Banking - Australian Expatriates

As an expatriate you are likely to have three or more banking relationships:

• Your existing retail banking relationship in Australia. It should be maintained so that you have the facility to pay and receive money in Australia. The banks have no problem retaining you as a customer, even though you are non-resident; just remember that any interest earnt will automatically attract a witholding tax of 10%, suggesting you should limit any retained balances. Accounts are easily operated via the internet.
   
• You will need to establish a banking account in your host country. In most cases this can only be done after you arrive in the country. The setting up of accounts has become appreciably more difficult in recent years as a result of money-laundering regulations, and
   
• You will probably need to establish an International banking relationship - because of the flexibility they offer in terms of any later international moves, or because they offer a superior environment for holding cash or investments.
   

At the present time, we do not believe that any of the Australian banks has the geographic spread or capacity to provide a true International banking experience to Australian expatriates. The exceptions are expatriates in New Zealand, PNG and some countries in the South Pacific where some Australian banks retain a retail presence - and in South East Asia where ANZ has a small footprint, although not always as a retail bank. 

You have a very wide choice of large, global financial institutions that are experienced in dealing with expatriates and often have dedicated units or "Clubs" to deal with their specific requirements. Unless you have a specific need that can only be met by Australian banks we think better, more competitive services are available elsewhere. We also remain disappointed by the lack of support Australian banks provide for Australian expatriates offshore - often limiting their services to individuals who meet their "high net worth" criteria.

Two banks we would mention at this juncture, of which we have had some personal experience, include:

• HSBC
• Lloyds TSB

In terms of HSBC, you can open an account with the bank in Australia and, if you have been a customer for a reasonable period, this may accelerate the opening of accounts elsewhere in the bank's network.

In the short to medium term we intend to provide you with a more expansive view of your options in this area, including the choice of banks available and types of accounts. We also intend to provide some practical guidance on what information you will be required to furnish before establishing an account.