December 6, 2022

foreign business

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Goodbye to Two Foreign Banks in Mexico

The Nationwide Banking and Securities Commission (CNBV) described that Canada’s Bank of Montreal and Israel’s Mizrahi Tefahot Lender, Ltd. will no longer have representation in the state.

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This posting was translated from our Spanish version utilizing AI systems. Faults may exist due to this system.

This tale at first appeared on Alto Nivel

By the Countrywide Banking and Securities Commission (CNBV) , the Ministry of Finance and Public Credit history introduced the closure of the agent workplaces in Mexico of the two overseas financial institutions.

The announcement was formalized by means of the Official Gazette of the Federation (DOF) , exactly where the bulletins of the closing of offices of the Canadian lender Lender of Montreal and the Israeli entity Mizrahi Tefahot Bank, Ltd. had been revealed. The revocation of the authorization was also claimed. for its establishment and operation by the CNBV.

The CNBV indicated that considering that 1963 the Treasury licensed the Financial institution of Montreal to build its agent business in Mexico. However, the Commission’s governing board dominated in favor of the revocation during a session held on January 30, 2020.

“We refer to your briefs introduced on November 14, 2019 and January 14 and 17, 2020, by signifies of which you notified this Commission of the definitive closure of Bank of Montreal , Montreal, Canada, representation in Mexico and, as a result, requested the revocation of the corresponding authorization, “claims the formal letter revealed in the DOF.

The Secretariat also declared the definitive closure of the consultant place of work of Mizrahi Tefahot Financial institution, Ltd. The third largest financial institution in Israel gained authorization to work in the nationwide territory in 2001. By official letter quantity 101-1728, the SHCP licensed its institution in the region less than the name United Mizrahi Lender Ltd. , Tel-Aviv, Israel, Office of Illustration in Mexico.

The Israeli entity notified in October 2019 the definitive closure of its agent place of work in Mexico. In January 2020, the CNBV’s governing board admitted its revocation.

What can the consultant workplaces of international banks do in Mexico?

The CNBV regulates and supervises the representative workplaces of overseas money entities. These offices can only accomplish specified functions, these kinds of as informing and negotiating credit history conditions that they intend to carry out in the countrywide territory.

They can also obtain details from their debtors and financial investment topics to work loans and supervise the execution and progress of the operations carried out, in addition to carrying out collection methods that are related to activities of their credit rating dynamics.

“Representative workplaces are prohibited from carrying out in the countrywide industry, among the many others, fiscal intermediation routines that require authorization from the federal authorities and performing, straight or by means of 3rd events, in operations to elevate cash from the community, possibly by individual or 3rd-get together account ”, particulars the CNBV.

When the Bank of Montreal and the Mizrahi Tefahot Bank, Ltd. They say goodbye to Mexico, other international banking companies keep a presence in countrywide territory. These is the situation of BNP Paribas of France, Bank of The united states of the United States, Liberbank of Spain and Shinhan Bank of South Korea.