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

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Episode Transcript

(00:00):
The US just sanctioned severalMexican banks leaving many
foreigners here in Mexicowithout access to their money.
Today we're gonna talk aboutwhat happened and how you can
avoid running into issues likethis in the future.
I.
Welcome to Entrepreneur Expat.
My name is Justin Keltner, andon this channel we talk about
everything to do with movingoverseas, living the life of

(00:20):
your dreams in another country,and being able to diversify your
business and your assets so thatyou are not at the risk of any
political turmoil of onegovernment having a huge effect
on.
Your life.
If that's something you'reinterested in, make sure that
you hit that subscribe button sothat you don't miss a single
video.
We have multiple videos comingout every single week where we

(00:42):
talk about these differenttopics, so make sure to stay
tuned and subscribe and likethis video because it helps us
with our mission of reaching amillion entrepreneur expats, and
aspiring expats.
In addition to that, if you'reserious about moving to Mexico
or perhaps somewhere else inLatin America, go to
entrepreneur expat.com and applyfor a free consultation.

(01:03):
During that consultation, we'regoing to help you directly with
all of your needs in terms ofimmigration.
Legal assistance, real estateand whatnot.
We've got a vast network ofprofessionals in various
industries that we can set youup with here in Mexico, as well
as in other countries aroundLatin America.
[e-mail] slashconsult, you can find out more

(01:23):
about that and request your freeconsultation.
Now, what was it that actuallyhappened?
Well, on June 25th, just a fewshort days ago, US banks
sanctioned three Mexican banks,Intercom, Banco and Vector Casa
Deza here in Mexico on theaccusations that they were
helping cartels launder money.

(01:45):
Now whether these were the onlybanks doing such activities or
whether they really had reasonsto believe that they were or
not, is kind of up to debatebecause the US has been strong
arming other governments andtheir banks and other financial
institutions for decades.
But hey, that's what happened.
Is there a lot that we can doabout it?
Not necessarily.
But here's what the sanctionsdo.

(02:07):
So specifically effective July21st, the sanctions prohibit
these three Mexican banks fromany 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 thattouches the US financial system
is blocked.

(02:27):
And what has been happeningactually, that we've been
hearing about.
In droves the last few days isthat Americans are no longer
able to transfer money fromtheir American accounts to the
accounts at In Intercom, forexample, which is a very popular
bank or any of these other banksnow specifically.
Here's the impact of Americansliving in Mexico.
Now, if you don't haveresidency, this is going to

(02:51):
impact you the most.
The reason why is because Incomis one of the few banks that
still allowed expats that didn'thave Mexican residency or an
RFC, which is like a Mexican taxID number.
To be able to open an account.
So there were thousands andthousands and thousands of
expats that had these intercomaccounts and were using it
regularly to pay rent and tohandle other financial

(03:13):
transactions within Mexico byfunding those accounts with
their US dollars.
Now, we've long been a proponentof services like Wise or Remitly
or World Remit to transfer moneybecause they tend to give you
much better conversion ratesthan a intercom transfer would.
Anyway.
But the point is the people thatwere relying on these banks to

(03:34):
transfer money in US dollarsfrom their US bank accounts are
now essentially screwed becausethey are no longer able to
receive money from thoseaccounts.
And furthermore, the Mexicangovernment has actually taken
over management of these banksas well.
And you know that it's notreally great when the government
has to step in, especially inMexico, to manage those banks,

(03:55):
even if it is temporarily.
So, long story short.
You need residency to be able toeffectively live your life in
Mexico without being.
Under the, the thumb of, of allthese laws and sanctions and
things like that.
Sure.
What the US government does canstill affect you in certain
ways, even if you do haveresidency, but at the very

(04:16):
least, the majority of banks,most of which do require you to
have a Mexican residency and atax ID or RFC number.
Are not affected.
So for example, Amanda and Ihave banks at BBVA and we had no
issues transferring money orusing our accounts or anything
like that.
The peso is, uh, down, wellactually up a little bit
compared to the dollar, meaningthat you can get.

(04:38):
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 offoreign policy.
So what you, what you need to bedoing is making sure that if you
are going to live in Mexico,either the, in the near term
term or the short term that youdo obtain Mexican residency, and
our team of experts and legaladvisors can help you do exactly

(05:02):
that.
So make sure that you go toentrepreneur expat.com/consult.
Book that free consult whilethey're still available with our
team, and we can get you allsquared away so that you both
get your Mexican residency, yourtax id, and also bank accounts
that are a lot less susceptibleto these kinds of things.
And as I said before, use thingslike Wise, like Revolut, like

(05:23):
Remitly.
Uh, we we're not recommendingany one specific platform.
They all have their own.
Pros and cons, but do yourresearch and find alternative
services.
Alternative means oftransferring.
And hey, if you've got anaccount, let's say with Fidelity
or Charles Schwab, a lot ofthose brokerage accounts in the
US will also let you use yourdebit card to withdraw from the
ATMs in the event of anemergency like this in any

(05:44):
country.
And not only do they not chargeyou a uh fee, like a percentage
fee to take out money in aforeign currency or an ATM use
fee, but if the foreign bankcharges you an ATM fee, those.
Brokerages are actually going toreimburse that as well.
So that's a really cool benefitand that'll allow you to, uh,
potentially save yourself a lotof trouble in the event that

(06:04):
your money gets tied up.
But really.
You wanna have residency becausethat's gonna give you a lot more
flexibility.
It's also gonna give you theability to invest in the Mexican
stock market and Mexicaninvestment opportunities.
Uh, and, and also FinTechopportunities here that pay
upwards of 10% a PR oninvestments.
We're not recommending any typeof specific investment.

(06:24):
We're not investment advisors.
These are just, uh, things thatwe 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 opportunitieshere in Mexico.
Now, if we talk about broadercontext for this and, and
Mexican, uh, the Mexicangovernment's reaction, while
they're saying they criticizethe sanctions, they're citing
lack of evidence.
And I, I tend to kind of be withthem on that front.

(06:47):
Uh, a lot of the time the USgovernment will tend to kind of
point their finger at Mexico andsay, Mexico bad.
You know, you guys are helping,uh, these, these organized crime
groups where.
At the end of the day, there's alot more activity with those
groups happening north of theborder in the US than there is
down here.
So that's something to be awareof for sure.
So really at the end of the day,you wanna get your residency.

(07:10):
I.
And we've been saying this forover a year now on this channel
E.
Every prediction that we've madehere pretty much has, has come
true.
The US cracking down onfinancial systems, Mexico
getting harder and harder to,uh, immigrate to the
requirements for visas here.
Even the temporary residenceones going up every single year.
They even got rid of their.

(07:30):
They're program for essentiallyamnesty, where you could do, uh,
a, a special regularizationprogram and get your visa
without going to a consulate.
They've gotten rid of a lot ofthose things, and the
restrictions are getting tighterand tighter.
So if you are serious aboutgetting out of the purview of.
The US and all of its crazyrules and maybe living a life

(07:52):
where you have a lake viewbehind you for less than a 10th
of what you would pay for.
The same thing in a big city inthe us.
Well, you want to go toentrepreneur expat.com/consult,
book that call with our team,and we're gonna help your dreams
come true in terms of movingabroad.
Thanks so much for being thebest part of this community, and

(08:13):
we're gonna see you again verysoon.
Bye for now.