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Mexico’s Anti-Money Laundering Regime: A Guide for Financial Institutions

As Mexico continues to strengthen its efforts against money laundering, financial institutions must navigate a complex web of regulations to ensure compliance with anti-money laundering (AML) rules. In this special report, we’ll break down the key requirements and responsibilities for financial institutions operating in Mexico.

Digital Assets Subject to AML Rules

Mexico’s Prevention and Identification of Transactions with Illegal Funds Federal Law has designated virtual asset exchanges as “vulnerable” activities, subject to strict AML compliance requirements. This includes electronic platforms that facilitate buying, selling, or storing virtual assets, such as cryptocurrencies.

AML Compliance Requirements for Covered Institutions

Financial institutions engaged in vulnerable activities must establish measures and procedures to prevent and detect illicit activities, identify clients, and file reports with the Ministry of Finance and Public Credit. They must also maintain records of client information and transactions for a period of 10 years.

Different AML Compliance Requirements for Different Types of Institutions

Mexico’s AML regime applies differently to financial institutions and non-financial businesses. Financial institutions have more stringent requirements, including reporting obligations to the National Banking and Securities Commission (NBSC). Non-financial businesses, on the other hand, must register with the Anti-Money Laundering Official Website and designate a Compliance Officer.

Government Authorities Responsible for AML Enforcement

Mexico’s government authorities play a crucial role in ensuring compliance with AML rules. The Financial Intelligence Unit (FIU) is responsible for analyzing financial transactions and filing complaints to competent authorities in cases of suspected money laundering. The NBSC oversees the regulation, supervision, and sanctioning of financial institutions, while the Tax Administration Service (SAT) provides guidance on registration and reporting requirements.

Key Takeaways

  • Digital assets exchanges are subject to AML regulations
  • Financial institutions must establish measures to prevent and detect illicit activities
  • Non-financial businesses must register with the Anti-Money Laundering Official Website and designate a Compliance Officer
  • Government authorities, including the FIU, NBSC, and SAT, play key roles in enforcing AML compliance

As Mexico continues to strengthen its AML regime, financial institutions must stay informed about changing regulations and requirements to ensure compliance. With this guide, we aim to provide a comprehensive overview of Mexico’s anti-money laundering framework for financial institutions operating in the country.

Contributors

  • César de la Parra
  • Carlos Hutchinson
  • Chevez Ruiz Zamarripa

Disclaimer

This article is intended as a general information guide only and should not be considered as legal advice. If you have any questions or concerns, please consult with a qualified lawyer.