Costa Rica Banking Requirements - There is a popular misconception regarding banking in Costa Rica. Banking transactions conducted offshore are not illicit in nature. As a matter of fact, the authorities try their best to prevent illegal dealings and they also actively co-operate with international authorities regarding such matters and also about suspected drug related monetary deals. However, it is also imperative for the Costa Rican banks to abide by the local laws which deal with banking privacy. Thus, offshore banks provide a lot of privacy and security regarding assets.

The Banking System

There are around 60 banking establishments including a central bank, three state-run banks, eighteen commercial banks, one mortgage bank owned by the state, twelve private financing companies, four house building companies and twenty seven co-operatives which deal with savings and loans.

Among the state run banks are Banco Nacional de Costa Rica (the largest in terms of the number of branches as well as its assets), Banco Central de Costa Rica (which formulates banking policies of the country), Banco de Costa Rica (this is the most dependable of the commercial banks and also the one which is widely considered as the most well managed one), etc. The above mentioned central bank's policies must be complied and enforced by the SUGEF or the General Supervisory Agency of Finance. All other banks whether government owned or privately run must follow these policies. The state run banks have branches throughout the country and are considered safer for the governmental support. However, they often lack bilingual staff.

There are several private banks including the Banco Cuscatlan (this is owned by a corporation which has banks all over the Americas—from USA to Guatemala), Banco Cathay (the disadvantage of this bank is its relatively small number of branches), Scotia Bank (which offers a very wide range of retail and commercial banking services and has at least fourteen branches all over the country), etc. While the private banks usually offer services in English which are at the same time more personalized, they lack a widespread network of branches throughout the country. They are also usually quicker in dealings outside Costa Rica because many have links with banks outside the country.

There are thirty investment funds run by private and state insurance companies.

Choosing A Bank

Most of the Costa Rican banks conduct banking services in the local currency (colon) as well as the dollar. It must be noted that though the interest rates offered on the local currency is much higher, it is also rather unstable—there being regular devaluation of the colon against a dollar. Many banks offer credit and debit cards; but some of these are not internationally accepted.

The Costa Rica banking requirements for opening an account or obtaining a credit card may vary from bank to bank. The two things that must be kept in mind while choosing a bank are the services that it offers as well as the fees that it charges. A comparative evaluation can be made through the websites of the banks.