Amendment to the General Provisions referred to in Article 115 of the Credit Institutions Law

In general terms, we emphasize the following topics of the Resolution:

1. Strengthening the legal rules of prevention of operations with resources of illicit origin and financing of terrorism: The risk-based approach is strengthened, it extends the adoption of new technologies for the non-face-to-face identification of customers, including geolocation and biometric validation mechanisms.

2. Incorporation of international recommendations: ‘FATF’ recommendations are integrated into Mexican regulations, including the use of digital identification technologies to mitigate risks.

3. Simplification 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.

4. Financial inclusion: Financial inclusion for refugees in Mexico and repatriated Mexicans by recognizing documents issued by the National Migration Institute and Ministry of Foreign Affairs considered acceptable for opening bank accounts.

5. Improvements in supervision and international cooperation: Emphasize the need to improve the national and international financial system cooperation and update supervisory mechanisms to ensure compliance with the provisions on financial crime prevention.

6. New thresholds for Financial Transactions: Establishment of identification requirements for account levels including face-to-face interviews or use of technological mechanisms to complete customer identity.

7. Compliance and training: There are new guidelines for compliance, which include the update of Compliance Manuals, staff training and implementation of automated systems for risk assessment. In addition, financial institutions are required to adapt their procedures to the new requirements, to ensure effective and transparent compliance. The figure of the Interim Compliance Officer is also included.

The Resolution became effective the day after its publication in the Official Gazzete of the Federation, except as provided in the transitory provisions.

For further information or advice, Hogan Lovell's team is ready to assist on any issue related to the published amendments. 

Authored by Federico de Noriega Olea, Jorge Magaña Bou, José Carlos Altamirano y Dulce Vega Sámano.