FATF to focus fifth review on effectiveness

Mexico City. In its fifth evaluation to be carried out in June 2025, the Financial Action Task Force (FATF) will focus on Mexico’s effectiveness in complying with the agency’s 40 recommendations to prevent money laundering and terrorist financing, reported the Financial Intelligence Unit (UIF) of the Ministry of Finance and Public Credit (SHCP).

“Mexico has a medium, acceptable rating in terms of technical compliance, but we have been questioned more in terms of effectiveness,” the UIF said.

“The country has a medium, acceptable rating in terms of technical compliance, we have been questioned more in terms of effectiveness. How many cases has the Attorney General’s Office opened in terms of money laundering? How many of those cases have been prosecuted? How many sentences have been obtained, among those, how many convictions? That speaks to the effectiveness of a system,” he commented.

At the 22nd Convention of the National Association of Currency Exchange Centers and Money Transmitters, the UIF highlighted that Mexico is emerging from an intensified monitoring process, which was due to a difference between regulation of the financial sector and the sector of vulnerable activities that still lacks regulations.

These activities include gambling, contests and raffles, prepaid cards, electronic wallets, construction services, marketing of works of art, vehicles, jewelry and virtual asset operations, among others.

“The FATF will come to ask us how we are doing with our laws, and will review that our regulations have incorporated the recommendations. It will come to ask us about technical compliance, but it will put greater emphasis on effectiveness,” the agency said.

In addition, the FATF will place greater emphasis on Mexico’s risk context.

“There are countries that, while they have not incorporated some FATF rules in a relevant way, they also do not have a context that presents a risk related to them,” he said.

For example, a country that has restricted the use of virtual assets does not have a risk of having an instrument that could become money laundering, the UIF explained.

Mexico’s evaluation will begin in June 2025 and end in October 2026, when a rating will be obtained and the areas that need strengthening will be determined.