lizard lips
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No More Banamex accounts for Ex-Pats
As the first set of Foreign Account Tax Compliance Act (FATCA) compliance issues for banks worldwide is set to come into effect on July 1 we have seen
a flurry of banks around the world advising US citizens that they will be immediately closing their accounts.
None has been so far reaching as this notice sent to US citizens who have accounts at Banamex USA in Mexico this week, however.
Banamex USA's parent, Banamex, is the second largest bank in Mexico and there are over 1 million US citizens living in Mexico, by far the largest
amount of any country, and so this news will be felt over a very widespread area.
Notices have begun to be sent by Banamex USA, a bank operating in Mexico and used by many American expats in Mexico, to all US citizens notifying them
that their accounts will be closed within 30 days.
Here, here and here you will find three separate online discussions surrounding Banamex USA's summary closure of American's accounts.
In most of the forums people know the reason why - FATCA - but in one of the forums in particular the people are not even aware of FATCA and its
implications. This action by Banamex USA is, of course, because of FATCA, which has forced 77,000 banks in 70 countries to surrender all information
on American customers to the Internal Revenue Service (IRS) or be extorted and possibly put out of business altogether.
Banamex USA, a subsidary of Citibank with its headquarters in Los Angeles, has sent letters to many US customers informing them that their accounts
will be closed June 30. As one online commenter wrote:
"No more SS check deposits: no more linking of accounts to Banamex Mexico, no more credit card, no more ATM for free, no more nada."
One customer was told that it was a "bank decision" with no reason given why. This move has left former account holders scrambling to find a bank that
will let them open an account without their presence in Mexico, something likely impossible to find.
It does not appear that all accounts will be closed, but nobody knows Banamex USA's strategy here, even banking insiders in the US who we have
contacted who are confused about what is going on.
What's for sure is this: Are you an American expatriate living abroad or an American currently thinking of moving abroad? This could and likely will
happen to you.
OPTIONS FOR US EXPATS IN MEXICO
There are many ways to protect yourself and to sidestep many of the issues that FATCA will be bringing upon US citizens trying to transact in the
financial system worldwide.
In the case of Americans who live and/or spend a large amount of time each year in Mexico one solution is to attain Mexican citizenship (this is a
process that TDV Passports can help with). By doing this you can still have bank accounts in Mexico if you so chose as you can open the account as a
Mexican citizen, not as a US citizen, thereby not being restricted by banks that do wish to deal with US citizens due to the egregious nature and
expense of filing with the US government all transactions of US citizens.
Having a second citizenship, especially for US citizens, is a very prudent move as it has become very difficult to do anything financially, worldwide,
as a US citizen. It also has a tremendous amount of side-benefits including large tax breaks (up to nearly $200,000 per year, tax free, for a married
couple if they live outside of the US)... and if you choose to renounce your US citizenship the benefits can be massive for those with a high net
worth or income as this would unchain US citizens from the worldwide taxation imposed on them by the US government.
Other options that are still available to US citizens is to re-organize their affairs internationally using things like offshore trusts which are
specifically set-up in a way that FATCA regulations do not apply to it. This is a service, for high net worth (over $1 million) US citizens that is
offered exclusively by TDV Wealth Management (TDVWM). TDVWM has recently held two Crisis Conferences in Panama and in Mexico helping US citizens stay
ahead of the curve and to organize their affairs prior to events, which we predicted, such as more banks worldwide closing accounts for Americans.
We also predict that more countries in the West will begin to enact FATCA like controls as the economy in the West continues to fall and governments
begin to enact more egregious worldwide taxation laws. In the case of Canadians, for example, many "snowbirds" (those that are retired and usually
spend six months or more per year in the US) are beginning to be deemed "US resident" even without their knowledge and will soon find themselves under
attack by the IRS for tax liabilities. As well, the Canadian and US governments have reached all manner of agreements tying the sharing of financial
information between the two countries.
As we've researched and written here and at TDV Wealth Management Crisis Conferences (which we will be holding another one soon, likely in Mexico due
to recent events), FATCA is very real and Americans abroad will be forced to adapt and quickly. Many might simply end up without a bank account
altogether and unable to open one abroad when they get this now all-too-common letter that your bank no longer wants to serve you.
We hate to constantly be the bearer of bad news but those who have been following TDV know that we have been warning of these events for a number of
years. And we expect things to go nowhere but downhill from here as governments in the West implement nefarious capital controls such as FATCA.
Stay tuned at The Dollar Vigilante blog as we continue to cover FATCA and its consequences and offer insights, news, analysis and solutions to protect
yourself at The Dollar Vigilante newsletter. And pass along this particular news to US citizens who are Mexican expats to inform them to prepare for
more bank account closures for US citizens and what they can be doing about it to protect themselves.
Have a FATCA story or concern? Join the discussion with other Dollar Vigilantes!
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EnsenadaDr
Banned
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Mood: Move on. It is just a chapter in the past, but don't close the book- just turn the page
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Wow Dan that will be a huge blow to a good friend of mine who has sworn by Banamex USA for over 10 years. I guess it's payback time for the good Ol'
USA immigration laws!
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lizard lips
Super Nomad
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This will eliminate a lot of fraud but for those who depend on monthly checks being deposited now they will have to pay the fees…….
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vgabndo
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Mood: Checking-off my bucket list.
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Once again, Ma'am you guess wrong!
Congress enacted FATCA to make it more difficult for U.S. taxpayers to conceal assets held in offshore accounts and shell corporations, and thus to
recoup federal tax revenues.
The people who will be most effected by this, in a financial way, are Federal Express and General Electric and other mega-corporations who PAY NO U.S.
TAXES, or pay WAY less than their fair share because they were previously able to hide their profits in secret off-shore accounts.
There has been a hue and cry to close the tax loop holes used by the 1% and their paper shuffling buddies. This is it, and naturally the Banksters who
have been laundering this money are singing a sad song. (or just closing accounts)
No, I wouldn't be interested in how you managed to make a connection with immigration policy.
Undoubtedly, there are people who cannot afford to give the anchor of sanity even the slightest tug. Sam Harris
"The situation is far too dire for pessimism."
Bill Kauth
Carl Sagan said, "We are a way for the cosmos to know itself."
PEACE, LOVE AND FISH TACOS
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DaliDali
Super Nomad
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I know that when the Loreto Banamex branch closed, my account was good to go for about a month and I had retrieved money from a local ATM machine.
Then all of a sudden, without any notice whatsoever, it was cancelled. I found this out in Tecate on a return trip at the Pemex.... lo siento senior,
su tarjeta fue rechazada. And the card reader told him to confiscate the card.
He did not after verifying my ID and signature.
The card worked fine on the way up a week before.
And come to find out, I could no longer access my account online using the "netkey"
I must have called Banamex customer service line a half a dozen times and I could get nowhere with them.
No English speakers to be had and when they told me to hold on, that hold was forever and no further chatter was to be had.
So off I go to Constitution to speak with the manager there and see what was going on with my account.
He punched up some numbers and sent an email to one of his cohorts in DF or wherever.
The next day he called me and confirmed my account had been cancelled and I could not completely understand him as to why. Something about the files
from the Loreto branch had not been transferred successfully. Quien sabe really.
So then I was worried about my saldo with them......gone or what?
Yes it was still there, languishing in who knows where.
With that balance, I opened a completely new account.....new account number and new debit card using the balance from the cancelled account.
At that time, the accounts girl has me sign several US Treasury IRS forms.
It was clear that the US Treasury wanted to know about my deposits and withdrawals with them......which is woefully little and the IRS will be
disappointed.
A day later after receiving the new debit card, I was able to snatch some money out of the local ATM ok. So it is working with the new account.
Hate to see this, as I use Citibank to transfer funds to Banamex. It worked wonderfully as soon as I got the "numero de client" string figured out.
No transfer fees and the transaction is almost immediate.
If this comes to pass......out goes Banamex and I will start anew with Bancomer here in town.....as much as I dislike them.
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aguachico
Senior Nomad
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Mood: logic cannot get thru to the illogical
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I filled out a tax form when i opened my banamex account. I gave them my FMT and US passport info.
I hope they don't close the account, but it won't be that big of a deal.
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DaliDali
Super Nomad
Posts: 1132
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| Quote: | Originally posted by aguachico
I filled out a tax form when i opened my banamex account. I gave them my FMT and US passport info.
I hope they don't close the account, but it won't be that big of a deal. |
I agree.....not that big of a deal.
Most of my use of a bank account was to have the CFE and Telmex bills paid electronically and use of the ATM machine with no fees.
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DENNIS
Platinum Nomad
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BANAMEX is in the news:
http://justiceinmexico.org/2014/06/05/mexican-officials-appr...
"YOU CAN'T LITTER ALUMINUM"
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EnsenadaDr
Banned
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Mood: Move on. It is just a chapter in the past, but don't close the book- just turn the page
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well that's why there are geniuses like you Vga to explain financial international matters. Thank you. | Quote: | Originally posted by vgabndo
Once again, Ma'am you guess wrong!
Congress enacted FATCA to make it more difficult for U.S. taxpayers to conceal assets held in offshore accounts and shell corporations, and thus to
recoup federal tax revenues.
The people who will be most effected by this, in a financial way, are Federal Express and General Electric and other mega-corporations who PAY NO U.S.
TAXES, or pay WAY less than their fair share because they were previously able to hide their profits in secret off-shore accounts.
There has been a hue and cry to close the tax loop holes used by the 1% and their paper shuffling buddies. This is it, and naturally the Banksters who
have been laundering this money are singing a sad song. (or just closing accounts)
No, I wouldn't be interested in how you managed to make a connection with immigration policy. |
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oladulce
Super Nomad
Posts: 1625
Registered: 5-30-2005
Location: bcs
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Thanks for the alert. I'm not clear if this effects non-Mexican account holders at Banamex Mexico (not Banamex USA)?
Unfortunately it's no-named dirt trails out here and we don't have an official address so we had to use the address of the hotel we were staying in in
Cd Constitucion to open our account at the Banamex there. If we're going to be impacted too, we'd never get the memo unless they send it by email
also.
It's 2.5 hrs and 15 miles of dirt road pulvo driving through crappy road construction to get to the bank so I'll start by calling Citibank today. The
Citigold customer service folks can be very helpful and might have some international contact info.
I'll post if I find out anything that effects US citizen/full time Mexico resident/Banamex Mexico accounts.
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bajagrouper
Senior Nomad
Posts: 964
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MISLEADING HEADLINE
The accounts of expats that are being closed are BanamexUSA accounts and not all accounts,only ones linked to a Banamex accounts for money
transfers,guess some folks were laundering funds through their linked accounts...I still have a BanamexUSA account so I can still withdrawal from
Banamex ATM's fee free.....
I hear the whales song
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oladulce
Super Nomad
Posts: 1625
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Location: bcs
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Foreigners with Banamex Mexico "OK for now"
Got in touch with our local Banamex (mexico) in Cd Constitución regarding the closure of accounts held by foreigners. He said "no, the accounts will
not be automatically closed".
But... he said they need to update information regarding our address or the use of our ATM cards may be "blocked" in the future. He looked up our
cards and they are still active/unblocked. He didn't know if there was a cut-off date to provide the information to Banamex.
If you can't get to a branch in Mexico, he said you can call Banamex in DF to provide the info. We were not successful with this attempt- seemed like
DF spoke as fast as they could and weren't' wiling to rephrase for us to figure out what they heck they were saying. Finally asked for an
English-speaker and got transferred 6 times and finally gave up.
Also called Citigold services in US and they consulted the international division who said there have been no announcements, memos, etc regarding
automatic closure of Banamex Mexico accounts held by US citizens.
[Edited on 6-14-2014 by oladulce]
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sargentodiaz
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I sure hope this doesn't effect us.
My wife, a Mexican citizen, has an account with BanNorte and my name is on the account.
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LancairDriver
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Interesting Article from the Wall Street Journal on ex-pats renouncing their citizenship in highest numbers in years over the US banking regulations.
And most are not even in the hated 1%.
http://online.wsj.com/articles/more-expatriate-americans-bre...
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durrelllrobert
Elite Nomad
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| Quote: | Originally posted by LancairDriver
. And most are not even in the hated 1%.
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Hated by some that never made it and admired by many who still believe in the American way.
Bob Durrell
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LancairDriver
Super Nomad
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| Quote: | Originally posted by durrelllrobert
| Quote: | Originally posted by LancairDriver
. And most are not even in the hated 1%.
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Hated by some that never made it and admired by many who still believe in the American way. |
Well stated.
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Hook
Elite Nomad
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I'd agree, but the American way has been to ship good paying jobs OVERSEAS for the last 30 years. THAT'S the American way.
THAT'S how a good portion of the 1% got there, directly or indirectly.
And now we wonder why our economy won't get going, no matter what we do?
No wonder there's so many ex-pats. If you cant get a job good enough to support yourself in the US of A, it makes sense to move to a cheaper country.
And you pray you dont need medical care, 'cause either the premiums or the out-of-pocket expenses will send you into BK.
That's the NEW American way, apparently. Don't us ex-pats know it. 
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