As you may be aware, the new Federal Law for the Prevention and
Identification of Operations with Illegal Proceeds, also known as
the Anti-Money Laundering Law (hereinafter the "Law"),
entered into effect on July 17, 2013. However, as of January 17,
2014 all individuals and legal entities that engage in Sensitive
Activities according to the Law, are obligated to file the
corresponding notices before the Tax Administration Service
("SAT" for its Spanish acronym).
In addition, the obligation of identifying clients or users as well as keeping and protecting the information that supports such Sensitive Activities, was effective on the same date in which the Law came into effect, which was July 17, 2013.
Penalties for infringement of the Law may reach up to Mx$4,160,000.00 Mexican pesos (equivalent to approximately US$308,148.00 Dollars) and up to 10% of the value of the act in the event of omission of the corresponding notices or violation of the restrictions established by the Law concerning payments in cash. Further, certain other conducts under the Law may be considered as crimes.
If you have not yet implemented the adequate, practical and efficient internal processes, or provided the corresponding training to your representative and/or employees, for the adequate and prompt compliance of the Law, we can gladly assist you by evaluating the potential impact this Law will have on your operations and to assess you accordingly with the implementation of said necessary processes.
Originally published January 27, 2014
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.