Border banking matters having impact on the Nogales produce industry
Border banking matters having impact on the Nogales produce industry
nogales, az — A number of national banks closing branches or accounts in Nogales has become a real concern for some members of this industry.
The situation was discussed in late September with the U.S. Department of the Treasury, according to Chris Ciruli. Ciruli, the chief operating officer of Ciruli Bros. LLC, was part of the Arizona delegation that called on national legislators and administrators in Washington, DC, as part of the Washington Policy Conference of the United Fresh Association. The Arizona delegation was laden with leaders of the Fresh Produce Association of the Americas.
Ciruli said treasury department officials know the institution targets banks to watch for money laundering “but they never heard of the people they hurt.” Thus, the call from the Arizona produce trade.
Ciruli described to Washington banking officials how his Rio Rico warehouse workers, who neither speak English nor have the ability to cope with being forced to deal with bank branches that are 45 miles away, are impacted with their Nogales Bank of America branch suddenly closed. “It took 14 days to get their money back,” Ciruli said.
Several banks are closing in Nogales or stopping particular accounts to avoid legal scrutiny, he explained. “We are the only town where the only money lent for warehousing is lent if the warehouse will be owner-occupied. You do not see that in Texas or other areas. We need capital for this town to survive.”
At the same time, Ciruli and Jaime Chamberlain, the owner of J-C Distributing Inc., said that some banks, such as Wells Fargo, continue to serve Nogales. “Well Fargo saw this coming and trained their people,” Ciruli said. “Wells Fargo can handle this and will take care of what makes them money.
“We try to support the guys that are in town,” Ciruli said. He works with First Bank Yuma and others.
Scott Vandervoet, of Vandervoet & Associates Inc. in Rio Rico, said local branches are closing accounts that have been open for 20 or 30 or 40 years. “This has affected trade a lot. It affects how we hold and move money back to [Mexican] growers. Banks are withdrawing from the border region, which is a major concern to the industry because we live on the border!”
Vandervoet said the Bank of America has closed accounts in Nogales and Chase has closed its branch and closed it branch and accounts. Wells Fargo has also closed accounts.
