CHICAGO -- Under a new agreement between the government of Mexican President Vicente Fox and First Bank of the Americas, a 4-year-old Chicago bank with three branches, Mexicans living in Chicago will be able to send money home to Mexico without paying high fees.
According to a report in the Chicago Sun-Times, participants would pay as little as $1.50 to send $100 to Mexico, whereas wire transfer companies charge up to $20 for the same service.
A bank account is needed to get the better rate, which in the past was not an option for undocumented workers with no Social Security numbers. But First Bank of the Americas announced that it would allow customers to open accounts with an Individual Taxpayers Identification Number, issued by the Internal Revenue Service, and two forms of identification. The announcement follows similar actions recently taken by Wells Fargo and U.S. Bank.
New First Bank of Americas account holders will receive two ATM cards, one of which could be used by a relative in Mexico to withdraw funds at ATMs that are part of the Cirrus network. The only added expense would be the ATM surcharge.
Account holders will also receive traditional wire transfers at discounted rates.
"This program offers fairness, respect and dignity to people who are often taken advantage of," said U.S. Rep. Luis Gutierrez (D-Chicago), a member of the House Banking Committee.
Illinois state Treasurer Judy Baar Topinka said that of the estimated one million undocumented Mexicans in Chicago, at least 40 percent are sending money to relatives in Mexico.
Also participating in the new program are the Archdiocese of Chicago, Archdiocese of Mexico and the International Coalition for Mexicans Abroad.
