Introduction to the Real Estate Sector’s Challenges with Anti-Money Laundering Laws
The Mexican real estate sector faces a complex situation due to recent amendments to the Federal Law for the Prevention and Identification of Operations with Illicitly-Obtained Funds (Anti-Money Laundering Law). These changes introduce financial penalties ranging from 22,628 pesos to 7.3 million pesos, aiming to close financial spaces for organized crime.
However, these stricter regulations pose significant challenges for businesses, particularly small and medium-sized enterprises (SMEs) that dominate the real estate market.
SMEs: The Most Vulnerable
Karim Oviedo, President of the Mexican Association of Real Estate Professionals (AMPI), stated that “the fines are aggressive, especially when considering the difficulties smaller companies may face.”
An AMPI survey revealed that 64.9% of its members are independent or have between two and ten advisors, who would struggle with compliance costs.
“These companies want to comply, but we need a flexible mechanism. The Anti-Money Laundering Law, the Silla Law, and reduced working hours are issues that impact us,” Oviedo explained during his participation in the World Integrity and Compliance Forum.
According to AMPI calculations, fully complying with the law could double labor obligations and consequently increase housing prices.
“Always a Step Ahead”
Ruth Lugo Martínez, a certified public accountant before the Financial Intelligence Unit (UIF), believes that the reforms impose greater requirements for businesses, which must not only comply with the law but also strengthen their internal controls.
“Criminals will always go further and find ways to circumvent the Anti-Money Laundering Law… To prevent this, we must supervise our own businesses and clients,” she warned.
The Tax Administration Service (SAT) will conduct verification visits and audits for real estate companies, while the UIF will have the authority to request direct information.
The Anti-Money Laundering Law considers the real estate sector as one of the vulnerable activities for illicit resource management, thus tightening control measures and reportable transactions include:
- Construction or development of real estate for sale or rent, with amounts equal to or greater than 8,025 UMAS (908,415.50 pesos in 2025).
- Receiving funds for real estate projects.
- Operations worth 8,025 UMAS (908,415.50 pesos) or more must be reported to the Secretariat of Finance and Public Credit (SHCP).
- Rental of properties valued at over 1,605 UMAS (181,589.70 pesos).
- Professional services in representation of clients in operations involving 363,209 pesos or more per month.
Key Questions and Answers
- What are the recent changes to the Anti-Money Laundering Law in Mexico? The law now imposes stricter financial penalties on real estate businesses to prevent organized crime from exploiting the sector.
- Which real estate businesses are most affected by these changes? Small and medium-sized enterprises (SMEs) are disproportionately impacted due to increased compliance costs.
- What are the reportable transactions in the real estate sector under the new law? These include construction, development, and rental of real estate properties, as well as receiving funds for real estate projects and professional services in high-value operations.
- Who is responsible for enforcing the Anti-Money Laundering Law in the real estate sector? The Tax Administration Service (SAT) conducts verification visits and audits, while the Financial Intelligence Unit (UIF) can request direct information from companies.
