TIN Requirements on Foreign Accounts

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Question:

When does the bank need to require an individual taxpayer identification number (ITIN) and when would it require the social security number of foreign persons opening an account? Could a foreign person open an account with just a current passport and a completed W-8 BEN for a non interest bearing account?

Answer:

The ITIN is only available to certain resident and non-resident aliens who are required to have a taxpayer identification number for tax purposes and are not qualified to receive a Social Security number. If they are eligible for an SSN then they must apply for one - by law, an alien individual cannot have both an ITIN and SSN. Note: an ITIN does not prove an individual's identity outside of the tax system.

You will have to follow your bank's CIP policy when opening accounts for foreign individuals. This policy should outline which forms of identification your bank is willing to accept when opening accounts for non-US citizens.

First published on BankersOnline.com 10/17/05