US banks warn Americans in Germany about possible account closures
Americans living in Germany have begun receiving letters from US banks warning of the possible closure of their accounts due to new European Union rules for financial institutions from outside the EU. This was reported by The Local Germany.
This concerns Article 21(c) of the EU Capital Requirements Directive. It provides that banks, financial institutions, and other non-EU companies that provide core banking services in the bloc's countries must establish an authorized local branch. Such services include accepting deposits, providing loans, and credit guarantees.
Exceptions and banks' position
The directive provides an exception for cases where an EU client independently approached a bank or lender from a third country. Agreements concluded and signed before July 11, 2026, should also not be subject to the new rules, according to the directive's provision.
Financial adviser Brian Dunhill told the publication that the letters may be related not only to the direct effect of the directive. According to him, some institutions may not want to continue working with a small number of clients in Europe because of compliance costs. He advised account holders to find in advance a financial institution willing to serve clients living in the EU.
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Accounts and investments
Tax specialist Jonathan Hadida warned that closing a brokerage account may have tax consequences. If a broker pays out funds from such an account, this may be taxed as a capital gain. According to him, planning ahead can help avoid a forced payout of a large sum.
The directive is aimed at banking services, but US brokerage firms may also send similar notices. Dunhill explained that brokerage accounts often have banking functions, so companies' compliance departments may decide to stop serving clients in Europe.
Hadida also noted that some Americans may need a US account, including for direct payments from the US Internal Revenue Service. At the same time, government payments, he said, can also be sent to a foreign bank account. For basic banking operations and transfers, The Local Germany mentions the online services Wise and Revolut, and for Americans abroad, credit unions that work with such clients.
