Financial Crime World

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Mexico’s Banking Regulations a Key Player in Combating Financial Crime, Report Finds

January 3, 2018

A new report has shed light on Mexico’s anti-money laundering and combating the financing of terrorism (AML/CFT) measures, revealing a robust legal and institutional framework in place to combat financial crime.

Effective AML/CFT Measures

According to the country report, most key authorities have a good understanding of money laundering and terrorist financing risks. Policy cooperation and coordination are deemed effective, and the financial sector is well-equipped to identify primary ML threats from organized crime groups and associated criminal activities, as well as tax crimes.

Area for Improvement: Corruption Recognition

However, the recognition of corruption as a main threat remains uneven across the financial sector, highlighting an area for improvement. Financial intelligence and other relevant information are made available by Mexico’s financial intelligence unit and accessed regularly by competent authorities.

Country Report Overview

The report, part of Country Report No. 2017/405, provides a comprehensive overview of AML/CFT measures in place in Mexico. It highlights the country’s mature regime and well-developed legal framework as key factors in its ability to combat financial crime effectively.

Mexico’s Banking Regulations

Mexico’s banking regulations play a critical role in this effort, with strict laws and regulations in place to prevent money laundering and terrorist financing. Financial institutions are required to:

  • Implement robust customer due diligence procedures
  • Monitor transactions for suspicious activity
  • Report any suspected ML or TF to the authorities

Conclusion

The report concludes that Mexico’s AML/CFT regime is effective in preventing and detecting ML and TF, and that its banking regulations are a key component of this effort. However, ongoing efforts are needed to address weaknesses in the system and ensure that corruption is not used as a means to circumvent anti-money laundering measures.