Bank of America Merrill Lynch has launched a Cuenta Controlada (controlled account) service in Mexico for Mexican pesos and U.S. dollar transactions.
The service regulates the exchange of cash among multiple parties based on agreed upon contractual provisions as specified by a client with Bank of America Merrill Lynch acting as an independent third party to receive, hold and disburse the funds.
"This is an exciting development for our clients needing controlled account services in Mexico," says Juan Pablo Cuevas, head of Global Transaction Services (GTS) for Latin America and the Caribbean. "Cuenta Controlada can significantly help companies manage their risk exposure and improve efficiencies. Importantly, the product is supported by our integrated suite of services including our online banking portal, CashPro Online, and its numerous modules such as information reporting."
The service can be used to support settlement of large mergers and acquisitions, good faith deposits or break fees, disbursement of milestone payments relating to a project, deposits to secure performance guarantees, holdbacks or earnings premiums in a business purchase, subscriptions relating to a capital strategy, legal or banking fees in a workout, safekeeping and disbursement of funds relating to bankruptcy and administration and other transactions.