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Mexico

Last updated: 23/03/2009

CENTRAL AUTHORITY FOR REPORTING

Financial Intelligence Unit of the Ministry of Finance and Public Credit (SHCP).

OTHER ANTI-MONEY LAUNDERING REGULATOR(S)

  1. Office of the Federal Attorney General (PGR), through the Special Unit for the Investigation of Operations Involving Resources of Unlawful Origin and Counterfeiting of Currency, and the Office of Internal Inspection;

  2. Ministry of Finance and Public Credit (SHCP);

  3. National Banking and Securities Commission (CNBV);

  4. National Retirement Savings System Commission (CONSAR);

  5. National Insurance and Bonds Commission (CNSF);

  6. Tax Administration Service (SAT), through the General Administration of Federal Tax Auditor, General Administration of Large Taxpayers, and the Tax Auditor Local Administrations;

  7. Federal Electoral Institute (IFE), through the Audit Commission for the Resources of Political Parties and Groups;

  8. Ministry of the Interior (SEGOB).

ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?

Mexico has not implemented any law or regulation that specifically covers legal professionals. However, lawyers are covered by the general criminal law applicable to all citizens, which prescribes money laundering as a criminal offence.

LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.

  1. Federal Criminal Code (Código Penal Federal). Applicable to lawyers;

  2. Federal Criminal Procedures Code (Código Federal de Procedimientos Penales). Applicable to lawyers;

  3. Federal Law Against Organized Crime (Ley Federal contra la Delincuencia Organizada). Applicable to lawyers;

  4. General Law of Auxiliary Credit Organizations and Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito);

  5. Credit Institutions Law (Ley de Instituciones de Crédito);

  6. Securities Market Law (Ley del Mercado de Valores);

  7. Popular Savings and Loans Law (Ley de Ahorro y Crédito Popular);

  8. Retirement Savings Systems Law (Ley de los Sistemas de Ahorro para el Retiro);

  9. General Law of Insurance Institutions and Mutual Companies (Ley General de Instituciones y Sociedades Mutualistas de Seguros);

  10. Bonding Institutions Federal Law (Ley Federal de Instituciones de Fianzas);

  11. Investment Companies Law (Ley de Sociedades de Inversión);

  12. Internal Regulation of the Ministry of Finance and Public Credit (Reglamento Interior de la Secretaría de Hacienda y Crédito Público);

  13. Regulation for the Organizational Law of the Office of the Federal Attorney General (Reglamento de la Ley Orgánica de la Procuraduría General de la República);

  14. Internal Regulation of the Tax Administration Service (Reglamento interno del Servicio de Administración Tributaria);

  15. Internal Regulation of the National Banking and Securities Commission (Reglamento interno de la Comisión Nacional Bancaria y de Valores);

  16. Regulation that Establishes the Guidelines for Auditing Resources of National Political Parties (Reglamento que Establece los Lineamientos para la Fiscalización de los Recursos de los Partidos Políticos Nacionales);

  17. Regulation for the Gambling and Lotteries Federal Law (Reglamento de la Ley Federal de Juegos y Sorteos);

  18. AML/CFT General Provisions for Financial Institutions. General dispositions against money laundering and fight against terrorism financing applicable to financial institutions:

    1. Foreign exchange firms. General dispositions referred to in the article 95 of Ley General de Organizaciones y Actividades Auxiliares del Crédito aplicables a Casas de Cambio;

    2. Foreign exchange centers. General dispositions referred to in the article 95 Bis de la Ley General de Organizaciones y Actividades Auxiliares del Crédito applicable to the individual persons who realise the operations which are referred to in the article 81-A of the same law;

    3. Bonding companies. General dispositions referred to in the article 112 of Ley Federal de Instituciones de Fianzas;

    4. Insurance companies. General dispositions referred to in the article 140 of Ley General de Instituciones y Sociedades Mutualistas de Seguros;

    5. Stock brokers. General dispositions referred to in the article 52 Bis-4 of Ley del Mercado de Valores;

    6. Credit unions, factoring companies, leasing companies and general deposit warehouses. General dispositions referred to in the article 95 of Ley General de Organizaciones y Actividades Auxiliares del Crédito applicable to the Organizaciones Auxiliares del Crédito;

    7. Money remitters. General dispositions referred to in the article 95 Bis of Ley General de Organizaciones y Actividades Auxiliares del Crédito applicable to money remitters (transmisores de dinero) in such a law;

    8. Retirement fund administrators, mutual fund operators and share distributors. General dispositions referred to in the articles 108 Bis of Ley de los Sistemas de Ahorro para el Retiro and 91 of Ley de Sociedades de Inversión;

    9. Banks (including development banks) and SOFOLES. General dispositions referred to in the article 115 of Ley de Instituciones de Crédito;

    10. Popular Savings and Loans. General dispositions referred to in the article 124 of Ley de Ahorro y Crédito Popular.

ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?

Visiting lawyers would be subject to the general AML criminal law applicable to all citizens.

LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.

None.

IS THE LAW SOCIETY/BAR ASSOCIATION INVOLVED IN SUPERVISING OR ENFORCING COMPLIANCE WITH ANTI-MONEY LAUNDERING REGULATIONS?

No. In Mexico, bar associations are private entities, and under Mexican law, supervising and enforcing compliance with anti-money laundering regulations is reserved to above mentioned public entities.

DESCRIBE CLIENT DUE DILIGENCE REQUIREMENTS, INCLUDING WHEN IT MUST BE UNDERTAKEN BY LAWYERS.

There are currently no AML/ CFT specific regulations imposing client due diligence, record keeping or monitoring requirements on attorneys and/or law firms.

DOES YOUR COUNTRY FOLLOW A RISK-BASED APPROACH TO CLIENT DUE DILIGENCE BY LAWYERS?

No.

ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS?

There are currently no AML/ CFT specific regulations imposing client due diligence; only within the level of attorneys’ and/or law firms’ internal policies.

ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?

There are currently no AML/ CFT specific regulations imposing client due diligence; only within the level of attorneys’ and/or law firms’ internal policies.

ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.

Yes, lawyers can rely on third party due diligence as there is no prohibition to rely on third party due diligence conducted in accordance with attorneys’ and/ or law firms’ internal policies. However attorneys and/ or law firms, when rendering an opinion, must disclose the fact that they relied on a due diligence done by a third party.

WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?

Under Code of Ethics of the Mexican Bar Association (Barra Mexicana Colegio de Abogados, A. C. or BMA) and National Business Attorneys’ Association (Asociación Nacional de Abogados de Empresa, Colegio de Abogados, A. C. or ANADE), when a client reveals his intention to commit a crime, attorneys and/ or law firms should waive their attorney/ client privilege.

Lawyers should report any intention to commit such a crime to the relevant authorities, in order to prevent said crime or protect any individuals in danger. Nevertheless, attorneys and/ or law firms are not required under Mexican law to adhere to the rules set by such bar associations.

DOES ATTORNEY/ CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENSE OR PARTIAL/ TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?

When a client reveals its intention to commit a crime, attorneys and/or law firms affiliated to BMA and ANADE are waived from their attorney/client privilege and under an obligation to report such an intention to relevant authorities, in order to prevent any crimes and protect individuals in danger.

DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?

No.

ONCE A SUSPICIOUS TRANSACTION REPORT HAS BEEN FILED, IS A LAWYER ALLOWED TO PROCEED WITH THE LEGAL ADVICE/ TRANSACTION, AND, IF SO, MUST CONSENT FROM AUTHORITIES BE OBTAINED FIRST?

Not applicable.

IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.

No.

DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.

There are currently no AML/CFT specific regulations restricting the acceptance of new clients. The only restrictions are imposed by attorneys’ and/or law firms’ internal policies.

ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.

There are currently no AML/CFT specific regulations imposing monitoring requirements on attorneys and/or law firms although they may be subject to internal policies.

DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.

Under the Income Tax Law, all taxpayers, including lawyers, are required to report any cash transactions in excess of the equivalent of USD $10,000 in national currency to the SAT.

HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?

Not known of.

HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?

Yes, in January 2009, the FATF released a Mutual Evaluation report on Mexico.

The report found that Mexico has not adopted the FATF Recommendations regarding Designated Non-Financial Businesses and Professions, including lawyers (DNFBPs).

The report notes that the regulatory and supervisory framework applicable to DNFBPs is very limited and lacks customer due diligence, record keeping controls and transaction monitoring. The report calls for compliance with the FATF recommendations in of all these areas and proposes that lawyers should be under an obligation to report suspicious transactions and maintain internal controls for AML/ CFT purposes.

Information supplied by:

Luis Fernando González Nieves
Partner
Solcargo
Torre Mural, Av. Insurgentes Sur #1605 Piso 12
Suite 3 Col. San José Insurgentes.
C.P. 03900, México, D.F.

Tel: + (52) (55) 50-62-00-50 (Ext. 225)
Fax: + (52) (55) 50-62-00-51

luis.gonzalez@solcargo.com.mx  

 

 

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