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Banks Dropping Latin American Accounts Tied to Secondary Market Businesses
By Colby Adams
printCrackdowns on currency exchange and bond swap businesses in Mexico and Venezuela are prompting some U.S. banks to turn away secondary market businesses in Latin America even when they operate legitimately, say consultants. Parallel, or secondary, market companies typically act as money changers by exacting a fee for exchanging U.S. dollars for local currency. The businesses, which often make use of U.S. banking services, can include local manufacturers, retailers, grocers, money transmitters and other companies. But some compliance staff officers broadly conflate the risks associated with the legitimate, regulated secondary markets and those tied to Venezuela's recently-outlawed permuta market, Mexican...
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