The Great French Bank Problem

Do a quick online search of Americans and banking in France, and you are bound to come across this issue—Americans often have trouble opening bank accounts in France. But there are solutions. So in this post we will look at why you might have trouble opening an account and what you can do about it.

The “proof of residence” issue

If you have recently established yourself in France, this will come up (whether you are American or not). Both the U.S. and France have strict regulations for their financial institutions and those include the so-called “know your client” requirements. Specifically, any bank or other financial institution needs to verify your identity, the fact that you are the actual owner of the funds you will deposit and that you have a fixed address. Authorities provide those of us involved in finance with specific guidance on what sort of documents (justificatifs) we can accept to verify all of these things.

You will likely breeze through the identity questions with your passeport. You will probably just answer questions about your income and assets to satisfy the source of funds requirement. But the residency proof can be weirdly tricky. The most common documents to prove residency are property tax bills and utility bills that are less than 3 months old. The latter can include the phone or internet line to your apartment or an electricy or gas bill. The need for this proof of residency is so common that energy companies generally provide a link in your account for downloading an attestation (loosely translated, a certificate) to show that you have an account with them at the address in question.

If you arrived with your lodgings arranged and your utilities set up – great! But more than a few us expect to open a French bank account before we move into a home. So what can you do?

The answer depends on your situation. If you are staying with someone, you might be able to use an attestation d’hébergement (certificate of lodging). The French government’s public services website provides this one you can fill out online and download (https://www.service-public.fr/simulateur/calcul/AttestationHebergement). As you might have guessed, this option requires you to have some help from your host, as he or she will have to provide proof of residency and certify that you are being housed there.

If the attestation d’hébergement is not an option because you are in a hotel, for instance, you might have to try something outside the box. Our bank agent directed us to city hall to request that we be assigned a legal postal address. It was by no means the quickest process, but it worked.

The trick here is to keep an organised file of the documents you do have, work closely with your bank agent to get something that will satisfy their “know your customer” requirements, and be ready to make a few trips to the bank to get everything straight. In other words, stay flexible.

The “American problem”

So, this one really is about your nationality. As we’ve explored in this article, the U.S. government has a few extra requirements for its citizens, even when they are abroad. A bank that agrees to take you on as a client will need to be ready to file reports with the U.S. government regarding your accounts. Quite a few foeign banks (understandably) want to avoid this. In the past, American’s were told to look for branches of the big, American-based multinational banks. But most of those have since closed European and particularly, French, branches. So where do you go?

If you want a brick-and-mortar bank, you should steer toward the biggest French institutions. These are the ones that have enough heft to take on the extra expense of dealing with U.S. requirements. Many American expats (myself included) have found Credit Agricole to be a willing partner. Other American have established accounts with Société Générale and La Banque Postale, France’s postal system bank (found at post offices throughout France). You might also try BNP Paribas, CIC, Caisse d’Épargne, Crédit Mutuel and Banque Populaire.

Keep in mind that French banks work very differently from what you are used to in the U.S. Even large banks operate semi-independently within a region, so you are actually signing up to a regional network, even if you are using a national bank. And within that region, branch managers have a level of discretion that U.S. branch managers had years ago. All of that is to say that you could be turned away from a particular bank branch and be accepted by another nearby branch of the same instition. Be ready to try a few branches if necessary. 

A final word on brick-and-mortar banks—you will need to set up a rendez-vous with a bank agent to apply for your account. Your best strategy here is to stop in at the bank to request the appointment and be ready with the information that you are an American applying, something like: “Bonjour Madame/Monsieur. J’aimerais ouvrir un compte bancaire. Vous acceptez les clients américains ? » (“Hello. I would like to open a bank account. Do you accept American clients?”). Just about any banker will be aware of the American problem, so this could save you waiting for an unnecessary appointment. 

Or go online?

One of the more popular pieces of advice in recent years has been for Americans to try one of the new online banks. Wise (formerly Transferwise) and N26 have been particularly popular while Revolut and Bunq both have merited mention. These banks also have “know your customer” requirements, so don’t be put off by some slightly strange requests (i.e. a photo or video call to show you holding your own passeport).

There are a couple of things to watch out for when you apply to an online bank. First, make sure you are going to end up with a French RIB (relevé d’identité bancaire) for the account. We continue to see issues with French vendors accepting other European RIB’s. Until that is all sorted, you want to keep your bank account as French as possible.

You also want to watch out for the fact that many of the French brick-and-mortar banks have created online subsidiaries to capture the new market. As a rule, you won’t get further with them than you would with its brick-and-mortar counterpart. In fact, they generally want you to have an existing French bank account to complete the “know your customer” verification process, which just brings you back to square one.

Last resort…

 If after trying a number of banks, you simply can’t find one to open account for you, you can seek help. Under French law, all long-stay residents in France are entitled to open a bank account. Ask one or more of the banks for a lettre de refus (letter of refusal). After 15 days, a bank’s failure to respond to your written request to open an account will also count (make sure you to get a receipt for delivery). You can take these and your ID and proof of residence to a local Banque de France office to request that they assign you a bank.