Currency Companies

Because Brazil has some of the most complicated and strictest banking regulations in the world receiving funds from or moving them to offshore locations is a very time consuming and bureaucratic process requiring a great deal of paperwork.

Here the only way to move these funds is through a currency exchange (either private financial institutions or operated by a retail bank) and the transactions are monitored closely by the Central Bank. Nobody escapes from the bureaucracy even the smallest foreign transactions go through the whole process.

For example, I get a retirement pension check from Canada every month and it is a very small amount. Because of the Central Bank rules Canada does not have a direct deposit agreement with Brazilian banks like they do with banks in many other countries so I get a check. Banks here, and even many currency exchanges, don't deal with foreign checks so it becomes even more complicated. Every month I must travel to Rio in order to exchange my check in a currency exchange there. Then they don't just cash it on the spot, the funds are held for 30 days or more until the check clears in Canada and then they deposit my money. There is a mountain of paperwork involved and it is a scene that repeats for me every month, unfortunately.

Can you imagine then, just how much more difficult it is for really large transactions?

Cheers,
William James Woodward - Brazil Animator, Expat-blog

Banks are generally a headache wherever you are. In saying that, the Korean banks are very good when it comes to transferring money, all depends on how much, the currency rate and what their fees are, not to mention what the fees are at the other end too. I understand everyone has to make a dollar, but it pays to check around as some fees are dramatically different to other financial institutions.

I haven't personally used a currency company before but I have heard XE (online) is quite good, provided you're on their list of nations where their services can be used. I had a look at it for me a while back, unfortuantely Korea isn't offered but it seemed their fees weren't bad, what I could make out is that they are a holding company whereby they'll hold the money for a day or so and get interest on your money while it's going through the transferral process. This is a way of getting their fees rather than charging you directly.

In these times when fraud is so prevalent, I would ALWAYS go with quality - i.e. a reputable bank. Besides banks and Western Union, I'm not sure I understand what a "currency company" is, exactly. The term sounds a bit fly-by-night, surely.