Financial Crime World

Mexico Introduces New Restrictions on Cash and Precious Metal Transactions

In an effort to curb the flow of illicit funds, the Mexican government has announced new restrictions on transactions involving cash and precious metals. These measures are outlined in the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin.

The Anti-Money Laundering Law

Enacted in 2012, the Anti-Money Laundering Law aims to regulate economic operations prone to the capture of resources of illicit origin. The latest measures are designed to prevent the misuse of cash and precious metals.

Restricted Transactions

According to Article 32 of the law, several types of transactions are now subject to restrictions on the use of cash and precious metals:

  • Vehicle Acquisitions: Cash transactions exceeding 3,210 UMAS (approximately 346,326.90 pesos) are restricted.
  • Real Estate Purchases: Cash transactions exceeding 8,025 UMAS (approximately 865,817.25 pesos) are restricted.
  • Share Purchases and Sales: Cash transactions must be transferred electronically.
  • Jewelry and Watch Acquisitions: Cash transactions must be transferred electronically.
  • Contests, Games, and Bets: Cash transactions must be transferred electronically.
  • Armored Vehicles: Cash transactions must be transferred electronically.

In each of these cases, cash amounts exceeding the established limits must be transferred electronically. Failure to comply with these restrictions could result in legal consequences for individuals and businesses alike.

What You Need to Know

To avoid potential fines and penalties, citizens and businesses are urged to familiarize themselves with these new measures. With the implementation of these stricter regulations, Mexico is taking a crucial step towards preventing money laundering and safeguarding its financial system.

Takeaway

Mexico’s new restrictions on cash and precious metal transactions aim to prevent the misuse of these forms of currency and protect its financial system from illicit activities. By understanding these changes, individuals and businesses can ensure compliance and contribute to a safer financial environment.