Whether you’re emigrating, funding a business or helping a child studying abroad — sending large sums to Mexico can be tricky.
Whatever your reasons for sending money to Mexico, there’s a lot to consider. However, one thing you can’t avoid are the laws and legal paperwork that go along with transferring large amounts of money. Before you move your money out of the US, familiarize yourself with these laws and regulations.
Do I have to report large transfers out of the US?
While there’s no limit as to how much you can send from the US to Mexico, if you’re sending more than $10,000, you’ll need to abide by US laws put in place to both protect your money and protect the interests of the government.
By law, banks report all cash transactions that exceed $10,000 — and any transaction of any amount that alerts their suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000.
US law requires banks and money transfer companies to report:
Your name and contact information.
The name and contact information of the person who sent you the money.
If send from a bank account, the financial details of the sendee, including SWIFT codes.
Your banking information, including your bank account.
How much you received.
What is a SWIFT code?
Short for the cumbersome Society for Worldwide Interbank Financial Telecommunication, a SWIFT code is an international bank code used for incoming transfers. Overseas banks each have a unique SWIFT code that identifies which bank to send money to.
Documents specific to sending large amounts out of the US
Depending on how much you’re sending to Mexico, the IRS requires you to file any number of tax forms. Here’s a few you might encounter, but be sure to talk to a professional for your specific requirements.
Form 114 — Foreign Bank and Financial Accounts (FBAR). For people who at any time had a foreign account valued at more than $10,000.
Form 709 — Gift and Generation-Skipping Tax Return. To report gifts subject to the gift tax.
Form 3520 — Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. For US residents who directly or indirectly transfer money to a trust or receive foreign gifts of $100,000 or more.
Form 8938 — Statement of Specified Foreign Financial Assets. Required if foreign accounts and combined assets are work $500,000 or more.
What are the penalties for not filing?
With so much attention on money entering the country, if you fail to report large sums, don’t know you have to report them or don’t report them correctly — it will likely be discovered.
To avoid the severe penalties (including jail time) that could come with a failure to report large sums of money into the country, speak with a professional to guarantee that everything is above board and complies with the laws of all countries involved.
Sending a lot of money out of the country? Know what the IRS expects of you.
Why is the US government interested in how much I send?
Laws are in place to protect you and the government from fraudulent activity. By monitoring transactions in and out of the US, authorities are able to:
Protect your sensitive information is key.
Lower the risk of illegal and fraudulent transfers.
More clearly identify money laundering schemes.
Inhibit the ease of sheltering taxes in untraceable offshore accounts.
Since 9/11, the US government has put even more stringent laws in place. For example, the Patriot Act allows the government to track money more carefully due to terrorism.
What should I expect when sending money overseas?
To prevent the US government from delaying or canceling your money transfers in and out of the country, you’ll need to provide proof of a government-issued photo ID — a driver’s license or passport, for example — and proof of your address.
If you already own an account with the bank or money transfer company, you may not need to provide ID each time you transfer money. However, online money transfers may have stricter rules when it comes to proof of ID and could ask for additional documentation or to verify your identity by phone.
Compare services that enable you to transfer large sums of money into Mexico
Rates last updated February 9th, 2017
Transfer amount
Sending from
To
Sending to
AUS (Australia) Australian Dollar (AUD)
CAN (Canada) Canadian Dollar (CAD)
MEX (Mexico) Mexican Peso (MXN)
NZL (New Zealand) New Zealand Dollar (NZD)
GBR (United Kingdom) Pound Sterling (GBP)
USA (United States) US Dollar (USD)
EUR (Euro) Euro (EUR)
XCD (East Caribbean Dollar) East Caribbean Dollarr (XCD)
XOF (CFA Franc BCEAO) CFA Franc BCEAO (XOF)
XPF (CFP Franc) CFP Franc (XPF)
XAF (CFA Franc BEAC) CFA Franc BEAC (XAF)
DZA (Algeria) Algerian Dinar (DZD)
AGO (Angola) Kwanza (AOA)
AIA (Anguilla) East Caribbean Dollar (XCD)
ATG (Antigua And Barbuda) East Caribbean Dollar (XCD)
ARG (Argentina) Argentine Peso (ARS)
ARM (Armenia) Armenian Dram (AMD)
ABW (Aruba) Aruban Florin (AWG)
AUT (Austria) Euro (EUR)
AZE (Azerbaijan) Azerbaijanian Manat (AZN)
BHS (Bahamas) Bahamian Dollar (BSD)
BHR (Bahrain) Bahraini Dinar (BHD)
BGD (Bangladesh) Taka (BDT)
BRB (Barbados) Barbados Dollar (BBD)
BLR (Belarus) Belarusian Ruble (BYN)
BLR (Belarus) Belarusian Ruble (BYR)
BEL (Belgium) Euro (EUR)
BLZ (Belize) Belize Dollar (BZD)
BEN (Benin) CFA Franc BCEAO (XOF)
BMU (Bermuda) Bermudian Dollar (BMD)
BTN (Bhutan) Indian Rupee (INR)
BTN (Bhutan) Ngultrum (BTN)
BOL (Bolivia) Boliviano (BOB)
BOL (Bolivia) Mvdol (BOV)
BIH (Bosnia And Herzegovina) Convertible Mark (BAM)
BWA (Botswana) Pula (BWP)
BRA (Brazil) Brazilian Real (BRL)
BRN (Brunei Darussalam) Brunei Dollar (BND)
BGR (Bulgaria) Bulgarian Lev (BGN)
BFA (Burkina Faso) CFA Franc BCEAO (XOF)
BDI (Burundi) Burundi Franc (BIF)
KHM (Cambodia) Riel (KHR)
CMR (Cameroon) CFA Franc BEAC (XAF)
CYM (Cayman Islands) Cayman Islands Dollar (KYD)
CAF (Central African Republic) CFA Franc BEAC (XAF)
TCD (Chad) CFA Franc BEAC (XAF)
CHL (Chile) Chilean Peso (CLP)
CHL (Chile) Unidad de Fomento (CLF)
CHN (China) Yuan Renminbi (CNY)
CCK (Cocos (Keeling) Islands) Australian Dollar (AUD)
COL (Colombia) Colombian Peso (COP)
COL (Colombia) Unidad de Valor Real (COU)
COG (Congo) CFA Franc BEAC (XAF)
COK (Cook Islands) New Zealand Dollar (NZD)
CRI (Costa Rica) Costa Rican Colon (CRC)
HRV (Croatia) Kuna (HRK)
CYP (Cyprus) Euro (EUR)
CZE (Czech Republic) Czech Koruna (CZK)
DNK (Denmark) Danish Krone (DKK)
DJI (Djibouti) Djibouti Franc (DJF)
DMA (Dominica) East Caribbean Dollar (XCD)
DOM (Dominican Republic) Dominican Peso (DOP)
ECU (Ecuador) US Dollar (USD)
EGY (Egypt) Egyptian Pound (EGP)
SLV (El Salvador) El Salvador Colon (SVC)
SLV (El Salvador) US Dollar (USD)
GNQ (Equatorial Guinea) CFA Franc BEAC (XAF)
ERI (Eritrea) Nakfa (ERN)
EST (Estonia) Euro (EUR)
ETH (Ethiopia) Ethiopian Birr (ETB)
FJI (Fiji) Fiji Dollar (FJD)
FIN (Finland) Euro (EUR)
FRA (France) Euro (EUR)
GUF (French Guiana) Euro (EUR)
PYF (French Polynesia) CFP Franc (XPF)
ATF (French Southern Territories) Euro (EUR)
GAB (Gabon) CFA Franc BEAC (XAF)
GMB (Gambia) Dalasi (GMD)
GEO (Georgia) Lari (GEL)
DEU (Germany) Euro (EUR)
GHA (Ghana) Ghana Cedi (GHS)
GIB (Gibraltar) Gibraltar Pound (GIP)
GRC (Greece) Euro (EUR)
GRL (Greenland) Danish Krone (DKK)
GRD (Grenada) East Caribbean Dollar (XCD)
GLP (Guadeloupe) Euro (EUR)
GUM (Guam) US Dollar (USD)
GTM (Guatemala) Quetzal (GTQ)
GIN (Guinea) Guinea Franc (GNF)
GNB (Guinea-Bissau) CFA Franc BCEAO (XOF)
GUY (Guyana) Guyana Dollar (GYD)
HTI (Haiti) Gourde (HTG)
HTI (Haiti) US Dollar (USD)
HND (Honduras) Lempira (HNL)
HKG (Hong Kong) Hong Kong Dollar (HKD)
HUN (Hungary) Forint (HUF)
ISL (Iceland) Iceland Krona (ISK)
IND (India) Indian Rupee (INR)
IDN (Indonesia) Rupiah (IDR)
IRL (Ireland) Euro (EUR)
ISR (Israel) New Israeli Sheqel (ILS)
ITA (Italy) Euro (EUR)
JAM (Jamaica) Jamaican Dollar (JMD)
JPN (Japan) Yen (JPY)
JOR (Jordan) Jordanian Dinar (JOD)
KAZ (Kazakhstan) Tenge (KZT)
KEN (Kenya) Kenyan Shilling (KES)
KIR (Kiribati) Australian Dollar (AUD)
KWT (Kuwait) Kuwaiti Dinar (KWD)
KGZ (Kyrgyzstan) Som (KGS)
LAO (Laos) Lao Kip (LAK)
LVA (Latvia) Euro (EUR)
LBN (Lebanon) Lebanese Pound (LBP)
LIE (Liechtenstein) Swiss Franc (CHF)
LTU (Lithuania) Euro (EUR)
LUX (Luxembourg) Euro (EUR)
MAC (Macao) Pataca (MOP)
MKD (Macedonia) Denar (MKD)
MDG (Madagascar) Malagasy Ariary (MGA)
MWI (Malawi) Malawi Kwacha (MWK)
MYS (Malaysia) Malaysian Ringgit (MYR)
MDV (Maldives) Rufiyaa (MVR)
MLI (Mali) CFA Franc BCEAO (XOF)
MLT (Malta) Euro (EUR)
MHL (Marshall Islands) US Dollar (USD)
MTQ (Martinique) Euro (EUR)
MRT (Mauritania) Ouguiya (MRO)
MUS (Mauritius) Mauritius Rupee (MUR)
MYT (Mayotte) Euro (EUR)
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