Background on the Situation
In October, the Mexican Banking Association (ABM) unveiled a new set of actions and recommendations to combat money laundering (ML). This move comes after the United States pointed out concerns regarding CIBanco, Intercam, and Vector. Despite these señalamientos (allegations), the Mexican banking system remains robust, with no significant impact reported.
Collaborative Efforts
In response to these concerns, representatives from Mexican banks have been actively engaging with their U.S. counterparts and authorities in recent months.
New Measures by ABM
The ABM’s new recommendations include:
- Developing best practices for money laundering prevention and combating the financing of illicit activities to bridge the gap between U.S. and Mexican regulations.
- Creating and distributing reports on criminal typologies for ML prevention.
- Joining a technological platform for information exchange among banks.
- Holding regular working meetings with the Mexican Financial Intelligence Unit (UIF).
- Recommending immediate international transfer restrictions between corporate accounts and starting from June 30, 2027, for individual accounts.
- Recommending cash deposit and withdrawal identification starting from 140,000 pesos as of July 1, 2026.
- Encouraging adherence to the ABM’s 2023 Best Practices for Economic Sanctions among all associates.
- Mandating reference linking for concentrated bank accounts across the financial sector.
- Working on identifying necessary legal reforms applicable to the entire financial sector.
Key Questions and Answers
- Who is involved? The Mexican Banking Association (ABM), CIBanco, Intercam, Vector, and U.S. authorities.
- Why are these measures being taken? In response to concerns raised by the United States regarding money laundering practices at CIBanco, Intercam, and Vector.
- What are the new recommendations? Developing best practices, creating typological reports, joining a technological platform, regular meetings with UIF, transfer restrictions, cash identification requirements, adhering to sanctions best practices, reference linking, and identifying necessary legal reforms.
- When will these changes take effect? Some measures, like transfer restrictions and cash identification requirements, are set to begin in 2026 and 2027, respectively.
These new measures aim to strengthen Mexico’s banking sector against money laundering, ensuring compliance with both U.S. and Mexican regulations while fostering collaboration between the two nations.
