Jump to content
Chapala.com Webboard

BANAMEX....who are the chosen?


Recommended Posts

Independent accountants offer a myriad of personal banking services for which you would use their address. Someone's enterprising adult child or grandchild who is trying to build a clientele would be good to set up a yearly retainer package deal.

Link to comment
Share on other sites

  • Replies 108
  • Created
  • Last Reply

Independent accountants offer a myriad of personal banking services for which you would use their address. Someone's enterprising adult child or grandchild who is trying to build a clientele would be good to set up a yearly retainer package deal.

In the "find a need and fill it" department, Senor Google will take you to several sites where, for a fee, they are already set up to give you a U.S. "provable" street address in such places as North Carolina etc.

IMHO, that, too, is a temporary solution which may evaporate like summer smoke when it's found out.

Link to comment
Share on other sites

FATCA affects MX banks not U.S. banks so why did Banamex USA close accounts? What was his answer for that? If Banamex doesn't want to deal with FATCA then Banamex MX will close the accounts and it hasn't. I think also that the few who think they missed the bullet will also be closed. I think Banamex USA is pulling out of the USA.

Gringal try XE.Com http://www.xe.com/currencyconverter/. You can transfer money to a MX account and get a better exchange rate with no fees. There are people who posted a few years ago that they use XE and are happy with it. XE will want proof of your MX address but I don't think it cares about a U.S. address.

"FATCA affects MX banks not U.S. banks"

This is not correct. US Banks are required by the IRS (FATCA) to report on their clients who live outside the USA and have substantial foreign assets.

The IRS makes this pretty clear in their main FATCA website:

" FATCA Information for U.S. Financial Institutions and Entities

  • U.S. financial institutions (USFIs) and other types of U.S. withholding agents are required to withhold 30% on certain U.S. source payments made to foreign entities, if they are unable to document such entities for purposes of FATCA.
  • USFIs and U.S. withholding agents must also report to the IRS information about certain non-financial foreign entities with substantial U.S. owners.

http://www.irs.gov/Businesses/Corporations/FATCA-Information-for-United-States-Entities

"How will FATCA impact you?

FATCA generally requires financial institutions (both US and non-US) to classify all account holders as either US or non-US and as individuals or entities, which are further broken down as financial and non-financial.

  • Foreign Financial Institutions (FFIs) are asked to enter into agreements with the IRS to identify US accounts and report certain information about those accounts to the IRS on an annual basis.

  • US Financial Institutions (USFIs) and FFIs must report certain information to the IRS about substantial US owners of non-financial foreign entities (NFFEs)."

This explains why Banamex USA is likely putting the squeeze on account holders who live in Mexico, because

the IRS requires them and all other US Banks (US Financial Institutions) to track their clients who live outside the USA.

Link to comment
Share on other sites

Wrong. Just read the name.

FATCA stands for The Foreign Account Tax Compliance Act (FATCA) which was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. FATCA creates a new information reporting and withholding regime for payments made to certain foreign financial institutions and other foreign entities. The FATCA rules generally become effective with respect to certain payments made on or after January 1, 2014.
FATCA is intended to increase transparency for the Internal Revenue Service (IRS) with respect to U.S. persons that may be investing and earning income through non-U.S. institutions. While the primary goal of FATCA is to gain information about U.S. persons, FATCA imposes tax withholding where the applicable documentation and reporting requirements are not met.
While FATCA certainly affects U.S. withholding agents and U.S. multinational companies, the greatest impact will likely be to Foreign Financial Institutions (FFIs).
Link to comment
Share on other sites

Snowyco has it right the US institutions are required to also report any monies leaving them and going to a foreign country. If you ask your medical insurance company to reimburse you for care here in Mexico and they send you a check to a Mexican address the company computer will flag it and it will be reported because that is an easy safeguard for the company to put in place since the fines are large. Most likely you will never know it. However if that amount of reimbursement is over $10,000 you might be surprised if they keep 30% of it and you have to file to retrieve it the next year.

Our advisors have told us that eventually the bank computers will report to the IRS if a check they issued has been cashed outside of the US. Also expect that your ATM withdrawals will be tracked. That too might never pose a problem.

The banks and other institutions want to make sure they are compliant. The IRS is simply looking for monetary flow patterns.

Link to comment
Share on other sites

solajijic's information is spot-on, pointing to one of 3 areas where US banks and US financial institutions must participate in FATCA, tracking whether their customers are living in Mexico (outside the USA) or not.

That takes us back to the original point of this thread: Why is Banamex-USA choosing to close some accounts and not others?

Since the IRS FATCA rules require all US Banks to determine whether each customer is outside the USA, then that could explain why Banamex-USA is closing accounts for the people with modest sized accounts, that receive SSI income deposits, but whose owners have NO physical US address.

Another IRS FATCA requirement for US Banks is that any cash transfers outside the USA flag the account and force the bank to report the transaction to the IRS and as solajijic noted: potentially withhold 30%. - This FATCA requirement could explain why some Americans living in Mexico with US addresses had their Banamex-USA accounts closed, because they moved $10,000 (or more) at some point to Mexico from their Banamex-USA account.

A third IRS FATCA requirement for US Banks is to track "substantial amounts" of assets "of US owners of non-financial foreign entities (NFFEs)." The combination of a US account holder having "substantial amounts" of assets, linked with the NFFE twist, could explain why Americans with US addresses, but also having the occasional big overseas transfer (like when buying a Mexican house), triggers Banamex-USA pushing the "eject" button on them.

This combination of 3 different types of IRS FATCA requirements on US banks could explain the seemingly haphazard reasons that Bananmex-USA has chosen which American's accounts to close. When a decision tree has 3 or more hidden branches, and we only get to see the raw outcomes, then the outcomes can seem implausible - undecipherable.

Link to comment
Share on other sites

And all this has accomplished absolutely nothing to deter true "offenders" and yet punished ALL of us. When's the last time you saw a cartel with a "going out of business" sign because they couldn't launder their money, or someone selling off their yacht or jet to come clean with the IRS? There is a point of regurgitation when enough is enough.

Link to comment
Share on other sites

Well, we thought we might be one of those who survived but today we received by US priority mail express ( June 9th)

our notice of our US Banamex account closure. So if I had not seen this on the web board , I would have 3 weeks to make other arrangements. So if you did not get a notice YET...it may still come.

Link to comment
Share on other sites

If establishing legal residency in the US pick your state carefully. Avoid states with income tax if you can. Saves much grief. We legally live in Washington and it took us two years to get unwound from Oregon tax laws even with the fact that we legally lived in Washington. Folks from California who move back may find a back tax bill if they kept a drivers license from California while being an expat down here. I got a sales tax bill from California for a camper I paid for and had delivered in Medford Oregon. Had to get a lawyer to stop the letters. My point is pick your state carefully and avoid Califonia at all costs in my opinion. Negatives of living in non income tax state is usually the sales tax is high like 9% in Seattle area or real estate tax on sale of home. Stuff like that.

Link to comment
Share on other sites

If establishing legal residency in the US pick your state carefully. Avoid states with income tax if you can. Saves much grief. We legally live in Washington and it took us two years to get unwound from Oregon tax laws even with the fact that we legally lived in Washington. Folks from California who move back may find a back tax bill if they kept a drivers license from California while being an expat down here. I got a sales tax bill from California for a camper I paid for and had delivered in Medford Oregon. Had to get a lawyer to stop the letters. My point is pick your state carefully and avoid Califonia at all costs in my opinion. Negatives of living in non income tax state is usually the sales tax is high like 9% in Seattle area or real estate tax on sale of home. Stuff like that.

How, exactly, do you get to "pick" a state for legal residency unless you have a solid basis for proving that you actually live there, if called upon to do so?

I used to live in CA, alas, but there is no way I could prove that I live there now, even if I wanted to. I had no way to prove I lived in that little p.o. box in Texas, either, and of course, SSA, the Bank and the IRS all know it. What was that old saying about "what a nasty net we weave, when first we practice to deceive"? (But after a while, we get better at it).

Now, after this banking debacle, I (sigh) finally "live" where I live. In Mexico, and I have to deal with it. In a way, it's a relief.

Link to comment
Share on other sites

How, exactly, do you get to "pick" a state for legal residency unless you have a solid basis for proving that you actually live there, if called upon to do so?

I used to live in CA, alas, but there is no way I could prove that I live there now, even if I wanted to. I had no way to prove I lived in that little p.o. box in Texas, either, and of course, SSA, the Bank and the IRS all know it. What was that old saying about "what a nasty net we weave, when first we practice to deceive"? (But after a while, we get better at it).

Now, after this banking debacle, I (sigh) finally "live" where I live. In Mexico, and I have to deal with it. In a way, it's a relief.

"How, exactly, do you get to "pick" a state for legal residency unless you have a solid basis for proving that you actually live there, if called upon to do so?"

According to US federal government technical specialists in this area, you decide what state you want to have as a residence, and establish a physical address there, and officially declare that you live there by filing state taxes, getting that state's drivers license or state official ID card, and in extreme cases show some utility bills in your name (like power or water).

I had 4 phone calls with an ACA/Obamacare expert on this, because if you are in the USA for more than 35 days, you are required to participate in a qualifying US health insurance plan - unless you are retired and getting SSI / Medicare benefits. For people living outside the USA this is a big big problem, because the State insurance exchanges do NOT allow expats living outside the USA to sign up, unless you are a resident of that state. This made a big dilemma for younger Americans returning from living overseas - who could not participate in the lower-cost insurance exchanges, but would be forced into buying their own individual, very expensive, private insurance policies. Lots of younger folks wanted to return to the USA - and not get hit with a double whammy of high private health insurance costs plus the 1% tax penalty from the IRS if they did not pay for 9 months of coverage in a given tax year.

This technical expert consulted with IRS specialists on the issue of Americans-abroad establishing state residency, consulted with attorneys within the ACA organization, and with managers, and the consensus was if you live in Mexico (Europe etc), but need to establish residence for returning to the USA: Pick your state, tell the government what your new address is (she suggested using a friend's or family member's address if you did not have property), use this address to file with your state's insurance exchange, and register with the IRS and the state tax/revenue agency - doing these things before you moved back.

Once you have established that physical address as your residency, either stick with it - get a driver's license, etc, or establish your own physical home at your new address within that state. The ACA technical rep emphasized that some state health insurance exchanges did not necessarily allow their participants to get treatment out-of-state, that you should choose your state exchange carefully, and realize that some state health insurance exchanges had reciprocity agreements with other neighboring states to allow reimbursement for medical treatments in the other states. She said that ... Kansas, Arkansas, and Missouri had reciprocity (? my memory is cloudy on the specific states, since none of them included my home state).

Link to comment
Share on other sites

Which gets us back to HOW to establish U.S. residency which will pass close scrutiny. Using your mom's, your cousin's or your kid's address isn't going to cut it unless you can back it up with more than their lyin' ,cheatin' word for it.

If you don't mind the trips, the costs and the trouble to accomplish that.......go for it.

Link to comment
Share on other sites

My wife gets a ballot sent to her from Washington and votes. We both have Washington drivers licenses. We have a close relatives address and she processes our mail and such and communicates when needed. We live in Washington. We are just gone a lot. Nothing illegal we have health insurance so we don't violate the law. I agree for many folks what I posted is very very difficult but I did plan this out. Next point is when we have to go from Temp visa here to Perm. At that point I will check and see what our options are regarding our NOB status. Everything one does does effect something else it seems but I don't worry about my status at this time as a Washingtonian.

Link to comment
Share on other sites

My wife gets a ballot sent to her from Washington and votes. We both have Washington drivers licenses. We have a close relatives address and she processes our mail and such and communicates when needed. We live in Washington. We are just gone a lot. Nothing illegal we have health insurance so we don't violate the law. I agree for many folks what I posted is very very difficult but I did plan this out. Next point is when we have to go from Temp visa here to Perm. At that point I will check and see what our options are regarding our NOB status. Everything one does does effect something else it seems but I don't worry about my status at this time as a Washingtonian.

My point was that not everyone has the option of "picking" the spot, so why even suggest it? You need credibility and paperwork to make it work. If I decided to be a "Washingtonian" at any recent point in time.........it would be an exercise in futility.

You happened to have the means to make it look credible. Most of us don't. :ph34r:

Link to comment
Share on other sites

My wife gets a ballot sent to her from Washington and votes. We both have Washington drivers licenses. We have a close relatives address and she processes our mail and such and communicates when needed. We live in Washington. We are just gone a lot. Nothing illegal we have health insurance so we don't violate the law. I agree for many folks what I posted is very very difficult but I did plan this out. Next point is when we have to go from Temp visa here to Perm. At that point I will check and see what our options are regarding our NOB status. Everything one does does effect something else it seems but I don't worry about my status at this time as a Washingtonian.

My point was that not everyone has the option of "picking" the spot, so why even suggest it? You need credibility and paperwork to make it work. If I decided to be a "Washingtonian" at any recent point in time.........it would be an exercise in futility.

You happened to have the means to make it look credible. Most of us don't. :ph34r:

The key is the physical address, using the address of a friend or family member. That means people either pick from states where they have friends or family, or go rent a place. According to federal experts, passing close scrutiny means: File and pay taxes there, get a driver's license, and file your federal IRS tax returns using that address (which also means getting qualifying health insurance if you are not on SSI) .

Link to comment
Share on other sites

Many people who live abroad are in the same jam I do not have a drivers livense from France or an address there or a bank account, I lived for 30 years in the USA and no bank account, driver´s license or address there either, I chose to live in Mexico so I have a drive´s license, bank account and address here, you have to move on in life and live with your choices, It does not matter where you where born and lived, what matter is where you are and will be, do not blame Banamex USA or the US for that at least you have a choice you can go back if yo wishes. If I wanted to go back to States I would have to apply for a visa and it probably would take 5 years for me to get it if I got it.

Link to comment
Share on other sites

For hard core Banamex USA lovers (not): Used to be that if I wanted to transfer some money from Banamex USA to Banamex, MX, I went online and it was a done deal in minutes. Then they stopped that. Then you had to call in person to get the transfer made. Then, you had to call in person and make your request and they would call you back on your home phone in two hours to tell you it was made.

Yesterday I did that, and nobody ever called me back. Called them first thing this morning, was kept on hold with the scratchy music for 20 minutes, rep. came back on and said the money would be in the account in 30 minutes. No explanation at all. No return call would be coming. Checked the account: at least the money was sent.

I'm waiting to close out the account until a bill gets paid and then.............adios, and may the bird of paradise fly up their nose. :016:

Link to comment
Share on other sites

I moved from Oregon to Washington. Got all our voter papers and drivers licenses and than moved to Mexico. When BOA screwed us I had a backup plan of a Mexican Bank all set up. Yes when I have to go from Temp to Perm I have to make some decisions but until than I am a Washingtonian who is gone a lot. We did travel for four years looking at expat communities and talked to expats and they all brought up these types of issues so I planned for them and yes I am anal about such stuff. Got rid of my gringo plated car before the hubbub also. I don't assume anybody owes me anything so I plan for everything to go to crap. I understand the frustration and I do feel sorry for Europeans and long term expats here. My point is to get newbies to plan BEFORE they come here to avoid many of these problems. Yes not everybody is in my situation and I understand that I am a very lucky boy. Would you expect anything else from a senior project manager or Engineer?

Link to comment
Share on other sites

I moved from Oregon to Washington. Got all our voter papers and drivers licenses and than moved to Mexico. When BOA screwed us I had a backup plan of a Mexican Bank all set up. Yes when I have to go from Temp to Perm I have to make some decisions but until than I am a Washingtonian who is gone a lot. We did travel for four years looking at expat communities and talked to expats and they all brought up these types of issues so I planned for them and yes I am anal about such stuff. Got rid of my gringo plated car before the hubbub also. I don't assume anybody owes me anything so I plan for everything to go to crap. I understand the frustration and I do feel sorry for Europeans and long term expats here. My point is to get newbies to plan BEFORE they come here to avoid many of these problems. Yes not everybody is in my situation and I understand that I am a very lucky boy. Would you expect anything else from a senior project manager or Engineer?

"I am a Washingtonian who is gone a lot." ROFL.

Alas, I didn't plan ahead. Dang. (kicking self) .

Link to comment
Share on other sites

Now Gringal I had my choice to live in three states with no income tax and had friends willing to host me. I didn't have to use my families address in Washington it was a choice. I don't see it that hard to establish residency. Register to vote, Drivers license transfer, Health insurance to make Obama happy, and pay my taxes. It took me two weeks and that was to wait for Washington to deal with the patriot act and mail me my new license which came in a week but could have taken two weeks. I am legal as I am north over 31 days a year which makes me NOT a expat. Less than 31 days and I could be considered an Expat by the federal government but probably would not be for a variety of reasons. My Kharma is good Gringal sometimes I call that luck so I am lucky. People who live in US in RV's have the same problem many people here are having and they have found solutions. They have business that make money supplying them legal addresses and forwarding mail as people travel. It might be worth it to see what the full time RV people do. They might have some solutions that would help some people in establishing a legal address.

Link to comment
Share on other sites

I don't need or want to be a legal resident of the U.S. Why should I? There are fewer and fewer advantages in doing so.

Also, how would "legal residence" in the U.S. be of any use to the Newbies who are currently trying to move to Mexico? I'm a little puzzled.

As I mentioned once before, there are businesses that will supply you an address, for a fee. Just check the web. Legal? Perhaps, as long as they aren't caught. Ethical? Now, there's the rub. There are any number of ways to get things done. There always are.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.




×
×
  • Create New...