Answer ... The general regulatory framework for financial technology institutions in Mexico is set out in the Financial Technology Institutions Law.
Likewise, the General Provisions for Financial Technology Institutions establish rules for fintech companies in relation to the following issues, among others:
- minimum capital requirements;
- fund transfer limits;
- cash in and cash out restrictions;
- filing requirements; and
- financial reporting obligations.
Finally, several administrative rules and provisions regulate specific matters, such as the following:
- the General Provisions for Electronic Money and Payment Institutions;
- the General Provisions on the Prevention of Money Laundering and Terrorist Financing under Article 58 of the Fintech Law;
- the General Provisions on Cryptocurrency Operations (4/2019);
- the General Provisions on the Information Regarding Activities that must be Reported to the Financial Authorities under Articles 57 and 84 of the Financial Technology Institutions Law;
- the General Provisions for Crowdfunding Institutions; and
- the Administrative Rules to Establish Additional Criteria and Conditions to Grant Temporary Authorisation for the Operation of Innovative Models.
Answer ... Article 80 of the Financial Technology Institutions Law allows fintech companies to operate on a temporary basis under an innovative model authorisation or ‘regulatory sandbox’. The regulatory sandbox is available for institutions that offer financial services using innovative technological tools which will have a positive social impact. It provides fintech companies with a testing ground for new business models that are not covered by existing regulation.
Answer ... Under Article 3 of the Financial Technology Institutions Law, the National Banking and Securities Commission (CNBV) and the Central Bank of Mexico (Banxico) are the authorities responsible for enforcing the law and its secondary provisions.
Under Article 71 of the law, the CNBV is the financial authority with responsibility for the operations of fintech companies in Mexico. The CNBV has supervisory powers and can perform audits upon request.
Likewise, the Finance Ministry, the National Commission for the Pension Saving System, the National Commission for the Protection and Defence of Financial Services Users and the National Insurance and Bonding Commission have supervisory powers in terms of their applicable laws.
Answer ... The regulators seek to:
- provide legal certainty and protection for fintech users;
- prevent money laundering and operations using illegal resources; and
- promote a secure environment for the development of the financial industry in Mexico.
Answer ... Fintech Mexico is a fintech trade group which brings together more than 70 fintech companies in Mexico. It has become one of the key players in the sector. Since 2015, Fintech Mexico has been working hand in hand with the government to promote a legal framework that facilitates fintech development in Mexico.