Mexico Eyes FATF Guidelines to Boost Financial Action

Mexico has taken a significant step in its efforts to combat financial crime by adopting new guidelines set by the Financial Action Task Force (FATF). The country has revised various recommendations and interpretations to ensure that it complies with international standards on anti-money laundering (AML) and combating the financing of terrorism (CFT).

Strengthening Asset Recovery Measures

The latest revisions, which came into effect in October 2023, aim to strengthen Mexico’s asset recovery measures and clarify its stance on targeted financial sanctions. The FATF guidelines require countries to identify and assess the risks of potential breaches or evasion of these sanctions.

• Mexico has revised its recommendations to ensure that it can effectively recover assets related to financial crimes.
• The country has clarified its stance on targeted financial sanctions, making it easier to identify and freeze suspicious assets.

Aligning with International Best Practices

In a separate development, Mexico has also revised its recommendations on non-profit organizations (NPOs) to align with international best practices. The country has clarified that not all NPOs are high-risk and requires only those that pose a significant risk to be subject to supervision and monitoring.

• Mexico’s revisions aim to ensure that NPOs are held accountable for their activities.
• The country’s new guidelines require only high-risk NPOs to undergo enhanced due diligence and reporting requirements.

Ongoing Efforts to Improve Financial Regulatory Framework

Mexico’s adoption of the revised FATF guidelines is part of its ongoing efforts to improve its financial regulatory framework and comply with international standards. The country had previously implemented various reforms aimed at strengthening its AML/CFT regime, including:

• The creation of a new financial intelligence unit
• The establishment of a national risk assessment process

Positive Impact on Regional and Global Efforts

Mexico’s adoption of the revised FATF guidelines is seen as a significant step forward in its fight against financial crime. The country’s efforts to strengthen its regulatory framework are expected to enhance transparency and accountability in the financial sector, ultimately contributing to a safer and more stable financial environment.

• Mexico’s commitment to strengthening its AML/CFT regime is expected to have a positive impact on regional and global efforts to combat financial crime.
• International organizations have praised Mexico’s efforts, calling for continued cooperation and coordination among countries to combat financial crime.