Bank of America freezing accounts of customers suspected of not being US citizens

[Recursion]

Source: Sacramento Bee

Saeed Moshfegh woke up earlier this month to discover the strangest thing: though he had plenty of money in his Bank of America account, he couldn’t access it.

An Iranian getting his Ph.D in physics at the University of Miami, Moshfegh used the account for everyday transactions. All he had to do to maintain the account was show proof of legal residency every six months.

...

Locked out of his account, Moshfegh couldn’t pay his rent, which was due that week. Credit card payments were suddenly rejected.

His case isn’t unique. In recent months, Bank of America has been accused of freezing or threatening to freeze customers’ accounts after asking about their legal status in the U.S.. In July, the Washington Post reported that multiple customers had been locked out of their accounts after Bank of America questioned whether the account holders were U.S. citizens or dual citizens.



Read more: https://www.sacbee.com/news/business/article217567300.html

[Girard442]

1. That's how it began in "Handmaid's Tale."

The main character’s credit cards just stopped working.

[Pacifist Patriot]

9. Chapter 28 immediately sprang to mind when I saw the headline.

Ugh!

[LisaM]

2. Ugh. What makes it worse is that everyone is being encouraged to use online banking

for everything. Some places won't even accept cash or give receipts anymore. This is terrible. I bank online to the least degree possible - though even at work now, they want to reimburse me for things through direct deposit rather than the checks I used to get. I know someone who hires musicians for a company that now wants to do direct deposit to someone in the band, which is really ridiculous.

So you make people pretty much dependent on doing financial transactions through these systems, then you freeze their accounts? It's crazy.

[LisaL]

56. Exactly. You don't even get a paper paycheck anymore, it's all direct deposit.

And there are lots of people with bank accounts who are not US citizens. So why is Bank of America doing that?

[Hulk]

3. WTF??

Now the financial crooks are in charge of immigration? This is totally bat shit crazy. ACLU....hello!! A class action suit is in the future, I hope. Bastards

[mahatmakanejeeves]

4. I wonder if the UofM FCU will give him better treatment. NT

[djacq]

5. Wait a Minute

I thought, to banks, money is money.

[unblock]

23. clearly this guy is not rich.

*then* money is money.

[DBoon]

6. combine this with passports being refused

to native born Americans and we have some scary stuff going on.

[suffragette]

50. All too true.

[MissB]

7. Gilead much?

Sheesh

[Recursion]

8. She got up and went to the kitchen and poured us a couple of Scotches

and came back and sat down and I tried to tell her what happened to me. When I'd finished, she said Tried getting anything on your Compucard today?

Yes, I said. I told her about that too.

They've frozen them, she said. Mine Too. The Collective's too. Any account with an F rather than an M on it. All they had to do was press a few buttons.

[MissB]

11. Well done

Thanks for the snippet

[suffragette]

43. Exactly. My first thought as well. Scary as hell.

[Recursion]

48. Don't let the bastards get you down

We gotta hold fast til November. But then we have to hit like fucking lead.

[suffragette]

49. Yes, and call it out all along the way. Thanks for doing that.

[Bayard]

10. Can the bank collect interest for themselves on funds in frozen accounts?

[dameatball]

20. damn good question

[unblock]

25. the customer continues to earn interest on a frozen account,

though the interest is frozen as well. of course, on a checking account the interest might be something like 0.05% annually, and not much more for a savings account.

meanwhile, the bank can lend to other customers based on the frozen funds on deposit.

[Duppers]

32. Banks use the funds of their customers all the time.

They make their money with customers' deposited money and that's how they actually pay interest out themselves. It's not collected from a third party unless the bank is a subset of a larger corp. They lend that money, along with the amt they borrow from the Feds, to other customers for a higher percentage and make other investments. That's how they make their money.

The FDIC requires them to always carry a certain balance in their general treasury based on the amt of their total deposits so a situation that happened in 1929 cannot happen again. The Feds insure customers' deposits too. Bank inspectors have very important jobs.

I hope this helps.

[LudwigPastorius]

42. They are probably not supposed to, but...

it doesn't really matter what the law says.

BoA regularly disobeys laws and defrauds investors, lenders, and the government.

In the 7 years after the Great Recession, Bank of America paid over $90 billion in fines and settlements.

https://www.fool.com/investing/general/2014/10/01/the-complete-list-bank-of-americas-legal-fines-and.aspx

Just the cost of doing (dirty) business.

[CousinIT]

12. They forced the question on me when logging in. For months I didn't answer.

I knew this was what they were up to. I finally answered it to get the nag box off my screen. I don't have anything to worry about in that regard, it's just IMO overstepping on their part. Bunch of RW racist, nationalist crap - they are NOT the gov't and have no business vetting people like that. Besides never paying any goddamned taxes, this bank is BoA (Bank of Assholes)

[marybourg]

14. Federal government regulations and

guidelines, mainly so-called "Patriot Act". NOT the banks' idea.

[progree]

17. From the OP's article:

In response to an inquiries from the Miami Herald, Bank of America spokesperson Carla Molina said she could not comment on specific cases. But she said there had been no change in how Bank of America collects information from customers, including citizenship, in at least a decade. The bank attempts to contact customers before the change the status of their bank accounts, she said. “There’s nothing new,” Molina said.

Paulina Gonzalez, executive director of the California Reinvestment Coalition, told the Herald she disagrees. “We work with consumer groups and financial counselors in immigrant communities across [California] and the country,” she said in an email. “This is new. We have Bank of America customers who we’ve spoken to who have never been asked this before last year. If they have this asked of them before they can show us proof.”

In recent months, her group has received several complaints about being asked for proof of citizenship; almost all have come from Bank of America customers, she said. An article in American Banker magazine also highlighted Bank of America as the one institution specifically facing backlash for its policies.

Spokespersons for Wells Fargo and Citibank both said they may ask about customers’ citizenship to maintain compliance with know-your-customer and anti-money laundering rules. They said no new policies asking for citizenship status have been put in place.

The way I read this is that Bank of America is far more zealous than other banks in how they apply the "Know Your Customer" rules. Only BOA seems to be doing it in a broad-brush way rather than in specific cases where there are red flags. (Red flags indicating possible money laundering or other illegal activities, not just having a foreign-looking name)

I have at least 2 bank accounts, a credit union account, and 3 brokerage accounts, and have not been asked about my citizenship by any of them.

[marybourg]

58. I haven't been asked yet either, but I know of

others who have. Although there may be no recent changes in the law, changes are being made in implementation. I recently got a letter from BMO Harris Bank that my 3-year old 5 -year IRA CD was going to escheat to my state, because I hadn’t come into the bank to do any business relating to the CD since I bought it, although they paid my RMD into my in-bank very active checking account monthly, I had called the bank twice to correct their RMD calculations, and none of my mail from them had ever been returned. I don’t think they’re picking on me (I have a European last name). In addition , powers-of-attorney are becoming difficult or impossible to have honored by financial institutions. They’re just reacting stupidly and blindly to panic-induced anti-terriorism and anti-money laundering laws, and maybe to heightened threats from the current idiot-led administration.

If you have extensive banking and/or brokerage non-tax deferred accounts, you’ll probably be affected by these laws and their increasingly stringent implementation eventually. In other words: the terriorists won.

[CousinIT]

60. I was NEVER asked about citizenship at BoA until this year. Have been customer for over a decade...

....so what changed?

Somebody, somewhere, is lying or just emboldened by trump's special Nazi/KKK racism sauce.

[LisaL]

63. One doesn't have to be a citizen to have an account.

Lots of people work, study or live here without being citizens, they have bank accounts.

[2naSalit]

13. I see an ethnic cleansing scenario developing in a hurry, here.

[Initech]

52. It appears we are headed that way.

And it will *NOT* end well for us.

[progree]

15. Petition to Bank of America (from the OP's article)

Gonzalez’s coalition has now launched a petition, “Tell Bank of America: Stand with immigrants,” that accuses the bank of abetting the Trump Administration’s crackdown on immigrants, and calls on the bank to to “protect immigrants’ civil rights and stop collecting information about the citizenship status of its customers.” The petition ( https://act.credoaction.com/sign/bofa_immigrants?t=6&ak_proof=1&akid=29782%2E10086221%2EJ8avOo ) has received more than 61,000 signatures since Aug. 29.

[Duppers]

21. Thank you. Just signed that & sent it out.

🙏

[progree]

28. 😂😂😂 n/t

[lindysalsagal]

16. Same with Jews in the 30's. It's robbery.

This has got to be illegal.

[getagrip_already]

18. dual citizens?

What is criminal in being a dual citizen if one of them is US?

While I don't have dual citizenship, I know a lot of people who do. Are they targeting them as undocumented now?

[unblock]

27. i read it as bofa suspecting they were *not* dual citizens

i.e., everything's fine if they're u.s. citizens or dual u.s/other country citizens.

the problem is if they claim to be dual u.s./other country citizens but in fact (or in bofa's suspicions) are only citizens of the other country.

[Heartstrings]

19. Had to deal with Bank of America when I lived in Cali....

That are the absolute worst!!

[dameatball]

22. Hello? ACLU? My citizenship status is unchanged since they opened my account. WTF?

If they have doubts about your "status" then they should not have opened the account to begin with. This is horsesh*t.

[Honeycombe8]

24. Oh, no. Is there a law requiring them to do that?

Did the govt direct it?

[progree]

30. Probably not. Please see #17

https://www.democraticunderground.com/?com=view_post&forum=1014&pid=2147499

[Tiggeroshii]

26. BofA has its roots in fascism. It is no surprise actually.

[riverbendviewgal]

29. Are Canadian snowbirds asked as well?

Are they getting blocked out too?

BTW, my Friend who has gone to Florida for the winter the last 10 years decided not to this year. She and her hubby Are going to Mexico for 2 months.

Trump is the reason.

[iluvtennis]

31. And what happened to the $$ in their accounts? Did the gov't take it? This is OUTRAGEOUS

and needs to stop. If you don't want to give them a bank account, send them their money and close the account. I am sure they cna find another bank or credit union willing to take their money.

[Totally Tunsie]

33. "Banf of America: Cutting off our nose to spite our face."

Congratulations, Bank of America! You have now eliminated many thousands of possible customers for your services. How's that workin' for ya'?

So,
foreign students studying in the U.S. can't be your customer? They'll probably remember that if they remain in the U.S. and become citizens.

overseas businessmen on long-term temporary duty in the U.S. can't be your customer? Their companies probably won't do business with you either.

registered resident aliens can't be your customer? They won't be once they are citizens either.

This is not to mention those American citizens who disagree with your policy and who vote with their dollars. Other banks will be happy to serve them.

I feel a boycott of BofA in the works...

[SDJay]

34. If the Government

can legally abduct foreign children, why can't one of the banks that funds that government start stealing foreigners' money?

This country is really becoming a sick place in so many ways.

[mountain grammy]

35. Now that's bullshit. WTF BOA, you fuckers..

[LudwigPastorius]

36. Bank of America is a shit company.

If there were any kind of justice, it would have been broken up as a criminal enterprise years ago.

[cannabis_flower]

37. Yikes!

I hope they don't freeze our joint account. My husband is from Honduras and has Temporary Protected Status. I'm a US citizen.

[Duppers]

39. Make sure you're not banking with Bank of America.

[kysrsoze]

38. Thieves

[NurseJackie]

41. Are they just harassing people, or is it unlawful for non-Americans to have bank accounts in the US?

[LisaL]

47. What non-Americans? Who exactly are you calling non-Americans?

These people legally live in America. It's not unlawful for people who live in America legally to have bank accounts.

[NurseJackie]

53. Oh brother! GMAFB! I'm not "calling" anyone anything. I'm asking a god-damned question! Jesus-fuck!

What non-Americans? Who exactly are you calling non-Americans?

Oh brother! GMAFB! I'm not "calling" anyone anything. I'm asking a god-damned question! Jesus-fucking-christ!

These people legally live in America. It's not unlawful for people who live in America legally to have bank accounts.

Is that the correct answer? Based on the aggressive and accusatory intro, I think I'll wait for further confirmation before accepting that at face value.

[LisaL]

55. You seem to be suggesting that immigrants are non-Americans despite living legally in the US?

Considering that the OP article isn't talking about people who don't live in the US opening accounts here. One doesn't have to be a citizen to open an account. But you don't have to believe me, I guess. Apparently you fail to realize that there are lots of people living in US who aren't citizens, and they have bank accounts.

[NurseJackie]

57. ...

[ehrnst]

59. I didn't get that from Nurse Jackie's post at all.

[LisaL]

61. Then maybe you can answer who are non-Americans.

[ehrnst]

64. "Non-Americans" - those residing in America who are not American citizens.....

Like those with green cards, foreign nationals, diplomats, etc.

Nurse Jackie was asking about the rights of those non-Americans, not smearing them.

Here it is again.

"Are they (Bank of America) just harassing people (account holders who they SUSPECT of not being a citizen or have dual citizenship), or is it unlawful (not legal) for non-Americans (those currently residing in America who are not American citizens) to have bank accounts in the U.S.?"

Is that clearer?

You seem to want to keep accusing her of some kind of smear for using the term "non-Americans" even though she has explained to you that it is not.

Living where I do, there are many "non-Americans" nearby in the diplomatic service.

You sound very much like a substitute teacher my son had who called one kid out for not pledging allegiance. When the principal told her that child is not an American citizen, the teacher assumed that the Principal was calling the child an illegal immigrant, and replied "Well they need to get used to pledging until they are legal. My husband is in the service and defending their country, and they can respect the flag he defends." The Principal then informed the teacher that the student was a child of one of the Embassy of Spain's diplomatic corps. The teacher was then understandly embarassed at her assumption when she heard the words "not American."

As you probably are now, or at least should be. An apology to Nurse Jackie is in order.

And in response to Nurse Jackie's question, it is perfectly legal for non-citizens (non-Americans) to open bank accounts, however banks may deny someone's application for an account. BOA is freezing current accounts, after they have been approved and have money in them, and not for criminial suspicion.

I think this may be defined as harassment on the part of BOA.

Proof of citizenship is not required to open a bank account in the U.S., according to Stephanie Collins, a spokesperson for the Office of the Comptroller of the Currency, the federal agency that supervises branch banking. Banks are merely required to identify and report suspicious transactions and maintain and update customer information.

[LisaL]

69. What exactly do you call people who are not US citizens and don't reside in America?

Wouldn't they be non-Americans? You don't see how that would be confusing when asking questions who can legally have a bank account in US? It's one thing to call people non US citizens, it's another to call them non-Americans.
Nowhere in the OP article these people who legally reside in the US are referred to as "non-Americans."

[ehrnst]

70. I understand that realizing that you took something someone said out of context and

accused someone of being xenophobic as a result is embarrassing, but doubling down and trying to reframe the entire context isn't helping your credibility.

Nurse Jackie clearly stated that she was not "smearing" anyone. Your continued defense of your position that she did, after being told that by two people shows that you aren't really interested in a discussion, or the topic, as much as you are trying to defend your now debunked accusations.

What you should be doing is saying, "I'm sorry, I misunderstood. I jumped on a term as coming from a place of xenophobia, and I see now I was wrong."

[ehrnst]

65. it is perfectly legal for non-citizens (non-Americans) to open bank accounts, however

banks may refuse someone's application for an account. BOA is freezing current accounts, after they have been approved and have money in them, and not for criminial suspicion.

I think this counts as harassment.

[NurseJackie]

66. Thank you for that thoughtful and informative response.

[Duppers]

44. Fascists

What they're doing is illegal. Although right-wing courts might not protect them but some appeals judge would. SC? Not so much right now.

[Duppers]

45. Does this include the Russians' money?

Inquiring minds want to know.

[Drahthaardogs]

46. And to think this bank was started by an Italian immigrant

Who gave loans to other Italians because they were "Dago's" and we don't lend to "Dago's"


How far we have fallen....

[Initech]

51. Well time to boycott B Of A then!

[NurseJackie]

54. How does that work? If it's a company I never do business with anyway, how can I boycott them?

I mean... it's a nice sentiment and all... but that would be like telling me to boycott Tiffany's or to boycott Rolex. I hardly think that my "refusal" to buy a Rolex for my husband (that I couldn't afford anyway) is going to make any difference to anyone. --- Other than to my husband, I'm sure he'd love to own a Rolex.

[LisaL]

62. Plenty of people do business with this bank.

So they can take their account elsewhere.

[Blue_Tires]

67. This is the test case.. If they get away with it here, they'll expand it to others

[renate]

68. "after Bank of America questioned"

So Bank of America , a bank, gets to question whether someone has legal status, and freeze their account if they, a frickin bank and not a government agency, don't understand about the correct documentation? How is this possible, even in today's America? How are they allowed to freeze the money and not just close the account and return it? It's robbery. I'm so disgusted.