[co-author: Jorge Magaña Bou, José Carlos Altamirano, Dulce Vega Sámano]
On August 28, 2024, the Ministry of Finance and Public Credit (“SHCP”) published the “Resolution that reforms, supplements and repeals several of the general provisions mentioned be taken in article 115 of the Law on the Credit of Financial Institutions (“the”. Resolution”) to address the recommendations of the Financial Action Task Force (“FATF”) to comply with obligations regarding the prevention of activities with resources of illegal origin and terrorist financing.
In general, we highlight the following topics from the Resolution:
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Strengthening the legal regime to prevent activities with resources of illegal origin and the financing of terrorism: The risk-based approach is strengthened and the adoption of new technologies for non-face-to-face customer identification is expanded, including geolocation and biometric authentication methods.
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Submit international recommendations: “FATF” recommendations are integrated into the Mexican regulation, including the use of digital identification technologies to mitigate risks.
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Simple for SMEs: Simplified identification requirements are established to encourage the economic activity of small and medium-sized enterprises (SMEs), while maintaining the mitigation of associated risks.
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Financial inclusion: The financial inclusion of refugees in Mexico and repatriated Mexicans is enabled, recognizing documents issued by the National Migration Institute and the Ministry of Foreign Affairs as valid for opening bank accounts.
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Developments in international management and cooperation: The need to improve cooperation between national and international financial systems is emphasized and supervisory mechanisms are updated to ensure compliance with the provisions regarding the prevention of financial crimes.
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New criteria for financial activity: Identification requirements are established for account levels, including personal interviews or the use of technological means to achieve the client’s identity.
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Compliance and training: New guidelines have been established for compliance with the provisions, which include the updating of compliance manuals, staff training and the implementation of automated systems for risk assessment. In addition, financial institutions must adapt their procedures to the new requirements, ensuring effective and transparent compliance. The figure of the Interim Compliance Officer is also included
The resolution came into effect the day after it was published in the Official Gazette of the Federation except as provided in the transitional arrangements.
For further information or advice in this regard, the Hogan Lovells team are happy to assist with any matter relating to the published changes.
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2024-09-12 19:03:31
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