Jan. 2, 2016
This article delves into the details of the good systems worked out by the US Social Security Administration and Mexican banks, for Americans who’ve retired to Mexico.
The Federal Benefits Unit (FBU), located at the U.S. Embassy in Mexico City (and also at the US Consulates in Guadalajara and Ciudad Juarez), provides services to Social Security, Veterans Affairs, Office of Personnel Management and railroad pension beneficiaries throughout Mexico. For details, see:
U.S. Embassy Mexico Federal Benefits information.
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Read the full article at:
Direct Deposit of Social Security to Mexican Banks – Article
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Feel free to copy with proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Read-on MacDuff . . .
Does anyone know how this applies to CANADIANS??????? As so many Canuks retire to Mexico too, I wonder if the provision applies to us?
Does this also apply to CANADIANS…..so many of us Canucks retiring to Mexico too!!??
Sorry, we don’t know what programs the Canadian govt. has put in place.
The answer is YES, with direct Canadian government funds going to many countries, including Mexico. See http://www.tpsgc-pwgsc.gc.ca/recgen/dd/form/etranger-abroad-frm-eng.html
A difference between the US SSA direct deposit program is that the US Treasury directly pays the dollar value of one’s SSA benefit to the Bank of Mexico (their Federal Reserve) which in turn converts the dollars to pesos at the official wholesale rate which are then deposited to one’s Mexican bank account. (SSA also provides direct transfers to many other companies. I do not know the mechanism.) The Canadian program apparently contracts currently with the Bank of America to send transfers directly to one’s foreign bank account.
For those SSA recipients in Mexico or most everywhere else who do not have a foreign bank account, the SSA can issue a “Direct Express” debit card. (The same card also works within the USA.) The user would be subject to any relevant bank charges.
Does anyone know whether others would have access to the address that one must use to have one’s Social Security payments deposited in a Mexican bank? I understand from the Mexican Embassy in DF that first, one must change one’s address to Mexico to use the direct deposit feature. However, I’ve used a Texas address (my mail forwarding company) for US bank accounts and credit card accounts. Don’t want to lose my US cards if some one can check on where my SSA funds are going….
Remember that Social Security information is supposed be confidential => not shared with other govt. agencies.
The FATCA, FBAR, and Know Your Client (banking programs/rules) are part of Dept of Treasury, a separate set of databases, that clearly share tons of Treasury client information, but does not cross-pollinate with the SSA.
Certainly the NSA has individual files/records on each of us that includes all 4 sets of information, but they’re supposed to remain secret.
I think your worries are not founded. Really, the mail-forwarding company and the banks themselves are the likely parties to show you don’t have a real US address. e.g. Lots of gringos have reported that using their CC cards and/or ATM cards in Mexico (for consecutive months) prove to the bank that you’re in Mexico.
Thanks, Steve, for the information. I’d like to take advantage of the higher conversion rate that direct deposit uses, but was reluctant to admit I was in Mexico full-time. (And I don’t use my US cc and/or ATM cards here – only my Mexican bank’s cards.)
Your strategy seems likely to pay off.
The SSA is not supposed to randomly share private individuals data with the IRS or Treasury, and certainly not with US banks.
what are some of the names of banks in mexico that accept direct deposits from ssa
Banamex, Santander, Bannorte, Scotiabank, BBVA are a few.
You have to fill out several official forms … and most Americans in Mexico** submit them to the FBU (Federal Benefits Unit) at the US Embassy in Mexico City.
fbu.mexico.city@ssagov … https://mx.usembassy.gov/federal-benefits-unit/
**American citizens in the states of Baja California Norte, Sonora, Durango, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas use the American Consulate Ciudad Juarez’s FBU.