The Uruguay banking institutions can offer an opportunity to diversify the deposit allocation of your offshore. However, before making a deposit, it's imperative to know the banks in Uruguay laws and regulations. Uruguay has a history of instability within its banking sector as witnessed by the 2002 financial crisis. However, that crisis was mainly due to external factors outside of Uruguay. Nevertheless, if you were to make deposits without reviewing the laws that govern those assets, it could result in a substantial loss of assets.

Banking in Uruguay requires that you not only study the laws and regulations but know how they apply to the overall economy. For instance, Uruguay banks are not as strict when it comes to privacy laws as other Central American countries. The overall business investment climate is positive in the Uruguay banking system. There are additional guidelines that foreign companies must follow in setting up accounts, but once complete they receive equal treatment. Before you deposit any funds there are few items to consider:

1. Review the breakdown of the regulations for commercial banks in Uruguay.

2. Study the Uruguay bank regulatory information available from international agencies.

3. Contact governmental bodies for international banking in Uruguay assistance.

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Examine the Uruguay banking institution regulatory information

Regulations for any banking system invariably intertwine with the economy as a whole. Prior to making any deposit in a foreign bank, it's not only important to know their regulations but also the economic conditions of the country. These conditions often drive regulation and the officials enforce the laws already on the books.

I recommend: Evaluate the offshore investment regulatory perspectives at Panama Legal and The DeltaQuest Group. Register at Mondaq to review their in-depth tutorial on the financial system and the consumer banks in Uruguay. Study the Uruguay economic report from the US Department of State.

Assess the bank regulation information on Uruguay banks from international financial institutions

Some of the best regulatory information comes not from the banks within the country, but from international bodies that have the tools to compare one country's banking system to another. These entities provide examination of the regulations from a global perspective and not simply a nationalistic one.

I recommend: Review the regulatory and economic policy documents available at the World Bank. Contact the Inter-American Development Bank for detailed banking policy information.

Utilize the information available at the Uruguay banks

Most banks in Uruguay will not only have regulations that apply to the entire industry but regulations that are specific to each bank. Therefore, it's important that you contact each bank under consideration for the international regulatory information and the laws of that particular bank.

I recommend: Speak to representatives at the Central Bank of Uruguay to request a copy of all relevant regulatory information. Fill out the contact form at Banco Santander to request regulatory information.

If you’re thinking of moving to Uruguay or doing business in the country, then finding the right Uruguay bank to handle your financial business is going to be at the top of your To Do list.

Take the time to research the Uruguay banks carefully. Volatility in the financial sector of all countries is not uncommon these days. Here a few thing to keep in mind:

1. Collect all of the information you can on banks in Uruguay before you move or conduct any business in the country.

2. Seek help with finding the right bank in Uruguay from people who have already gone through the process. Ask friends, family, expatriates or anyone who has banked in the nation for information regarding the steps you need to take to get things done.

3. Use the largest commercial bank in Uruguay for personal use since they will have the most branches throughout the nation as well as provide more services.

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Assemble general information on the top banks in Uruguay

It is important to know all you can about business banking in Uruguay before you begin the process of opening a bank account in the country. You want to know about the banks' policies, foreign investment, the exchange rate and any other information you can think of to make your business or personal transactions easier.

I recommend: Lonely Planet has great information on money, currency exchange and other financial information that’s useful for anyone thinking of visiting or moving to Uruguay. Delta Quest has detailed information on the banking and finance industries in Uruguay.

Contact expatriates for advice on Uruguay banking institutions

If you don't know where to begin when banking in Uruguay, seek out expatriates for advice. They have already made the transition from the US to Uruguay so they can give you the information you need to begin that process.

I recommend: Allo’ Expat offers a wealth of information on business, finance and banking in Uruguay. Expat Blog has several blogs by those who have made the move to Uruguay. It’s a great way to make contact with people who have made the move and set up a home or business in the country.

Use the largest commercial banks in Uruguay for everyday business

Just as there are benefits to using the big banks here in the US, there are advantages to using the biggest of Uruguay commercial banks for your everyday banking. Using the largest of Uruguay banks will give you more access to branches throughout the nation, more access to ATM's as well as just making your transition to Uruguay much easier.

I recommend: Banco Hipotecario del Uruguay and Crédit Uruguay Banco are two of the bigger banks in the country and offer many service from retail banking to corporate banking.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Pay attention to the actions of the Central Bank of Uruguay. The decisions they make will affect monetary policy, other banks in Uruguay, and the economy as a whole.

Banking in foreign countries such as Uruguay can offer great opportunity but not without equivalent risk. One way to better the odds in your favor is to study the banking system in Uruguay to reduce the risk of any potential investment. Risk is always present in any transaction but you can dramatically lower the probabilities of its occurrence through research and planning. A great place to start this research is with some select key terms. These terms provide a solid knowledge base on which you can construct a thorough understanding of the banks in Uruguay.

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Central Bank of Uruguay

The Central Bank of Uruguay is the bank to the government in the country and financial institutions in the country. The Central Bank of Uruguay has the responsibility of issuing all forms of currency, to manage reserves, banking regulations and monetary policy and promote the stability of the financial markets.

I recommend: Review the history, scope and purpose of the Central Bank of Uruguay for more information.

Citi Group Uruguay

Citi Group Uruguay is an international banking institution with operations in Uruguay and the United States. These banks often offer the easiest transition into a foreign banking market because they aren't based solely in Uruguay.

I recommend: Evaluate the services and the synopsis offered by Citi Group Uruguay for further details.

Financial Investment Corporations

Financial Investment Corporations are investment vehicles that make corporate investing in Uruguay a much simpler process. A Financial Investment Corporation is a way for foreign companies to incorporate within the country.

I recommend: Assess the structure and purpose of Financial Investment Corporations available at SloGold.

Uruguay Mutual Legal Assistance Treaties

Uruguay Mutual Legal Assistance Treaties is a legal agreement that allows the U.S. to attach and seize the banking assets of suspected criminals. The agreement's purpose is in part to curb money laundering in Uruguay.

I recommend: Assess the explanation of the Mutual Legal Assistance Treaties from the Expat Intelligence.

RBS Coutts

RBS Coutts is an international banking institution that operates in Uruguay. They specialize in international companies that wish to bank in the region.

I recommend: Study the RBS Coutts local office description for more information.

Uruguayan peso

The Uruguayan peso is the primary currency of the country. Generally, the more stability a country's currency exhibits, the less volatile and risky it is compared to the U.S. dollar and other major currencies.

I recommend: Use the currency converter and the explanation of the Uruguayan peso at the Coin Mill for further details.

Uruguay banking institutions suffered a financial crisis in 2002, leading to the closure of four banks and a revamping of its banking system. As with other countries' banking systems, Uruguay banks include commercial and private banks, overseen by a Central Bank that issues currency, makes policy and determines interest rates.

Banks in Uruguay used to have the same reputation as the Swiss for banking secrecy and off-shore and numbered accounts. Two banks are state-owned, and 13 are privately held. Uruguay banking institutions have continued to recover since the crisis of 2002 and the ratings of its banks have improved.

1. Uruguay banking institutions are part of one of the strongest economies in South America.

2. Most of Uruguay's privately owned banks are branches of international banks such as Citibank.

3. Uruguay's largest banks, such as Banco de la Republica Oriental del Uruguay (the Bank of Uruguay), have offices in New York, NY.

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Get the ratings for Uruguay banks

If you are living and working in Uruguay or planning to do business there, you can find out about the financial health of its banks from investor services sites. Interest rates and financial policy information is available from the Uruguay government, which works closely with the Central Bank.

I recommend: You can register with Moody's Investors Service website and get rating information on any bank for no charge. PR-inside.com has a ratings guide from Fitch on HSBC in Uruguay.

Recognize the limitations to banking in Uruguay

Many banks in Uruguay will not open bank accounts for holders of US passports; this includes global banks in Uruguay such as Citibank. Also, you cannot count on each bank having someone who speaks English on its staff.

I recommend: DeltaQuest gives advice on opening accounts in various banks in Uruguay. Check out Mondaq for a wealth of banking and financial advice.

Look for banks in Uruguay advice and ratings wherever you can find it

Once a haven for offshore accounts, international banking in Uruguay is not what it once was. Policies towards offshore accounts will continue changing as the US continues to go after illegal accounts. However, the US is encouraging loans for small business.

I recommend: Learning Uruguay gives advice about various banks and gives recommendations. Citibank was awarded the Best Corporate/Institutional Internet Bank in Uruguay by Global Finance in 2008. See the Moving Montevideo blog for more information on banking in Uruguay.