Mexico’s Anti-Money Laundering Efforts Face Scrutiny

Financial Action Task Force Report Highlights Progress and Challenges

The Financial Action Task Force (FATF) has released a recent report assessing Mexico’s progress in implementing anti-money laundering (AML) procedures. The “Follow-Up Report” evaluates Mexico’s compliance with FATF’s 40 Recommendations for Combating Money Laundering and Terrorist Financing.

Positive Developments

• Mexico has made significant strides in implementing AML procedures, particularly in areas such as:
  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Regulation and supervision of financial institutions (R.26)
• These efforts have earned Mexico a “largely compliant” rating in these areas.

Areas for Improvement

• Mexico has been found to be non-compliant with regards to:
  • Money laundering offence (R.3)
  • Financial institution secrecy laws (R.9)
  • Transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25)
• Other concerns include:
  • Over-reliance on third parties (R.17)
  • Lack of sufficient internal controls and foreign branches and subsidiaries (R.18)
  • Inadequate ability to investigate and prosecute money laundering cases (R.30 and R.31)

Future Directions

• Despite challenges, Mexico has made significant progress in implementing AML procedures over the past year.
• The country’s efforts to improve its AML regime are seen as a positive step towards preventing financial crime and protecting the integrity of its financial system.
• The FATF report serves as a wake-up call for Mexico to continue strengthening its AML procedures and address remaining weaknesses.

Conclusion

As the global economy becomes increasingly interconnected, it is essential that countries like Mexico take a proactive approach to combating money laundering and terrorist financing. The FATF report highlights the importance of ongoing efforts to strengthen AML procedures and prevent financial crime.