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08 March 2019
On 9 March 2018 the Fintech Law was published in the Federal Official Gazette. Among other entities, the new law regulates:
One of the law's aims is to mitigate the risk of money laundering and terrorist financing.
In January 2019 the National Commission for Regulatory Improvement published draft amendments to the anti-money laundering (AML) rules which affect players in the financial industry, including banks.
The proposed amendments aim to improve compliance with Financial Action Task Force (FATF) Recommendations 1 and 10, which concern the risk-based approach and customer due diligence. They also aim to strengthen the money-laundering prevention regime and enable Mexico to comply with the recommendations set out for it in the FATF's January 2018 assessment.
Notably, the draft amendments incorporate the definition of 'virtual assets' (ie, cryptocurrencies) into the AML rules. Such virtual assets are considered to be a means of payment, but not a currency, and banks must report transactions involving virtual assets (ie, purchases and sales of virtual assets). The proposed amendments also incorporate 'innovative models', as regulated by the Fintech Law. Customer due diligence and identification requirements regarding innovative models will be based on a risk-based approach.
Separately, the amendments seek to eliminate the requirement for banks to report to the regulator on their training initiatives on an annual basis.
These amendments, when passed, will help to incorporate the new concepts created by the Fintech Law into the AML regulations which apply to the traditional banking industry.
For further information on this topic please contact Federico De Noriega or José Carlos Altamirano at Hogan Lovells BSTL by telephone (+52 55 5091 0000) or email (email@example.com or firstname.lastname@example.org). The Hogan Lovells website can be accessed at www.hoganlovells.com.
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Federico De Noriega
José Carlos Altamirano