The Mexican Law to Fight Money Laundering
The Federal Law to Prevent and Identify Transactions with Illegally Obtained Funds (the “Law” or Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita) entered into force in Mexico on July 17, 2013, it was designed to detect and investigate acts and transactions that involve illegally obtained resources. In addition, it applies restrictions to some commercial and financial transactions that may be frequently used as a cover-up for money laundering, and it establishes various obligations for those who carry out activities deemed vulnerable.
Vulnerable activities are those which, by their nature, are susceptible to being carried out using resources of illicit origin, which include, among others:
- Activities related to lotteries, gambling and raffles.
- Commercialization or issuance of credit or prepaid cards that are not issued by an approved financial institution.
- The granting of loans, mutual loans, or guarantees outside the regulated financial system.
- Construction, development, purchase, and/or sale of real estate.
- Commercialization of artworks, jewelry, and gemstones.
- Commercialization and/or distribution of ground, air, and sea transportation vehicles.
- The provision of professional services, attestation services, or foreign trade services as a customs broker or customs attorney-in-fact.
Most vulnerable activities are considered as such only when they are carried out on a regular or professional basis, with certain exceptions expressly set forth in the Law.
The Law imposes various obligations on those who carry out vulnerable activities, including, among others, the following:
- create an identification file for each client or user and keep it for at least five years;
- verify the identity of each client or user and obtain information regarding their economic activity, occupation, or origin of resources;
- identify and document the controlling beneficial owner of the client or user;
- file the corresponding monthly reports with the Ministry of Finance and Public Credit (the “Ministry”) no later than the 17th day of the month immediately following the month to which the transaction relates, or, in the case of public notaries, within 17 business days following the execution of the act;
- register in the registry of people who carry out vulnerable activities;
- have an internal manual describing the policies, criteria, measures, and procedures for compliance with the Law; and
- safeguard and manage information in accordance with the confidentiality and security measures provided for in the applicable regulations.
Financial institutions, on another hand, are required to preserve identification and transaction records of their clients or users for ten years, maintain complete files, apply know-your-customer measures, monitor and report relevant or unusual transactions, train their personnel, and comply with requests from the competent authorities in the corresponding matters.
Notary publics will have the obligation to notify the Ministry of those transactions in which they participate and that involve: (i) the incorporation of legal entities, (ii) amendments to bylaws, (iii) increases or reductions of capital, (iv) transfers of shares or equity interests, (v) the incorporation, amendment or termination of trusts, (vi) the sale-purchase of real estate, and (vii) any other legal act that falls within the vulnerable activities set forth in the Law. In addition, the Ministry and the Office of the Attorney General of the Republic are empowered to collect information that allows for the interruption of the flow of resources to criminal groups. The Ministry may also carry out verification visits to ensure compliance with this Law.
The Law provides administrative fines for those who fail to submit the required reports within the established deadlines, which may be equal to the full value of a specific activity or transaction. In addition, criminal sanctions are established for those who provide false information or make improper use of information obtained in compliance with the Law, with prison sentences ranging from two to ten years.
Together with its regulations and the general rules issued by the Ministry on the matter, the Law aims to prevent and combat money laundering in the country. Therefore, it is important that all individuals or businesses that in any way engage in the performance of vulnerable activities are aware of their obligations and comply with them to assist in the identification of possible transactions carried out with resources of illicit origin.
At JATA, we have the knowledge and experience needed to help you implement a compliance policy that is suitable for your needs and your obligations under the Law. We are at your service.
February 2026.
This article was originally written in 2012 by Miguel de Leon, and was updated and complemented in February 2026 by Carla A. Ríos. Please send any questions or comments to info@jata.mx. The original author of this note was an Associate at JATA – J.A. Treviño Abogados, and the co-author who updated and complemented this article is an Associate at JATA and may be reached at crios@jata.mx. JATA is a Mexican firm with offices in Monterrey, Mexico, and Houston, Texas.
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