Banking Do not bank with Santander Río!

[MarketJule]

Hello fellow expats! I'm writing to share a bad experience I had trying to open a bank account today with Santander Río. This bank refused to open an account for me, despite the fact that I have a residencia precaria (my residencia permanente is in process), a US passport, a CUIT, and a certification of my residence (certificado de domicilio) that was issued by the local police station (comisaria) in my neighborhood. Also, I am married to an Argentine, working here in Buenos Aires, and completing my master's degree here at UBA. At inmigraciones a few weeks ago, they explained that I could open a bank account (which is why they authorized RENAPER to issue me a CUIT [for those that do not know, a CUIT is like a social security number]).

Santander Río said they would only open an account for me if I had my DNI (which should take somewhere between another 3-7 months to receive, based on the time it has taken others to receive theirs that have shared their experiences on this site).

After my bad experience at Santander Río, I called Galicia (another major bank here) and they said they would be glad to open account for me with my residencia precaria, US passport, CUIT, and cerificado de domincilio (in lieu of the certidficado, they would also accept a utility bill). I will post on this site again once I have opened the account to share my experience with Galicia - let's hope it's a good one!

I am sharing my bad experience with Santander Río because I wholeheartedly hope that other Americans living in Argentina will avoid banking with them. There are too many social and economic problems to list here that banks like Santander Río only help perpetuate (informality [many of those who live in city's villas (slums) keep their money under a mattress] black-market employment, assimilation, integration, etc, etc. etc.) with discriminatory policies similar to the one I experienced today - not to mention the daily inconvenience of living in a country as a foreigner without the ability to open a bank account!

 

[Fetiches]

I also have had good experience with Galicia. I opened an account with only a CUIT. My DNI and visa are still in process. They were happy to help.

 

[FelipeMex]

Santander took over Citibank here. I'd had an account with Citi for over twenty years. When the US enacted FACTA, Citi tried to close my account. I had a huge battle with them but finally they allowed me to maintain the account. Then recently Santander closed my account citing another reason but I am sure it was FACTA, the US law that makes it very hard for banks outside the US to accept US citizens as clients. That may have been the problem you faced - they just do NOT want US citizens as clients because of all the complications FACTA creates for them.

 

[Sebanian]

Before you go around blaming someone, keep in mind their obligations. Here's interesting information:

The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to combat tax evasion by U.S. persons holding accounts and other financial assets offshore. The Treasury Department and the IRS continue to develop guidance concerning FATCA. For current and more in-depth information, please visit FATCA.

Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. There are serious penalties for not reporting these financial assets (as described below). This FATCA requirement is in addition to the long-standing requirement to report foreign financial accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1).

FATCA will also require certain foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. The reporting institutions will include not only banks, but also other financial institutions, such as investment entities, brokers, and certain insurance companies. Some non-financial foreign entities will also have to report certain of their U.S. owners.

Therefore, if you set up a new account with a foreign financial institution, it may ask you for information about your citizenship. FATCA provides special (and lessened) reporting requirements about the U.S. account holders of certain financial institutions that do not solicit business outside their country of organization and that mainly service account holders resident within it. In order to qualify for this favorable treatment, however, the local foreign financial institution cannot discriminate by declining to open or maintain accounts for U.S. citizens who reside in the country where it is organized.

Also, before you add more negative press to the poor bank, are you aware of the Patriot Act? It ain't that easy either to open an account in the US. If you look like, act like, or smell like a terrorist or drug dealer, the Patriot Act is a pain in the butt. And if your address is a PO Box, good luck trying to open an account.

 

[NigjeFs]

Did you know that JP Morgan is closing up all accounts held by Argentine? Don't blame the player...

 

[RichardOne]

Santander refused to open me an account when I had a Temporary residence visa. when I got the permanent visa had no problem to open an account . Banks do have regulations..

 

[MarketJule]

I went to Galicia yesterday and opened an account without hassle. The service I received from Nicolas Albanese at the Belgrano branch on Juramento was excellent. I asked him why some banks in Argentina refuse to open accounts for foreign nationals who are in the process of obtaining their permanent residency and only lack a DNI. He explained that the concern is over fraud. Therefore, @Supercharged and D.B. Cooper, yes, Santander's policies may have something to do with FACTA.

On the other hand, the onus should be on the customer service representatives at local banks to provide people with fair and informed answers (such as Nicolas seemingly did at Galicia); and moreover, on the those higher up in the organization to train and prepare such representatives. If US legislation prevents them from opening an account for prospective clients, then they should be prepared to explain that. And what about those who are NOT from the US who also do not possess a DNI? Are we arguing that FACTA affects them also? @Supercharged and D.B. Cooper???

I do not buy the "poor bank" claim that some on this thread have expressed. I stand my ground in reporting that the service I received at Santander Río was atrocious. And I urge people to avoid banking with them for the same reasons that I mentioned in my original post. They stated I would need a DNI to open an account and when I explained what migraciones had told me, the woman yelled "no importa" and refused to hear me out - in a room full of other customers waiting to be attended to. Should shaming immigrants in public be part of customer service?

 

[AntoniDes]

I think you might be taking this a little too personal.

No one doubts the customer service you received at Santander Rio was atrocious. But I don't think you were being "shamed" because you're an "immigrant" from the USA (or wherever).

Customer service in Buenos Aires is terrible for everyone. Most employees are rude, unhelpful, and want you gone as quick as possible.

Why?

a) It's impossible to fire anyone in Argentina. Therefore there's no incentive to provide decent service.
b) Since service is so bad, Argentine customers tend to be very hostile. Employees are combative because they deal with angry people all day long. It's a vicious cycle. Go to any busy bank around lunch time. You'll see.

But if this was a very upsetting experience for you... then my advice would be to either a) get thicker skin, or b) leave Argentina.

 

[earlyretirement]

I think you might be taking this a little too personal.

No one doubts the customer service you received at Santander Rio was atrocious. But I don't think you were being "shamed" because you're an "immigrant" from the USA (or wherever).

Customer service in Buenos Aires is terrible for everyone. Most employees are rude, unhelpful, and want you gone as quick as possible.

Why?

a) It's impossible to fire anyone in Argentina. Therefore there's no incentive to provide decent service.
b) Since service is so bad, Argentine customers tend to be very hostile. Employees are combative because they deal with angry people all day long. It's a vicious cycle. Go to any busy bank around lunch time. You'll see.

But if this was a very upsetting experience for you... then my advice would be to either a) get thicker skin, or b) leave Argentina.

Excellent post and spot on target.

 

[FeedLaps]

Excellent post and spot on target.

Hi Earlyretirement, I have been having fun (and also feeling embarrased for my country) about your comments on your longterm experience living in Argentina. I am a local who lived in the US for many years, and decided to come back in 2006, when it sounded like a good idea. I was able to take advantage of the 1999 and 2001-2002 downfall in real estate in Argentina and sold in the US just before the 2008 downfall there. So, all in all, I can't complain.

However, now that I'm all invested in real estate locally, I was looking for ways to finance building a house, but find myself without financial options here and in the US. I do have a US income and double citizenship, but it's been impossible to find a financial institution in the US that would provide financing for a foreign investment.

Are you aware of any such institutions by any chance?

Will keep on reading your posts as I find them very educating and entertaining.

 

[earlyretirement]

Hi Earlyretirement, I have been having fun (and also feeling embarrased for my country) about your comments on your longterm experience living in Argentina. I am a local who lived in the US for many years, and decided to come back in 2006, when it sounded like a good idea. I was able to take advantage of the 1999 and 2001-2002 downfall in real estate in Argentina and sold in the US just before the 2008 downfall there. So, all in all, I can't complain.

However, now that I'm all invested in real estate locally, I was looking for ways to finance building a house, but find myself without financial options here and in the US. I do have a US income and double citizenship, but it's been impossible to find a financial institution in the US that would provide financing for a foreign investment.

Are you aware of any such institutions by any chance?

Will keep on reading your posts as I find them very educating and entertaining.

Unfortunately, NO i'm not aware of any financial institutions willing to lend for an investment in Argentina (or other countries for that matter). I know a few people that have moved their 401k retirement investments into a self-directed IRA. If you do that, then you can use the funds for a "real estate investment" in Argentina. That's the only way I know but it's not what you're talking about but if you have 401K funds in the USA you can move it over and self-direct it to invest in Argentina.