US and Mexico Relations: U.S. Sanctions Mexican Banks

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V I D E O S    T O    W A T C H    N E X T :


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Moving to Mexico: 10 Reasons Why We Chose to Live in Guadalajara https://www.youtube.com/watch?v=dK23vD8_xjc&list=PLh3xKhkMgH_LAY7UV78YMgms-f2e1UcwN&index=23

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Disclaimer: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Entrepreneur Expat can and does not provide advice unless/until engaged by you.

Transcript

0:36

The US just sanctioned several Mexican banks leaving many foreigners here in Mexico without access to their money. Today we're gonna talk about what happened and how you can avoid running into issues like this in the future. I. Welcome to Entrepreneur Expat. My name is Justin Keltner, and on this channel we talk about everything to do with moving overseas, living the life of your dreams in another country, and being able to diversify your business and your assets so that you are not at the risk of any political turmoil of one government having a huge effect on. Your life. If that's something you're interested in, make sure that you hit that subscribe button so that you don't miss a single video. We have multiple videos coming out every single week where we talk about these different topics, so make sure to stay tuned and subscribe and like this video because it helps us with our mission of reaching a million entrepreneur expats, and aspiring expats. In addition to that, if you're serious about moving to Mexico or perhaps somewhere else in Latin America, go to entrepreneur expat.com and apply for a free consultation. During that consultation, we're going to help you directly with all of your needs in terms of immigration. Legal assistance, real estate and whatnot. We've got a vast network of professionals in various industries that we can set you up with here in Mexico, as well as in other countries around Latin America. so@entrepreneurexpat.com slash consult, you can find out more about that and request your free consultation. Now, what was it that actually happened? Well, on June 25th, just a few short days ago, US banks sanctioned three Mexican banks, Intercom, Banco and Vector Casa Deza here in Mexico on the accusations that they were helping cartels launder money. Now whether these were the only banks doing such activities or whether they really had reasons to believe that they were or not, is kind of up to debate because the US has been strong arming other governments and their banks and other financial institutions for decades. But hey, that's what happened. Is there a lot that we can do about it? Not necessarily. But here's what the sanctions do. So specifically effective July 21st, the sanctions prohibit these three Mexican banks from any transactions involving the US financial system. So for example, a CH transfers, wire crypto tying into the US government systems. All of those things are blocked. Any sort of transaction that touches the US financial system is blocked. And what has been happening actually, that we've been hearing about. In droves the last few days is that Americans are no longer able to transfer money from their American accounts to the accounts at In Intercom, for example, which is a very popular bank or any of these other banks now specifically. Here's the impact of Americans living in Mexico. Now, if you don't have residency, this is going to impact you the most. The reason why is because Incom is one of the few banks that still allowed expats that didn't have Mexican residency or an RFC, which is like a Mexican tax ID number. To be able to open an account. So there were thousands and thousands and thousands of expats that had these intercom accounts and were using it regularly to pay rent and to handle other financial transactions within Mexico by funding those accounts with their US dollars. Now, we've long been a proponent of services like Wise or Remitly or World Remit to transfer money because they tend to give you much better conversion rates than a intercom transfer would. Anyway. But the point is the people that were relying on these banks to transfer money in US dollars from their US bank accounts are now essentially screwed because they are no longer able to receive money from those accounts. And furthermore, the Mexican government has actually taken over management of these banks as well. And you know that it's not really great when the government has to step in, especially in Mexico, to manage those banks, even if it is temporarily. So, long story short. You need residency to be able to effectively live your life in Mexico without being. Under the, the thumb of, of all these laws and sanctions and things like that. Sure. What the US government does can still affect you in certain ways, even if you do have residency, but at the very least, the majority of banks, most of which do require you to have a Mexican residency and a tax ID or RFC number. Are not affected. So for example, Amanda and I have banks at BBVA and we had no issues transferring money or using our accounts or anything like that. The peso is, uh, down, well actually up a little bit compared to the dollar, meaning that you can get. Less pesos right now per dollar, but that doesn't necessarily have to do directly with the, these sanctions as much as it does with other aspects of foreign policy. So what you, what you need to be doing is making sure that if you are going to live in Mexico, either the, in the near term term or the short term that you do obtain Mexican residency, and our team of experts and legal advisors can help you do exactly that. So make sure that you go to entrepreneur expat.com/consult. Book that free consult while they're still available with our team, and we can get you all squared away so that you both get your Mexican residency, your tax id, and also bank accounts that are a lot less susceptible to these kinds of things. And as I said before, use things like Wise, like Revolut, like Remitly. Uh, we we're not recommending any one specific platform. They all have their own. Pros and cons, but do your research and find alternative services. Alternative means of transferring. And hey, if you've got an account, let's say with Fidelity or Charles Schwab, a lot of those brokerage accounts in the US will also let you use your debit card to withdraw from the ATMs in the event of an emergency like this in any country. And not only do they not charge you a uh fee, like a percentage fee to take out money in a foreign currency or an ATM use fee, but if the foreign bank charges you an ATM fee, those. Brokerages are actually going to reimburse that as well. So that's a really cool benefit and that'll allow you to, uh, potentially save yourself a lot of trouble in the event that your money gets tied up. But really. You wanna have residency because that's gonna give you a lot more flexibility. It's also gonna give you the ability to invest in the Mexican stock market and Mexican investment opportunities. Uh, and, and also FinTech opportunities here that pay upwards of 10% a PR on investments. We're not recommending any type of specific investment. We're not investment advisors. These are just, uh, things that we have happened to come across recently. So it's worth. You know, doing your research, but there's a lot of very, very cool investment opportunities here in Mexico. Now, if we talk about broader context for this and, and Mexican, uh, the Mexican government's reaction, while they're saying they criticize the sanctions, they're citing lack of evidence. And I, I tend to kind of be with them on that front. Uh, a lot of the time the US government will tend to kind of point their finger at Mexico and say, Mexico bad. You know, you guys are helping, uh, these, these organized crime groups where. At the end of the day, there's a lot more activity with those groups happening north of the border in the US than there is down here. So that's something to be aware of for sure. So really at the end of the day, you wanna get your residency. I. And we've been saying this for over a year now on this channel E. Every prediction that we've made here pretty much has, has come true. The US cracking down on financial systems, Mexico getting harder and harder to, uh, immigrate to the requirements for visas here. Even the temporary residence ones going up every single year. They even got rid of their. They're program for essentially amnesty, where you could do, uh, a, a special regularization program and get your visa without going to a consulate. They've gotten rid of a lot of those things, and the restrictions are getting tighter and tighter. So if you are serious about getting out of the purview of. The US and all of its crazy rules and maybe living a life where you have a lake view behind you for less than a 10th of what you would pay for. The same thing in a big city in the us. Well, you want to go to entrepreneur expat.com/consult, book that call with our team, and we're gonna help your dreams come true in terms of moving abroad. Thanks so much for being the best part of this community, and we're gonna see you again very soon. Bye for now.