Bank Compliance for Latin American Investors
Navigate US banking requirements for Brazil, Mexico, Argentina, Colombia, and other LATAM countries
LATAM Investor Advantages
Treaty Available (Most)
OFAC Risk
Banking Hub
Bank Experience
Latin American investors generally face fewer banking obstacles than investors from Asia or Eastern Europe. US banks, especially those in Florida and Texas, have extensive experience with LATAM clients. The main challenges are currency controls in some countries (particularly Argentina and Venezuela) and standard source of funds documentation requirements.
Banking Difficulty by Country
| Country | Banking Difficulty | E-2 Treaty | Key Consideration |
|---|---|---|---|
| Mexico | Easy | Yes | Extensive bank experience; standard docs |
| Brazil | Easy | No | Large diaspora in Florida; straightforward |
| Colombia | Easy-Moderate | Yes | Standard AML screening; improving reputation |
| Chile | Easy | Yes | Strong financial reputation; minimal issues |
| Peru | Easy | Yes | Standard documentation requirements |
| Argentina | Moderate | Yes | Currency controls complicate transfers |
| Venezuela | Difficult | Suspended | Sanctions; requires careful structuring |
| Cuba | Very Difficult | No | Comprehensive OFAC sanctions |
Recommended US Banks
Banks with LATAM Experience
| Bank | Strengths | Best For |
|---|---|---|
| City National Bank of Florida | Deep LATAM expertise; Spanish/Portuguese staff | All LATAM countries |
| Citibank | Global presence; existing relationships in LATAM | Clients with Citi accounts at home |
| BBVA USA | Spanish heritage; understands LATAM documentation | Mexico, Central America |
| Bank of America (Miami) | Large LATAM client base; international desks | High-net-worth individuals |
| Wells Fargo | Nationwide presence; business banking | Business accounts |
| Itau Private Bank (Miami) | Brazilian bank with US presence | Brazilian high-net-worth |
Documentation Requirements
Standard Documentation
Identity Documents
- Valid passport
- Secondary ID (driver's license, national ID)
- US visa (if applicable)
- Proof of home country address
- US address (can be temporary)
Source of Funds
- Bank statements (6-12 months)
- Tax returns (home country)
- Employment/business income proof
- Investment account statements
- Property sale documentation
For Business Accounts
- US entity formation documents
- EIN confirmation letter
- Operating agreement/bylaws
- Resolution authorizing signers
- Home country business registration
Translation Requirements
- Spanish docs often accepted in FL/TX
- Portuguese usually needs translation
- Certified translations for legal docs
- Apostille for some documents
Wire Transfer Best Practices
Before Sending
- Open US account first with initial deposit
- Notify bank of expected large transfer
- Gather source of funds documentation
- Confirm receiving bank wire instructions
- Consider correspondent bank path
Wire Details
- Use detailed purpose descriptions
- Wire from accounts in your name
- Keep amounts reasonable (not structured)
- Avoid round numbers if possible
- Reference investment purpose
Brazil-Specific Considerations
Brazilian Investor Banking
Brazilian investors are among the largest foreign buyer groups in US real estate, especially in Florida. US banks have extensive experience with Brazilian documentation.
Key Documents
- CPF (tax ID number)
- Declaracao de Imposto de Renda
- Extratos bancarios
- Comprovante de residencia
- CNPJ for business owners
Transfer Considerations
- Brazil has no currency controls
- Large transfers require BACEN reporting
- Use DOC/TED for domestic transfers first
- Wire through major Brazilian banks
- Keep BACEN confirmation receipts
Mexican Investor Banking
Mexican investors benefit from geographic proximity, NAFTA/USMCA relationships, and the E-2 treaty. US banks near the border have decades of experience with Mexican clients.
Key Documents
- RFC (tax ID number)
- CURP
- Declaracion anual de impuestos
- Estados de cuenta bancarios
- INE/IFE identification
Advantages
- E-2 treaty investor visa available
- Same-day wire transfers possible
- Many US banks have Mexico operations
- Spanish accepted at most TX/CA banks
- TN visa for certain professionals
Argentine Investor Banking
Argentina's currency controls ("cepo cambiario") create the main challenge for Argentine investors. However, Argentines with legally-held offshore funds face no special US banking issues.
Currency Control Challenges
- Limited official USD purchases
- Restrictions on foreign transfers
- "Blue dollar" premium exists
- BCRA approval for large amounts
- Controls change frequently
Compliant Solutions
- Use funds already held abroad
- Income earned outside Argentina
- Dividends from foreign companies
- Asset sales outside Argentina
- Official MULC channel (slower)
Colombian Investor Banking
Colombia's reputation has improved dramatically, and most US banks no longer apply enhanced due diligence. The E-2 treaty provides excellent visa options.
Key Documents
- NIT (tax ID number)
- Cedula de ciudadania
- Declaracion de renta
- Certificados bancarios
- RUT for business owners
Transfer Considerations
- No significant currency controls
- Register foreign investments with DIAN
- Banks familiar with Colombian docs
- E-2 visa widely used
- Miami has large Colombian community
Frequently Asked Questions
Do I need to be in the US to open a bank account?
Most banks require in-person account opening, though some offer remote options for business accounts with proper documentation. If you are planning a US visit, open the account then. Some banks like Mercury (for businesses) allow remote opening for foreign founders.
Can I wire directly from my home country bank?
Yes, for most LATAM countries. Wires from major banks in Mexico, Brazil, Colombia, Chile, Peru, etc. are processed normally. The exception is countries with US sanctions (Venezuela, Cuba) or strict capital controls (Argentina may require BCRA approval).
Should I open personal or business account first?
For investment purposes, I recommend opening a business account through a US LLC. This provides liability protection, cleaner transaction records, and banks expect larger wires to business accounts. You can open a personal account too, but the investment should flow through the entity.
What about cryptocurrency transfers?
Crypto is legal but creates additional documentation requirements. When you convert crypto to USD, US banks and exchanges will ask about the source of the crypto. For legitimate crypto holdings, this is fine - just be prepared to document when and how you acquired it. Do not use crypto to circumvent currency controls.
How much should I transfer initially?
Start with a modest amount ($5,000-$25,000) to establish the banking relationship, then notify the bank before sending larger investment amounts. This creates a transaction history and gives you a relationship manager contact before the big transfer.