Introduction
“In times of corruption, more laws are created,” said Étienne Bonnot de Condillac. This quote seems to resonate with the current situation in Mexico, where mediators and other professionals involved in alternative dispute resolution mechanisms (MASC) have been facing constant pressure, which intensified with the enactment of the General Law on Alternative Mechanisms for Conflict Resolution (LGMASC). This law imposed measures to obstruct, restrict, and effectively strangle their professional exercise.
The LGMASC and the Anti-Money Laundering Law
In January 2014, the author, then Director General of the Alternative Justice Center at the Superior Tribunal of Justice in Mexico City, formally consulted the head of the Financial Intelligence Unit (UIF) to determine if public and private mediators’ acts were considered vulnerable activities under the Anti-Money Laundering Law (AML). The official response stated that, considering the attributes of public officials granted by the Alternative Justice Law of the Superior Tribunal for the Federal District to public and private mediators, these activities were not vulnerable and thus not subject to the AML.
However, the intention to subject public and private facilitators, as referred to in the LGMASC, to the AML persisted. Article 98 of the LGMASC established that agreements signed by the parties and subscribed by mediators and other MASC professionals must comply with AML obligations, without specifying any vulnerable activities for these professionals.
Recent Amendments to the AML Law
During an extraordinary session of Congress, significant amendments to the AML law were addressed, which have already been approved. These modifications broaden the list of vulnerable entities and discretionary powers. They enable authorities to access all types of financial data without a court order, assign national security tasks to the National Guard, militarizing financial control, which could lead to excessive actions and abuse of power against citizens.
Including mediators and other MASC professionals in the list of public officials involved in vulnerable activities forces them to report activities that do not fall under their responsibilities, such as those of notaries. These amendments to the AML law place facilitators in a vulnerable position regarding potential abuses by UIF elements, as they cannot alert on vulnerable activities they do not engage in.
Government Reaction and Public Trust
While the AML law was being reformed, the U.S. government made serious accusations against two Mexican banks and a securities firm for money laundering related to drug trafficking. The securities firm’s connection to the former head of the ex-president’s office added a significant twist, suggesting possible official cover-up and selective application of the regulation. Despite the accusations’ severity, Mexican authorities reacted disproportionately, almost as if their sovereignty was violated. These accusations not only undermine the official narrative but also erode trust in the Mexican financial system, implying that organized crime money laundering occurs with authorities’ complicity.
Congressional Session and Rule of Law
The extraordinary session of Congress has been marked by disorder and a lack of decorum, with official majorities imposing their will. This has led to the approval of bulky resolutions hours before each session, advancing the government’s control over legal frameworks to monitor citizens in various aspects of their daily lives. These dispositions threaten freedom, privacy, and fundamental rights.
The World Justice Project’s Global Rule of Law Index report is worth noting. It evaluates factors directly linked to the rule of law in each country, including restrictions on government power, corruption, respect for fundamental rights, order, security, and justice. In 2018, Mexico ranked 92nd, but in the most recent report (2024), it dropped 39 places to 131st due to the weakening of evaluated factors. This decline suggests that Mexico may receive a worse rating in the next evaluation, equating it to authoritarian governments.
The Current State and Future Implications
Nine months into the current administration, it is disheartening to see that the transformation has resulted in decreased competitiveness and attractiveness of the country, abandoning growth aspirations, pluralism, modernity, and development aimed at improving the quality of life for all. In exchange, liberties are diluted, and election manipulation through “well-being” and electoral results takes precedence.
The radical shift in the country’s direction seems to concern no one. This widespread apathy and negligence serve as fertile ground for this detrimental transformation.
About the Author
*The author is an attorney, negotiator, and mediator.
@Phmergoldd
Mail: [email protected]
Key Questions and Answers
- What is the LGMASC? The General Law on Alternative Mechanisms for Conflict Resolution in Mexico, which has been subject to amendments that impact mediators and other professionals involved in alternative dispute resolution.
- How has the AML law affected mediators? Mediators have been forced to report activities that do not fall under their responsibilities due to the amendments, creating a vulnerable position for them.
- What are the recent amendments to the AML law? These modifications broaden the list of vulnerable entities, grant authorities access to all financial data without a court order, and assign national security tasks to the National Guard, potentially leading to excessive actions and abuse of power.
- How has the government reacted to accusations of money laundering? The reaction was disproportionate, almost as if sovereignty was violated, undermining trust in the Mexican financial system and implying complicity in organized crime money laundering.
- What is the current state of the rule of law in Mexico? According to the World Justice Project’s Global Rule of Law Index, Mexico has significantly declined in its ranking due to weakening factors linked to the rule of law, potentially equating it to authoritarian governments in future evaluations.
