# New banking regulations for cash: questions



## cheldear (Apr 14, 2010)

Hi all.

About ten or so days ago, new banking regulations regarding cash came into effect.

I was not aware of them because I was in the states taking care of the rest of my things in the states to come back here for good.

Because I am in the process of starting my FM3, I do not have a bank account here; this means I live in cash.

The new regulations were set up to target drug dealers with respect to cash transactions at banks; of course, it has pretty much paralyzed me in terms of exchanging my dollars for pesos through my aunt's and friend's bank accounts.

I do not want to go to a casa de cambio because I will get a crappy rate, and I do not want to do a cash transaction through one of their accounts higher than 15k pesos and pay the government fee.

Well, actually, I do not know what the amount of the government fee is.

BTW, if you don't know why doing a dollar/peso exchange is a problem, it's because now they are "depositing the dollars into the account and then withdrawing them in pesos", effectively calling it a cash transaction. Doesn't matter what currency you are exchanging. It falls within the 15k pesos per month cash transaction allowance.

So, does anyone have any ideas about what I can do? LEGAL options? I have a good amount of dollars, and because I cannot open an account with a bank until I have a visa, I am stuck with a bunch of dollars, and I have to do business in cash until I have my visa. 

Obviously, I can't be the ONLY person in this situation. People who are moving here, retirees, etc have to be in this situation too. 

Thanks!

M--


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## sparks (Jun 17, 2007)

Where are those 'dollars' ... I sure hope in a US bank and not in your pocket. There is no limit on ATM withdrawals and there is no limit using a service like Intercam. The only problem I see is having dollars in Mexico .... for security reasons as well


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## RVGRINGO (May 16, 2007)

Expats usually maintain a bank account in the USA, for example, and do their banking online. A debit card serves for routine cash needs and one may maintain an investment account for emergency use and for check cashing privileges, etc. Until you can open such an account, it appears that you will have to use a 'casa de cambio'. Few people carry or possess large amounts of cash. Actually, most of them find no need for a Mexican bank account, as dealing with their home bank is usually much simpler and less expensive.


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## cheldear (Apr 14, 2010)

Yeah. I know. I have a "special circumstance" as to why I can't keep this particular cash in my account in the states right now.

I do have an account in the states that has a fair amount of cash in it. It remains stable with a particular balance for the next few months. After that, I can move it around if need be, but it's an IRS thing. Provided the IRS behaves like a good IRS.

Gotta love the IRS.



Oh edit: PS: I am not doing anything illegal with the IRS. Just wanted to make that clear. I just have to keep that amount in my account FOR the IRS in case they want it. Just to be clear.


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## conklinwh (Dec 19, 2009)

Hopefully the new news is the limit and not process changes. There had been implementation of reporting/taxing of cash transactions at banks over I believe 50,000p which is why most large transactions we have done were wire transfers. So far there hasn't been any issue transferring money into Mexico(Actinver) from US bank or from our Actinver account to other Mexican banks.
As I said, hopefully this won't change as makes things pretty easy.


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## cheldear (Apr 14, 2010)

I hope not either. I hope that they recognize that people are moving, retiring, etc, and that this is POST-TAX income coming from the US, and that it will be spent in their country. Doesn't do them any good to tax it. People will just stop moving their money here.

All of the businesses are going to hurt from this too; restaurants, anyone who deals in cash... Which is pretty much most businesses. 

All they are doing is creating an underground cash economy, and cash is basically going to become worthless.

It will probably change in three months anyway, but not soon enough to recover from the damage that it does to the business sector, because any cash deposit over 15k in a month gets taxed by the government. Think of all those restaurants, landlords, anyone who does business in cash; I mean, everyone. Companies you buy your Epura from, hell everyone.

And Ringo, remember. Not all of us are retired. This doesn't pertain to my issue, but I am here to work. So eventually, I will have a bank account because I will have checks to deposit from my employer. Just FYI since not everyone has moved here to retire.


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## moisheh (Jun 14, 2009)

cheldear: I think you have misunderstood the reason for the tax on bank deposits. It is because of the underground economy that already exists. Those small restaurants do not pay any income tax nor do they submit the IVA. There must be a process where large businesses that deal in cash do not pay that tax. I doubt Costco pays the tax. Perhaps they get it back when they submit the IVA that has been collected. I have heard figures from my Mexican friends that less than 30 % of small businesses pay any tax!


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## cheldear (Apr 14, 2010)

Ah, I see Yoda. We were thinking it was yet another way to try to keep drug lords from laundering money, and yet doing it very poorly, and just making things terribly difficult on everyone else, effectively causing the very problem that they are trying to stop.

Now I understand. Muchas gracias, Yoda.

We do have a question though; My aunt and I. The tax that is levied on the pesos that are deposited over 15k; are they taxed again at tax time? Meaning, the government gets a cut of the money above 15k now, and then they tax you again when you pay your income taxes? Just curious. We can't make heads or tails of it, and I need to put post-tax US dollars into the bank.


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## Guest (Sep 4, 2010)

The bank cash deposit rules came into effect some time ago. The first MX$25,000 deposited in cash per month is fine. All pesos deposited IN CASH above that amount pay a tax of 2%. So, if you deposit MX$40,000 in cash into your account within one month, the bank will charge you MX$300 on the last $15,000 deposited in that month. The tax does not apply to wire transfers into the account, only cash.

The latest set of rules that has come into effect does not allow anyone to exchange more than US$4,000 in cash per month. This affects banks and casas de cambio. The new rules are targeting money laundering. Again, this is only for cash transactions. My bank will no longer accept US$ for deposits, and you must first exchange them for pesos, and then make the deposit. Another moneymaker.

On my last trip through the MX City airport, I noticed that my favorite casa de cambio is no longer there. I think they got nailed for laundering. I used them because they always had the best rate in the airport during daylight hours, and never asked for ID. (and no, I wasn't laundering anything, I just enjoy some level of privacy).


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## cheldear (Apr 14, 2010)

Okay.

Now I am confused.

My friend Liliana and my Aunt are only allowed, by the new regulations, to "deposit" MX $15,000 into their accounts before they were hit with taxes.

They took my dollars in. This is what happened.

When they exchanged them, the bank told them that the new procedure is as follows:

1. The dollars are "deposited" into their account as a cash transaction.
2. Then, they withdraw the funds in pesos.

Effectively, this is a cash transaction, and counts toward the MX $15,000 allowance for the month.

I have not been told of the MX $25,000; only the MX $15,000 limitation for cash deposits. 

I have also not heard of anything regarding the US $4,000. Based upon the requirements set forth from Bancomer, Scotia Bank and Santander, the three banks that my aunt and friend use, the regulations were indicated the way to both of them...

MX $15,000 cash deposit max per month before government taxes are applied.
Currency exchange of any currency becomes a deposit and withdrawal, and counts toward a cash transaction.

It is my understanding that these new limitations came about ten to fifteen days ago. Is it possible that they further restricted the amounts from MX $25,000 to MX $15,000 and did away with the USD $4,000 exchange 10 to 15 days ago?


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## cheldear (Apr 14, 2010)

Okay, this may be a bank thing. I am researching, and yes, you are right. It changed in June.

So we are thinking that the bank has the right to choose the amount it is willing to accept, and the amount of dollars it is willing to exchange, etc.

We are going to go to HSBC tomorrow and find out if it is within the guidelines of the June changes. This is another bank with which we have an account that we have not checked yet.

Thanks for all the info!


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## Guest (Sep 4, 2010)

Here is a translation of a news report regarding the amount of US$ which can be deposited per month. Looks like a max of US$4000 for those with accounts, and a max of $1500 per month for non-account holders and tourists. The limit is US$7000 in areas near the US border. 

Google Translate

Here is a translation of the tax on peso deposits, which says that when deposits exceed $25,000 per month, a 2% tax is applied on the money above $25,000 deposited that month (?):
http://translate.google.com/transla...rch?q=impuestos+reglas+depositos+MExico&hl=en


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