AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes. For US reporting, an account at a financial institution outside the US is a foreign financial account, and that includes naira and domiciliary accounts at Nigerian banks. Once you are a US person, the IRS says you file an FBAR if your foreign accounts together exceed USD 10,000 at any point in the year, and Form 8938 (FATCA) applies at higher thresholds.
Many Nigerians in the US keep the accounts they opened at home: a salary account, a domiciliary account, sometimes a fixed deposit. None of that is unusual or wrong. What changes when you become a US person is that the US wants to know those accounts exist. This guide sets out what counts, when the duty starts and the two forms involved. It is information, not tax advice.
What counts as a foreign financial account
The IRS FBAR page describes a foreign financial account as, generally, any account at a financial institution outside the US, naming bank accounts, brokerage accounts and mutual funds. A naira savings or current account at a Nigerian bank, a USD domiciliary account at a Nigerian bank and a fixed deposit with a Nigerian bank all fit that description. It does not matter whether the account earned any taxable income; the page says that does not affect whether it counts.
The page lists a few exclusions, such as accounts at US military banking facilities and certain retirement accounts in which you are an owner or beneficiary. For anything unusual, such as a wallet with a Nigerian fintech or a pension account, check the FBAR instructions or ask a preparer whether it is held at a financial institution.
When you become a US person
The FBAR duty falls on US persons, which the IRS lists as including citizens and residents. For tax purposes, the IRS says you are a US resident for a calendar year if you meet either the green card test or the substantial presence test for that year. So a green card holder is in scope, and so is someone on a work visa who has spent enough days in the US to meet the substantial presence test. Students and some other visa holders may be treated differently under those tests.
The two reports and their thresholds
| FBAR (FinCEN Form 114) | Form 8938 (FATCA) | |
|---|---|---|
| Who files | US persons with a financial interest in or signature authority over foreign accounts | Taxpayers with specified foreign financial assets over the threshold |
| Threshold, living in the US | Combined value over USD 10,000 at any time in the year | Unmarried: over USD 50,000 at year end or USD 75,000 at any time. Married filing jointly: USD 100,000 or USD 150,000 |
| Where filed | FinCEN BSA E-Filing System, not with the tax return | Attached to your income tax return |
| Due | 15 April, automatic extension to 15 October | With your return |
The Form 8938 figures come from the IRS page last reviewed on 20 September 2026; the FBAR figures from the IRS FBAR page last reviewed on 30 July 2026. The IRS Form 8938 page confirms that accounts at a foreign financial institution are specified foreign financial assets.
A worked example
Example only. Chika moved to Texas on a green card in 2025. In 2026 she has a naira savings account worth about USD 4,000, a USD domiciliary account that peaks at USD 7,500 in June, and a small naira current account worth about USD 500. Her highest balances add up to USD 12,000, so she files an FBAR listing all three accounts, even the small one. Her total is far below USD 50,000, so Form 8938 is not triggered on these figures. Interest on the savings account is also part of her worldwide income, which the IRS says residents report on their US return.
If Chika's naira savings later grew so that her Nigerian accounts together passed USD 75,000 at some point in the year, Form 8938 would also apply, attached to her tax return, on top of the FBAR.
Converting naira balances
Balances held in naira have to be converted to dollars to apply the thresholds. The FBAR instructions set the method and the exchange rate to use, so follow them rather than an app's rate on the day.
What to check first
- List every Nigerian account in your name or under your signature, including dormant ones.
- For each, note the highest balance during the year from statements.
- Convert using the method in the FBAR instructions and add them up.
- If over USD 10,000, file FinCEN Form 114 electronically; check whether Form 8938 also applies.
Related: can a green card holder keep a Nigerian account? and joint accounts with a parent.
Where Pryme fits
Naira held in a Pryme account is held by a licensed Nigerian microfinance bank, so treat that balance as you would any other Nigerian account when you add up your totals, and ask your preparer if unsure. Statements for each currency can be downloaded, and verifiable statements are available through VerifyDoc.ai. See the multicurrency account.
Questions people ask
Do I need to report my Nigerian bank account to the IRS?
If you are a US person and your foreign accounts together exceed USD 10,000 at any time in the year, the IRS says you file an FBAR (FinCEN Form 114). It is filed with FinCEN, not with your return.
Does a dormant Nigerian account count for FBAR?
The IRS page treats any account at a foreign financial institution as a foreign financial account, whether or not it earns income. Include it if it is in your name.
Is FBAR the same as FATCA?
No. FBAR is FinCEN Form 114 with a USD 10,000 combined threshold. FATCA reporting is Form 8938, filed with your tax return, with higher thresholds.
I am on an H-1B visa. Do I file FBAR?
If you meet the substantial presence test you are a US resident for tax purposes for that year, and FBAR rules then apply to you as a US person.
Sources
- Report of Foreign Bank and Financial Accounts (FBAR), IRS (last reviewed 30 Jul 2026) · accessed Oct 2026
- Do I need to file Form 8938, Statement of Specified Foreign Financial Assets? IRS (last reviewed 20 Sep 2026) · accessed Oct 2026
- Determining an individual's tax residency status, IRS (last reviewed 11 Feb 2026) · accessed Oct 2026
- Taxation of resident aliens, IRS (last reviewed 25 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.