Background and Relevance of the Mexican Banks Association (ABM)
The Asociación de Bancos de México (ABM), led by its president Emilio Romano, represents the interests of major financial institutions in Mexico. As a prominent voice in the banking sector, ABM’s stance on policy matters carries significant weight and influence.
Proposed Tax Changes and Their Potential Impact
The Mexican government has proposed eliminating tax deductions on recurring contributions to the Instituto para la Protección al Ahorro Bancario (IPAB) as part of the 2026 Economic Package presented to Congress. This move aims to generate approximately 10,000 million pesos annually.
Emilio Romano, president of ABM, acknowledged that this change would have a noticeable impact on the banking sector. He emphasized the importance of understanding the government’s rationale behind this change and finding mutually beneficial terms to minimize negative consequences for banks.
Open Dialogue with the Secretariat of Hacienda and Credit Publico (SHCP)
Romano highlighted that ABM has already engaged in discussions with the SHCP regarding this proposed tax change. He expressed optimism about the openness of the secretariat to finding a solution that addresses the government’s objectives while minimizing the impact on the banking sector.
Positive Meetings with US Financial Authorities
In addition to the domestic policy concerns, Romano also discussed recent meetings between Mexican banks and US financial authorities. These encounters focused on advancing collaboration in combating illicit activities such as drug trafficking, money laundering, and the misuse of banking services for illegal purposes.
- Visit to the United States: Romano mentioned that discussions with US authorities centered on maintaining progress and showcasing the banking sector’s commitment to staying at the forefront of anti-money laundering efforts.
- Meeting with US Treasury Subsecretary John Hurley: Romano described this encounter as positive, with both parties focusing on enhancing information exchange between authorities and banks to strengthen their collaborative efforts.
Key Questions and Answers
- What is the proposed tax change and its purpose? The Mexican government intends to eliminate tax deductions on recurring contributions to the IPAB, aiming to raise approximately 10,000 million pesos annually.
- Who is Emilio Romano and why is his opinion important? Emilio Romano is the president of the Asociación de Bancos de México (ABM), which represents major financial institutions in Mexico. His views on policy matters hold significant influence within the banking sector.
- What were the outcomes of recent meetings between Mexican banks and US financial authorities? Meetings with both US authorities and the subsecretary of the US Treasury focused on enhancing collaboration in combating illicit activities and improving information exchange between authorities and banks.
