Mexican Federal Law on the Prevention and Identification of Operations with Funds of Illicit Origin
Please be advised that on July 17, 2013 the Mexican Federal Law on the Prevention and Identification of Operations with Funds of Illicit Origin “Mexican Law Against Money Laundering” (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita) entered into effect in Mexico. This law is aimed at protecting the financial system and the national economy, establishing measures and procedures to prevent and detect acts or transactions involving money of illegal origin through interagency coordination with the objective of gathering useful information to investigate and prosecute crimes of operations with funds of illegal origin, financial structures of criminal organizations. It establishes the prohibition to comply with obligations and generally liquidate or pay and accept the payment of acts or transactions using coins and bills, in local or foreign currency or Precious Metals in various events such as constitution or transfer of real state, property transfers of certain means of transport, jewels and metals, purchase raffle tickets, shielding services. This Law is considered a basic tool in the fight against organized crime.
One of the important aspects of this law that it restricts the use in cash of certain operations related with high value assets, in order to prevent that organize crime disguise their illegal activities within the formal economy, as well as combat money laundering. Therefore any sale that exceeds 8025 minimum salaries (approximately $505,575.00 pesos) in Mexico, Federal District for the purchase of a real estate property must be reported and carried out through the mechanism established by the corresponding regulations. The corresponding Regulation to the law has not been approved by Mexican lawmakers. We will keep you posted on further developments.
For further reference, attached herewith please find the Spanish version of the the Mexican Federal Law on the Prevention and Identification of Operations of Illicit Origin “Mexican Law Against Money Laundering”.
Ernesto Velarde Danache, Inc.