Financial Action Task Force Slams Mexico’s Anti-Money Laundering Efforts, Calls for Improvement

Assessment Highlights Areas for Improvement

A recent assessment conducted by the Financial Action Task Force (FATF), the Financial Action Task Force on Money Laundering in South America (GAFISUD), and the International Monetary Fund (IMF) has found that Mexico’s efforts to combat money laundering and terrorist financing need significant improvement.

Laws Not Meeting International Standards

The report highlights that Mexico’s laws criminalizing money laundering and terrorist financing do not fully meet international standards. This leaves room for improvement in their implementation. Furthermore, the laws do not adequately provide for the freezing of terrorist funds or other assets without delay, as required by United Nations Security Council Resolutions.

Co-ordination among Authorities Requires Improvement

Co-ordination among relevant government authorities has been strengthened recently, but more work is needed to further develop these arrangements. Additionally, some authorities require more resources to effectively carry out their duties.

Financial Intelligence Unit Needs Strengthening

The Financial Intelligence Unit (FIU) has made progress in strengthening its financial intelligence infrastructure and capacity, although it does not currently have direct access to criminal records and has a relatively low number of staff compared to the scope of its tasks.

Preventive Measures Need Further Development

Mexico’s anti-money laundering and counter-terrorism financing preventive measures are comprehensive and contain risk-based elements. However, they are still evolving, particularly in non-deposit taking sectors. Supervisory authorities are implementing on-site supervision fairly comprehensively, although this could benefit from more risk-based processes.

Trust Services and Non-Profit Sector Lacking Measures

The report notes that trust services are the only designated non-financial business sector for which anti-money laundering and counter-terrorism financing measures are in place. Additionally, no review has been conducted of the non-profit sector to support the adoption of measures to prevent the unlawful use of legal persons for money laundering and terrorist financing.

Positive Notes: International Cooperation

On a positive note, Mexican authorities have been cooperating effectively with other countries, particularly in the area of mutual legal assistance and extradition involving money laundering and related crimes.