Background on Key Figures and Institutions
The reformed Anti-Money Laundering (AML) law, approved by the Mexican Senate on Wednesday, has progressed amidst budget cuts for the Unidad de Inteligencia Financiera (UIF), an upcoming review by the Group of Action Financial International (GAFI), and increasing scrutiny from the United States regarding Mexican financial institutions involved in money laundering.
Pablo Gómez leads the UIF, which has experienced budget reductions this year as part of Claudia Sheinbaum’s government efforts to achieve fiscal consolidation. The Presupuesto de Egresos de la Federación (PEF) allocated 163 million pesos for the UIF in 2022, marking a 19.7% decrease from the previous year.
Silvia Matus, a partner at PLD de BHR México, clarified that the UIF budget cuts are not targeted but rather a general adjustment affecting many government departments. The GAFI review, scheduled for the following year, will assess completed tasks and pending issues from the last review. The government will then decide whether to increase the UIF budget based on the GAFI findings.
Reform Objectives and Content
The AML law reform, as presented by Morenista senator Javier Corral, aims to address GAFI recommendations concerning money laundering prevention and terrorism financing.
Genaro Eliseo Gómez, an Instituto Mexicano de Contadores Públicos (IMCP) member, emphasized the importance of fulfilling any remaining GAFI recommendations to avoid being placed on the “gray list” – jurisdictions with strategic deficiencies in preventing money laundering and terrorism financing.
Dharanee Vázquez, a PLD/FT consultant, expressed that the AML law reform has long been anticipated. However, she stressed the necessity for genuine change and thorough implementation, as there has been no tangible maturity or implementation curve since the law’s enactment in 2013.
Key Actions and Ideas
- Budget cuts for the UIF, part of broader public spending adjustments.
- Upcoming GAFI review of Mexico’s AML efforts.
- US pressure on Mexican financial institutions related to money laundering.
- AML law reform aims to address GAFI recommendations and prevent gray listing.
- Emphasis on genuine change and thorough implementation of the AML law.
Key Questions and Answers
- What is the main reason for the AML law reform? The reform aims to address GAFI recommendations and prevent Mexico from being placed on the gray list.
- How much has the UIF budget been reduced? The UIF budget has been cut by 19.7% to 163 million pesos for the year 2022.
- What will the GAFI review assess? The GAFI review will evaluate completed tasks and pending issues from the last assessment, helping the Mexican government decide on potential budget increases for the UIF.
- Why is thorough implementation of the AML law crucial? Despite numerous reforms and adjustments, genuine implementation is necessary to ensure that businesses and obligated subjects have the required tools to prevent money laundering and terrorism financing.
