On 3rd January FATF published the report on the mutual evaluation of the AML/CFT systems of Mexico, carried out by IMF using FATF requirements and recommendations.  The accompanying news release said that Mexico has a good system to tackle money laundering and terrorist financing, but should step up efforts in pursuing launderers and confiscating their assets to mitigate the significant risks, acknowledging that Mexico faces a significant risk of money laundering, stemming principally from activities most often associated with organised crime, such as drug trafficking, extortion, corruption and tax evasion.  It notes that oversight of designated non-financial businesses and professions is not very developed and significantly under-resourced and there is a low level of suspicious transaction reporting.  Also, despite the fact that Mexican authorities recently conducted some high-profile investigations, they are not investigating and prosecuting money laundering in a proactive and systematic fashion, but rather on a reactive, case-by-case basis, and does not systematically pursue confiscation of proceeds and instrumentalities as a policy objective, and not commensurate with the money laundering and terrorist financing risks.  It also notes that a serious concern across all sectors is that beneficial owners are being identified only to a limited extent, systematically weighing on entities’ effectiveness in assessing and managing money laundering and terrorist financing risks.




Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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