Latest updates

Supreme Court strengthens interest rate rules
  • Mexico
  • 20 September 2019

The Mexican courts have issued several precedents to eradicate the existence of usury, allowing judges to discretionally reduce interest rates agreed by the parties. However, some of these precedents contradict each other as to whether the usury prohibition applies to default interest. As such, the First Chamber of the Supreme Court recently issued a decision to clarify these inconsistencies.

Cashless money transactions – Mexico's new payment method
  • Mexico
  • 19 July 2019

Digital collection (CoDi) is the latest electronic payment method developed by the Mexican Central Bank, designed to reduce the use of cash and promote competition, while incorporating larger sections of the population into the formal financial sector. It seems that Mexico is moving forward in financial technologies, such as CoDi, and using these developments to promote larger inclusion, competition and transparency for every sector in the country.

Supreme Court clarifies use of choice-of-jurisdiction clauses in adhesion contracts
  • Mexico
  • 17 May 2019

Under Mexican commercial regulations, contracting parties have traditionally been free to determine in their corresponding agreement the jurisdiction in which disputes must be resolved. However, a new binding precedent from the Supreme Court challenges this traditional approach with regard to banking adhesion contracts and is a good example of how Mexico is advancing its consumer protection regulations.

Fintech and innovation bring potential amendments to bank AML rules
  • Mexico
  • 08 March 2019

In March 2018 the Fintech Law, which aims to mitigate the risk of money laundering and terrorist financing, was published in the Federal Official Gazette. Subsequently, in January 2019 the National Commission for Regulatory Improvement published draft amendments to the anti-money laundering rules which apply to the traditional banking industry in order to incorporate the new concepts created by the Fintech Law.

New cybersecurity rules for banks
  • Mexico
  • 18 January 2019

The Ministry of Finance and Public Credit recently published a resolution in the Official Gazette modifying the general regulations that apply to banks. The resolution responds to the need to strengthen the regulatory framework applicable to banks, particularly with regard to cybersecurity and technological infrastructure. It also aims to guarantee the confidentiality, integrity and availability of customer information.

New judicial guidance reinforces traditional view on trusts
  • Mexico
  • 14 September 2018

Many loans involve the transfer of assets to a collateral or payment-source trust, especially (but not exclusively) when dealing with cash-generating assets, such as long-term contracts or receivables. A 2016 federal collegiate circuit court decision could jeopardise these structures in the context of insolvency proceedings. However, new judicial guidance was recently issued to reinforce traditional considerations regarding trusts.

What can banks expect from the new president?
  • Mexico
  • 20 July 2018

Andrés Manuel López Obrador was elected president on 1 July 2018 and will take office on 1 December 2018. Not only did López Obrador obtain more than 50% of the votes (approximately 30 million), his party and coalition also won an absolute majority in both the House of Representatives and the Senate. This is the first time in 20 years that a president will govern with this level of power. But what will this mean for the banking sector?

Numerous cyberattacks breach Banxico's Interbank Electronic Payments System
  • Mexico
  • 01 June 2018

The funds of some participants of the Interbank Electronic Payments System (SPEI) were recently affected by a series of unprecedented cyberattacks. The Mexican Central Bank revealed that approximately $15 million (Ps300 million) had been involved in diverse irregular transfers, subject to investigation. The cybercriminals had identified a flaw in the system that permitted receivers of SPEI transfers to withdraw cash almost immediately after receiving the transfer so that the money could not be traced.

Congress approves Financial Technology Institutions Law
  • Mexico
  • 06 April 2018

The president recently enacted the Financial Technology Institutions Law. The Senate had unanimously approved the bill on the law in December 2017 and sent it to Congress, which made no changes. The law seeks to build a regulatory framework that will encourage the development of innovative financial services, increase the level of competition and financial inclusion and place Mexico at the forefront of the industry.

Recent court precedents concerning financial transactions
  • Mexico
  • 02 February 2018

There were a number of court precedents in 2017 concerning financial transactions. For example, a recent non-binding collegiate court precedent broadened the scope and source of information that judges should use to analyse and determine the existence of usury, while another validated judges' authority to use the annual interest rate published by companies that engage in vehicle financing. Further, a binding Supreme Court precedent dealt with the maturity date of promissory notes.

SHCP releases first draft of Financial Technology Institutions Law
  • Mexico
  • 08 December 2017

The Ministry of Finance and Public Credit recently circulated a substantially amended draft of the Financial Technology Bill, which has been renamed the Financial Technology Institutions (FTIs) Law. The law aims to regulate the financial services provided by FTIs – including those which are bound to specific regulations and offered or rendered through innovative means – as well as the organisation of such institutions and their operations.

National Banking and Securities Commission amends general rules for credit institutions to curb identity theft
  • Mexico
  • 06 October 2017

In recent years, Mexico has been rated as having one of the highest rates of credit card fraud in the world. The National Banking and Securities Commission recently published the Resolutions that Modify the General Rules Applicable to Credit Institutions, which require credit institutions to verify information and documentation filed by users and customers with different government bodies in order to assure the identity of each prospective customer.

New fintech law: what you need to know
  • Mexico
  • 01 September 2017

The recently published draft Financial Technology Law will regulate the organisation, operation, function and authorisation of companies that offer alternative means of access to finance and investment, the issuance and management of electronic payment funds and the exchange of virtual assets or cryptocurrencies. Among other things, the initative aims to take advantage of the opportunity to expand the financial market to include segments not covered by traditional banking institutions.

President submits Financial Reform Bill to Congress
  • Mexico
  • 20 September 2013

President Enrique Peña Nieto recently presented the Financial Reform Bill to Congress. The government stated that the bill would encourage the country's development banking system to lend more actively. At the same time, the government proposes to reduce the cost of borrowing by promoting greater competition among the largely foreign-owned banks.

New Federal Act to Prevent and Identify Illegally Funded Transactions
  • Mexico
  • 14 December 2012

An executive order promulgating the Federal Act to Prevent and Identify Illegally Funded Transactions was recently published in the Federal Official Gazette. The purpose of the act is to detect and investigate activities and transactions involving resources that have been illegally obtained.

Mexico to implement Basel III guidelines ahead of schedule
  • Mexico
  • 20 July 2012

One of the main purposes of the Basel III agreement is to improve the regulatory framework of banks and strengthen the global financial system. Although Basel III will not become effective until 2013, Mexico intends to implement its guidelines during the second semester of 2012. This is largely due to the favourable conditions prevailing in the Mexican banking system.

New security measures for money services institutions
  • Mexico
  • 18 November 2011

An executive order has amended several provisions of the Auxiliary Financial Institutions Law to impose rules for non-regulated multi-purpose financial institutions, money exchange centres and other entities with respect to money laundering and terrorism financing. The amendments also create the legal concept of a 'money transmitter'.

New procedure for Personal Property Security Registry
  • Mexico
  • 11 March 2011

A decision has published in the Official Gazette that establishes the procedure for making and annotating records in the Personal Property Security Registry. It is intended to allow all new filings, annotations, terminations and notices regarding the registry to be entered digitally using specific forms.

New dollar banking policies
  • Mexico
  • 24 September 2010

The financial authorities have been systematically collecting information on cash transactions in US dollars within Mexico's financial system. Their analysis has revealed a considerable volume of excess US dollars - potentially originating from illegal activities - being held in cash by financial entities. Several additional control measures for dollar cash transactions have now been published.

Branchless banking: services through mobile banking agent management companies
  • Mexico
  • 25 June 2010

Although only a minority of its citizens have access to banking services, Mexico has a fast-growing mobile phone industry. The National Banking and Securities Commission has introduced a new concept – the mobile banking agent management company – and has set out a comprehensive system for branchless banking services.