Top Sub-Custodian Banks to Watch Out for in Latin America in 2025

In a significant move for the region, Citibank is playing a pivotal role in the integration of the Nuam project, serving on working groups to help with this integration and establishing a central counterparty for the exchange. This project is just one of the many initiatives that Citibank is involved in across Latin America.

As part of Citi's vast global network, Citibank's Latin American business offers institutional investors access to 63 markets worldwide. The bank's selection process for local market institutions is meticulous, considering factors such as reliability, efficiency, innovation in service delivery, and the quality of technology platforms.

Citibank is not only collaborating with regulators, central securities depositories (CSDs), and trade associations in Latin America, but is also instrumental in facilitating infrastructure and process improvements within the region. Particular focus has been given to Argentina, Mexico, Panama, and Peru.

The editorial board's decision-making process is based on a comprehensive evaluation of various aspects of a bank's operations, including its service quality, technological capabilities, customer relations, quality of service, local market knowledge, regulations, and practices. The criteria prioritize banks that can provide knowledgeable and efficient service, particularly in the areas of customer relations and post-settlement operations.

In a notable development, Citibank has selected Brazil, Mexico, and Chile as locations in Latin America for its custody and securities services. Transitions to T+1 settlement in these countries are scheduled for implementation during 2024 and 2025. Argentina and Mexico are set to implement the T+1 transition in 2024, while Chile, Colombia, and Peru are targeting 2027.

Citibank Mexico has enhanced its prematching functionality for greater trade transparency and efficiency. Meanwhile, Citibank Argentina is working with regulators to improve the level of proxy voting by moving to electronic channels. Clients increasingly entrust Citi to handle their proxy voting, as corporate actions processed by Citi rose significantly in 2024.

Citibank Panama has provided guidance to regulators on advancing the sector with the launch of a new core system for the local CSDs. The selection process aims to identify banks that can offer innovative and reliable services, contributing to the growth and development of local markets.

Our website's editorial board considers market research, expert sources, and bank entries to select institutions providing the best services. The board values banks that have a deep understanding of local markets, regulations, and practices, enabling them to offer tailored solutions to clients.

In conclusion, Citibank's extensive presence and commitment to innovation and service excellence make it a leading player in Latin America's financial sector. The bank's focus on technology, customer service, and regulatory compliance positions it well for continued growth and success in the region.