Discover if your business performs vulnerable activities, as considered by the Federal Law for the Prevention and Investigation of Operations with Resources of Illicit Origin.
In accordance to the Federal Law for the Prevention and Investigation of Operations with Resources of Illicit Origin (LFPIORPI), there are some businesses in Mexico that are considered to be more susceptible for being used to launder money.
These activities are called vulnerable activities, and those companies that do them must comply with certain law requirements in order to operate in the Mexican market.
It should be mentioned that if you execute one or more of these activities eventually, you are not obligated to anything outside the conventional Mexican Legislation. This is because the LFPIORPI only applies to those who perform vulnerable activities professionally.
Without further ado, here is the list of the activities that the Law considers vulnerable:
Gambling, contests, or raffles.
Issuance or commercialization of service, credit, or pre-paid cards that constitute monetary value storage instruments.
Issuance of traveler’s checks different from Financial Institutions.
Mutual or guarantee operations, granting loans or credits, with or without guarantees other than Financial Entities.
Construction, development, or intermediation of properties.
Merchandising or intermediation of precious metals, precious stones, jewelry, or watches.
Auction or commercialization of works of art.
Merchandising or distributing air, sea, or land vehicles; new or used.
Shielding land vehicles or properties; new or used.
Transfer services or custody of money.
Proving professional services.
Providing public / legal services.
Receiving donations from associations and non-profit societies.
Providing foreign trade services as agent or customs agent.
Constitution of rights of use or enjoyment of real estate (monthly value).
Exchange of virtual assets from subjects different that financial entities.
If you perform one of these activities professionally and you’re thinking of establishing your business in Mexico, it’s important that you know that you must comply with certain obligations before the LFPIORPI. On another article, we will explain these requirements. So stay tuned to our social media and subscribe to our newsletter to get notified.
In the meantime, you can contact us to ask for advice on vulnerable activities in Mexico. Our specialists in Laundered Money Prevention will help you answer any doubt.