Dec 14, 2014

Attacking the Money-Laundering Problem in Mexico

National Law Review: According to the Los Angeles Times, Mexican officials have estimated the amount of laundered money in the Mexican economy at $50 billion annually—three percent of the legitimate Mexican economy.  The CIA World Fact Book labels Mexico as a “major drug-producing and transit nation”, as well as a “significant money-laundering center”.  Illicit cash flows from cartels have affected nearly every corner of the Mexican economy.

On October 17, 2012, Mexico passed the Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (the “AML Law”), a new federal law aimed at identifying and preventing the use of illegal proceeds and terrorism financing.  The AML Law became effective on July 17, 2013.  The AML Law created an investigative unit within the Mexican Attorney General’s office, tasked with investigating transactions involving illegal proceeds.  It also provides for monetary and administrative sanctions, as well as criminal liability. Read more. 

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