MEXICO Law and Practice Contributed by: Pablo Perezalonso Eguía, Isabel Ortiz-Monasterio Borbolla and Alejandro Mosqueda Pérez, Ritch, Mueller y Nicolau, S.C.
• They must disclose remuneration policies, the composition and functions of the Remunera - tion Committee, and risk analyses through their websites and annual reports. Supervisory Approach The CNBV oversees compliance with remunera - tion requirements by monitoring disclosures and conducting periodic reviews. Banks must main - tain sufficient documentation to demonstrate compliance, ensuring that the Remuneration System aligns with the regulatory framework and supports long-term financial stability. Mexico’s banking sector is subject to robust anti-money laundering (AML) and counter-terror - ist financing (CTF) regulations under the Bank - ing Law and the Reglas a las Que se Refiere el Artículo 115 de la Ley de Instituciones de Crédito (the “Anti-Money Laundering Rules” or the “AML Rules”). As a member of the Financial Action Task Force (FATF) and the Financial Action Task Force of Latin America (GAFILAT), Mexico adheres to international standards and best practices. Mexican authorities actively co-operate with international counterparts to combat cross- border money laundering and terrorist financing activities. Key Obligations for Banks 1. Customer identification – verify the identity of customers using reliable, independent source documents, data, or information. 5. AML/KYC 5.1 AML and CFT Requirements 2. Know-Your-Customer (KYC) – collect and maintain detailed information about the custom -
er’s identity, business activities, and the purpose of the account. 3. Enhanced due diligence (EDD) – apply addi - tional scrutiny to high-risk customers, such as politically exposed persons (PEPs) and those from high-risk jurisdictions. 4. Record keeping – banks are required to main - tain records of all transactions and customer information for at least ten years. This includes account opening documents, transaction histo - • Suspicious Activity Reports – banks must promptly report suspicious transactions or activities to the Financial Intelligence Unit (the UIF). • Threshold reporting – transactions exceed - ing specified monetary thresholds, such as high-value cash transactions, must also be reported to the UIF. 6. Internal controls and compliance programmes – banks must establish and maintain an effec - tive AML/CTF compliance programme, which includes: • Policies and procedures – develop written policies and procedures to detect and pre - vent money laundering and terrorist financing. • Training programmes – provide regular train - ing for employees on AML/CTF regulations, identifying red flags, and reporting proce - dures. • Independent audit – conduct periodic inde - pendent audits to assess the effectiveness of the AML/CTF programme and ensure regula - tory compliance. ries, and correspondence. 5. Reporting obligations:
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