Sending money Out of Peru.

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grinter
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Sending money Out of Peru.

Postby grinter » Mon Aug 23, 2010 5:04 pm

Hi, I didn't find an answer to this question by searching the board. Apologies if I missed it.

I am planning on transferring some money to my Peruvian bank account and perhaps investing it locally, because, frankly, the dollar isn't doing so well at the moment.
My concern is that some nations limit the money that can be sent out of the country. Does anyone know if I will encounter problems when it comes time to transfer my money back to the States?
Thanks.


PTTurboe
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Re: Sending money Out of Peru.

Postby PTTurboe » Tue Aug 24, 2010 8:50 am

Hmmmm. That is a good question! Anyone?
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zarjoe
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Re: Sending money Out of Peru.

Postby zarjoe » Tue Aug 24, 2010 11:18 am

Having built a house here a couple years ago and having received foreign funds into a Peruvian bank account via wire transfer (I won't mention the amounts, but think buy and renovate house size)... I can tell you that the laws for moving money here are similar to North America. I don't know about their application to Peruvians... just me as an expat here on a tourist visa but with accounts in Peruvian banks.

The main thing that they do here is file what is the equivalent of a SAR (Suspicious Activity Report) when they receive or send money more than $10,000 USD in a single transaction. The bank creates it, you fill out a form, sign it indicating you know the source of the funds and you are on your way. After doing several of these (and for amounts larger than that), I was called in by the Branch Manager to be questioned about the source of the funds. Just like most everywhere in the world, they have a "Know your client" law... I brought in my bank records from Canada showing the origin of the wires... along with my company books and copies of contracts with clients outside of Peru (I am self employed, so although onerous, it was straightforward). He asked me a couple questions, took copies of it all... and sent us on our way. That was 2 years ago. To this day, as long as we use the same branch of that bank, no more SAR reports, no more paperwork. And the additional benefit is that he listed us as "trusted, high value clients".... not that we keep much money there... it was just to clear transactions for the house... but the status seems to stick :)

So, to sum up, for expats with local bank accounts, there seems to be no upper ceiling on amounts sent or received. However, depending on your home country, you may have to sign a SAR with your bank in North America. If you are American, the IRS wants to know where you sent that money so they can track it and tax it (love that worldwide tax law)... if you do, remember that you need to check a box on your tax form that indicates you have funds and accounts outside the USA. If you don't and they track the wire, you will be charged with tax evasion, fined and potentially have the funds seized. Although the laws are enforced a little more loosely here in Peru, it doesn't mean that the IRS lets up its grip, nor that Peruvian banks don't cooperate FULLY when asked by the IRS. Keep your tax ducks all in a row and good luck.

p.s. If you are thinking of carrying the money rather than wiring.. again if its more than $10,000 USD you need to declare it on your customs form. Failure to do so upon exit of the USA or entry into Peru can mean not just fines, but a criminal charge and potential seizure of ALL the funds.

pps. After the house was built, I wired out similar amounts of money back to the USA and Canada. Although easy on this end (Peru), getting my banks there to release the received wires when they were more than $10,000 required a trip to the branch to sign a SAR. Again, no upper limit, but above the $10k amount, some monitoring paperwork. Given your plan to expatriate the USD, invest in Peru and repatriate it later... the IRS will want its annual tax on gains... money does not accrue tax exempt outside of the USA (and within the USA only as 401k's, 729's, IRA's and other registered accounts). You will trigger big red flags for them when you bring it back if you haven't filed while the funds were out of the country and then repatriate similar or higher amounts. Good luck!
grinter
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Re: Sending money Out of Peru.

Postby grinter » Tue Aug 24, 2010 11:52 am

Thank you very much zarjoe! That was extremely helpful.
Thanks for taking the time to write out a detailed response.
-grinter
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tupacperu
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Re: Sending money Out of Peru.

Postby tupacperu » Tue Aug 24, 2010 1:00 pm

Yes, $10K only triggers a SAR in any part of the world (Banks). Being that Peru is a drug country, transactions are closely watched.

In some cases it is a lower amount, I sent my son $50.00 from Peru via western union, he has the same name but a different middle initial. I did not put the initial and it triggered a flag and I had to call into WU and answer some questions. Money laundering laws on the method of a transaction , but I have yet to see a limit placed against money transfers.

Try openning a dollar account with HBSC in Peru. Took me about an hour and they wanted a lot of info including my wife's info and she was not on the account. They same day I opened an account with Scotia and it took 15 minutes. go figure.
Last edited by tupacperu on Tue Aug 24, 2010 2:48 pm, edited 1 time in total.
PTTurboe
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Re: Sending money Out of Peru.

Postby PTTurboe » Tue Aug 24, 2010 1:21 pm

Thanks all for the input!
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zarjoe
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Re: Sending money Out of Peru.

Postby zarjoe » Tue Aug 24, 2010 2:07 pm

No worries..glad you liked it... .sorry about the length... as a consultant its hard to keep my writings concise... I do get paid by the hour after all!
Alpineprince
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Re: Sending money Out of Peru.

Postby Alpineprince » Tue Aug 24, 2010 2:41 pm

The simple answer is:
The simple answer is "there are no limits (currently) on the amount of funds you can transfer out of Peru!
It is one of the beauties of this country, but like all good things this will not last!

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