Does your business performs vulnerable activities? Then you have to fulfill certain Mexican Law requirements.
According to the Federal Law for the Prevention and Investigation of Operations with Resources of Illicit Origin, there are some activities that are more likely to be used to launder money. These are known as vulnerable activities, and if a business executes them on a regular basis or professionally, it must comply with some Law obligations.
If your company practices vulnerable activities (check here the list to find out) this is what you have to do:
Individuals or companies that perform vulnerable activities have to register in SAT (Tributary Authority in Mexico).
It’s vital that they also identify their clients in those cases where the amount established by the authority is exceeded. It’s necessary to present official documentation, as well as personal information of the beneficial owner, such as its ID.
It should be mentioned, that when a contractual enforcment has been initiated, the authority may ask for information regarding the client’s occupation and collate it with its RFC (taxpayer registry).
Notices and reports
The business has to present notices and reports to the Financial Intelligence Unit when the amount established is exceeded. These notices have to include the basic information from both parts, as well as the description of the activity.
Information and documentation custody
It’s important that the business holds on to all the relevant information and documents that support the performance of the activities for at least 5 years since the date in which the vulnerable activity started.
In VLH we have qualified consultants that can guide you through everything related to Launder Money Prevention. We also do audits and provide training in this matter. Contact us, we can help you with any doubt you may have.