Introduction to Ángel Cabrera Mendoza
The recent appointment of Ángel Cabrera Mendoza as the new president of Mexico’s National Banking and Securities Commission (CNBV) comes at a critical time for the Mexican financial sector, which is facing turbulence. The latest challenge involves accusations of money laundering by the U.S. Department of the Treasury against CIBanco, Intercam Banco, and Vector Casa de Bolsa. These allegations led to the immediate temporary intervention by the CNBV and have left all three institutions in a state of uncertainty two months later.
Background on Ángel Cabrera Mendoza
The Secretariat of Finance and Public Credit (SHCP) highlighted Cabrera Mendoza’s strong background in federal public administration, particularly in financial sector regulation. He has held high-level positions such as the Unit for Banking, Values and Savings, the Fiscal Subprocurator of the Federal Fiscal Prosecutor’s Office, and the Undersecretary of Expenditures.
SHCP’s Confidence in Cabrera Mendoza
The SHCP emphasized that Cabrera Mendoza’s financial and regulatory expertise will support the CNBV in fulfilling its legal responsibilities, including issuing normative guidelines and ensuring compliance with applicable regulations. He will also oversee the supervision and operation of the financial system, ensuring its solidity, modernity, and inclusivity while addressing users’ needs and responding to challenges posed by technological innovation, market transformation, anti-money laundering supervision, and maintaining public trust in financial institutions.
Current Challenges for the Mexican Financial Sector
Despite being one of the strongest financial sectors globally, with strict regulations enforced by authorities including the CNBV, Mexico’s financial sector faces complex times. The recent U.S. Treasury accusations against CIBanco, Intercam Banco, and Vector Casa de Bolsa for allegedly enabling money laundering related to fentanyl trafficking have put these institutions under scrutiny.
The Sofipos Dilemma
Another area the CNBV oversees is societies of financial participation (sofipos). Recent cases, such as the Ficrea fraud and CAME’s sudden closure, have raised concerns about regulation adequacy for this sector, affecting savers in both instances.
Neobanks and Fintech Growth
The rise of technology-driven financial players in Mexico has increased the CNBV’s responsibilities. Licensing for tech-based players like Mercado Pago and Finsus is pending, as well as authorizations for entities such as Nu México to operate as banks. Although Mexico was a pioneer in enacting a Fintech law in 2018, secondary regulation for this sector remains stagnant, hindering its growth while it continues to expand.
Questions on CNBV Capacity
There are concerns about whether the current staff at the CNBV is adequate to handle regulation and supervision of various sectors, including banking, brokerage firms, sofipos, credit and savings cooperatives, multiple-purpose financial companies, general deposit warehouses, financial technology institutions, and more.
CNBV’s Role and Responsibilities
The CNBV is a decentralized entity under the SHCP, with authority over authorization, regulation, supervision, and sanctioning of diverse sectors and entities within Mexico’s financial system. It also oversees individuals and legal entities engaging in activities outlined in financial system-related laws.
- Presidency: The top leadership position within the CNBV.
- 10 Vice Presidencies: Specialized divisions supporting the president and other responsibilities.
