Regulatory Alerts2021-05-12 | Circular 3/2021Added · Updated
Circular 3/2021 — Contingent Financing from the Bank of Mexico Guaranteed with United States Dollars or Government Securities
This circular establishes rules for contingent financing facilities offered by the Bank of Mexico to multiple banking institutions that hold US dollar cash but cannot remit it to foreign financial entities. Eligible institutions must demonstrate they engage in cash dollar purchases, provide proof of suspended or terminated correspondent banking relationships due to causes not attributable to them, and certify compliance with anti-money laundering regulations without recent structural sanctions. The financing, secured by eligible dollars or government securities, is available for up to 90 days, renewable up to a maximum of 360 days, to prevent payment system disruptions.