Presentation Transcript

1. Money Transfers to Mexico

   Global Workers Justice Alliance Centro de los Derechos Del Migrante, Inc. American University Immigrant Justice Clinic
2. Purpose of the Manual The Manual examines various methods to transfer funds from advocates in the United States to clients in Mexico The Manual specifically details the logistics of wire transfers, bank to bank transfers, checks The Manual also discusses ethical and legal considerations for transferring money
3. Logistics First! Before transferring funds, find out if your client has the following: Government-Issued ID Credencial del Elector (Voter ID Card) Driver’s License Passport Bank Account in Mexico Requirements Benefits and Hurdles
4. Bank Account in Mexico Should I Encourage My Client to Open a Bank Account in Mexico? Not all transfer methods require one Costs and minimum balances Typical requirements: Proof of residence (such as utility bill), government-issued ID, initial deposit and/or minimum balance
5. Wire Transfers Wire transfers are the easiest and most common way to send money to clients in Mexico Forms of Delivery Practicality for advocates In-Person or Online Transfers: Western Union, DineroSeguro Online Only Transfers: Xoom, MoneyGram, Ria, Transfer
6. Wire Transfers: Western Union Western Union is one of the largest and most recognized wire transfer services in the world, but is not ideal for sending large settlement payments, or for making multiple transfers to a client or to groups of clients Method: transfer from an account linked to a debit card or using a credit card Restrictions: transaction caps Online FX: bank to bank transfer service by Western Union
7. Wire Transfers: Xoom, MoneyGram, DineroSeguro Xoom: entirely online transfer service Transfer to Mexican bank account or cash pick-up Restrictions: sender limitations MoneyGram: transfer to cash, bank account, kiosks, phones, credit card Restrictions: payment method DineroSeguro: USPS administered Restrictions: age; limited USPS locations
8. Wire Transfers: Growing Services Ria: fast-growing money transfer service praised for its expediency and multiple methods of delivery Allows online money transfers from a bank account, credit card (VISA or MasterCard), or debit card “Transfer” Service: allows money transfers in real time through text messaging Requires users to have TelCel mobile service and a BancoImbursa or Banamex bank account Can access account via cell phone for instant transfer – also has an app for the iPhone
9. Bank to Bank Transfers The most secure method of transferring money and ideal for transferring large settlement amounts Low or no cost for recipient, charge for sender, and 3-5 day average waiting period (though there are exceptions) Excellent option to send large amounts of money to individual clients Note: client must have bank account!
10. Bank to Bank Transfers: Examples Wells Fargo Express Send From Wells Fargo account to certain Mexican bank accounts or “Remittance Network Member” locations All online; best for one-time or small-scale transfers Transaction caps Directo a México Mexican government program – send from U.S. bank account to any Mexican bank account or certain cash pay-out locations
11. CDM-Bansefi Agreement Negotiated agreement between CDM and Bansefi, a Mexican government-backed bank. No transfer caps Low transfer costs Clients do not need bank account; pick-up locations throughout Mexico, including in rural areas; recipients must present government-issued ID and individual pin number Ideal for transfers to individual clients, groups of clients, or in large class action settlements Over over $1,365,000 transferred since 2009.
12. Checks It’s extremely difficult and often impossible to cash or deposit foreign checks in Mexico
13. Sending Checks Correos de Mexico (the Mexican Postal Service): reliability concerns; time lag; regional limits on service Courier Options: FedEx – limited zone of delivery; no insurance DHL – from United States to anywhere in Mexico Estafeta – secure shipping and tracking
14. Alternatives for Transfer Pre-Paid Credit/Debit Cards International Money Order Settlement Agreement
15. Ethical and Legal Considerations Client funds: IOLTA accounts and maintaining funds out-of-state US PATRIOT Act and Dodd-Frank financial reform
16. Ethics: Client Funds Interest on Lawyers Trust Account (IOLTA): interest-earning checking accounts for pooled funds Client Trust Accounts: depends on each state’s rules – some states may limit transfer methods Out-of-State Trust Accounts: refer to state rules to create a trust in Mexico When in doubt, talk to your state bar counsel
17. Government Oversight USA PATRIOT Act: Anti-money laundering provisions – amount in transaction triggers reporting and recordkeeping requirements Bank Secrecy Act: bank tracking to spot international terrorist activity Dodd-Frank Reform: mandatory disclosures to senders
18. Conclusion Key Questions before Choosing a Method: How much money needs to be transferred? How many clients are involved? Is the contact with the client(s) reliable? Will there be multiple rounds of funds distribution? Does the money need to go to an urban or rural part of Mexico? Will the client(s) be in the U.S. again soon? If so, are they willing to wait until they return? Does the client or close family member have a bank account? Could the client open an account? What costs would be involved with opening an account?
19. Contact Information Global Workers Justice Alliance Nan Schivone, nan@globalworkers.org Centro de los Derechos del Migrante, Inc. Jessica Stender, jessica@cdmigrante.org American University Immigrant Justice Clinic Anita Sinha, asinha@wcl.american.edu