More Tricks to Sending Money to Brazil

Sending money to Brazil can be a real challenge. Aside from currency exchange issues and wire transfer delays, you’ll have to comply with a host of regulatory and bank compliance requirements. But there’s one thing to remember that’ll eliminate the biggest headache.

Who’s transferring the funds is critical. If Tom Jones signs a contract with ABC Company, then payment must come from Tom Jones. And by Tom Jones, we mean Tom Jones - not his wife Tamara Jones or his company Tom Jones Incorporated. Frankly, it shouldn’t come from Thomas Jones either.

Most financial transactions are registered with the Brazilian Central Bank. As a result, commercial banks generally won’t accept funds that aren’t backed up with a contract, loan agreement, or some other document verifying the transaction. Therefore, any money transferred to Brazil should originate from an account clearly associated with the party to the underlying written documentation.

The same is true for the capitalization of a Brazilian company. If you’re the shareholder, then any money should come from you. If your business is the shareholder, then the investment should come from your business. In this case, you’ll also need to register the funds as we describe HERE.

It seems rather straightforward, but it’s one of the biggest reasons why bank transfers aren’t accepted in Brazil. And again, it’s why we always remind readers to think carefully about a transaction and the documentation before signing. Careful planning is key. We promise - it’ll save you time, money, and frustration later on.