Yes banks can do what they want. However they probably won't force you to close it. It is not in their interest to close IRA accounts, and even if they did, most likely they would ask you to move it to another financial firm.That being said FATCA has caused a lot of problems with international banks and the US. The most likely problem that you might run into is that if you are a US citizen, foreign banks may not allow you to open an account there.The answer also may depend on where your citizenship resides. Are you renouncing your US citizenship? applying for a dual citizenship, or other? Interestingly enough, this is a complicated area, and many taxing agencies are not fully aware of the tax treaties between two countries and what they state.You should consider getting tax and financial advice from a professional who has experience in their area. It is a crazy world we live in, but make sure you look at both sides not just the US. You should also note that you can use your IRA to invest in investments overseas. If you have a self directed IRA, you can use it to invest in virtually any asset around the world.
Should you find yourself in that very unlikely scenario, you have an easy fix. Simply transfer your IRA to another bank or brokerage house!
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