1. Anti-Money Laundering Law (Ley Anti-Lavado de Dinero): The primary AML law in Mexico, which establishes obligations for financial institutions, including entities engaged in payday lending activities.
2. Financial Intelligence Unit (Unidad de Inteligencia Financiera – UIF): The UIF is the government agency responsible for investigating and preventing money laundering and terrorism financing. Payday loan businesses must fulfill reporting obligations and cooperate with the UIF.
3. Know Your Customer (KYC) requirements: Payday loan businesses in Mexico should implement robust KYC procedures to verify the identity of their customers. This usually includes collecting official identification documents, proof of address, and understanding the sources of income.
4. Reporting suspicious transactions: Payday loan businesses are required to report any suspicious transactions to the UIF. This includes transactions that may be related to money laundering or terrorism financing.
5. Record-keeping obligations: Payday loan businesses must maintain detailed records of transactions, customer information, and any suspicious activity reports for a minimum period of five years.
6. AML Compliance Program: Businesses engaged in payday lending activities must establish an AML compliance program that includes internal policies, procedures, and controls to ensure compliance with AML obligations.
7. Customer Due Diligence: Payday loan businesses should conduct ongoing monitoring of customers’ transactions and relationships to detect and report unusual activities promptly.
8. Penalties for non-compliance: Non-compliance with AML regulations in Mexico can result in severe penalties, including monetary fines, business restrictions, or even criminal charges.
It is essential for foreign investors operating a payday loan business in Mexico to consult with legal experts who specialize in Mexican AML regulations to ensure compliance with the specific requirements and obligations in the country.