MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Monday Spanish bank Santander (MC:SAN) will stop charging commissions as of Tuesday on remittances sent by migrants to their relatives in Mexico.
Santander Executive Chairman Ana Botin "promised us this year that the bank would not charge commissions on remittances that our citizens in the United States send to their families," Lopez Obrador said, sitting alongside Botin.
Lopez Obrador described the commissions charged for remittances as "abusive."
Total remittances to Mexico, mostly coming from U.S.-based Mexican workers, amounted to nearly $27 billion in January to September, according to central bank data.
"We're committed to launching this program tomorrow at Santander's U.S.-based branches to any bank in Mexico, with no commissions and using a very competitive exchange rate," said Botin, in a video posted by Lopez Obrador on Twitter.