RegAlert2010-06-21 | FinCEN Advisory – FIN-2010-A007Added · Updated
Mexican Regulations Restricting Mexican Banks from Receiving U.S. Currency
Mexican regulations prohibit banks from receiving U.S. currency for transactions involving currency exchange, payment for services, or fund transfers, subject to specific aggregate limits. For legal entities and trusts that are customers, the monthly limit is $7,000 if based in designated border or tourist areas, while non-customer entities are prohibited entirely. Individual customers face a $4,000 monthly limit, whereas non-customer individuals are limited to $300 per day and $1,500 per month, with identification requirements for all non-customer individual transactions. The restrictions on transactions with individuals take effect four business days after publication on June 16, 2010, while restrictions on legal entities and trusts take effect ninety calendar days later.
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Department of the Treasury
Financial Crimes Enforcement Network
1
Advisory
FIN-2010-A007
Issued: June 21, 2010
Subject: Newly Released Mexican Regulations Imposing Restrictions on Mexican Banks for Transactions in U.S. Currency The Financial Crimes Enforcement Network (FinCEN) is advising U.S. financial institutions of a recent change in Mexican financial regulations applying to Mexican banks that could affect the operations of U.S. financial institutions. On June 15, 2010 the Mexican finance ministry, Secretaría de Hacienda y Crédito Público de México (SHCP), announced new anti-money laundering (AML) regulations that will restrict the amounts of physical cash (banknotes and coins) denominated in U.S. dollars that Mexican banks may receive. 1 The Mexican regulation will still allow certain transactions up to relatively low value thresholds, as described in more detail below. The regulations do not restrict non-cash transactions denominated in U.S. currency (e.g., wire transfers, ACH payments, credit card transactions, traveler’s checks, etc.). These new Mexican regulations are intended to mitigate risks of laundering proceeds of crime tied to narcotics trafficking and organized crime. The regulations state that the restrictions on U.S. currency transactions by banks with individuals will go into effect four business days after official publication on June 16, 2010. The restrictions on U.S. currency transactions by banks with legal entities and trusts will go into effect ninety (90) calendar days after official publication (on or about September 14, 2010).2 This Advisory is issued to assist financial institutions in understanding how the U.S financial system may be affected by the changes in the Mexican regulations, to help U.S. financial institutions anticipate possible impacts on their businesses, including the risk profiles of certain classes of transactions and customers, and how various AML and counter-terrorist financing safeguards consistent with Bank Secrecy Act (BSA) regulations may be utilized to mitigate possible changes or increases in risks. Background The United States and Mexico maintain strong commercial and cultural ties, particularly evident around our shared border. There are many legitimate reasons that U.S. currency enters the Mexican economy, including in connection with border trade, tourism, and
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Source: Financial Crimes Enforcement Network — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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