The Trick to Sending Money to Brazil

Brazilian banking institutions are notorious for their red tape. If you’re a foreigner without residency status, just try opening a bank account. You’ll quickly realize you’re in an uphill battle facing a hill that seems to never end.

But not all banking transactions can be that difficult, right? Well…

Sending money to Brazil is a challenge that most foreign investors will one day face. You buy a house; you hire a freelancer; you need to pay your friend. How hard can it be to send an international wire transfer? In many cases, the struggle is real.

The reason is that all financial institutions are regulated and routinely audited by the Brazilian Central Bank. Even transactions that are seemingly benign but involve foreign currency often catch the government’s attention. And banks simply don’t want to take on any additional risk (especially when the transaction involves small amounts of money).

So when you’re sending money to Brazil, make sure that you’re complying with all Central Bank requirements. For example, funds arriving in Brazil from abroad must be categorized based on a specific Central Bank code. Banks will often ask for copies of loan documents, contracts and invoices as backup.

If you give the bank everything it needs to prove the legitimacy of the transaction, you’ll be on your way to a much smoother process. That’s not to say you won’t encounter roadblocks here and there. A few bumps in the road are to be expected. Just get used to a bumpy ride.