Introduction
Mexico’s President, Claudia Sheinbaum Pardo, has decided to adopt a strategy encapsulated by the phrase “follow the money.” This approach aims to unravel complex financial networks that lead to criminal activities and money laundering through intelligence work and analysis.
Background
Although the exact start date of these investigations remains undisclosed, they likely began following public allegations by the Financial Crimes Enforcement Network (FinCEN) of money laundering involving Intercam, CI Banco, and Vector Casa de Bolsa on June 25 of the current year. The U.S. Department of Treasury’s accusations, though unverified, prompted the Mexican government to take action against organized crime on an economic and financial level.
The Timing
This initiative coincides with the change in leadership at Mexico’s Unit of Financial Intelligence (UIF), where Pablo Gómez, known for media presence but limited results, was replaced by Omar Reyes Colmenares, who brings financial intelligence expertise and close ties to the federal security chief.
The Actions
President Sheinbaum and Security Secretary Omar García Harfush confirmed that investigations have been ongoing for several months. The first operation, potentially called “Operation Casino,” identified and blocked 13 casinos and gaming establishments, both physical and virtual.
- The Procuraduría Fiscal de la Federación analyzed potential tax crimes and tax evasion associated with these operations.
- The UIF integrated unusual transaction reports and conducted strategic and operational analysis to identify financial networks linked to alleged illicit activities.
- Collaboration with FinCEN and OFAC, under the U.S. Department of Treasury, has strengthened Mexico’s capacity to prevent, detect, and dismantle transnational financial structures used by criminal groups for money laundering.
- This partnership also facilitates the exchange of financial information, coordination in applying sanctions and restrictive measures, and adherence to the Group of Action on Money Laundering (GAFI) standards.
These developments indicate that the Mexican government is embarking on a new path to combat organized crime, focusing on their economic strength.
Key Questions and Answers
- What is the strategy adopted by Mexico’s President? The strategy, encapsulated by “follow the money,” involves intelligence work and analysis to unravel complex financial networks linked to criminal activities and money laundering.
- When did these investigations likely begin? Investigations probably started following public allegations by FinCEN in June of the current year.
- Who are the key figures involved in this initiative? Mexico’s President Claudia Sheinbaum Pardo and Security Secretary Omar García Harfush are central to this initiative.
- What is the significance of collaboration with U.S. agencies? Collaboration with FinCEN and OFAC enhances Mexico’s ability to prevent, detect, and dismantle transnational financial structures used by criminal groups for money laundering.
