Financial Crime Investigation Methods in Mexico Get a Boost Under AMLO

Mexico City - The election of Andrés Manuel López Obrador (AMLO) as President last July has brought new life to many government agencies, but few have benefited more than Santiago Nieto, the head of the finance ministry’s Financial Intelligence Unit (UIF).

A New Era for Financial Crime Investigation

Nieto, 46, was once a rising star in Mexico’s law enforcement community when he became chief prosecutor for electoral crimes under former President Enrique Peña Nieto in 2015. However, after claiming in an October 2017 interview that Emilio Lozoya, a former Pemex director and Peña Nieto campaign aide, had pressured him to clear his name in a bribery case tied to the 2012 presidential race, he lost his job.

Increased Efficiency

Under AMLO’s administration, the UIF has been instrumental in investigating financial crimes and uncovering illicit financial activity. In the first six months of this year, the agency has frozen nearly $250 million in assets and blocked accounts belonging to over 1,000 people, compared to $1.4 million and 25 people in the same period last year.

The Importance of Financial Intelligence Units

Pablo Montes, anti-corruption coordinator at Mexico City-based think tank IMCO, believes that financial intelligence units like the UIF are crucial in the fight against corruption because they can uncover who has benefited from economic crimes such as money laundering.

Challenges Ahead

The UIF is designed to monitor and provide information on illicit financial activity to prosecutors, but Nieto’s high profile has raised concerns about potential political interference. In February, he participated in a press conference detailing possible financial crimes committed by Guillermo García Alcocer, then president of Mexico’s energy regulatory commission. After García resigned, the investigation into his alleged financial crimes fizzled out.

Experts Weigh In

Experts say that the UIF would benefit from greater institutional controls to ensure its independence and prevent selective use against political opponents. Eduardo Bohórquez, executive director of Transparencia Mexicana, welcomed a more prominent role for the UIF in Mexico’s fight against corruption but emphasized the need for institutional transformation to make it a more democratic and well-monitored organization.

A Test of Effectiveness

A test of the UIF’s effectiveness lies ahead as investigations continue into alleged financial crimes committed by Lozoya and others. “If this investigation ends with Lozoya, then we’ll be left with a scapegoat and that’s all,” said Montes. “He’s a significant figure. But if he’s proven guilty it won’t be because he was the only one involved.”