SHCP Issues Interpretation Criteria for AML/CTF Regulations
Mexico City, Mexico - The Secretariat of Housing, Urban Development and Public Works (SHCP) has issued a new set of interpretation criteria to guide financial entities in their compliance with the Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) regulations.
New Interpretation Criteria
The SHCP’s new document outlines policies and procedures for financial institutions to:
- Integrate and preserve customer identification files
- Conduct personal interviews before establishing commercial relations
- Monitor transactions to detect suspicious activity
- Classify customers according to their degree of risk and establish considerations to modify previously granted degrees of risk
Certification of Auditors and Compliance Officers
The SHCP has also certified external independent auditors, compliance officers, and other professionals to help financial entities ensure compliance with AML/CFT regulations. The certification process ensures that these individuals have the necessary expertise and training to identify and report suspicious activity.
Blocked Persons List
The SHCP provides a blocked persons list to financial entities, which includes individuals and entities subject to economic sanctions or embargoes. Financial institutions are required to:
- Verify the identity of their customers against this list
- Report any transactions involving blocked persons
Technical Opinion for Registry of Financial Entities
The SHCP issues a technical opinion that allows certain financial entities to register with the National Banking and Securities Commission (CNBV). The technical opinion is based on the entity’s compliance with AML/CFT regulations and its ability to demonstrate effective risk management practices.
Guidelines and Best Practices
The SHCP has issued guidelines, best practices, criteria, directives, guides, and other provisions to help financial entities comply with AML/CFT regulations. These guidelines cover a range of topics, including:
- Customer identification
- Transaction monitoring
- Reporting suspicious activity
Cash Dollar Transactions
The SHCP has established limits for cash dollar transactions in certain circumstances. For example:
- Natural person customers are limited to $4,000 per month
- Legal persons in specific municipalities are allowed to receive up to $14,000 per month
Conclusion
The SHCP’s new interpretation criteria and guidelines are designed to help financial entities comply with AML/CFT regulations and prevent the misuse of the financial system. The criteria will be reviewed regularly to ensure that they remain effective and relevant in the fight against money laundering and terrorist financing.
Contact:
- Secretariat of Housing, Urban Development and Public Works (SHCP)
- Mexico City, Mexico
- Phone: +52 55 3602 2000
- Email: info@shcp.gob.mx