account for an LPR, and it is not yet clear how anti-discrimination laws apply to online banking services.

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