Cross-border treasury and financial structuring

When companies bring us in

Groups bring us in when international growth has outpaced the treasury structure behind it. These are the usual triggers.

• Each subsidiary chose its own local bank, and headquarters has no consolidated view.
• Intercompany invoices are settled one by one, with an FX conversion on every payment.
• Cash builds up in some countries while other entities borrow locally.
• Profits in a Latin American subsidiary are hard to repatriate because of FX controls or taxes.
• The group wants pooling but is unsure whether physical or notional pooling fits.
• Headquarters policies on banks, signatories and payments are not applied locally.

How an engagement runs

Engagements run in three phases, from mapping to a staged rollout. Country rules and bank documentation set the pace of implementation.

1. Mapping, weeks 1 to 3. We map every entity, bank account, currency and intercompany flow. Idle and trapped cash are quantified from bank and ledger data.
2. Design, weeks 3 to 7. Pooling, netting and in-house bank options are compared against your countries and banks. Tax and legal input is coordinated with your own advisers.
3. Implementation, weeks 7 to 16. The structure is rolled out country by country, starting where the value is highest. We support bank documentation, testing and the first operating cycles.

Why an independent former banker

Banks design cross-border structures every day, but each bank designs around its own network. Federico Lleonart worked in cash management at J.P. Morgan in Brussels and Amsterdam, then at Barclays in Amsterdam. His clients were subsidiaries of multinationals with cross-border banking needs.

Physical or notional pooling?

Physical pooling moves balances into a header account, usually through daily zero balancing. It is simple to understand but creates intercompany loans that need documentation.

Notional pooling offsets balances for interest without moving cash. Fewer banks offer it today, and some countries restrict it, so it is not always available.

When does an in-house bank make sense?

An in-house bank centralizes funding, FX and sometimes payments for the whole group. Paying and collecting on behalf of subsidiaries can reduce the number of bank accounts.

It suits groups with enough volume and a treasury team to run it. For others, netting and pooling deliver much of the value with less effort.

How does intercompany netting work?

Subsidiaries settle intercompany balances once per cycle, usually monthly, through a single net payment each. Fewer payments mean fewer FX conversions and less operational effort.

What about trapped cash and FX controls in Latin America?

Some Latin American markets apply FX controls, registration requirements or transaction taxes to cross-border flows. These rules change over time and can limit how cash leaves the country.

We map the constraints with your local tax and legal advisers, then design around them. Options include local use of cash, dividend timing and compliant intercompany structures.

How do headquarters and subsidiaries stay aligned?

A group bank policy defines approved banks, signatories and payment controls for every entity. Local teams keep the relationships they need, inside rules headquarters can see.

FIRMA Advisory sells no banking products and takes no commissions from banks. A senior treasury consultant leads the design, and tax and legal points stay with your own advisers.

Frequently asked questions

These are the questions international groups ask before redesigning their treasury structure. Each answer is direct.