Chile Forum

by **admin** on Sun Sep 02, 2007 5:10 pm

keep in mind, just because a bank like Citibank has the logo in Chile they are completely fire walled from their foreign offices. Citibank Chile will no more be able to do a transfer from your account at Citibank USA, than any other bank in the World. In fact, they don't even recognize my Citi bank visa credit card as being theirs.

by **donato** on Sun Sep 02, 2007 5:42 pm

I don't think the Banco de Chile people are going to reflect any "Citibank" identity in Chile -- seems to me the press releases I read about Citi buying their stake from Quiñenco implied they wanted to capitalize on the strength of the Banco de Chile name (18% of the Chilean market to Citi's 2%).

My US banker was able to get me the names of a couple of Santiago bankers. I contacted them, and then they responded by asking my bank for a letter of introduction. We'll see how that goes. They haven't said "no" yet...

by **copfish** on Sun Sep 02, 2007 8:41 pm

Donato,
Thanks I'll contact them this next week and see what services they offer and get back with what they offer. It seems that many posts are about moving money and the problems associated with it and this may help.

by **admin** on Mon Sep 03, 2007 12:49 am

here is one I am giving a spin right now:
https://www.wellsfargo.com/inatl/consum ... ices/apply

I am not exactly sure what they really have to offer over just regular checking account internationally, but we will see.

We had a friend that works at the Forex desk for Santander in Santiago look in to opening accounts for our clients, and he was shocked. He said he knocked on doors all over the place, and no one would touch the average individual client with out residency.

A long time ago we talked to the Chilean federal reserve about it. They say there is no regulation against it, simply the banks won't do it because of risks. Which on some level makes some sense. It keeps Chile from turning in to Argentina the next time the world markets have a cold (like right now). On the other hand, they are in part ignoring the existence of a larger international banking system and a massive market of very liquid clients in Chile.

The foreign client, like the people on the forum, looking for accounts often own real estate in Chile, cars in Chile, and other assets. They typically have impeccable credit records at home, pensions, savings, and so on that allows them to come to Chile and invest or retire.

I have said this before on another thread I believe, if any young (or old) executive at one of Chile's banks gets sufficiently ambitious to setup a way for foreigners to easily and quickly open accounts, we will bring them everyone of our clients and they will get the full endorsement on the Chile forum.

I am not even talking about Checking accounts and all the problems that go with credit lines attached to checking. Just easy savings accounts, with an ATM card would be fine for someone without residency.

One rule of business we see violated over and over and over and over again in Chile is: DON'T MAKE CLIENTS BEG YOU TO TAKE THEIR MONEY!!!!!!

If someone wants to put their money in your bank, don't make them beg you to do it. Figure out a way to make it happen.

by **el puelche** on Mon Sep 03, 2007 1:00 am

My experience that unless you are working with at least 500,000= the chilean banks will have you jumping thru hoops(there should also be promise of more cash coming afterwards)...I have done the whole letter of introduction thing, I have done the my bank owns your bank(Bank of America owned banco de boston, I have done the my lawyer in Santiago works for the banco de ++++++++ and lets do some business...I have done the <open the account in the us branch[new york and miami]...I have done the I am married to a chilean and we all know each other in this small town...I have done the where should I put my 200k and can't you help me with it.....

I talked about it earlier in another post....trying to get things done...its like being on the outside of a round room that has all these doors...you just have to walk around and around knocking on the random door until one opens and then you are faced with another round room with doors...in CHile its level by level, all the time and it constantly changes or one person or anohte just doesn't know...I have seen this routine for years and it is distinctly CHilean...one door that opens for you but it doesn't mean it will open for someone else and so on...you have to make your plan with the best information you can and move forward as you are able...laws and procedures are great...or this is the way they did it before or for me or for my friend....you just have to make your own path...I don't care what anyone here on the forum says from one way or another on how to get it all done...it will be a combo of things with a twist, so when you get it done, come back and tell us the twist...it won't ever be exactly the same for anyone else again but it will give direction to one mor door in the round room.

good luck,

p out.

.

by **chilco** on Mon Sep 03, 2007 5:22 pm

That being said, can you say which door/twist eventually worked for you? And am I correct that your implication is that if one has a much greater amount of money than $500,000 US the banks are more helpful? This seems like such a ridiculous impediment to buying property.......

by **admin** on Mon Sep 03, 2007 6:29 pm

money is not the issue. We have clients with millions of dollars in assets and income outside the country.

The problem is getting the banks to recognize and companies in general to recognize those assets exist.

They seem to be unable and unwilling to work out a means to verify credit or money outside of Chile. We are constantly trying to get companies to even get their brains around the idea that you might want to use a credit card from outside the country to say purchase a cell phone. The paperwork just does not exist internally for them to fit that round peg in the square hole.

Checking is tied to your credit in Chile. Your credit is tied to being an employee of a company that pays you every month. The concept even that someone would be self employed is often a problem for most companies in Chile when trying to establish income. They just don't get it.

For example, even though I do not need to currently pay taxes in Chile because of the nature of our business structure, every month I declare taxes to the IRS and pay the withholdings. Not because I owe the IRS, but because it builds my credit record as far as the banks and other companies are concerned.

If I did not do that, It would not matter to them how much I made outside of the country. In Chile I would be unemployed. there simply is no space on the form to allow for it.

Don't even bother trying to explain to one of them that you might be simply wealthy and you do not need to work.

For property purchase contracts drafted correctly, and wires directly to the sellers account are one way.

On a rare occasion we have found notaries that will accept a wire directly to their accounts, and then will release it like a vale vista to the seller when everything is cleared. These are rare however, because notaries are under strict scrutiny of their account activities by regulators. Most prefer to keep their life simple.

by **donato** on Mon Sep 03, 2007 7:15 pm

You brought up something I didn't understand -- purchasing a cell phone. How is this an international credit card issue? Or are you saying we should buy prepaid ones for cash? Maybe Jon Steele had a point! :twisted:

by **eeuunikkeiexpat** on Mon Sep 03, 2007 7:24 pm

donato wrote:You brought up something I didn't understand -- purchasing a cell phone. How is this an international credit card issue? Or are you saying we should buy prepaid ones for cash? Maybe Jon Steele had a point!

What point? In many stores selling consumer items, I don't even hassle trying to use my US credit card which may be rejected. Also don't want my CC data floating around out there in a large way (with fraud and everything). Plus the 3% CC hit vs. my direct, no fee, interbank Citibank ATM obtained cash makes cash more of a no-brainer.

by **eeuunikkeiexpat** on Mon Sep 03, 2007 7:27 pm

Is there any difference between a:

Cuenta Vista
Cuenta de Ahorro
Plazo con Giro Diferido

by **donato** on Mon Sep 03, 2007 7:48 pm

The point is, I never until just now heard of a US credit card being rejected. Not an MC or Visa, at any rate. It sure never happened to me on my travels in Chile!

by **murf** on Mon Sep 03, 2007 7:59 pm

True I personally have never had credit card declined however the fees on large transactions can be high (I purchased a car on cc ouch!!!). The banks are not customer friendly like what you are used to in the mid west , you will find it hard, near impossible to open an account without either you or your spouse being Chillean.

by **eeuunikkeiexpat** on Mon Sep 03, 2007 7:59 pm

No problems at hotels, dental office, Lan airlines, a language school but yes at a department store. And definitely a no-go with Turbus.

by **donato** on Mon Sep 03, 2007 8:13 pm

I'm not actually that friendly, and I'm not originally from the midwest.

My experience with banking in the US is there's a LOT of variation in service levels and fees, from bank to bank and product to product. It helps to understand how the banks make money (NOT from earning interest or investment returns on your deposits like the good old days). But if you understand their business needs, you can get what you want a lot of the time. Even if not a millionaire.

As I said (maybe it was elsewhere), my US banker is talking to a couple of Santiago (Banco de Chile) bankers for me. Maybe this won't amount to anything. We'll see. I'm still having trouble believing that there isn't a way to open that door, even if it's a one-off deal like el P intimates. The "don't even think about it" approach reminds me a lot of the FUD tactics we used to use in the early days of computers. We had a saying: where there's mystery, there's margin.

by **el puelche** on Mon Sep 03, 2007 9:28 pm

gentlemen...

a few years ago you could do alot in Chile with banks...thats not to say that it had to make sense and be legal...but then after the Riggs affair and Pinochet...it became difficult...Banco de Chile was implicated in the whole deal and although there may not be new rules and policies written on the books that relate to how international accounts are to be handled...no Chilean bank employee wants to have his signature on anything that comes up with a problem whether its legit or not.....and then you add in the drug laundering monies and you have quite a wall to climb..

I do not agree with Charles in what he says as far as setting things up for clients...this maybe because he is a recognized business entity and nothing else...there may be a fear that the community will see benefits that he and his clients have recieved and they do not want to set up a track record of just handing it out...smart business when you look at the current climate of policies after the discovery of a certain amount of clouded banking history...

I wrote a little thing here on the forum here a while ago in regards to what zulu had a question on but quickly erased it as it was...maybe drawing to much of a straight line to what you could do to open your account....let me say that I had no problem opening my accounts and I have acted in tandem with an old client of mine opening his accounts...this was not done in any ilegal way whatsoever .... but simply presenting my/his case in a way that the Chilean bank authorities would appreciate and demonstrated no risk on thier part...and the door simply opened with a little push...so its really speaking spanish, knowing the culture and hitting the gas or the brakes in the right way so as to win the race...there is technique to be sure, we are all on the same track ...its just knowing, from experience, how to to get to the finish line...

My suggestion is to calm down and line out your objective. I understand that most don't have the experience that I do but if you calm down and think about it a little bit then you should be okay...it may take time but you can get there...the only advice I can give now is that the Chilean is extremely intuitive...so listen to yourself as you speak and make sure that what you are saying is what they want to hear...

wow, that was in the clouds somewhat but its the best I am willing or able to do....good luck...

p out...

when you get there...you will say to yorself...ahhh, that wasn't so bad...

.