What is the issue?
We are aware that some of our clients are experiencing issues with our virtual accounts solution, when receiving Swift MXN Collections originating in Mexico.
To minimize any disruption and make sure funds arrive promptly, we are advising all clients follow the process outlined below while we continue to investigate and resolve the issue.
Why is this happening?
Due to restrictions put in place by the Mexican government, cross-border transactions originating in Mexico all need to clear through the Banco Nacional de Mexico before arriving at the recipient's bank account. If the receiving bank account does not have a direct correspondent bank in Mexico, funds are at risk of being held or rejected.
As Currencycloud does not currently have a direct correspondent bank in Mexico, the BIC associated with our virtual accounts is not recognised leading to a potential hold-up of funds, or a rejection altogether.
By paying MXN funds into our Barclays Client Settlement Account, we can avoid the risk, because Barclays Bank does have a direct correspondent in Mexico.
Instructions for receiving Swift MXN Collections from Mexico
Payers should send funds into Currencycloud’s Barclays account and add the Currencycloud Client Short Reference for the recipients account (xxxxxx-xxxx) in the reference field of the payment.
Payment instructions will differ slightly depending on which Currencycloud entity the recipient is onboarded with. If you are unsure, contact your CSM to confirm details.