Bank of America Merrill Lynch has launched a new service designed to reduce counterparty risk and improve efficiency for companies operating in Mexico. The Cuenta Controlada (controlled account) service regulates the exchange of cash—in either pesos or U.S. dollars—among multiple parties based on agreed-upon contractual provisions. Bank of America Merrill Lynch serves as an independent third-party in the transactions, in which role it receives, holds, and disburses the funds.
Businesses may use the service to support a wide range of transactions, including settlement of mergers and acquisitions, good faith deposits or break fees, disbursement of milestone payments related to a project, holdbacks or earnings premiums in a business purchase, and legal or banking fees in a workout. Bank of America Merrill Lynch says the product is supported by its integrated suite of services, including the online banking portal CashPro Online