Transferring Money to and from Argentina

[Hunt99]

4. Go to Uruguay for a day, open an account and then transfer to States when allowable.

Good point.

When you take the boat to Colonia, one of the things you will notice if you walk around is the high proportion of banks in comparison with the pretty modest size of the town. And many of them have big signs in the windows, indicating that they specialize in accounts for foreigners. Uruguay has been one of the banking forums of convenience for middle-class Argentinos who don't trust their own government's socialist banking shennanigans. The richer Argentinos tend to have their accounts in Miami (especially) and in various places in Europe.

[Thomaso276]

1. Physically give it to someone you trust who is going back to USA to deposit in your bank. Their is risk of accident, robbery loss.

2. Give it to someone you trust here and have them transfer 7K from their bank in USA to your Bank in USA electronically. It will take 24 hours for the transaction to clear.

3. Buy travelers checks, ship them overnight to your key financial people in States. Authorize them to sign and deposit in your account.

4. Go to Uruguay for a day, open an account and then transfer to States when allowable.

5. Keep the cash for future parties!

[Moore]

Does anyone have experience with transferring funds OUT of Argentina? I have a US$7k rental deposit coming back and would like to xfer it back to USA. I've transferred in but never out. I asked at my Banco Rio branch but did not get a straight answer. Generally speaking, corporations can only xfer money out for specific concepts such as approved invoices and dividends to a foreign parent company. Also, I assume that dollar-to-dollar xfers are not possible (everything is converted into pesos coming in so I assume its the same going out)

[SteveC]

Moore,

Not sure what the legal position is, but whenever I transfer funds (other than the occasional ATM withdrawal) its from my bank to an exchange house here in Mar del Plata and they always give me the dollars / euros / pounds I transferred.

[One Tree Hill]

Moore,

Due to my ATM card getting eaten, I had money sent to me via Western Union. I had the option of receiving it in the equivilent AR pesos or in USD. My choice.

Does anyone have experience with moneygram? A local told me that he is getting cash transfers here from USA, USD to USD (not into pesos and then back into USD and losing on the exchanges) I was looking at the site and the fees seem quite reasonble.

Ive never used a service like this or Western Union (very expensive) but my understanding and bank experience is that money coming into Argentina always has to be converted by law into pesos on arrival. Are these services possibly not subject to this rule?

[Moore]

Does anyone have experience with moneygram? A local told me that he is getting cash transfers here from USA, USD to USD (not into pesos and then back into USD and losing on the exchanges) I was looking at the site and the fees seem quite reasonble.

Ive never used a service like this or Western Union (very expensive) but my understanding and bank experience is that money coming into Argentina always has to be converted by law into pesos on arrival. Are these services possibly not subject to this rule?

[NumberOne]

Ok. I can see that most people have really problems to transfer money to Argentina from other countries.

I think that the best choice for transferring funds (I'm argentinian and was the some problems) is:

First: Talk with your bank, to pre degree its operation.

Second: Come to Argentina with some travelers check (yes yes I know the fee no way) to can have some of cash into Argentina.

Three: Go to the office of your bank. (if your are customer of WAMU, your loose.) Talk with some people into de branch of your bank in Argentina and say that you want to transfer many from your account in your country.

The comision or fees. Here. Are some times high. Why? I don't know.

I have tranfered from accounts banks from USA an Spain, and no have problems (if you pay the fees). The thing is that you must say that this tranfer found is for Family Help, this type of tranfer founds have a less fee from the table of fees. If you tranfer alot of mony to do some operation like buy a apartment, car, etc. etc. etc. You must pay high fees.

Is better if you walk with $USD into your pocket, and not $USD if you show $US from your pocket, the people like take a advantage.

Is good if you know to stay here for a long time (more than 6 months) that you open a local account bank (savings account is very good) and the money that you tranfer from your account bank put into there (if is a lot at money, not put all them) and walk on the street with a local debit card.

Sorry for my poor english but I have only aproved ESOL Level be:)

[Bangkok Dave]

.

The problem these days is it's getting harder and harder to become a client at a private bank. The really solid ones don't want any new clients unless you get referred by a VIP client.

This is one of the most frustrating things about Argentina. The level of difficulty getting $US here.

Anyone want to explain why this is? I thought doing business was what banking was all about and that Argentine banks would be glad to get $US.

Dave

[Saint]

Hobby Fan is exactly correct. It's a leap of faith if you don't know who you are dealing with. I talk to people every week that had problems with the company they used or were given a wrong account number, wrong corporation name, wrong city or bank name. Remember that once your bank sends the money it for the most part can't be undone. Go with people that not only a friend has told you they used and had no problems but someone that has been around a very long time.

The problem these days is it's getting harder and harder to become a client at a private bank. The really solid ones don't want any new clients unless you get referred by a VIP client.

This is one of the most frustrating things about Argentina. The level of difficulty getting $US here.

[Hobby Fan]

The strange money transfer process requires a leap of faith, unless you want to go to a regular bank. If you go to a regular bank, they may not want to deal with you unless you are a resident. Assuming you find one that will deal with you, and I could not do so, then by all reports you will effectively pay high commissions (by changing dollars into and then back out of Pesos, at not so great rates) You will do a lot of paperwork. And (worst of all, as it could jeopardize your deal) you sometimes have to wait and wait and wait for the money to "hit" your account.

Per Saint's research, most people who go with traditional banks end up regretting it.

If you go the informal route, you will end up wiring money to some numbered account outside Argentina. Yick. You will find it bizarre, because it is bizarre. But you can greatly reduce risk by going in under the express recommendation of your real estate broker or of someone like Saint, and if big money is involved (like for a home purchase) by making sure that the money people know you have a good lawyer watching everything.

If your broker sets up the money transfer, risk of theft logically goes way down. Think it through: even if the private banker / money mover is not honest, and I have no reason to suspect that, it would be smarter for them to rip off someone who just walked in than someone who was referred by a regular source of business doing hundreds of transactions per year, particularly if there is a lawyer looking over things.

HF

[Thomaso276]

This post is not intended to insult anyone on the board. Yesterday I went to FOREXCAMBIO S. A. With my spanish speaking girlfriend and explained I wanted to get 5g USD here in Argentina. The gentleman behind the counter gave me a page of instructions which were sorely lacking in specifics. Anyhow, he explains that I transfer the money from my bank in USA to their account in USA. I then call him a few days later to confirm that the money has arrived and I go to their office and retrieve my money. I mention the 1% commission and he verbally confirms - but it is not in writing. The paper says their account is with American Express Centurion bank in Salt Lake City. My first alarm goes off because another member said they used Bank of America. My second alarm goes off when I do not get any sort of customer ID. Finally I notice the bank account number is 710.319. There are no account numbers broken up with a point in the USA. Alarms are going off all over the place.

This morning I spend a few pesos calling the bank located in Salt Lake City, Utah. I had confirmed via the internet that the routing number is correct, but the pleasant, service oriented USA bank employee (what a change of pace) is kind enough to talk to me even though I am not a customer. I explain how the system works when living here in Argentina on how to receive dollars from the USA. She says there are no accounts in the name of Forexcambio and the number for the account I have makes no sense. I agree. She puts me on hold to talk with someone else.

When she returns she advises that they located the account by dropping the point and just entering 710319. She also explains that the account is held by the American Express Centurion Bank in New York City - not in Utah.

I wonder what would have happened to my money if I had simply wired it to Salt Lake City? Overall a very unprofessional experience. After living here for almost three years I can clearly state that the financial aspect of Argentina is a joke. Just about everything else is perfect for me.

Tonight I spoke with a neighbor who is a retired physician. He recommened a cambio called Giovinazzo located on Sariemento and gave me the name of a contact. I will post the results soon.

[El Aleman]

Saint,

My transaction was end of 2003, after the crash. And, one thing is particular, while the price was negotiated in Dollars, the seller needed pesos, because he intended to use the money out of the transaction to pay tax debits. So, the "pesofication" was not THAT deal.

And, my Lawyer is a native speaker of my own language. The same goes for my accountant / tax consultant. I agree, don't do anything with people you cannot communicate without any problems.

El Alemán

[Stormy]

Saint,

Thanks for the information and clarification. I have long been out of intentions to move any large sums to Argentina in any fashion, though I know others do and only wish them the best of luck. Your advice is particularly useful here and I think will serve some of the crowd well.

[Saint]

Stormy,

I'm not sure when El Aleman made this transaction. Maybe it was before the crash? Anyway, trust me on this. There is no FREE way of getting u$S here without paying a fee. The only way is carrying it on a plane and bringing it on -- which many, many people do. It's not the safest thing and I don't advise it but it's the one FREE method.

Every u$s that gets transferred to Argentina via a legit bank gets "pesofied". They don't do it at the current exchange rate either. Example, if you are transferring you$s 100,000 here and the exchange rate is 3:1 they might give you 2.95: 1. So instead of 300,000 pesos you would get 295,000 pesos. So even with people like El Aleman that thought they weren't paying a "commission" they were. Maybe the laws changed since he made his transaction. I'm not sure. Even if you have a u$s account here and transfer from your u$s account abroad, they still pesofy it. Keep in mind that almost all real estate transactions here are in u$s so not only does it get pesofied but you have to get it converted back to u$S and guess what? The banks give a not so good rate on that as well. As I mentioned, there is a cost of getting u$s here.

Not only is it "not unusual" for cash to be used in transactions dealing with real estate. It's the norm. Primitive? Yes. But it's how things are done here. As I've mentioned to my consulting clients on a daily basis. Have a good attorney and make sure you can fully communicate with him. I've seen a lot of good people cheated and conned. Usually by a lawyer. In every instance, the person could not speak fluent Spanish and the lawyer couldn't speak English. Would you use an attorney that didn't speak English on an all cash deal in the USA? Exactly! Why would you do it in another country? Don't let the fact that you are in a foreign country change the proper way to do business. I'm in no way suggesting an attorney that speaks English won't try to con you but at least you can fully communicate with your attorney. This is not like the USA where things are orderly. Order here is NOT the norm. Make sure you know exactly what is going on.

Make sure that with any financial transaction that takes place you don't lose your common sense. It shouldn't matter whether you are doing business in the USA, UK, Argentina or Africa. Use your same common sense. The safest methods I have used are legitimate money transfer firms.

Here in Argentina on all cash deals there is very little to no room for errors. If this post scares some sense into you that is a good thing. Those that do a lot of business here in Argentina or that have lived here before or are natives know what I'm talking about. I can give you example after example of the horrible way the locals do business and the people that got cheated by not having good people that know what they are doing. I'm sure I pay my attorneys, accountants, etc. more than the average professional here in Argentina but guess what? They were all educated in the USA or the UK and they are the best in the business. It's helped me avoid problems or getting conned.

Good luck.

Saint

[Stormy]

Moore,

Larger amounts (real estate transactions) - a trustworthy person might be your lawyer. I did it this way once, and there was no commision, on the other hand he did all the contract work and thus got a good fee.

El Alemán

Does this mean you transferred the money directly to your lawyer's account?