My situation is this:
I am a US citizen with modest holdings, stocks and mutual funds still in the US. Since I live in Sweden, I have never really been motivated to transfer the funds here as I would take a bath on taxes.
Now, after the passing of the Patriot Act, My broker of almost 20 years tells me that I am not allowed to liquidate funds due to my status as a “foreigner”, which is to say that Americans who have been outside the country for a given period of months are classified by the act as being foreigners. He told me that other people, resident in the US, who have been outside the country on business for an extended period have had the same problem. Sweden’s status as a non-compliance country complicates matters, apparently. Moreover, at this point he has apparently received a memo telling him that his job is at risk if I don’t remove my funds from the particular institution. I have contacted a couple of the larger US financial institutions and, while they wish me luck, they do not seem willing to help.
I have a few questions:

1. Is what my broker telling me true?
2. If so, is there a US institution I can transfer funds to that has some type of dispensation for my type of case? For example an international banking institution, or foreign bank on US soil.
3. What are my options if I don’t want to transfer my funds to Sweden? As a resident of the EU, I may do business with pretty much any bank here, would that help?
4. Is there anything else I should be aware of that might help me, or hurt me, while making my decision.
5. Should I wait until after the election to see if Bush wins? I have read that the sunset clause in the act may cancel much of it Jan. 1, if it is not renewed.

I appreciate any help I can get on this matter.

Doesn't sound right to me, there are plenty on non-US residents/ non-US citizens who have accounts in the US. I find it hard to believe that all such accounts are being forced off-shore by the PATRIOT ACT. On the other hand, opening new accounts without visiting the institution in person may be extraordinarily difficult.

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which is to say that Americans who have been outside the country for a given period of months are classified by the act as being foreigners

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totally incorrect. this is not in the act at all. I suggest changing brokers immediately.

That's why I was hoping that I could open and account at a European bank that possibly has branches in the US and maybe save myself a trip over.

The Patriot Act has nothing about being a foreigner if you are out of the Country. I'm sure you have a Citibank, Bank of America or another large American Bank with a branch in your Country. Why not talk to them? Or check with
Morgan Stanley. I have a friend who is a financial investor with them. I'm sure they'd take your account.

It's not tax fraud if you declare your holdings. According to Swedish law it isn't taxable anyway unless it is over a certain amount or until you liquidate.
My problem has to do with moving my funds to another institution without actually having to get on a plane and sign papers there. Possibly a bank in the UK with offices in the US? Or a US institution that is allowed to do business with people living in a non-compliance country.