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Bancolombia sucks, Banco de Occidente rocks!

For those who may open bank accounts in Colombia

Originally I had hoped to open a bank account with BanColombia because I heard their fees were the smallest and Bancolombia should be able to do anything that I expect a bank to be able to do.
When I first attempted to open the bank account in S.M.with Bancolombia, they said no and treated me like a criminal. Once I told them I had a cedula and was a resident, they said “OK. They informed me that they would open a bank account for me if I had a letter from my bank in Canada translated into Spanish and gave me an application form to open an account. After spending a couple of hours filling out their lengthy application form and translating my bank letter, BanColombia then called their office in Medellin and then discovered their own internal requirements for a foreigner to open an account.

They stated that Bancolombia requires:
- a cedula.

- documentation to demonstrate that one has been a resident of Colombia for at least six months in a 12 month period. (technically, this requirement eliminates any investment visa seekers from opening an account there).

- an original employment certificate that states my salary.

- an original letter from my bank abroad.

- completion of an extensive bank application form which requires that I disclose all my worldly asset and businesses should I have any. It also includes a household income and expense statement as well as a declaration about where all my worldly asset came from.

- family and personal references.

Frustrated with BanColombia because I have not been a resident long enough to open an account with them, I thought I would try Banco de Occidente which was recommended to me by a Colombian business man.

After stepping into branch of Banco de Occidente, I thought I was in a different country. There was no one standing in a queue and I did not have to wait to ask if I could open an account. They treated me like they actually wanted my business. They treated me like a valued customer. In order to open an account, they told me that I require:

- a passport OR a cedula.

- an original letter from my employer

- an original letter from my bank abroad.

- family and personal references.

- completion of a simple bank account application form with minimal disclosure requirements.

I instantly presented the letters which were only in English and the employment letter was from employment in Canada. They accepted them. They informed me that I automatically qualified for a checking account, a savings account, and two credit cards (18k fee per month). I choose only the savings account, which includes online banking and a debit card, to minimize my monthly fees which happen to match the fees charged by BanColombia (7900 per month). The hardest part was having two Colombian references that had landlines (all my references use cell phones). I was out of their branch office within an hour with my account and a letter stating all the swift codes for their bank and the intermediary banks for transferring money to Colombia. The bank employee was very helpful and knowledgeable.

I hope this bank has the same requirements across Colombia so other foreigners can benefit from a fresh attitude towards foreigners. I should also note that there was a point, after they informed me that I qualified for the credit cards, where the bank employees recognized my wife’s family name which may have helped reassure them that they were dealing with an honest, reputable customer.

By guacharaca on Aug 1, 2008, 19:22 in Visa & paperwork.

billyb says on Aug 1, 2008, 20:48:

I have a couple of accounts at Banco de Occidente and agree with you, i always recieve excellent service, they even gave me 3 coffee table picture books on Colombia, La Orinoquia, and the Andes, together worth a couple of hundred bucks when i opened my first one. Plus the fact that my account mgr at the downtown Cali branch is smoking hot, doesn't hurt at all. One thing they are sticklers about though, is making sure any money you transfer is squeeky clean.

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Philly says on Aug 2, 2008, 05:44:

I personally think all the banks suck in Colombia. I have a bank account with BanColombia, i did not have the problems that you had. I believe my situation was easier because my employer has an account their and they basically had no choice but to give me an account.

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jaramillo says on Aug 2, 2008, 07:15:

This shows Colombia's third world mentality. I recently spent a year in Salamanca, Spain. To open a bank account at Caja Duero I had to show my temporary resident card, and give my address and phone number. Period. But Colombians LOVE red tape.

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droble77 says on Aug 2, 2008, 08:13:

This issue gets raised time and time again in PBH. It all goes back to the problem of money laundering.

But isn't it true that rules and regulations in many parts of Latin American are for losers, chumps, and poor people? I have a funny feeling that if you know the right person and make the right "contributions" all that red tape gets cleared FAST but that's something that's not really been discussed here at PBH, either because people don't want to talk about that in public (naturally) or maybe Colombia actually does enforce those rules. That does take some high-level networking and language skills that the average gringo may not have. You can't just walk around offering bribes to people, lol! ;)

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sloopskipper says on Aug 2, 2008, 10:26:

Joel, I think you might find it is not quite that easy. Citi Bank in the U.S. is not the same as Citi in Colombia or Panamá. Likewise Bancolombia in Panamá is not the same as the one in Colombia.

Although I am told it "might" be a little easier if you have an account in the U.S., or elsewhere, with the same bank.

Furthermore, all U.S. owned banks operating abroad, have a reporting responsibility to the IRS. They are required to have the depositor file form W-9 to be submitted to the IRS: http://www.irs.gov/pub/irs-pdf/fw9.pdf .

This came to light here in Panamá when Citi bought Banco Cuscatlan. All U.S. citizens were required to submit a W-9 (contrary to the Panamanian bank secrecy laws), which would have been forwarded to the IRS, even with the possibility of back-up income tax withholding. Those who refused had their accounts closed.

So much for the long arm of the IRS.

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Noelito40 says on Aug 2, 2008, 11:20:

As droble pointed out, this issue of a foreigner opening a bank account in Colombia, is such an old chestnut it would qualify for it's own FAQ on PBH...were it not for the fact that there are no rules when it comes to this!!!! There are loads of threads on this and all are long winded rollercoaster stories of being told one thing, then another, then the original again, then something else!! and sometimes all this by the same person??!?!?!!

I've already posted my journey through the maze of getting an account here (and Joel y Luza, yes they will refuse your business!!?? and this is just as likely to happen at Citibank, or HSBC, as in a domestic bank...)

At the end of the day, there is no surefire way of guaranteeing getting an account here, but by far and away your best hope is by getting a personal introduction from a native (and this doesn't mean you have to stretch to giving "contributions"),

As someone once posted, getting an account here is a crap shoot, you'd be as well off talking a pair of dice to the bank as your cedula!!

Noelito

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sloopskipper says on Aug 2, 2008, 11:33:

http://nestmannblog.sovereignsociety.com/offshore_investment/index.htm... has various articles pertaining to U.S. residents and foreign investments. They may help explain the increasing reluctance of banks, worldwide, to shun investments from U.S citizens/expats, including a little insight into the recent UBS story.

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pobrecito says on Aug 2, 2008, 12:53:

Concerning HSBC, does the existence of an account in a foreign country help opening an account in Colombia ?

De que vale la vida si cuando la tenemos parece muerta. La vida es para sentirla, para vibrar, para luchar, para combatir. Eso justifica nuestro paso por la tierra........Jaime Pardo Leal

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pedro (☼Travelguide writer) says on Aug 2, 2008, 13:16:

Buggy, yes I found it did help. If you have HSBC Premier, ideal, as that's designed for people with accounts in range of countries.

I had regular HSBC, which was still useful as supporting documentation for opening the account.

"this may seem a strange post but it is not...when in colombia men need to be aware that colombia women may try to be seductive and entice a travelling gringo to have sex with them..to be forewarned is to be forearmed..." -- pow wow

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Lon7 says on Aug 2, 2008, 14:10:

"an original letter from my bank abroad."

-- What does this letter say?

"resident of Colombia for at least six months"

-- How have some of you gained access to your USA Money without a Colombian bank account to wire it to?

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pobrecito says on Aug 2, 2008, 14:16:

Pedro, did HSBC Premier allow you to open an account in Colombia, even if you have not the cedula?

De que vale la vida si cuando la tenemos parece muerta. La vida es para sentirla, para vibrar, para luchar, para combatir. Eso justifica nuestro paso por la tierra........Jaime Pardo Leal

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pedro (☼Travelguide writer) says on Aug 2, 2008, 14:36:

Bugrecito, sorry, couldn't tell you for sure. I was never part of HSBC Premier, so we didn't explore those avenues. I got the feeling it may have been a quicker process. But as with everything in Colombian banks, the process is arbitrary.

May be worth making a phone call or two ahead of time, or send someone to enquire... see if it's worth signing up while still in your home country.

If you search my posts on HSBC, you will notice I moved away from them. They gave me a shitty rate on my first international wire transfer, which obliged me to change banks.

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pobrecito says on Aug 2, 2008, 14:42:

Thank you Pedbugrecito?

De que vale la vida si cuando la tenemos parece muerta. La vida es para sentirla, para vibrar, para luchar, para combatir. Eso justifica nuestro paso por la tierra........Jaime Pardo Leal

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guacharaca says on Aug 2, 2008, 15:17:

Lon7....When I received the letter for the bank in Canada and a letter from my employer, their purpose was to help my wife get a surface entrance visa for Venezuela. Using it to open a bank account did not cross my mind at that time. Since my wife was denied the Venezuelan visa in Canada and in Bogota, I still had the letters to use for opening an account in Colombia. My bank letter stated with wording to the effect that I was a valued customer at TD for more than 10 years and have in excess of 100k within their network. It did not disclose any unnecessary details. It original purpose was to make the Venezuelan consul believe that my wife would not overstay in Venezuela.

Colombianos: Las armas os han dado independencia, las leyes os daran libertad. (Santander)

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billyb says on Aug 2, 2008, 15:24:

Has anybody dealt with Banco Santander? In my opinion, it sucks. As a matter of fact I have a suit going against those fokers.

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Philly says on Aug 2, 2008, 16:02:

I would never wire my money to a bank in Colombia, fees are way too high.

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vicshere says on Aug 2, 2008, 16:49:

i have wired $30,000 a few years ago form canada it cost a total of $30.00 and nothing in colombia...maybe what you paid was 4/1000 and not a transfer fee...there a few rules about 4/1000 and you better learn how to use them

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Gator says on Aug 2, 2008, 18:31:

if you don't know 4/1000% you will be bitten on the ass

"Bene, cum Latine nescias, nolo manus meas in te maculare" .

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gringoloid (Trustee board) says on Aug 3, 2008, 17:40:

well, lets hear what these rules are about the 4/1000%

from 'kalder gets a clue' movie..''you piece of shit,, i never said Germany and the USA were secret allies''''i knew you were a pussy because you believe everything anybody tells you.'' ....GL does not suffer fools gladly.

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manINred says on Aug 4, 2008, 00:41:

Bancolombia is a load of bollocks. A terrible, terrible bank. I have never seen a bank that hires so many amateurs and which is so happy to steal from its own customers in my life!

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Noelito40 says on Aug 4, 2008, 10:01:

Just one point on the 4 por mil... Do you know that you can nominate one bank account to be exempt from this tax, to a limit of $7million monthly (It can only be a savings account as far as I know, you can't nominate a current account/Fiducia, etc)

Noelito

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vicshere says on Aug 4, 2008, 10:10:

above is correct

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vicshere says on Aug 4, 2008, 10:13:

just to add you need to sign an form stating that you personal value is below I think 96,000,000 and no 4/1000 ....above that you need to do income taxes....since I fall well below that I am not too interested in it

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vickysanmon@gmail.com says on Sep 22, 2008, 20:25:

Hey there!, I just read the whole thread when lloking for some info. I wanna open a savings bank account in USA before going back to Colombia. I'm leaving in about a week and a half. I have a saving and a checking account with bank of america, but then I want to have the account in a bank that works here and there without having to wire... Is that possible? :S
Can somebody advise me?
I have no idea of banks in Colombia or here and I just wanna be able to shop online from colombia if possible.
TY

Colombiana, y pa' más pica Quindiana! HP xD

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vicshere says on Sep 23, 2008, 05:53:

nope
use your ATM card

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ronbartlet999 says on Sep 29, 2008, 12:27:

My strong advice: Don't use Banco de Occidente.

My wife (Colombian) and I opened an account while there. They knew we did not live in Colombia and said it would not be a problem. Recently we tried to send some money to our account. It arrived but was not paid into our account. After inquiring, they said that whenever a transfer arrives in a foreign currency they need someone who is authorized to go to the bank to negociate the exchange rate before paying it into the account. Apparently they don't want you to get a poor exchange rate. We were not allowed to do this by telephone.

So they keep your money in their account until you decide if the exchange rate is ok. What a load of rubbish. Just trying to delay giving you your money.

Anyway, we told them that since they were refusing to pay our money into our account they must now transfer it back to our bank in England, which they agreed to do. No sign of the money yet after 3 weeks and various enquiries. In the end we might need a lawyer in Colombia to sort them out. It's the first time in my life a bank has refuse to pay money into an account.

Be very careful with Banco de Occidente.

I'll post again if we get the money back or need to take legal action against the bank to recover our money.

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pedro (☼Travelguide writer) says on Sep 29, 2008, 12:54:

That's Colombian law, not the whim of the banks.

Part of the problem is that you haven't understood the banking system before trying to use it.

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ronbartlet999 says on Sep 29, 2008, 12:55:

Although I didn't find Bancolombia very friendly when we tried to open an account there, we've never had a problem sending money to an account there. Any ideas how we can put pressure on them to return the money they took from us ?

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pedro (☼Travelguide writer) says on Sep 29, 2008, 13:03:

Maybe ask for written proof of the transfer to be faxed to you or scanned, w/ a transaction number and date.

Get in contact with the branch manager and ask him/her to resolve it.

If that doesn't work, contact the defensor del cliente: http://www.bancodeoccidente.com.co/servlet/page?_pageid=2244&_dad=port...

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ronbartlet999 says on Sep 29, 2008, 13:06:

Thanks. I'll let you know how I get on.

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