Mexico Makes Progress in Anti-Money Laundering and Terrorist Financing Efforts
Significant Improvements in AML/CFT Measures
Mexico City, June 2021 - The Financial Action Task Force (FATF) has released its third enhanced follow-up report on Mexico’s anti-money laundering (AML) and counter-terrorist financing (CFT) measures, showcasing substantial progress made by the country in addressing technical compliance deficiencies.
Upgraded Ratings
Mexico has upgraded its ratings on six out of 40 Recommendations, demonstrating a strong commitment to strengthening its AML/CFT framework. The country’s progress has been recognized by the FATF, which has re-rated it as largely compliant with Recommendation 2, R.7, and R.21.
Key Improvements
The report highlights several key improvements made by Mexico since its last assessment in 2018:
- Amended AML/CFT General Provisions to require financial institutions (FIs) to assess their risks before offering new services or products through new technologies.
- Defined virtual asset activity and established a regulatory framework for virtual asset service providers (VASPs), including registration requirements.
Remaining Deficiencies
However, some deficiencies remain, particularly in relation to the “Travel Rule” and Mexico’s ability to share information with international counterparts. The country is exploring the possibility of sharing information with its international partners to address these gaps.
Progress on Virtual Asset Service Providers
The FATF has also noted that while Mexico has made significant progress in implementing new requirements for VASPs, there are still minor remaining deficiencies. On this basis, Recommendation 15 has been re-rated as largely compliant.
FATF Commendation
Mexico’s efforts to strengthen its AML/CFT framework have been recognized by the FATF, which has commended the country for its commitment to improving its technical compliance with international standards.
Conclusion and Future Plans
The report concludes that Mexico will continue to be in enhanced follow-up and will provide regular updates on its progress to the FATF. The country’s continued efforts to strengthen its AML/CFT measures are expected to contribute to a safer and more stable financial system.
Contact Information
Financial Action Task Force (FATF) www.fatf-gafi.org
June 2021