Senators have been working intensively in recent weeks to propose changes to the Federal Law for the Prevention and Identification of Operations with Illicitly Obtained Resources. Despite some resistance from the Mexican Banking Association (ABM), they seek to expedite the approval of modifications to this legislation.
According to the ABM, while they view the proposed modifications positively, they believe adjustments are needed to enrich the project, especially regarding the regulation of trusts. For this reason, they request a period of up to 18 months to incorporate the changes.
Experts in money laundering prevention, such as Javier López López, believe that the lack of understanding about current actions in the area and the unclear drafting of the new changes are obstacles to overcome. Furthermore, an international expert visit is anticipated in June, which increases the pressure to expedite the approval of the changes.
The banking sector is concerned about the proposed modifications in the regulation of trusts, as they believe current advances may not be sufficient to improve the perception of the Financial Action Task Force (FATF) since its last visit in 2018. The effectiveness of measures taken in audits for vulnerable activities is also questioned.
Uncertainty in the banking sector is exacerbated by the threat that the U.S. government may classify Mexican drug cartels as terrorists. The reappearance of General Salvador Cienfuegos and his possible connection with the prominence of Mexico City Security Secretary Omar García Harfuch also raises concerns.
Although doubts persist regarding the commercial and financial implications of this possible classification, pressure on the Senate is increasing in light of the upcoming FATF visit to assess progress in anti-money laundering and counter-terrorism efforts. The proposal for greater control over trusts engaged in vulnerable activities is one of the key points under discussion.
