By: Garland M. Baker B.
Exclusive to A.M. Costa Rica
Editor's Note: While this article was accurate at the time of publication, some information may now be outdated. We are currently preparing a comprehensive update. Sign up for our Alerts to be notified as soon as the revised content is live! Expats are having a very hard time understanding the new rules and regulations set forth by national and private banks in Costa Rica. They were outlined in detail on March 31. They do not understand why they cannot open a bank account if they are on a tourist visa but own property or have other investments in the country.
It is the fault of the Banco Central de Costa Rica. They issued a communication to all Costa Rican banks on March 27, 2012, stating the only people with valid acceptable documents can make interbank transactions via SINPE. The Banco Central is the central bank of the country. The organization who is responsible for controlling inflation, printing and managing money, and maintaining the stability of the Costa Rican currency.
It should not be confused with SUGEF. The Superintendencia General de Entidades Financieras, the organization that supervises the stability of the country’s financial system. In simplistic terms, the Banco Central manages the quantity and SUGEF the quality of Costa Rica’s finances.
Valid documents are the following: 1. Costa Rican cédula; 2. Resident identification card, called a DIMEX; 2. Company cédula obtainable from the Registro Nacional; and, 3. Diplomat identification or DIDI. A passport does not qualify.
Most interbank transactions in the country use SINPE or the Sistema Nacional de Pagos Electrónico system. This means it is controlled by the Central Bank. The only way around the rule is to use cash or a check and which is not very efficient today.
This means most banks will not open an account anymore for a tourist who walks into a bank to do so. There are exceptions, but very rare. Old accounts opened in more lenient times are being closed because they do not adhere to the new banking rules.
Companies like sociedad anónimas and S.R.L.s can open bank accounts. However, some banks themselves have interpreted the Banco Central’s ruling to mean everyone signed on the account must have one of the four documents listed above.
Digging deeper into the matter by visiting the Banco de Costa Rica and the Banco Nacional and speaking with supervisors, found they would open an account for a tourist. Nevertheless, it is not easy or common and the non-resident would need to have a valid Costa Rican company. They would also need at least one of the following requisites. Two would be better: 1. A recommendation letter from their home bank, translated into Spanish, notarized and apostilled; 2. A detailed outline of where all the funds in 1 originated, certified by a foreign certified public accountant, notarized and apostilled; or, 3. A local certified public accountant’s certification of funds.
There is an easier way. A representative of a Banco Nacional said he would allow a tourist or otherwise non-resident to sign on an account if the primary account holder did have one of the required identifications. Banco de Costa Rica said they would not let a non-resident foreigner sign under any circumstances.
Some private banks are a little more flexible. However, they too must adhere to Law 8024 and the Banco Central’s policies. To do so, they require non-resident foreigners to have most of the things national banks are asking for to open a new account.
The obvious problem is: Most people would rather not have someone they do not know very well sign on their their bank account. Some expats opt for an attorney or CPA, but this not a good option either. The way a Costa Rican laws work, most crooks get away with the bootie.
The issue is clear. How about a solution?
Expats with property should look to a reputable property manager to pay the bills. The key word here is “reputable.” To find one, good hard homework is necessary. Asking other expats, friends and other property owners can lead to finding the right person or company.
As for expats in business, they should have residency, so they can manage their banking needs, or have a partner trustworthy enough to do so. If they cannot meet these criteria, they should not be doing business in Costa Rica.
Is there a possibility things will change, go back to the way they were? Very unlikely. Costa Rica is doing it's very best to stay off the financial haven list. Being on it has hurt the country in the past. Most countries with money do not want to give or lend money to any country not willing to play ball in the international financial community.
Other countries insist on transparency and financial data sharing, so they can catch tax cheats. All the new banking requirements are mandated by the world. Costa Rica is just complying. It is a “tit or a tat” world.
Article first published in A.M. Costa Rica on April 14, 2014.
