Financial Services in Puerto Vallarta

By Luis Manuel Muñoz, Actinver Brokerage House

It is not uncommon for many expats to have questions and doubts about the Mexican banking system.  Here are some tips on how to get the best service out of the banking sector in Puerto Vallarta.

There are two types of banking institutions in Mexico. There are banks and brokerage houses.

• Banks are your regular walk in bank similar to those found anywhere in the world. The main service you should get from these banks is a debit account. Unlike in the USA, debit and checking accounts in Mexico are the same thing. If you are not planning on using checks, be sure to mention it to your bank representative hence there is usually a fee for checks. Debit accounts in Mexico do not carry any interest.
• Brokerage houses. These are suited for more complex financial transactions. If you are interested in transferring money from the US into Mexico these institutions can offer better rates and cheaper transfers. Investment banks offer interest bearing accounts and for the more aggressive investor, access to the Mexican bond and capital markets.

To open an account in either type of institution, you will usually be required to present a valid passport, a proof of address (utility bill, the name on the bill does not matter) and migration form, (FM2, FM3 or FMT).

Exchanging currency

• Since money laundering laws were enacted in Mexico during the past administration, cash transactions have become exceedingly complicated. Although you can still exchange USD cash for peso cash at some locations, the exchange rate is not the best and the amount you can exchange is limited to $300 USD a day. If you are planning on moving to PV for a long period, you should consider opening an account and transferring funds electronically to get the best possible rate for your currency.
• USD cash was widely accepted a few years ago in Puerto Vallarta. Due to the new money laundering laws, this is not the case anymore. Most businesses will be reluctant to accept cash dollars hence knowing the best way to exchange your currency is more relevant than ever.

ATM’s and debit cards

• Mexico has come a long way over the past ten years regarding credit and debit cards. Today, most medium and large businesses have a credit card terminal where you can pay either with a Mexican or foreign card.
• Although there have been some card cloning incidents at ATM’s in the area, this is far from a common occurrence. To be on the safe side, we recommend using ATM’s situated inside banks or at very public and visible locations.

Many expats are unsure whether the Mexican banking and financial system is safe. Although during the country’s history there have been some bad times for the sector, today it is one of the most highly regulated and secure banking systems in the world. Mexican banks are not allowed to trade on open markets and the capital requirements for Mexican banks are considerably above the international consensus. Mexico has not seen a banking crisis in the last 18 years.

For further information please contact Mauricio Gonzalez: mgonzalezc@actinver.com.mx