Mexico is a risky area for money laundering and other crimes. The Mexican government has identified money laundering and other crimes and aimed to prevent them. Mexican law also plays an effective role in preventing crimes such as drug trafficking, fraud, corruption, and tax evasion. Mexico is taking active steps in combating financial crime with FATF and European Union-compatible AML policies.
Anti-Money Laundering Laws and Regulations in Mexico
Corruption represents a significant risk for enterprises operating in Mexico. It manifests prominently within the country's judicial and law enforcement sectors, with corrupt practices extending to business-related processes such as obtaining construction permits and licenses. The presence of organized criminal entities further compounds the challenges faced by businesses, resulting in substantial financial burdens and operational difficulties. The US State Department designates Mexico as a Country/Jurisdiction of Primary Concern regarding Money Laundering and Financial Crimes.
Mexico has established a robust legal and institutional framework to combat money laundering (ML) and terrorist financing (TF). This framework is notably powerful in terms of laws and institutions related to the criminalization of ML and TF, as well as the operations of financial intelligence. Nevertheless, there is potential for enhancement in critical preventive measures, notably in identifying beneficial owners and reporting suspicious transactions. Furthermore, the oversight and regulation of Designated Non-Financial Businesses and Professions (DNFBPs) and promoting transparency within entities could benefit from strengthening measures.
Anti-Money Laundering, According to FATF
Mexico has actively participated in the Financial Action Task Force (FATF) since 2000. The most recent evaluation report on Mexico's implementation of anti-money laundering and counter-terrorist financing standards was conducted by the Financial Action Task Force (FATF) in 2023. According to this evaluation, Mexico was found to be in compliance with 10 of the FATF 40 Recommendations and largely compliant with 24 of them. This assessment was conducted in accordance with the 2012 FATF Recommendations and utilized the 2013 Methodology. The evaluation relied on data provided by the country under review, as well as information gathered by the evaluation team during their on-site visit to the country, which took place from February 28 to March 13, 2017.
Mexico’s AML Supervisors
National Banking and Securities Commission - (CNBV)
The National Banking and Securities Commission (CNBV) is an autonomous entity tasked with overseeing and regulating banks and all other financial institutions that are not under the purview of the National Commission of the Retirement Savings System (CONSAR) or the National Insurance and Bonding Commission (CNSF). CNBV's responsibilities encompass supervising AML/CTF procedures within these institutions.
Ministry of Finance and Public Credit - (SHCP)
The Ministry of Finance and Public Credit (SHCP) regulates and ensures compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations. However, operational duties are legally delegated to entities such as CNBV, CNSF, CONSAR, and SAT. The SHCP, through various administrative units, formulates AML/CTF regulations, monitors the effective compliance of financial and non-financial entities with their AML/CTF obligations, and gathers, assesses, and shares pertinent information with competent authorities.
Financial Intelligence Unit – (FIU)
The Financial Intelligence Unit, which operates under the supervision of the Ministry of Finance and Public Credit (SHCP), is tasked with several key responsibilities. These include receiving, analyzing, and sharing information from various anti-money laundering and counter-terrorism financing (AML/CTF) reports with competent authorities. Additionally, the unit requests information, documentation, data, and images related to money laundering and terrorist financing from financial institutions. It also plays a role in crafting AML/CTF regulations, initiating prosecution requests to the Attorney General's Office (PGR) for AML/CTF cases, and notifying financial regulators of any instances of non-compliance regarding reporting obligations of financial entities.
Attorney General’s Office – (PGR)
The Attorney General's Office (PGR) is responsible for the investigation and prosecution of money laundering and terrorist financing cases. This entity also possesses the authority to seize assets of illicit origin. These confiscated assets are managed by the SAE, which is a decentralized public agency within the Federal Public Administration. The SAE operates with legal autonomy and has an independent budget.
Anti-Money Laundering Solutions for Mexico
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