On December 31, 2014, the Ministry of Finance and Public Credit published in the Federal Official Gazette new amendments to certain provisions for the prevention and identification of transactions with funds from illegal sources, which became effective on January 1, 2015, except for certain specific provisions.
Pursuant to the resolutions approved by the Security Council of the United Nations against money laundering and the financing of terrorism, as well as Mexico's commitment to comply with such resolutions, the amendments referred above were published in order to establish and standardize the measures to be implemented by the financial entities mentioned below, to identify, detect and seize all the amounts used in transactions with funds from illegal sources.
The reforms are applicable to Credit Institutions, Brokerages, Foreign Exchange Houses, Multiple Purpose Financial Entities, Money Transmitters, Investment Funds, Foreign Exchange Establishments, General Deposit Warehouses, Financial Cooperative Entities and Investment Advisers (the "Financial Entities").
Based on the foregoing, the Financial Entities must consider the following items:
Know Your Customer Policies
- It standardizes the obligations and conditions that the Financial Entities must comply in order to prepare the KYC files of their clients and users, particularly in the case of trusts, as well as the criteria, measures and procedures that their policies must include to identify and know their customers.
List of Blocked Individuals
- The National Banking and Securities Commission (the "CNBV") will provide to the Financial Entities (except for the Investment Advisers) a list of blocked individuals that shall not enter into transactions with such Financial Entities.
- It establishes the parameters and mechanisms that the Financial Entities (except for the Investment Advisers) must approve and implement, to identify the persons that are included in the list of blocked persons to perform transactions with Financial Entities.
Unusual, Relevant and Internally Relevant Transactions
- It establishes the terms and parameters by which the transactions performed by Financial Entities shall be deemed as unusual, relevant, or internally relevant, as well as the characteristics and obligations to report each of the above mentioned transactions to the CNBV.
- It intends to provide more legal certainty for financial transactions made with foreign clients, users and entities, with the implementation of additional KYC policies regarding customers and users of Financial Entities.