[WSBAPT] Foreign national with no tax ID # and the Patriot Act/CIP

[Sarah Jael Dion]

Hi all-

This is new to me- I’d love any insight on the correct way to proceed! 

PC is a foreign national coming into some money by way of the settlement of a legal action in the US. 
PC was here on a student visa for some time, and is now here on a tourist visa. 
PC's goal is to move here and work. 

PC needs a place to put this money in the U.S. There are a reasons PC does not want the money to end up in PC's home country, most of which involve taxes, corruption, and family drama. 

PC is under the impression that PC will not be allowed to open an investment account to deposit the settlement monies because Section 326 of the Patriot Act requires banks to ascertain the identity of its customers (CIP), and most investment banks would not open an investment account for a foreign national who lacks a tax ID#. From my research, it seems that banks are allowed to ascertain the identify of foreign nationals in the absence of a tax ID # (31 C.F.R. § 103.121(b)(2)(i)(A)(4)), but as a practical matter, I’m not sure how that actually plays out. 

Here are my questions:

(1) Is it true that a foreign national without a tax ID # would not be allowed to open an investment account?

(2) Assuming the answer to #1 is yes, PC would like to create an inter-vivos trust, obtain a tax ID# for the trust, and then open an investment account in the name of the trust. Is that sketchy? Because if it is, I don’t want to draft the RLT. 

PC is of the belief that this is perfectly allowable, and is often done. I have no idea if this is true, and neither does anyone I’ve asked! Thoughts?

And thank in advance for any guidance!

Sarah Jael Dion

Dion Law PLLC					
206-550-4005
sarah at dionlaw.com
www.dionlaw.com

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