Transferring money from Chile to U. K

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Markyboy
Posts: 4
Joined: Fri Sep 27, 2019 8:20 am

Transferring money from Chile to U. K

Post by Markyboy » Fri Sep 27, 2019 8:30 am

Hi All, we have recently sold a property in Chile and want to transfer the money to the UK. Its currently in a bank account as CLP but the bank says it has to be transferred as euros or dollars which could work out expensive since it will be then have to be converted to uk £. . Our bank in the UK has said they can receive it as CLP and for a small fee convert it to uk £, this being the most economical method. I am sure that the Chilean bank is capable of sending it as CLP but as usual it's really difficult to break through that thick crust of misinformation and beaurocracy. Can anyone shed some light on this?

Thanks!

at46
Rank: Chile Forum Citizen
Posts: 1178
Joined: Fri Sep 20, 2013 6:13 pm

Re: Transferring money from Chile to U. K

Post by at46 » Fri Sep 27, 2019 9:15 am

Markyboy wrote:
Fri Sep 27, 2019 8:30 am
Hi All, we have recently sold a property in Chile and want to transfer the money to the UK. Its currently in a bank account as CLP but the bank says it has to be transferred as euros or dollars which could work out expensive since it will be then have to be converted to uk £. . Our bank in the UK has said they can receive it as CLP and for a small fee convert it to uk £, this being the most economical method. I am sure that the Chilean bank is capable of sending it as CLP but as usual it's really difficult to break through that thick crust of misinformation and beaurocracy. Can anyone shed some light on this?

Thanks!
From what I've seen, Chilean banks only have corresponding relations with US and EU banks, hence they only operate with those two currencies for in- and outgoing transfers. It might be worth asking Afex.cl if they can help with a CLP conversion to GBP and direct transfer to your UK bank. Otherwise, I'd use them to convert CLP to USD or Euro and then I'd use an independent forex broker to buy GBP and deposit to your UK account. Find out exactly how much that 'small fee' is at your UK bank before deciding how to proceed. In my experience, those 'small fees' always turn out to be quite heavy in the end. Don't do the whole amount at once - first make one or two small 'trial' transfers to see how things turn out. For example, a 500 USD first trial transfer to get an idea of your actual all-in cost. Then a 10K transfer to see if it triggers any additional bureaucratic requirements to prove the source of funds, etc.

Markyboy
Posts: 4
Joined: Fri Sep 27, 2019 8:20 am

Re: Transferring money from Chile to U. K

Post by Markyboy » Fri Sep 27, 2019 9:51 am

Thanks, for that. Our bank in the UK will charge £6 regardless of the amount received and the exchange rate that they offer is pretty good. The mystery of dealing with a Chilean bank is that they won't disclose the exchange rates or commission so its quite scary because they could easily take a big cut. Thanks for suggesting staging the transfers, it's a good idea!

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Spudzilla
Rank: Chile Forum Citizen
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Location: Upstate New York

Re: Transferring money from Chile to U. K

Post by Spudzilla » Fri Sep 27, 2019 11:23 am

My understanding is that most banks use the SWIFT system to transfer funds between banks in different countries. I believe that funds are only transfered in US dollars or euros, depending on the intermediate bank that is doing the transfer. Fees can also be applied by the intermediate bank.

at46
Rank: Chile Forum Citizen
Posts: 1178
Joined: Fri Sep 20, 2013 6:13 pm

Re: Transferring money from Chile to U. K

Post by at46 » Fri Sep 27, 2019 12:59 pm

Markyboy wrote:
Fri Sep 27, 2019 9:51 am
The mystery of dealing with a Chilean bank is that they won't disclose the exchange rates or commission so its quite scary because they could easily take a big cut.
They will disclose the exchange rate and commission if you insist strongly. They're just giving you the run around to see if your heart is strong enough to receive the truth without going into a cardiac arrest :)

Another way of doing it would be to open a fondos mutuos account, eg. at Banco de Chile Inversiones, and use that for your transfers. The exchange rate there is about 6 pesos higher than xe.com and the fee for an outgoing transfer is 20 bucks or 16 Euros regardless of the amount. The only snag is that it takes about a week to two weeks to get it open.

Markyboy
Posts: 4
Joined: Fri Sep 27, 2019 8:20 am

Re: Transferring money from Chile to U. K

Post by Markyboy » Thu Oct 03, 2019 4:01 pm

Thanks very much for that idea!... I will look into it.

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