Latin America is our second biggest market and we set up an office to better understand and serve the people there. Here's a few tips we learned that may benefit you as you seek to amplify light around the world. Opening the Bank Account Angel started the process of opening a bank account in September 2023. It wasn’t until early January 2024 that the account was officially opened. Even then, it had very limited use. Initially, we could only write checks, which had to be signed by our law firm in El Salvador. Resolving this and gaining the ability to make bank transfers took another 1.5 months. Angel Studios - El Salvador also needed a company credit card. Several banks initially told our original law firm that Angel Studios - El Salvador would need to operate in El Salvador for three years before getting approved for a credit card. However, after sharing our dilemma with Franco Sanchez, the lawyer who was also helping our team with residency, he found a contact at Banco de America Central who would approve us for a credit card. We first had to open a special savings account and deposit our credit card limit into it as collateral. By mid-April, we finally had a fully functional bank account that allowed us to write checks, make money transfers, and have a company credit card. Why Does It Take So Long to Open a Bank Account in El Salvador? We were curious about the lengthy process, and after asking around, we learned that a few years ago, El Salvador’s Attorney General’s Office cracked down on banks for corruption and embezzlement, resulting in hefty fines. This led to stricter regulations, which is why it takes so long for international clients to open accounts. Not all banks are willing to consider international clients, but Franco Sanchez shared these banks that have successfully opened international accounts: Banco de America Central, Banco Agricola, Banco Promerica, Banco Cuscatlan, and Banco Davivienda. He noted, “These banks have strong policies to prevent crimes, including money laundering and anti-corruption. They also provide mechanisms to support their customers' commercial and project development needs, such as company credit cards, checking accounts, and online banking.” Lessons Learned Here are the lessons we learned during the process of opening our bank account: Determine Who Will Be Signing Paperwork: Will it be a local team member, via overnight shipping (which can cost around $100), or through Power of Attorney? El Salvador heavily requires in-person blue ink signatures, so know who will be signing the various paperwork throughout this lengthy process. Decide Who Will Be Signing Checks: Consider carefully who will need to write checks before you begin this process, as it’s not a small change to get a name added as a signer. Initially, AngelUSA’s CFO and one of the attorneys were named as signers. Later, it became clear that the CEO in the El Salvador office would need to sign, requiring more paperwork and another 1.5 months to make the change. Choose the Main Owner of the Bank App: The bank app is essential for making bank transfers to pay rent, utilities, and vendors. The main owner can add operators later, but they are the only person who can have full access to the account and make changes. Use an Experienced Law Firm: Find a firm with extensive experience helping foreigners set up bank accounts. While a recommended firm might work well for Salvadorans, they may lack experience with international clients. Our original firm took almost four months to open an account and another two months to get it fully functional. Questions to Ask When Hiring a Lawyer If you choose to hire a lawyer, here are some important questions to ask: How many international bank accounts has your firm successfully opened? What is the average timeframe for opening an international bank account? Franco says his firm’s average is 45 days. Does your firm have a contact at the bank who opens all your international accounts? It’s important for the lawyer to have a working relationship with someone inside the bank to keep the paperwork moving. Conclusion We hope this review answers some of your questions and helps you understand what is needed to open a bank account in El Salvador. Find more information about Sanchez & Partners here.
