MEXICO Law and Practice Contributed by: Pablo Perezalonso Eguía, Isabel Ortiz-Monasterio Borbolla and Alejandro Mosqueda Pérez, Ritch, Mueller y Nicolau, S.C.
• Risk assessment – regularly evaluate poten - tial money laundering and terrorist financing risks, considering customer profiles, prod - ucts, services, and geographic locations. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) Mexico’s depositor protection regime is gov - erned by the Ley de Protección al Ahorro (the “Savings Protection Law” or the “IPAB Law”) which established the Instituto para la Protec - ción al Ahorro Bancario (the IPAB). The IPAB operates as a decentralised federal agency with its own legal personality, assets, and liabilities. Its mission is to safeguard bank savings and manage financial reorganisation programmes for distressed banks. Administration of the Scheme The IPAB is overseen by a board of governors composed of seven members: three appointed by the Federal Government and four independ - ent governors approved by the Senate upon the President’s proposal. An Executive Secretary leads the agency’s operations. Coverage and Limits The IPAB guarantees the payment of certain deposits and loans made to Mexican banks, up to a maximum of 400,000 UDIs (approximately USD135,000) per individual or corporate deposi - tor across all accounts and loans with the bank. Payments are made within 90 days of the bank being declared in liquidation, suspension of pay - ments, or bankruptcy. Depositors must submit documentation, such as agreements or account statements, to claim payments. However, certain obligations are
excluded from IPAB’s coverage, including the following. • Debts owed to Mexican or foreign financial institutions. • Obligations to entities within the same finan - cial group as the bank. • Liabilities documented in negotiable instru - ments or bearer securities (unless held by the original owner). • Deposits or obligations in favour of share - holders, directors, senior management, or other specified individuals. • Transactions conducted in violation of laws or good banking practices, or related to money laundering. Subrogation and Additional Remedies When the IPAB makes a payment, it is subro - gated into the rights of the depositor or creditor in the relevant insolvency proceedings. Deposi - tors and creditors may seek recovery of amounts exceeding the guaranteed limit through other legal means. Financial Support for Banks In exceptional circumstances, the IPAB may provide financial support to distressed banks at its own initiative or at the request of the CNBV. Support measures include the following. • Subscription of shares or subordinated debentures. • Assumption of liabilities. • Loans or acquisition of loan portfolios or other assets. Such assistance is contingent on a cost-benefit analysis confirming that supporting the bank is less expensive than paying the guaranteed obligations. The bank must agree to a financial reorganisation programme, with its voting shares
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