Mexico Connect
Forums  > General > Living, Working, Retiring


PatricioB


Oct 8, 2014, 4:01 PM

Post #1 of 25 (12433 views)

Shortcut

    

OPM Direct Deposit to a Mexican Bank

  | Private Reply
I'm one of those US residents in Mexico whose US bank account was recently canceled as a response to the Foreign Account Tax Compliance Act (FATCA). In my subsequent attempts to arrange for the direct deposit of my retirement benefits to my Mexican bank account I had immediate success with the Social Security Administration. That process is documented in another post.

However, The Office of Personnel Management (OPM) was initially another matter. There was no response to my first two e-mail messages and the response to the third message asked for information that I had included in the message itself. After deciding to pursue the process by telephone I spent over 200 minutes on the phone talking to various OPM employees who gave me conflicting information and finally ended by telling me that OPM can provide direct deposit to only two countries outside the US... Canada and Italy.

In my frustration I finally contacted the Treasury Department directly to ask whether there is any viable alternative to paper checks and was promptly and courteously told that OPM provides direct deposit to bank accounts in more than 40 countries, including Mexico.

If any of you are in a similar situation, you can contact the OPM Retirement Operations Center by e-mail at retire@opm.gov, or by phone at 1-88-USOPM-RET (1-888-767-6738) or TTY: 1-855-887-4957 or by mail at:

OPM Retirement Operations Center
U.S. Office of Personnel Management
Retirement Operations Center
PO Box 45
Boyers PA 16017
Hours of Operation: Monday through Friday, 7:40 a.m. to 5 p.m. ET.

If you want to contact the OPM by phone and speak with a live representative, please call during their regular business hours. Otherwise, you may use the 24-hour automated phone system.

You must be aware of one very important piece of information. There is just one OPM employee who is responsible for all foreign direct deposits and most OPM customer service representatives are trained only to deal with domestic US direct deposits. So, you have to make sure that they transfer you to the right person to handle your foreign direct deposit request, or that they arrange for your account information to be sent to the correct office.

PatricioB
Zapopan, Jalisco



Aaron+

Oct 9, 2014, 10:49 AM

Post #2 of 25 (12341 views)

Shortcut

    

Re: [PatricioB] OPM Direct Deposit to a Mexican Bank

  | Private Reply
PatricioB, thanks for very helpful info for all U.S. federal government retirees! OPM is a massive organization filled, as with just about any organization, with staff of widely varying abilities. PatricioB, if you have the name and phone number/extension of the "right" person handling foreign transfers, perhaps others would find that info of help, at least while that contact remains at OPM. By using Directo a México, Treasury/Federal Reserve to Banco de Mexico to your Mexican account, you get the wholesale rate on the date of transfer, although you lose the ability each month to pick a date that has a better exchange rate.

Note: I had a problem with OPM making domestic transfers, and only on finding the right person that handled my agency did I get real assistance.

A note on bank accounts: if at all possible, my opinion is that U.S. expats should maintain a real U.S. address with your U.S. bank. If closed out, like PatricioB, try opening a new account, with a U.S. address, with a different bank on your next visit NOB, and also, try a small bank (which faces less restrictive reporting requirements than a big bank). PB: Another possibility, you might consider opening a Banorte account in Mexico, and then, about 6 mo. later, open, through an introduction from Banorte, an account with their small Texas subsidiary, Inter National Bank.


PatricioB


Oct 9, 2014, 12:11 PM

Post #3 of 25 (12328 views)

Shortcut

    

Re: [Aaron+] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Hi! Aaron+,

Thanks for your message and suggestions. Please excuse my oversight in not including more-specific contact information for OPM foreign direct transfers. The correct person to contact at OPM for direct deposit to Mexican banks is Keith Myers. His e-mail address is keith.myers@opm.gov.

Your advice about bank accounts will certainly also be helpful for many folks, but my situation is a bit different.

I have dual citizenship and live full time in Mexico, returning to the US only for an occasional vacation. So, although a US bank account was useful for direct deposit of my retirement benefits, and its cancellation was annoying at first, now that I can receive both Social Security and OPM retirement benefits via direct deposit here in Mexico (and at a preferential exchange rate) I'm fine without a US account.

I've had multiple accounts (checking, savings, investment, credit card, debit card) with Banamex for over ten years and I've been completely satisfied. I've traveled throughout the US, Europe and South America and my Banamex MasterCard has been accepted at businesses and ATM machines everywhere.

PatricioB
Zapopan, Jalisco


Gringal

Oct 9, 2014, 3:07 PM

Post #4 of 25 (12300 views)

Shortcut

    

Re: [Aaron+] OPM Direct Deposit to a Mexican Bank

  | Private Reply
I, too, was kicked off the Banamex USA bus by the FATCA issue, which was most inconvenient since it was linked to our Banamex Mexico account and was a no fee deal at the ATM.

You suggested that somehow, people can create a valid U.S. address and open a bank account there "on your next visit", etc. For many of us residents of Mexico, this is not at all doable, and for others, those visits are few and far between.

First, you must find a reliable person who is willing to do your mailing for you.

They must also be willing to....frankly...LIE for you. I didn't raise my kids that way, but whatever sets well with you can be done.

Next, requirements for that U.S. address are being tightened in many places. There are internet sites now set up to pretend you live wherever you wish. I doubt this will last.

For the rest of us, the practical solution is setting up an account in the best Mexican bank we know of, having Social Security fill our the forms showing our real address in Mexico as well as our mail drop address, and having the bank send in the forms for getting a direct deposit there for whatever pension funds we get. We did this months ago, and it is working.


PatricioB


Oct 10, 2014, 10:39 AM

Post #5 of 25 (12222 views)

Shortcut

    

Re: [Gringal] OPM Direct Deposit to a Mexican Bank

  | Private Reply
I set up Social Security direct deposit to my Mexican bank through the Federal Benefits Unit (FBU) at the US Consulate. No appointment is necessary during working hours. I showed up with my CLABE and a picture ID (the only documents they required) and they did all the work for me. After a short time awaiting my turn it took only a few minutes to complete the process and my first direct deposit arrived about ten days later. Those deposits are sent via Banco de Mexico, which gives the best peso exchange rate I've found anywhere.

For those of you interested in taking that route, the Guadalajara FBU covers the states of Baja California Sur, Sinaloa, Nayarit, Jalisco, Colima, Aguascalientes and Zacatecas. The Ciudad Juarez FBU covers the states of Baja California Norte, Sonora, Durango, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas.

FBU offices are open to the public Monday through Friday from 08:00 to 12:00 and they also have a toll-free Mexico number (01-800-772-6394) available from 0800 to 1400 Monday through Friday. They observe the Mission holiday schedule (see: http://mexico.usembassy.gov/eng/holidays.html) and are closed the last working day of each month for admin day.

Contact them with any benefit-related questions or issues. They can be reached by phone at 01-800-772-Mexico (6394) or via email at:

FBU.mexico.city@ssa.gov
FBU.guadalajara@ssa.gov
FBU.ciudad.juarez@ssa.gov

PatricioB
Zapopan, Jalisco


morgaine7


Oct 10, 2014, 11:17 AM

Post #6 of 25 (12214 views)

Shortcut

    

Re: [PatricioB] OPM Direct Deposit to a Mexican Bank

  | Private Reply
I'm in La Paz, Baja California Sur and also used the FBU in Guadalajara to apply for Social Security and set up deposits to my local bank. The FBU folks were very helpful and everything was accomplished by phone, except that I had to email my clabe. I agree about the Banco de Mexico exchange rate, which is excellent.

Kate


kmetzger


May 23, 2015, 2:41 PM

Post #7 of 25 (10637 views)

Shortcut

    

Re: [morgaine7] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Now that I've been through the harrowing process of opening a Mexican bank account and getting my federal retirement benefits transferred to my new account, I have to wonder when Mexican banks will start closing accounts of US citizens.

http://www.dollarvigilante.com/...ed-in-latest-fa.html


DigYourself

May 23, 2015, 4:14 PM

Post #8 of 25 (10616 views)

Shortcut

    

Re: [kmetzger] OPM Direct Deposit to a Mexican Bank

  |
We have an account at Banamex and they are almost begging us to open an account with Citi US. They had a rep come down and meet with us but he is a bozo,

We met with a rep from Schwab this week and that is probably the way we will go forward.

Both our HSBC and Banamex reps very happy with us as clients. To a fault.

And we are not George Soros.


YucaLandia


May 23, 2015, 5:26 PM

Post #9 of 25 (10605 views)

Shortcut

    

Re: [kmetzger] OPM Direct Deposit to a Mexican Bank

  | Private Reply

In Reply To
Now that I've been through the harrowing process of opening a Mexican bank account and getting my federal retirement benefits transferred to my new account, I have to wonder when Mexican banks will start closing accounts of US citizens.

http://www.dollarvigilante.com/...ed-in-latest-fa.html


Fortunately, you can rest easy.

KMetzger's article is from June 2014, back when banks in the USA were forced to start verifying if their customers were still US residents, due to new July 1, 2014 IRS provisions.

As a part of the US govt's "Know Your Client" rules to try to stop US tax cheaters and US money launderers, and US drug traffic*ers, in June of 2014: Any American citizen who either had a Mexican address, or who had made significant transfers (by amount or frequency) were forced to either fill out forms that certified that the American citizens had US residencies, or their US banks cancelled the American citizens (living in Mexico) accounts.

Many Americans living in Mexico were left scrambling that June 2014, to try to find US banks and US financial institutions who would continue doing business with them.

For better or worse, that all happened back in June and early July of 2014 in the form of actions taken by US banks who just did not want to deal with IRS money-laundering/tax-cheat regulations for their American clients living abroad.

If you currently have a good working system as an American citizen with your American bank (or financial/investment institution), then nothing should change in the near future ... as there are no new FATCA nor new FBAR provisions on the horizon.

Rest easy,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on May 23, 2015, 5:30 PM)


kmetzger


May 23, 2015, 6:07 PM

Post #10 of 25 (10592 views)

Shortcut

    

Re: [YucaLandia] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Sorry Steve, you lost me there. I no longer have a good working system with my American bank. Banamex USA closed my only US account.


(This post was edited by kmetzger on May 23, 2015, 6:08 PM)


YucaLandia


May 24, 2015, 10:19 AM

Post #11 of 25 (10512 views)

Shortcut

    

Re: [kmetzger] OPM Direct Deposit to a Mexican Bank

  | Private Reply
I believe you have nothing to worry about.

There are no no changes currently planned or scheduled for the rules for banks and Americans living abroad.

The article you quoted/linked above ... is a year out-of-date ... and it applied only to US banks.

Your current accounts in Mexican banks should be fine - unaffected by the link/article you posted above.
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com


kmetzger


May 24, 2015, 11:20 AM

Post #12 of 25 (10508 views)

Shortcut

    

Re: [YucaLandia] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Steve - I hope you're right, but banks all over the world are closing the accounts of Americans because of the onerous reporting requirements. They just don't want to deal with all the possible negative consequences. So far, in Mexico we're OK, but for how long? Why wouldn't Mexican banks face the same problems other banks in the world are facing?
Here's a more up-to-date analysis: https://www.democratsabroad.org/sites/default/files/FATCA_4_reseach%20report_0.pdf


DigYourself

May 24, 2015, 12:59 PM

Post #13 of 25 (10486 views)

Shortcut

    

Re: [kmetzger] OPM Direct Deposit to a Mexican Bank

  |
The info at the link you posted seemed a bit over the top (to me).

Currently we have banking/brokerage accounts in Mexico and in the US as well. We are in the process of transitioning whatever accounts we will keep going forward to the concept that we are now permanent Mexican residents. My sixth sense warns me that somewhere down the road this will be important.

On the Mexican side we have excellent relationships. We have filed w-9's with everybody. The worst thing that has happened to us is one bank seems to not want to let us invest in all of their products - but I haven't pushed the issue.

On the US side - the investment firm we have dealt with for over 30 years is really burning their bridges. They haven't yet told us to get lost but we have already begun the process of moving our monies elsewhere. There are at least two big name firms that are very eager for the business - although there is a very extensive vetting process.

No firm has as of yet closed any of our accounts.


chinagringo


May 24, 2015, 5:25 PM

Post #14 of 25 (10432 views)

Shortcut

    

Re: [YucaLandia] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Pleeeaze - the know it all rants have become so tiresome! Here is a clue, you will never replace Rolly as the "go to person" for unbiased and reliable information.
Regards,
Neil
Albuquerque, NM



johanson


May 24, 2015, 6:18 PM

Post #15 of 25 (10420 views)

Shortcut

    

Re: [chinagringo] OPM Direct Deposit to a Mexican Bank

  | Private Reply
I sure do miss Rolly. He was a font of information.


chinagringo


May 24, 2015, 6:34 PM

Post #16 of 25 (10419 views)

Shortcut

    

Re: [johanson] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Pete:
I think any of us with a lengthy experience in Mexico fully understands that there are no absolutes and certainly no consistancy from one place to the next. But what a great learning experience and a lesson in flexibilty!
Regards,
Neil
Albuquerque, NM



YucaLandia


May 25, 2015, 6:13 AM

Post #17 of 25 (10359 views)

Shortcut

    

Re: [chinagringo] OPM Direct Deposit to a Mexican Bank

  | Private Reply
???
-
Read-on MacDuff
E-visit at http://yucalandia.com


YucaLandia


May 25, 2015, 7:21 AM

Post #18 of 25 (10345 views)

Shortcut

    

Re: [kmetzger] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Ken,
There are some facts that help put FATCA and Banking reactions into context, as related to your concerns about the "Democrats Abroad" article:

"Democrats Abroad" are politicians with agendas.
"Democrats Abroad" conclusions seemed very one-sided,
- did not use data or facts to support their projected claims that foreign banks will be kicking out their US citizen clients in 2015-2016,
- were not based on FATCA's exemption of $600,000 per couple for overseas accounts, and
- did not use accepted survey methods, as this was an in-house political poll.


The good news is that:
- The US government has NO new FATCA nor FBAR policies nor changes in FATCA nor FBAR rules planned for the reported next 3 years (counting 2015) ... Will the new 2017 Congress & President change things? No one knows.

- Because the US govt. has no new FATCA nor FBAR policy changes planned, foreign and US banks are fully expected to continue with their current policies that have been in place since August 2014.

Clearly, I cannot know the future, but I do know that the "Democrats Abroad" "survey" had glaring gaps
- was intentionally biased (by soliciting opinions from angry people who personally did not manage their lives well - as they did not choose random people, but solicited people to go to their website who were angry enough to take the time to fill out the open website's questionnaire),
- is out of date by surveying back to 2011 (while excluding recent data),

- was designed to try to get Americans to join the Democratic Party through their "Democrats Abroad" program,
- seemed to be designed to enflame and scare Americans living abroad ... into supporting "Democrats Abroad's" political efforts, to join to work to enroll Americans abroad as voting Democrats,
- was intentionally designed to leave out key recent important facts that were inconvenient to their political agendas & get-out-the-vote efforts,
- did not describe how things actually work in 2015, and
- did not provide any data or substantiated reasons on why things might change in the next 2 years.
(before the 2016 elections).


Instead, I prefer the analyses of Bloomberg and other international finance experts, who have said that they see no new changes on the horizons for foreign banks re FATCA ...

(except for the ongoing IRS/Treasury and British investigations and prosecutions of UBS's and HSBC's European and Asian bank corporations fiscal irregularities & past violations - with no Mexican bank involvement.) *grin*

These experts note that the banking policy changes, due to FATCA, were completed last summer in 2014, and that foreign banks have made no announcements of plans for future FATCA-related policy changes towards American citizens living abroad.

Hope this helps,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on May 25, 2015, 7:28 AM)


addtocart

May 25, 2015, 7:23 AM

Post #19 of 25 (10343 views)

Shortcut

    

Re: [johanson] OPM Direct Deposit to a Mexican Bank

  |

In Reply To
I sure do miss Rolly. He was a font of information.

Amen. Maybe only a link to a Rollybrook page to answer the question. But never a long, tiresome screed serving only to show who is the smartest person in the room.


addtocart

May 25, 2015, 7:26 AM

Post #20 of 25 (10340 views)

Shortcut

    

Re: [YucaLandia] OPM Direct Deposit to a Mexican Bank

  |

In Reply To
Ken,

The good news is that:
- The US government has NO new FATCA nor FBAR policies nor changes in FATCA nor FBAR rules planned for the reported next 3 years (counting 2015) ... Will the new 2017 Congress & President change things? No one knows.


Hope this helps,
steve

Again, how do you know this?


DigYourself

May 25, 2015, 8:14 AM

Post #21 of 25 (10313 views)

Shortcut

    

Re: [cuerna1] OPM Direct Deposit to a Mexican Bank

  |
Has anyone seen any sort of description of how FATCA compliance has been implemented in Mexico ? It is my understanding that Mexican financial institutions are required to provide SAT with US taxpayer info and that SAT will provide the US Treasury that info.


jeffie1


May 25, 2015, 9:04 AM

Post #22 of 25 (10285 views)

Shortcut

    

Re: [addtocart] OPM Direct Deposit to a Mexican Bank

  | Private Reply

In Reply To

In Reply To
I sure do miss Rolly. He was a font of information.

Amen. Maybe only a link to a Rollybrook page to answer the question. But never a long, tiresome screed serving only to show who is the smartest person in the room.


Looks like another informative thread headed for lockdown by the mods. China & addtocart....what exactly are your contributions other then toxic, negative remarks?


YucaLandia


May 25, 2015, 9:42 AM

Post #23 of 25 (10273 views)

Shortcut

    

Re: [cuerna1] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Back in November, 2014, HSBC announced:

"FATCA overview ...
In Mexico, the principles of FATCA have been brought into the local laws. Due to the inter-governmental agreement (IGA) signed between Mexico and the United States, this will therefore become a local regulation.


Impact to HSBC and our customers

Mexico’s financial sector will adopt this norm in accordance with the local regulator.
We may be contacting you to request further information and documentation in order to verify your tax status.

Additional information

W-9 form: This is the withholding certificate referred to as a ‘W-9’ on the IRS website. This form is completed to confirm US tax status.
W-8 forms: This is the withholding certificate referred to as a ‘W-8BEN’ on the IRS website. This form is completed to confirm non-US tax status."

This fits with our experiences with Scotiabank, HSBC, and BBVA.


Context: HSBC Mexico and other Mexican banks are bound by the terms of the most recent US-Mexico Intergovernmental Agreement of April 17, 2014.
http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Mexico-4-17-2014.pdf

As described above, there has been no news from the Mexican or US government on any planned changes since the July 1, 2014 FATCA requirements went into effect.


steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on May 25, 2015, 9:51 AM)


rvgringo

May 25, 2015, 10:10 AM

Post #24 of 25 (10265 views)

Shortcut

    

Re: [cuerna1] OPM Direct Deposit to a Mexican Bank

  | Private Reply
Foreign banks cannot be “required“ by the USA to do anything they choose not to do. They can simply dump clients from the USA and avoid the problem altogether. That is why I have always suggested that expats keep their bank accounts in the USA, even if ten of them have to rent a shared room with a mail slot in the USA, or use a mailing service. Online banking served us well for our 13 years in Mexico.
Why make it more complicated than it aready is?


RickS


May 25, 2015, 10:27 AM

Post #25 of 25 (10262 views)

Shortcut

    

Re: [jeffie1] OPM Direct Deposit to a Mexican Bank

  | Private Reply
"Looks like another informative thread headed for lockdown by the mods.

You are right on track, jeffie1.

This is a forum like any other forum... information given is to be taken with a grain of salt and cannot be taken as fact.

To all. Mexconnect's policy is to share information and in doing so, not make it personal. I've already deleted two Posts in this thread but the unnecessary back-sniping continues.... to no purpose for the OP. This one has run it course.

Mod


(This post was edited by RickS on May 25, 2015, 10:31 AM)
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4