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Old 08-05-2015   #61 (permalink)
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There is a place in Toronto (where I am from) where I can buy pesos with Canadian money. I don't exchange to US dollars. Makes sense to bring pesos. I never have luck with the ATM's in Playa plus it is a pain to go to them every other day.
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Old 08-28-2015   #62 (permalink)
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Exchange rate problem ?

Not sure if this is the right thread, but thought I'd put it out there. We were down in Playa last week, and as we usually do bring down cash to deposit in our Bancomer account to cover HOA, condo management, CFE, etc. Attempted to deposit $2000 US, and the teller accepted only $700.I don't speak Spanish, but there was a very nice fellow in line behind me that explained it was the bank policy and to come back the next day and I could deposit the rest. Did this and was only able to deposit another $300. A couple of days later my wife went in to attempt to deposit the rest. She went right to the woman who had set up our account, was told to go to the preferred line and make the deposit. Got to the teller and was told no. So between the two of us we spent almost three hours to deposit $1000. When we mentioned it to our condo manager, he laughed and said that was the banks way of preventing people from making deposits due to the high exchange rate (it was over 17 pesos) Does this seem true? I know there are other avenues of making deposits, but we generally go in person. On another note, we did make some purchases (couch, tools,etc) with the credit card and saw significant savings.
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Old 08-28-2015   #63 (permalink)
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Yet another crazy thing occurring in Mexico with seemingly no logic behind it Firstly, no large bank should engage in ridiculous limiting actions such as this, even if there was a logical reason behind them. And certainly $2k US is not even a blip on the radar of such a large bank. But this action simply defies logic. What possibly reason could they have for limiting USD deposits into your account? This would be baffling during stagnant Fx periods but obviously, USD has be appreciating significantly vs the Peso for several months now. So, why on earth would a bank want to refuse someone giving them USD Cash?

Can I assume that they convert your USD to Pesos in your account? or is it a USD-based account? Either way, it shouldn't make a difference. If the balance is in Pesos, you could actually lose money on Fx, and its possibly only beneficial for the bank because they have your USD, which are appreciating. And, they probably made a decent amount of profit on the exchange rate they gave you when converting your USD to Pesos. If the balance remains in USD, I suppose you could make a case that if the USD continues to rise vs the Peso, they stand to lose a bit because your initial deposit of a flat USD amount is now worth more pesos that they would have to pay out. Still, financial institutions of this size should be hedging to cover considerable Fx fluxes, so limiting their own customers deposits seems to be a ridiculous practice.
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Old 08-28-2015   #64 (permalink)
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Someone correct me if I am wrong, but I think now that a customer can only deposit $1500usd/month in their account without being taxed by the gov't.
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Old 08-28-2015   #65 (permalink)
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Quote:
Originally Posted by harpduke View Post
Not sure if this is the right thread, but thought I'd put it out there. We were down in Playa last week, and as we usually do bring down cash to deposit in our Bancomer account to cover HOA, condo management, CFE, etc. Attempted to deposit $2000 US, and the teller accepted only $700.I don't speak Spanish, but there was a very nice fellow in line behind me that explained it was the bank policy and to come back the next day and I could deposit the rest. Did this and was only able to deposit another $300. A couple of days later my wife went in to attempt to deposit the rest. She went right to the woman who had set up our account, was told to go to the preferred line and make the deposit. Got to the teller and was told no. So between the two of us we spent almost three hours to deposit $1000. When we mentioned it to our condo manager, he laughed and said that was the banks way of preventing people from making deposits due to the high exchange rate (it was over 17 pesos) Does this seem true? I know there are other avenues of making deposits, but we generally go in person. On another note, we did make some purchases (couch, tools,etc) with the credit card and saw significant savings.
It sounds right to me - this is Mexico. I wonder, though, why you don't just leave it in your US bank, take out what you need in pesos from the ATM, and pay your bills in cash? The fast answer is because you don't want to stand in interminable lines to pay for everything - so I'm guessing you pay by automatic e-payments through Bancomer. There was an interesting thread covering that very topic about a year ago - try wading through this one for the posts about automatic debit payments for bills in Mexico:

http://www.playa.info/playa-del-carm...ican-bank.html
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Old 08-28-2015   #66 (permalink)
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Exchange rate

I'm not aware of any taxes on deposits, AL, in fact I would probably not pay attention to it as we only make deposits when we're in Playa, regardless of the exchange rate to pay our bills. I'm assuming that's a Mexican govt. tax? Because it wouldn't surprise me that it was a US govt tax !
And yes Jim, I would think they would love to take a strong US dollar. As you say, (Bancomer especially) takes a hefty chunk of that exchange in their transaction. Doesn't make sense to me. This is Mexico, these are their ways of doing banking, and you go with the flow!
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Old 08-29-2015   #67 (permalink)
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Quote:
Originally Posted by harpduke View Post
I'm not aware of any taxes on deposits, AL, in fact I would probably not pay attention to it as we only make deposits when we're in Playa, regardless of the exchange rate to pay our bills. I'm assuming that's a Mexican govt. tax? Because it wouldn't surprise me that it was a US govt tax !
And yes Jim, I would think they would love to take a strong US dollar. As you say, (Bancomer especially) takes a hefty chunk of that exchange in their transaction. Doesn't make sense to me. This is Mexico, these are their ways of doing banking, and you go with the flow!
There is a 2% tax on USD cash deposits. no tax if funds are wired from your US bank account to Bancomer other than the wire fees and wire transfer amounts are unlimited.
The $1500 limit is correct and has been in place since 2011 in an effort to diffuse money laundering. For that reason, Walmart and the like accept maximum $250 USD per transaction with change in pesos.
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Old 08-29-2015   #68 (permalink)
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Exchange rate

That helps explain things Rainmaker. Thank you and others for the responses. It's a continuing education process there in Playa, especially when it comes to banking. Maybe someday I'll "get it" !
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Old 08-29-2015   #69 (permalink)
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Originally Posted by rainmaker View Post
There is a 2% tax on USD cash deposits. no tax if funds are wired from your US bank account to Bancomer other than the wire fees and wire transfer amounts are unlimited.
The $1500 limit is correct and has been in place since 2011 in an effort to diffuse money laundering. For that reason, Walmart and the like accept maximum $250 USD per transaction with change in pesos.
Mexico's Anti-Money Laundering Law. And with larger deposits you MUST be able to show where the money legally came from (i.e., for instance, the sale of a property). But, from what I understand, there are ways around this also.
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Old 08-29-2015   #70 (permalink)
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The anti-money laundering law was repealed by Nieto. It's off the books now.
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Old 08-29-2015   #71 (permalink)
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The anti-money laundering law was repealed by Nieto. It's off the books now.
I could not find anything that shows that this law was repealed. Pena Nieto took office December 1, 2012. The Mexican Anti-Money Laundering Law took effect October 17, 2013. Not unless shown otherwise, I believe that the law is still in effect.

"New Mexican Anti-Money Laundering Regulations Take Effect
17 October 2013
Reed Smith Client Alert
Author(s): Francisco Rivero, Kenneth E. Broughton
On October 17, 2012, Mexico passed the Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (the "Anti-Money Laundering Law" or "AMLL"). The AMLL represents a major sea change in the way in which cash transactions (even intra-company) are handled in Mexico.
The AMLL and its accompanying regulations impose stringent duties on a broad array of Mexican companies or foreign companies transacting business in Mexico. Companies that effectuate certain cash transactions, engage in real estate ventures, or serve as financial institutions (among others) in Mexico may now be required to meet new identity verification, information gathering, and reporting requirements.
The AMLL’s stated objective is to protect Mexico’s economy and financial system from transactions that potentially involve illegal funds. The AMLL tasks the Secretaría de Hacienda y Crédito Público (the Ministry of Finance) and Mexico’s Attorney General with promulgating and enforcing regulations to assist in the identification, investigation, and prosecution of transactions involving illegal funds. Possible sanctions for failure to comply include:
Fines up to 100 percent of a transaction’s underlying value;
Revocation of permits; and
Potential prison terms of up to 10 years.
Under the AMLL, activities designated by the regulation as "vulnerable" may trigger:
Identity verification requirements;
Information gathering requirements;
Reporting requirements; and
In some cases, an outright ban.
The exact breadth of subsequent enforcement measures by the Ministry of Finance and Attorney General remains to be seen. What is certain is that a wide range of companies must undertake affirmative and immediate steps to ensure compliance with Mexico’s new anti-money laundering regulatory framework. As part of a comprehensive legal strategy, affected companies must consider:
Establishing procedures to prevent and detect transactions potentially impacted;
Ensuring that reporting and documentation requirements are met;
Retaining and safeguarding information related to certain activities;
Facilitating state inspections; and
Submitting regular reports on transactions falling into the AMLL’s "vulnerable" category."
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Old 08-30-2015   #72 (permalink)
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Originally Posted by absoluteAL View Post
Someone correct me if I am wrong, but I think now that a customer can only deposit $1500usd/month in their account without being taxed by the gov't.

This about covers it

Exchanging US Dollars for Pesos in Mexico
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Old 08-31-2015   #73 (permalink)
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exchange rate

Yes, that does cover it. Nice to know there's a rhyme and a reason for things. Had I been able to speak the language, I would have understood their reasoning for not accepting my deposit. As it was, it had nothing to do with the exchange rate. Thanks for all replies.
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Old 09-03-2015   #74 (permalink)
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Exchange rate about 16.80 here is that what one might get at atm there today?
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Old 09-03-2015   #75 (permalink)
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Originally Posted by syl View Post
Exchange rate about 16.80 here is that what one might get at atm there today?
"here" meaning where Street cambios? Banks? Sorianna?

Are you sure (if referring to street cambios) that you are not confusing the "buy" rate with the "sell" rate
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