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Of Interest to US Nationals and Others Subject to the US IRS Tax Code

1 - In the past, if your KSA employer paid you via direct deposit into a KSA bank, you had to present your renewed Iqama to the bank whenever you renewed your Iqama. In fact, your bank would place a HOLD on account transactions until you personally went to the bank with your renewed Iqama. Once you showed them that, they would then LIFT the HOLD until your Iqama became invalid again a year or two in the future.

2 – It has come to my attention that now, there’s an ADDITIONAL step you must take to open or re-open a KSA bank account.

To wit, you must now FURNISH your KSA bank WITH YOUR USA SOCIAL SECURITY NUMBER. The implications of this new rule are too involved to go into here, but there could be adverse consequences to an individual in all this. (For example, if you refuse to give your SS number to the KSA bank, the bank could simply close your account. How you would then get paid is something you’d have to figure out for yourself.)

3. By the way, it’s not only KSA banks that are doing this, but, supposedly banks world-wide are being urged to get this SS information from their USA customers. Non-compliance by the bank could result in the bank being barred from doing business in or with USA institutions of any kind. (In other words, they may as well shut down). To avoid compliance with this US regulation, some banks, especially in Europe, will no longer open accounts for US nationals, period. In some cases, they have closed previously open accounts with USA citizens.

4. I kind of know the entire background of this affair but I’m not going to go into it here. Just remember that the important word to remember is the FBAR (Report of Foreign Bank and Financial Accounts). Your accountant, if he’s any good, will be familiar with this. If you don’t use a pro to do your taxes, you’ll have to study up on this before the next tax season.

DISCLAIMER: I have seen no “official” notice that KSA banks (or any bank) are actually doing this…..I’ve just heard it from friends who have recently been renewing their iqamas and they, to a man, state that they are being asked for that SS number. (What I find surprising is the near news blackout that this astonishing development has evinced.)

Has any USAer here run into this situation while renewing his Iqama recently?

[veiledsentiments]

As long as one completes the 1040 and the FBAR form easily available online, there will be no problems for anyone. The biggest danger IMHO is the security of one's SS# within these banks.

VS