MEXICO Law and Practice Contributed by: Pablo Perezalonso Eguía, Isabel Ortiz-Monasterio Borbolla and Alejandro Mosqueda Pérez, Ritch, Mueller y Nicolau, S.C.
1. Legal Framework 1.1 Key Laws and Regulations The main laws and regulations applicable to Mexican banks are as follows. Laws • Ley de Instituciones de Crédito (the “Bank - ing Law”): This is the primary law applicable to Mexican banks and foreign branches of banks ( filiales ) in Mexico. It outlines the requirements for the establishment, opera - tion, and supervision of banks in Mexico. It also includes, among others, provisions on allowed and forbidden transactions, as well as corporate governance, risk management, and consumer protection provisions applica - ble to banks. • Ley del Banco de México (the “Banco de México Law”): This law governs the opera - tion, supervision and regulatory activities of Banco de México (the Central Bank of Mex - ico). It defines the central bank’s roles and responsibilities, including monetary policy, financial stability, and the regulation of pay - ment systems. Additionally, this law provides that Banco de México might issue regulations regarding the deposit, lending and services transactions of banks. • Ley para Regular las Agrupaciones Finan - cieras (the “Financial Groups Law”): This law provides for the establishment of finan - cial groups in Mexico. Financial groups are formed by a financial holding company and its subsidiaries, which are regulated financial companies. Financial groups are regulated and supervised by different authorities in Mexico, depending on the entities that com - prise them. • Ley de Protección y Defensa al Usuario de Servicios Financieros (the “Financial Services Users Protection Law”): This law focuses on
the protection of financial service users. It establishes the rights of consumers and the obligations of financial institutions, including transparency and fair treatment. Regulations • Disposiciones de Carácter General Aplica- bles a las Instituciones de Crédito or Circular Única de Bancos (the CUB or the “Banking Regulations”): This regulation is issued by the Comisión Nacional Bancaria y de Valores (the “National Banking and Securities Com - mission” or the CNBV) and it conglomerates most of the regulatory requirements appli - cable to banks in Mexico, including, among others, capital and liquidity requirements, cor - porate governance and duties of the senior management, and financial reporting. • Circular 3/2012, issued by Banco de México, regulates transactions between banks and other financial institutions, including credit transactions, deposits and other services/ banking operations, as well as provisions related to the use of diverse interest rates. • Circular 4/2012, issued by Banco de México, regulates the operational aspects and obli - gations related to derivatives transactions entered into between financial institutions in Mexico. • Reglas a las que Deberán Sujetarse las Instituciones de Crédito Casas de Bolsa Sociedades de Inversión, Sociedades de Inversión Especializadas de Fondos Para el Retiro y la Financiera Rural en sus Opera - ciones de Reporto (the “ • Reporto Regulations”), issued by Banco de México, regulate repurchase agreement (“repo”) transactions entered into between financial institutions in Mexico. • Circular 14/2007, issued by Banco de Méx - ico, sets forth the requirements with which
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