Dutch Banks Barred from Shutting Bank Accounts of U.S. Citizens

A bank that closed the account of a U.S. citizen resident in the Netherlands was wrong to do so, a Dutch court ruled Wednesday in a case that has repercussions for other financial institutions in the country.

The U.S. Foreign Account Tax Compliance Act (FATCA) makes it risky for overseas banks to accept U.S. citizens as clients if they don’t provide U.S. taxpayer identification or a certificate of loss of nationality. Many institutions refuse to take them on or close the accounts of those they identify.

“The absence of a CLN and the failure of [claimant] to file a tax ...