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Mexico’s Anti-Money Laundering Regulations: A Comprehensive Guide

As part of its efforts to combat money laundering and terrorist financing, Mexico has implemented a range of anti-money laundering (AML) regulations. These regulations apply to a wide range of institutions and individuals, including financial institutions, non-financial businesses, and professionals.

Are Digital Assets Subject to the AML Rules?

According to Mexico’s Prevention and Identification of Transactions with Illegal Funds Federal Law, virtual asset exchanges are considered “vulnerable” activities. This includes the exchange of digital assets such as cryptocurrencies, through electronic or digital platforms.

AML Compliance Requirements for Covered Institutions

Institutions that carry out vulnerable activities, including virtual asset exchanges, must establish measures to prevent and detect illicit activities, identify their clients, and file reports with the Ministry of Finance and Public Credit. They must also maintain records 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 professionals. Financial institutions are subject to stricter regulations, including reporting requirements and record-keeping obligations. Non-financial businesses and professionals, on the other hand, must file registration forms and maintain client identification files.

Government Authorities Responsible for AML Enforcement

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

  • The Financial Intelligence Unit (FIU): which oversees the reporting of suspicious transactions and provides analysis and recommendations to law enforcement agencies.
  • The National Banking and Securities Commission (NBSC): which regulates and supervises financial institutions, including banks and other financial entities.
  • The Tax Administration Service (SAT): which is responsible for implementing AML regulations and providing guidance on compliance.

By understanding Mexico’s AML regulations and requirements, individuals and institutions can ensure compliance with these important laws and help to prevent money laundering and terrorist financing.