Security Briefing: Money and Valuables

The information below has been excerpted from the following: 1) the US Department of State's "International Travel" website (www.travel.state.gov/content/travel/en/international-travel/International-Travel-Country-Information-Pages.html), 2) the Australian Department of Foreign Affairs and Trade's "Smartraveller" website (www.smartraveller.gov.au), and 3) the UK Foreign and Commonwealth Office's "Foreign Travel Advice" website (www.gov.uk/foreign-travel-advice). Additional information is available from these sources. World Trade Press annually assesses the information presented on this page.

United States: Department of State International Travel Information

Real Estate and Time Shares

You should be aware of the risks inherent in purchasing real estate in Mexico, and should exercise extreme caution before entering into any form of commitment to invest in property there. Mexican law and practice regarding real estate differ substantially from the United States. Foreigners who purchase property in Mexico may find that property disputes with Mexican citizens may not be treated evenhandedly by Mexican criminal justice authorities and in the courts. Consumers should consult a Mexican attorney before undertaking a real estate transaction.

U.S. citizens should exercise caution when considering time-share investments and be aware of the aggressive tactics used by some time-share sales representatives. Buyers should be fully informed and take sufficient time to consider their decisions before signing time-share contracts, ideally after consulting an independent attorney. Mexican law allows time-share purchasers five days to cancel the contract for unconditional and full reimbursement. U.S. citizens should never sign a contract that includes clauses penalizing a buyer who cancels within five days. Note that time-share companies cannot be sued in U.S. courts unless they have an office or other business presence in the U.S. The Department of State and the U.S. Embassy frequently receive complaints from U.S. citizens about extremely aggressive sales tactics, exaggerated claims of return on investment, lack of customer service, and questionable business practices by time-share companies, resulting in substantial financial losses for time-share investors.

A formal complaint against any merchant should be filed with PROFECO, Mexico's federal consumer protection agency. PROFECO has the power to mediate disputes, investigate consumer complaints, order hearings, levy fines and sanctions for not appearing at hearings, and do price-check inspections of merchants. All co mplaints by U.S. citizens are handled by PROFECO's English-speaking office in Mexico City at 011-52-55-5211-1723 (phone), 011-52-55-5211-2052 (fax), or via email at the link above. For more information, please see the PR OFECO website.

Ownership Restrictions

The Mexican Constitution prohibits direct ownership by foreigners of real estate within 100 kilometers (about 62 miles) of any border, and within 50 kilometers (about 31 miles) of any coastline. In order to permit foreign investment in these areas, the Mexican government has created a trust mechanism in which a bank has title to the property but a trust beneficiary enjoys the benefits of ownership. However, U.S. citizens are vulnerable to title challenges that may result in years of litigation and possible eviction and even incarceration. Although title insurance is available in the Baja Peninsula and in other parts of Mexico, it is virtually unknown and remains untested in most of the country. In addition, Mexican law recognizes squatters' rights, and homeowners can spend thousands of dollars in legal fees and years of frustration in trying to remove squatters who occupy their property.

Credit/Debit Card "Skimming"

Exercise caution when utilizing credit or debit cards in ATM machines or dubious locales. There have been reports of instances in which U.S. citizens in Mexico have had their card numbers “skimmed” and the money in their debit accounts stolen or their credit cards fraudulently charged. (“Skimming” is the theft of credit card information by an employee of a legitimate merchant or bank, manually copying down numbers or using a magnetic stripe reader, or using a camera and skimmer installed in an ATM machine.) In addition to skimming, the risk of physical theft of credit or debit cards also exists. To prevent such theft, the Embassy recommends that travelers keep close track of their personal belongings when out and about and that they only carry what they need. Most restaurants and other businesses will bring the credit card machine to your table so that you can keep the card in your possession at all times. If travelers choose to use credit cards, they should regularly check their account status to ensure its integrity.

Australia: Department of Foreign Affairs and Trade Travel Advice

Before you go, organise a variety of ways to access your money overseas, such as credit cards, travellers' cheques, cash, debit cards or cash cards. Australian currency and travellers' cheques are not accepted in many countries. Consult with your bank to find out which is the most appropriate currency to carry and whether your ATM card will work in Mexico. US dollars are widely accepted in holiday resort areas of Mexico. For security reasons, you should only use ATMs during daylight hours.

Make two photocopies of valuables such as your passport, tickets, visas and travellers' cheques. Keep one copy with you in a separate place to the original and leave another copy with someone at home. Store your passport and other valuables in the hotel safe where possible and carry a copy of your passport for identification purposes.

While travelling, don't carry too much cash and remember that expensive watches, jewellery and cameras may be tempting targets for thieves.

As a sensible precaution against luggage tampering, including theft, lock your luggage. Information on luggage safety is available from Australia's Civil Aviation Safety Authority.

Your passport is a valuable document that is attractive to criminals who may try to use your identity to commit crimes. It should always be kept in a safe place. You are required by Australian law to report a lost or stolen passport. If your passport is lost or stolen overseas, report it online or contact the nearest Australian Embassy, High Commission or Consulate as soon as possible.

You are required to pay an additional fee to have a lost or stolen passport replaced. In some cases, the Government may also restrict the length of validity or type of replacement passports.

Australians may be issued with an Emergency Travel document if their passport is lost or stolen and will need to get a US transit visa should their return travel be via the United States. This process requires a minimum of 48-72 hours.

United Kingdom: Foreign and Commonwealth Office Foreign Travel Advice

The local currency is the Mexican Peso. It’s easier to exchange US dollar travellers’ cheques and notes into local currency than Sterling. UK debit and credit cards are widely accepted for payment and in ATMs. It’s not possible to exchange cash at hotel receptions - this can only be done at banks and bureaux de change.