No more check cashing in San Miguel?

[colleen]

This sounds pretty bizarre, but a friend just called from SMA and said that on Thursday he was told that Congress in the US actually did something and passed some kind of law outlawing the cashing of US checks at least in MX. He said that on Thursday they were told that they had 24 hours and that service would no longer be available and that it looked like a run on the bank on Friday with he and other gringos going for their last $ with US checks. Living in Gto, I find it amazing that they were ever able to cash a US check at a bank where they didn't have an account.

Has anyone heard of this? I seriously doubt that congress actually made it illegal. I did hear tho, from other sources, that it was going to be more complicated to wire transfer $ down here. That's what we do and I haven't checked with my little bank in WI.

Maybe some of you are on the SMA list and can pass along some interesting posts.

[doncoulter]

Your friend is wrong, and you are correct. It's not true that the Congress outlawed the cashing of U.S. checks in Mexico. What has happened, however, is that the U.S. has imposed stringent reporting requirements on foreign financial institutions, including banks, and as a result many such institutions are now deciding that they don't need the hassle and they'll just stop accepting U.S. customers. At the same time, many U.S. financial institutions are concerned that those reporting requirements and other such regulations are just the first moves in a trend of increasing U.S. regulation of accounts held by Americans living abroad. As a result, many U.S. banks, for example, are severing the relationships they've had with Mexican and other foreign banks. They're doing this in spite of any current legal requirement to do so. In other words, their lawyers are running scared of what the future holds. This seems also to be affecting wire transfers--though some SMAers have reported that small banks have been slower to impose restrictions than big banks. That makes sense, as the big banks have more lawyers.

I lurk on the Civil_SMA forum, and I've been mostly amused by all the hysteria among San Miguel expats about their impending inability to cash checks. I mean, these people manage their expat cash flow by writing and cashing checks?!? Do they also wear spats and listen to Victrolas? I can't remember the last time I wrote a check.

On the other hand, if the banks start limiting ATM transactions, then I will be concerned.

Don

[jesm]

Beautifully and accurately written Don. You nailed it. Keep posting please.

[kasugie]

The major U.S. banks and financial institutions now permit you to deposit checks via their respective online banking services and a late model iPhone/iPod/iPad or Android phone and camera. In the few instances that I've needed to deposit a check from here, this has worked for me.

After Banamex USA reported a bad 500 million dollar loan to a fraudulent offshore oil platform and subsequently failed repeated regulatory audits, they were required to close the accounts of many ex-pats (including us). Colossal Bummer ! Likewise, this has triggered increased U.S. regulation of financial accounts held by Americans living abroad.