MexConnect.com Forums: General: Living, Working, Retiring: Bank Accounts, Lloyds, and International Credit Cards: Page 2

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Oscar2

Sep 29, 2006, 10:18 AM

Post #26 of 30 (481 views)

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Re: [Bubba] Bank Accounts, Lloyds, and International Credit Cards

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Statutes in the United States require that cash transactions in excess if $10,000USD be reported and this has to do money laundering.

Bubba,

Since 9/11 things have changed in the US. 10k used to be the logging rate in the United States. It is now a definitive 3k period. There is no misleading nor sham about this, it is fact. Checks deposited into your account have not bearing on this rule.

If you have a brisk business account, a check cashed for green may go un-logged but if the clerk doesn’t know you, and it’s 3k or better logging is required.

I realize you’ve been out of the United States for 5 years or more and I don’t like getting into this right/wrong scenario, but you’re welcome to currently explore other avenues for confirmation.

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If Oscar is getting the same rate at Banamex that he is getting at Lloyd then he is getting shafted.

Since you’re a Lloyd account holder and we’re exchanging helpful information, I checked the current rate at http://www.oanda.com/convert/classic and yes, based on their current exchange rate of 11.02992 per US dollar, as opposed to Lloyd 10.80 per. 1 usd, difference being .22992 centavos per 1 usd.

If you multiply 50k usd by .22992 centavos equals 11,496.00 peso profit ($1042.25 usd) gained by Mexican banks based on current exchange rates. My math maybe incorrect but if correct, yes, a shafting can be taking place.

Your findings are sound, the only issue here is, who and where is this current peek exchange rate of 11.02992 per usd going to be found without some institution making some kind of profit for shafting distribution rights? Wink

(This post was edited by Oscar2 on Sep 29, 2006, 11:42 AM)

Bubba

Sep 29, 2006, 12:05 PM

Post #27 of 30 (463 views)

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Re: [Oscar2] Bank Accounts, Lloyds, and International Credit Cards

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Thanks, Oscar. You are right that I have been out of the states for quite a while. Thanks for the update on transaction reporting limits. The paranoia in the states makes me ever grateful I am down here as, when I pay my architect in San Cristobal larger sums by checks drawn on Lloyd in Ajijic, I have no bureacratic nonsense to go through using the Mexican banking system.

The reason that Schwab gives me a much better rate than Lloyd is because I piggyback my currency exchange on their normal exchange business and they receive a much better rate than I could receive as an individual. I have no illusions that they are not dinging me as well but I still do way better net/net. On the day I wired funds down here I got 10.87 Pesos to the Dollar vs. Lloyd´s proferred 10.72 Pesos. On large sums of money that is significant.

Keep in mind that my money still ended up in my Lloyd account in Ajijic in the same amount of time. The only difference is that I converted the dollars to pesos before the transfer and thus made $900USD on the favorable exchange rate. Lloyd gives a notoriously disadvantageous exchange rate and they have for years. For years they got away with it because we didn´t know any better. When I told them two weeks ago I was sending pesos to their correspondent bank account at Bancomer rather than dollars to their U.S. account at BofA in San Ysidro, they tried to discourage me by telling me I would pay a higher transfer fee to them. It would be the equivalent of $20USD vs, $12USD. I think I came out ahead.

I wish to say something else nice about my account officers at Charles Schwab´s Latin American Center in Orlando. It is they, not I, who suggested I convert dollars to pesos before wiring funds to Mexico and thereby receive a much better exchange rate. Schwab is the best. I highly recommend them to anyone contemplating a move down here.

(This post was edited by Bubba on Sep 29, 2006, 12:07 PM)

Oscar2

Sep 29, 2006, 1:17 PM

Post #28 of 30 (444 views)

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Re: [Bubba] Bank Accounts, Lloyds, and International Credit Cards

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Thanks for the heads up on Schwab and yes the transfer fee vs. conversion rate is an advantage. I will make enquires. Someone once told me that you get a much better exchange rate than Lloyd while in Mexico if you go to a casa de cambió first and than make your Lloyd deposits.

How true this is at this time, I’m in no position to say but it would be interesting to know.

Think about this one. Mandates have been handed down from the top where anyone at anytime can now have their phones tapped without a court order. Try serving that one on your plate. I don’t think any amount of salsa will make it taste any better.

jerezano

Sep 29, 2006, 8:18 PM

Post #29 of 30 (407 views)

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Re: [sfmacaws] Bank Accounts, Lloyds, and International Credit Cards

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Hello Jonna,

From your questions, you need help from a Mexican lawyer or a Mexican accountant. Since a notario is both a lawyer and an expert in real estate dealings, and most that I know are pretty sharp accountants as well, perhaps a notario would be sufficient.

But let me try off-the-top-of-my head responses. They may steer you in the right direction at least. Be sure to check these out with whoever you decide to consult.

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Who knows if I should ask this here but what the heck. If you were going to sell property in Mexico and didn't want to deposit that money in a US bank and then have to explain it. What are the options?
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1. A Mexican bank.
2. Lloyds or other investment firm.
3. Uder your mattress.
4. You might try an off-shore bank but so do the drug lords; Also some of those banks are off-the-wall as well.

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Do Mexican banks report to the US IRS?
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No, not to the IRS, but they obviously cooperate with other agencies in money-laundering scams

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Would you then have to file a Mexican tax return? Which would mean getting a tax number I guess, although I thought those were only for businesses. Capitol gains would be handled by the notario and hopefully would be nill due to an FM3.
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As to the tax filoing questions I am as much at sea as you are, but you better talk to a notario real quick if you think the FM3 will entitle you to a zero capital gains tax. "Taint so. Many jurisdictions reqquire that you have an FM2. Even with the FM2 that will not erase all your gains, only a greater portion. If you don't want to explore this with a notario, then make a search of these forums. There have been several postings on this capital gains problem.

And your notario may possibly be able to answer questions on rollover into a new house. Perhaps there might be a tax advantage if your purchase should be within a limited time period, but I have never heard of this possibility. Has anybody else?

I wonder if even Bubba can answer your questions. After all, I don't think he has sold his house yet there in the Lake Chapala area.

Buena suerte. jerezano.

sfmacaws

Sep 29, 2006, 10:04 PM

Post #30 of 30 (395 views)

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Re: [jerezano] Bank Accounts, Lloyds, and International Credit Cards

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Thanks Jerezano, I haven't sold anything yet and I'm still in the US until November so can't discuss with a notario either. I'm just exploring options and ruminating on this in case I do decide to sell.

I will check on the FM3 vs FM2 in my area but I have heard that so far they want an FM3, that could change anytime and may have already. Obviously that would put my selling plans out a few years, which would be all right too. I have never had a reason to get an FM3 as I am almost always back in the US within 6 months and if not I am only 4 hours from the border with Belize. I plan to get one this year so that if someone decides to offer me big bucks for my condo I am ready. While wishfully thinking along those lines I started worrying about how to take payment and where. Kind of like lottery dreaming ya know?

Jonna - Mérida, Yucatán

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