Schwab Asks Proof Of Residential Address

[Girino]

I have been a client with Schwab for 3+ years. When I initially opened the account, they said my address is not recognized as a residential address (it is not, I am using SBI mailbox service, which is a physical address, albeit not residential), but at the time I was in the US and I walked in a branch showing my US DL and another ID. The clerk said it was okay and that was it.

As I tried to open a new checking account with them last month, with the same address as the other accounts, the issue presented again. But this time I am in Argentina with no plan to go back to the US soon, and the address verification must be completed in 30 days.

I have that address on my DL, on my tax returns, I have mailing from the IRS and the USCIS sent to that address. Schwab won't take this for a valid address, as they say I need an address that is legal to me to comply with federal regulations - how much more legal to me can be an address I have on my ID?
Citi bank never complained about my address!

So I asked a friend to borrow his US address and changed my personal address at Schwab with his. I chatted again with Schwab this morning and the guy said they want PROOF of residential address, like a utility bill or a mortgage. Neither of which I have.

Now, I either drop it or try to open another checking account later this year. I don't want them to close my existing accounts, so I won't argue with them. Or I could try telling them I live in a temp. rental, like an AirBnB, and utility bills are not in my name.

We all know how Schwab is the best expat bank out there, so I don't want to push it 'til I lose it.

 

[camel]

Send a utility bill of your friend's, and a letter from him saying you rent from him. And of course, make sure this is all true beforehand. You can rent 1 square foot from him for $1/month.

 

[Ceviche]

You can rent 1 square foot from him for $1/month.

brilliant!

 

[John Doe]

Why can't you use a BA address ? I have for years.

 

[Ceviche]

Why can't you use a BA address ? I have for years.

does ba address work when using usa banks credit cards online?

 

[John Doe]

yes

 

[bobsnowpuppy]

The reason for all of this is the crackdown on terrorism. Terrorists use the same scheme of a po box that actually appears to be a street address. That's why they no longer accept the address you were using as "residential."

 

[Girino]

Why can't you use a BA address ? I have for years.

Because Schwab's High Yield Investor Checking Account and High Yield Investor Savings Account are for US residents or US citizens physically located in the US. Once you disclose you live abroad, they'll either close your account or offer you to apply for a Schwab One International® account. I have never looked into the latter, if it had the same terms as the other one, I'd have no problem with it. You need a USD25,000 deposit to open the Intl. account. I am reading here that with the Intl. account you are asked to sign a W8-BEN, which US citizen and residents cannot sign for obvious reasons (they must file taxes in the US).

Anyway, when I originally opened my account I was with my husband, who is a foreign alien, and they said they wouldn't open him an account. I didn't know about the Schwab One International® account at the time. I guess we didn't look like the 25kUSD types.

I have a mailing address in the US and if I try to change it there is nowhere to specify a foreign address (there is no 'Country' field).

Anyway, it would be nice to know the difference between the two types of accounts. Anybody is willing to call Schwab and get some insight?

 

[gostomper]

Yeah so this is required by law. I used to work for a different major brokerage house and bank that I'll just say wasn't Schwab, but was basically just like it. Banks need more than just any old address because of Know Your Customer (KYC) mandates from the Patriot Act. So basically draft up a $1 a month rental agreement with your friend. Or maybe easier would be for be to use a utility bill of your friends, I don't think it needs to be in your name, just needs to show it's a physical residency. That needs to be your address with Schwab, but make your mailing address the forwarding service you use.