Procedure to obtain hearing
A procedure has been established in Mexico to guarantee obtaining a hearing despite being included in the blocked persons list.
On 11 March 2022, a decree was published in the Official Gazette of the Federation, which changed the name of Title Five from "On Prohibitions, Administrative Sanctions and Offenses" to "On Prohibitions, Administrative Sanctions, Offenses and the Guarantee of Hearing of the persons included in the list of blocked persons". The Decree also added a "Chapter V" to Title Five of the Law of Credit Institutions (LIC).
The name of Title Five of the LIC was modified to include the procedure of guarantee of hearing applicable if any client or user of a credit institution is included in the blocked persons list (LPB), which is named after the new title of Title Five.
The LPB is a confidential precautionary measure, issued by the Financial Intelligence Unit (UIF), whose purpose is to prevent and detect operations in the financial system that could be related to the commission of crimes of operations with resources of illicit origin or financing of terrorism. When the inclusion of a person on such a list is reported, the credit institutions and other financial entities must immediately suspend the performance of any operation or service with the client or user in question.
Therefore, article 116 bis 2 was added to the LIC and establishes the procedure to be observed by customers or users who have been included in the LPB, for the exercise of their rights before the UIF.
Upon the request of the interested party, a hearing shall be granted so that, within 10 business days, counted from the day following the day after the credit institution has notified its inclusion in the LPB, the interested party may state in writing or verbally what it is in their interest to be granted a hearing, to offer evidence and make allegations.
The request must be made within a period that does not exceed five business days, counted from the day following the day after its inclusion has been notified in the LPB.
The UIF, ex officio or at the request of a party, may extend the term referred to above, on one single occasion, within the same period.
Once the term for the interested party to submit evidence and make allegations has elapsed, the UIF, within the following 15 business days, counted from the date that the file is integrated, shall issue the administrative resolution in which it shall state the grounds and reasons for the inclusion of the interested party in the LPB, and whether their removal from the LPB is appropriate. The administrative resolution shall be notified by an official letter to the interested party within 10 business days following its issuance.
The LIC states that "if the interested party does not agree with the content of the resolution issued by the UIF, it may challenge it in terms of the Federal Law of Administrative Procedure".
When the inclusion of a client or user to the LPB has been due to a UN Security Council Resolution, the disincorporation process that the committee stipulates will be carried out – and the provisions contained in the reform will not be applicable.
Finally, the LIC states that "the amendment will become effective on the day following its publication in the Official Gazette of the Federation."
For further information on this topic please contact José Antonio Casas Vessi or Sofía Rojas Cuellár at Ramos, Ripoll & Schuster by telephone (+52 55 1518 0445) or email ([email protected] or [email protected]). The Ramos, Ripoll & Schuster website can be accessed at www.rrs.com.mx.