Treasury & Securities Services
In Mexico, Banco J.P. Morgan SA, Institución de Banca Multiple, J.P. Morgan Financial Group offers a broad array of banking services to corporations, governments and financial institutions.
Companies with operations in Mexico have considerable commercial activity that requires the use of local accounts to facilitate their transactions management. At the same time, they need to exercise regional or global control, according to corporate treasury policies, and ensure the best possible efficiency and security on a local, regional and global level. Banco J.P. Morgan offers local capabilities that include solutions designed to meet companies’ treasury requirements through Mexico, whether or not they are resident within the country.
- Operational Treasury Management Environment in Mexico
This section focuses on aspects of the operating environment that provides the context for cash management services offered by local and international J.P. Morgan in Mexico.
Mexican banks offer accounts in U.S. dollars and Mexican pesos but there are restrictions on foreign currency accounts. Interest Bearing accounts (that pay interest) and non-Interest Bearing (do not pay interest) are provided. Mexico has no currency exchange controls. The clearing houses for electronic transfers (SPEI and CECOBAN) are designed for operations in Mexican pesos only. Electronic transactions in U.S. dollars are made through the SWIFT system.
Electronic Interbank Payment System (SPEI)
The SPEI clearinghouse is owned by Mexico’s central bank, which is also responsible for its operation. The Electronic Interbank Payment System is in charge of carrying out urgent electronic transfers (settled within the same day). In February 2006, the minimum amount restriction was eliminated, allowing any amount for electronic transfers through this system.
Banking Computer Center (CECOBAN)
This clearinghouse was established as a private company. It is now operated by a society of over 20 banks in Mexico in order to provide additional services for the Mexican banking system. Electronic fund transfers (TEF) that are non-urgent (next day value date) are performed through CECOBAN.
Standardized Bank Code (CLABE)
The Mexican Banks Association, CECOBAN and Mexico’s central bank adopted an account standard called CLABE. From June 2004, to make payments or wire transfers, the CLABE account format should be used. Each account has its own CLABE, which consists of 18 digits.
The importance and use of checks as payment and collection is declining due to the efficiency and security provided by electronic transfers. While check usage continues to be the largest payment transaction volume, it is the one with the least processed amount.
Treasury & Securities Services
- Cash Management
We are pioneers in highly innovative electronic systems and Internet based; we offer integrated solutions that allow optimization of all company’s financial and treasury tasks.
J.P. Morgan Mexico is one of the few banks with special expertise in counseling for regional and global treasury establishments.
We have products and services that enable the establishment of a banking structure with efficient and effective treasury integrated with company’s accounting systems. Being a direct member at the clearing houses, allows J.P. Morgan Mexico to offer our customers competitive schedules for the execution of transfers through SPEI and CECOBAN (TEF).
- Payment Services
Our funds transfer solutions provide a complete range of automated services that support domestic and international payments. Sophisticated monitoring, reporting options and extensive security features enrich the payments environment.
Same-Day Electronic Payments - SPEI liquidation
Same-day peso transfers are conveyed through SPEI. Such transactions may be originated through our electronic banking platforms, J.P. Morgan ACCESS or File Management Services - PaySource.
Next-Day Electronic Payments - TEF liquidation
High-volume peso transfers can be made through CECOBAN clearing house, which processes payment instructions to be cleared next day. TEF payments can be sourced via File Management Services - Paysource and/or through the ACH module in J.P. Morgan ACCESS. (CECOBAN can only process transactions in Mexican pesos.)
Same-Day USD Electronic Payments - liquidation
Dollar transfers are also made on the same day. Process/liquidation is conduted through SWIFT. Customers can also enter these transactions through our online banking platforms, J.P. Morgan ACCESS or File Management Services - PaySource.
Federal Tax Payments
In Mexico, federal taxes for corporations can only be made electronically through the online services of licensed banks. J.P. Morgan Mexico has established a partnership with an authorized bank to offer customers the ability to perform electronic federal tax payments from their J.P. Morgan Mexico accounts in pesos.
Our customers can make the following types of tax payments:
- Provisional tax payment
- Annual tax payment
- Tax credit payments
- Federal entities payments
- Rights, products and resources
The market in Mexico for foreign exchange is not restricted and customers can use the different electronic products (Auto FX and FXFTI) that J.P. Morgan offers to make transfers in currencies other than that of the customer’s account. Spot and forward transactions in more than 140 currencies are available.
- Collections / Deposits
Cash deposits in pesos can be received through a correspondent bank with a 1,300 branch network throughout Mexico. Deposits made through this correspondent bank are credited within the same business day on our client’s account at J.P. Morgan Mexico.
Electronic Funds Transfer Receipt
Wire transfers received locally (SPEI or TEF) or from abroad (SWIFT) are credited immediately to J.P. Morgan client’s accounts. The references attached to the transfer are shown in electronic banking at J.P. Morgan, as well as in bank statements for easy identification and reconciling.
Interest Bearing Accounts
Accounts, either in Mexican pesos or U.S. dollars, may be subject to payment of interest.
ZBA (Zero Balance Account) Structures
A zero balance account structure enables a more effective management of cash flow among various accounts owned by the same legal entity or several legal entities. At day's end, balances from one or more accounts are automatically transferred to a header account in the same currency, leaving a nominal balance, if that is required.
Why J.P. Morgan Mexico Treasury & Securities Services?
Our experience, industry leadership and long history of innovative services separate us from other banks with similar products. With the quality of our management programs, our annual investments in product development and technology, and our global coverage, J.P. Morgan is committed to continuously improving our product line and service quality to customers. By choosing J.P. Morgan, customers can be confident they have chosen a partner with solutions and qualifications.