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Mexico’s Anti-Money Laundering Regulations: A Deep Dive

As part of its efforts to combat money laundering and terrorist financing, Mexico has implemented a comprehensive anti-money laundering (AML) regime. In this article, we will delve into the key aspects of Mexico’s AML regulations, including the definition of digital assets subject to AML rules, specific compliance requirements for covered institutions, and the government authorities responsible for examination and enforcement.

Are Digital Assets Subject to AML Rules?

Yes, virtual asset exchanges are considered “vulnerable” activities under Mexico’s AML regime. These exchanges involve habitual and professional offerings of digital assets through electronic or digital platforms that manage or operate facilitating long and short operations of such assets owned by clients or provide means for safekeeping, storing, or transferring virtual assets.

AML Compliance Requirements for Covered Institutions

Covered institutions, including financial institutions and non-financial businesses and professions, must establish measures to prevent and detect illicit activities, identify their clients, and file reports with the Ministry of Finance and Public Credit. These institutions are also required to maintain information and documentation about their clients and transactions for a period of 10 years.

Different AML Compliance Requirements for Different Types of Institutions

Financial institutions have different AML compliance requirements than non-financial businesses and professions. Financial institutions, such as banks and credit unions, must establish mechanisms to prevent and detect illicit activities, retain client information, and notify the National Banking and Securities Commission (NBSC) of transactions.

Non-financial businesses and professions, on the other hand, have simpler AML compliance requirements, including:

  • Registration with the Anti-Money Laundering Official Website
  • Designation of a Compliance Officer
  • Drafting of policies for complying with AML regulations

Government Authorities Responsible for Examination and Enforcement

The government authorities responsible for examining and enforcing compliance with Mexico’s AML rules include:

  1. Financial Intelligence Unit (FIU): The FIU oversees receiving notices filed by entities that execute vulnerable activities, analyzes financial transactions, and files complaints to competent authorities in the case of a money laundering offence.
  2. National Banking and Securities Commission (NBSC): The NBSC authorizes, regulates, supervises, and sanctions entities that are part of Mexico’s financial system.
  3. Tax Administration Service (SAT): SAT oversees elaborating guides and forms to register and report transactions.

Conclusion

Mexico’s AML regulations aim to prevent money laundering and terrorist financing by requiring covered institutions to establish measures to detect and prevent illicit activities. The government authorities responsible for examination and enforcement play a crucial role in ensuring compliance with these regulations.

Sources:

  • Prevention and Identification of Transactions with Illegal Funds Federal Law
  • Anti-Money Laundering Regulation
  • General Rules of the Prevention and Identification of Transactions with Illegal Funds Federal Law

Contributors:

César de la Parra and Carlos Hutchinson, Chevez Ruiz Zamarripa