MEXICO Law and Practice Contributed by: Lizette Neme, Andrea López-Malo, Shannon Reilly, Rodolfo Flores and Dunia Salum, Áurea Partners
Banxico (and the CNBV for card networks) to ensure secure, real-time gross settlement and operational stability. To further modernise these existing payment rails, Banxico has implemented CoDi and DiMo, which leverage the SPEI infrastructure to facilitate instant payments via QR codes (CoDi) and mobile phone numbers (DiMo), providing processors with standard - ised, low-cost digital tools. While there is no express legal prohibition against developing proprietary payment rails, any new system involving the settlement of funds between third par - ties or the custody of client funds is legally classified as a “payment system” under the Law of Banxico. This classification requires formal, prior authorisation from Banxico, creating a high regulatory barrier for new entrants. A common practice for smaller processors involves the use of concentrating accounts to perform inter - nal compensation. In these models, the entity settles transactions between its own users with its internal ledger without triggering a SPEI instruction for every movement, only using the payment rails for the final liquidation of balances or the cash-out of balances to external bank accounts. Finally, when processing card transactions, entities must navigate the Card Payment Network framework. This requires participants (including issuers, acquir - ers, and aggregators) to follow the General Provisions Applicable to Card Payment Networks, under which clearinghouses must be authorised by Banxico. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances are regu - lated through a layered legal and supervisory frame - work designed to promote financial transparency, consumer protection and compliance with AML/ CFT standards. All entities that send or receive funds across borders, including banks, money transmitters and regulated fintechs such as wallets, must be duly authorised by the CNBV and comply with applicable registration, internal control and reporting obligations. These include rigorous KYC procedures, robust risk- based monitoring, suspicious transaction reporting, record-keeping and other AML/CFT safeguards.
Beyond AML/CFT, regulators require clear fees and exchanges rate disclosures, operational and technical standards, transparency obligations and user com - plaint mechanisms to protect consumers and ensure fair market conduct. Banxico plays a central role in overseeing the payment infrastructure, specifically the SPEI, and authorising or restricting certain foreign exchange or virtual asset elements of cross-border transfers. Supervision is ongoing and has recently been rein - forced, with the CNBV increasing inspections and enforcement actions, particularly around remittance transmitters’ compliance with identification and trans - action monitoring requirements, reflecting the grow - ing importance of remittances in Mexico’s financial system. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms In Mexico, digital marketplaces and trading platforms that facilitate investment or asset trading fall under distinct regulatory regimes depending on the nature of the underlying instruments. Securities trading platforms operated by authorised broker-dealers are regulated under the Securities Market Law and require authorisation and ongoing supervision by the CNBV, with obligations relating to market transparency, investor protection, prudential requirements, and AML/CFT and KYC compliance. Crowdfunding and alternative investment platforms and marketplaces that match investors with issuers or projects for equity, debt, or similar arrangements are regulated under the Fintech Law and must obtain CNBV authorisation, comply with disclosure stand - ards, investor eligibility and investment limits, and maintain operational and AML/CFT and KYC controls. Virtual asset and cryptocurrency trading platforms are not recognised as regulated financial institutions and are therefore primarily subject to general con - sumer protection laws and AML/CTF obligations as
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