Financial Crime World

Mexico’s Fight Against Money Laundering and Financial Crimes: A Critical Review of AML Procedures

Mexico has long been considered a high-risk area for money laundering and other financial crimes. To combat this issue, the country has established a robust legal framework to prevent money laundering (ML) and terrorist financing (TF). However, despite its efforts, Mexico still faces significant challenges in implementing effective anti-money laundering (AML) procedures.

The Challenges of AML in Mexico

  • Corruption remains a major obstacle for businesses operating in Mexico, with corrupt practices prevalent in the judicial and law enforcement sectors.
  • The presence of organized criminal entities further compounds the challenges faced by companies, resulting in substantial financial burdens and operational difficulties.
  • Identifying beneficial owners and reporting suspicious transactions remains a challenge.
  • Strengthening measures are needed to regulate Designated Non-Financial Businesses and Professions (DNFBPs) and promote transparency within entities.

Mexico’s AML Framework

Mexico’s AML framework is comprised of laws and institutions related to the criminalization of ML and TF, as well as financial intelligence operations. The country has made significant progress in combating money laundering, but there are still areas that require improvement.

FATF Evaluation Report

Mexico has actively participated in the Financial Action Task Force (FATF) since 2000, with the most recent evaluation report conducted in 2023. According to the FATF assessment, Mexico was found to be:

  • In compliance with 10 of the 40 Recommendations
  • Largely compliant with 24 others

AML Supervisors

Mexico’s AML supervisors, including:

  • National Banking and Securities Commission (CNBV)
  • Ministry of Finance and Public Credit (SHCP)
  • Financial Intelligence Unit (FIU)
  • Attorney General’s Office (PGR)

play critical roles in implementing AML procedures.

Advanced AML Solutions

To address the challenges faced by Mexico, Sanction Scanner offers advanced AML solutions driven by artificial intelligence, empowering organizations to fulfill their AML obligations and strengthen financial integrity.

Conclusion

While Mexico has made significant progress in combating money laundering and other financial crimes, there is still much work to be done to improve its AML procedures. By strengthening oversight and regulation of DNFBPs, promoting transparency within entities, and leveraging advanced AML solutions, Mexico can better combat the threat of money laundering and maintain a robust financial system.