Financial inclusion is a vital aspect of sustainable development, enabling individuals and businesses to access and participate actively in the economy. However, achieving comprehensive financial inclusion remains a challenge in Mexico due to several factors, including limited access to formal financial services, high levels of informality, and identity-related barriers. In this essay, we delve into an emerging technological solution known as Self-Sovereign Identity (SSI) and explore how its implementation can contribute to financial inclusion in Mexico, promoting economic growth and reducing inequality.

Understanding Financial Inclusion in Mexico:
Mexico, despite being the second-largest economy in Latin America, still faces significant hurdles in achieving financial inclusion. An estimated 37% of Mexican adults lack access to formal financial services, confining them to only cash-based transactions. Informal economies thrive due to the absence of formal identification and a lack of trust in existing financial institutions. Additionally, vulnerable populations, including rural communities, women, and individuals with lower incomes, are disproportionately affected by limited financial access.

Introduction to Self-Sovereign Identity (SSI):
Self-Sovereign Identity (SSI) is a groundbreaking concept that empowers individuals with full control of their personal and digital identities. It enables users to securely assert their unique identity attributes, thereby reducing reliance on third-party intermediaries (governments, financial institutions, etc.). SSI utilizes decentralized and cryptographic technologies, ensuring privacy, security, and the ability to share information selectively.

Enhancing Financial Inclusion through SSI Self-Sovereign Identity:
1. Expanded Access to Formal Financial Services:
One of the primary barriers to financial inclusion is the lack of formal identification documents, particularly in marginalized communities. With SSI, individuals can create and manage their digital identities, enabling them to access financial services remotely, without reliance on physical documents. This empowers underserved populations, integrating them into the formal banking sector.

2. Trust and Security in Transactions:
SSI enhances trust and security by allowing individuals to securely manage and authenticate their digital identities. Through cryptographic protocols and blockchain technology, SSI eliminates the need for intermediaries in identity verification processes, reducing the risk of identity theft and fraud. It also promotes transparency, enabling users to audit their own data and trace the origins of transactions.

3. Fostering Financial Education and Literacy:
Financial inclusion goes beyond access to formal financial services; it also requires knowledge and understanding of financial practices. SSI can act as a facilitator for financial education initiatives. By enabling secure and private digital identities, individuals can access personalized financial literacy programs, empowering them to make informed financial decisions and enhance their economic opportunities.

4. Enabling Financial Mobility:
SSI allows individuals to centralize their identity attributes, including educational qualifications, employment records, and credit histories. With verified and reusable digital credentials, individuals can seamlessly access various financial services, regardless of location or financial institution. This reduces the burdensome process of repeating verification procedures, enabling smooth transitions between providers and facilitating upward financial mobility.

5. Supporting Microfinance and SMEs:
The informality of many businesses and lack of formal identification hinders access to credit for microfinance institutions and small-to-medium enterprises (SMEs). SSI can unlock access to credit by creating a verifiable identity framework for these businesses. Digital identities, tied to reputation and payment histories, provide lenders with accurate risk assessments, enabling the extension of loans to previously underserved entrepreneurs. This enhances the growth potential of microfinance and SME sectors, vital for job creation and economic development.

Incorporating Self-Sovereign Identity (SSI) into Mexico’s financial ecosystem has the potential to revolutionize financial inclusion. By eliminating identity-related barriers, SSI enables individuals to access formal financial services, fosters trust and security in transactions, promotes financial education, and supports the growth of microfinance and SME sectors. Implementing SSI solutions in Mexico will contribute to bridging the financial inclusion gap, empowering individuals, and driving economic growth while simultaneously reducing the inequalities prevalent within the country.



In today’s globalized economy, foreign investors are increasingly seeking to establish legal entities across multiple jurisdictions for various business objectives. However, one must understand the importance of adhering to the ultimate beneficiary owner (UBO) provisions when setting up a legal entity in Mexico within an existing corporate structure. These provisions play a crucial role in promoting transparency, preventing money laundering, and detecting illicit activities. This essay aims to explore the significance of UBO provisions in Mexico’s legal system and their implications for foreign investors.

The UBO of a legal entity refers to the natural person who ultimately owns or controls it. Mexico, like many countries worldwide, recognizes the importance of identifying the UBO as a way to tackle financial crimes such as money laundering, corruption, and tax evasion. The UBO provisions require the identification and disclosure of the individuals with significant control or influence over a legal entity, aiming to identify the true beneficiaries behind complex corporate structures.

When foreign investors establish a legal entity in Mexico within an existing corporate structure spanning multiple jurisdictions, UBO provisions become crucial for several reasons:

1. Enhanced Transparency:
UBO provisions foster transparency by requiring the disclosure of the individuals who ultimately control the legal entity. This ensures that the ownership structure is clear and accessible, helping both authorities and potential investors gain confidence in the business.

2. Prevention of Money Laundering and Illicit Activities:
Identifying the UBO is vital in the fight against money laundering and other illicit activities that exploit complex corporate structures. By disclosing the true beneficiaries, UBO provisions act as a deterrent, making it harder for criminals to hide their involvement in illegal activities.

3. Compliance with International Standards:
Mexico, as a member of the Financial Action Task Force (FATF), is committed to implementing robust regulations against money laundering and terrorist financing. UBO provisions align with international standards and recommendations, ensuring that Mexico remains compliant and attractive to foreign investors seeking lawful business opportunities.

While adhering to UBO provisions in Mexico is crucial, foreign investors may encounter certain implications and challenges during the establishment of a legal entity within an existing corporate structure:

1. Diligence and Documentation:
Investors must diligently identify and document the UBOs in accordance with Mexican regulations. This could involve conducting thorough due diligence, verifying corporate structures and shareholdings, and maintaining accurate records to comply with reporting requirements.

2. Potential Impact on Privacy:
The disclosure of UBO information may raise concerns regarding privacy, particularly for individuals who prefer to maintain their anonymity. Foreign investors must navigate this aspect carefully, balancing the need for transparency with privacy concerns, while abiding by the relevant laws and regulations in both Mexico and other jurisdictions involved.

3. Complex Corporate Structures:
If a legal entity is part of a broader corporate structure across multiple jurisdictions, complying with UBO provisions may become more challenging. Investors must ensure a thorough understanding of the UBO requirements in all relevant jurisdictions and establish effective mechanisms for information sharing and reporting, maintaining consistency and transparency throughout the process.

Establishing a legal entity in Mexico as part of an existing corporate structure across multiple jurisdictions necessitates a comprehensive understanding of the ultimate beneficiary owner provisions. By embracing these provisions, foreign investors can contribute to greater transparency, prevent money laundering, and ensure compliance with international standards. While challenges may arise, diligent adherence to UBO requirements ultimately strengthens the integrity of the global financial system and fosters a conducive environment for foreign investment in Mexico.

Giselle Villanueva




The relevance of Environmental, Social, and Governance (“ESG”) criteria compliance to Mexican companies cannot be understated. As the world increasingly prioritizes sustainability, responsible business practices, and corporate governance, companies that align with ESG principles are better positioned to raise funds, leverage nearshoring opportunities, and take advantage of various financial and commercial benefits.

Firstly, ESG criteria compliance significantly impacts a company’s ability to raise funds. With investors becoming more conscious of the long-term risks associated with unsustainable practices, companies that demonstrate a commitment to environmental stewardship, social responsibility, and strong corporate governance are more likely to attract capital. This is particularly pertinent after the COVID-19 pandemic, where investors are increasingly adopting sustainable investment strategies to ensure resilience and long-term value creation.

Mexican companies that prioritize ESG criteria compliance can tap into a growing pool of responsible investors, including pension funds, asset managers, and impact investors. These investors actively seek out companies with a strong ESG compliance as they recognize that financial performance and positive social and environmental impacts to go hand-in-hand. By aligning with ESG principles, Mexican companies can access a wider range of funding options, reduce their cost of capital, and enhance their reputation, ultimately positioning themselves as industry leaders in sustainable practices.

Secondly, the nearshoring phenomena presents a unique opportunity for Mexican companies, and ESG criteria compliance is a critical factor in taking advantage of this trend. Nearshoring refers to the relocation of business processes and manufacturing operations to countries that offer proximity to key customer markets, yet still provide cost advantages and favorable investment environments. As companies reevaluate their supply chains in the aftermath of the pandemic, Mexico has emerged as an attractive nearshoring destination for both North American and European markets.

To fully leverage the nearshoring phenomena, Mexican companies must demonstrate their commitment to comply with ESG principles. Many international companies now require their suppliers to meet certain ESG criteria, as part of their own commitment to sustainable practices. By complying with these standards, Mexican companies can position themselves as preferred partners for nearshoring initiatives, leading to increased business opportunities, greater operational efficiency, and enhanced market access.

Furthermore, ESG compliance is fundamental to meeting the expectations of international customers and attracting foreign direct investment (“FDI”). In an increasingly interconnected global marketplace, multinational corporations are seeking suppliers and partners that align with their own sustainability strategies. By prioritizing ESG responsibilities, Mexican companies can differentiate themselves from competitors and demonstrate their commitment to ethical practices.

Mexican companies that embrace ESG criteria compliance also stand to benefit from improved operational efficiency. The integration of sustainable practices can drive to cost savings through energy and resource optimization, waste reduction, and improved supply chain management. These efficiencies can, in turn, enhance a company’s competitiveness, profitability, and long-term viability.

Finally, Mexican companies that prioritize ESG criteria compliance can navigate potential legal and reputational risks more effectively. As global regulatory frameworks continue to evolve, companies that fail to adopt sustainable practices may face legal penalties, loss of business opportunities, and reputational damage. By actively addressing ESG concerns, Mexican companies can mitigate these risks, ensure compliance with emerging regulations, and safeguard their long-term growth prospects.

In conclusion, the relevance of ESG criteria compliance to Mexican companies is twofold: it enables them to raise funds and take advantage of the nearshoring phenomena, while also enhancing their financial and commercial considerations. By aligning with ESG principles, Mexican companies can access a wider pool of responsible investors, secure nearshoring partnerships, attract international customers and FDI, improve operational efficiency, and mitigate legal and reputational risks. Ultimately, prioritizing ESG criteria compliance is not only a responsible choice but also a strategic imperative that positions Mexican companies for long-term success in an increasingly sustainable and interconnected global economy.

Yumiko Suzuki




Mexico, as a rapidly growing economy and a key player in the global market, attracts foreign investors seeking opportunities in various sectors. When entering the Mexican market, understanding the regulatory and legal framework becomes crucial in order to comply with local requirements and optimize business operations. One such field that demands attention is the role of a Proveedor de Servicios de Certificación (PSC) or Certification Service Provider. This essay aims to provide foreign investors with an overview of the general scope and functions of PSCs in accordance with Mexican law. 

  1. Defining a Proveedor de Servicios de Certificación (PSC):

In Mexico, a PSC is a legal entity authorized to provide certification services related to electronic signatures, time-stamping, and electronic transactions as defined under the Federal Telecommunications and Broadcasting Law. These services are vital in ensuring the integrity, authenticity, and confidentiality of digital communications, thus facilitating secure electronic transactions in various spheres such as commerce, government, and private affairs. 

  1. Legal Framework:

The role and responsibilities of PSCs in Mexico are regulated by various laws, including but not limited to: 

a) The Federal Telecommunications and Broadcasting Law: This law sets out the general provisions related to electronic certification services, defining the requirements, standards, and security measures that PSCs must comply with.

b) The Electronic Commerce Law: This law establishes the legal framework for electronic transactions, defining the characteristics and requirements of electronic signatures and providing legal certainty to these transactions.

c) The Federal Law on Protection of Personal Data Held by Private Parties: This law governs the protection of personal data in Mexico, emphasizing the importance of secure storage, transmission, and management of digital information, which falls within the domain of PSCs.

  1. General Field of Action:

The primary functions and field of action of a PSC in Mexico encompass the following: 

a) Issuance of Digital Certificates: PSCs have the authority to issue digital certificates, which are essential tools in verifying the authenticity and integrity of electronic signatures. These certificates, based on cryptographic technologies, validate the identity of the individuals or entities involved in e-commerce, facilitating secure transactions.

b) Time-Stamping Services: PSCs are responsible for providing time-stamping services, ensuring that electronic documents or transactions are accurately dated and unalterable. This function aids in establishing the chronological order and legal validity of digital records, enhancing transparency and legal certainty.

c) Key Escrow Services: To further strengthen security measures, PSCs in Mexico may offer key escrow services. This involves securely storing encryption keys used for electronic signatures, thereby enabling access to authorized individuals or entities in case of legal exigencies.

d) Compliance with Technical and Legal Standards: PSCs must adhere to technical and legal standards set by regulatory bodies in Mexico. This includes compliance with specific security protocols, cryptographic algorithms, and privacy regulations to ensure the utmost protection of digital data.

  1. Oversight and Accreditation:

To ensure the reliability and accountability of PSCs, the Federal Telecommunications Institute (IFT) is the regulatory authority responsible for granting accreditation and overseeing compliance with legal requirements. PSCs must undergo a rigorous evaluation process to obtain accreditation, demonstrating their ability to meet the highest standards of security, privacy, and reliability. 


In summary, understanding the general field of action of a Proveedor de Servicios de Certificación (PSC) is essential for foreign investors seeking to operate within Mexico’s digital landscape. As the country continues to promote electronic commerce and data protection, PSCs play a crucial role in ensuring secure and trustworthy electronic transactions. By complying with the Mexican legal framework and partnering with accredited PSCs, foreign investors can confidently navigate the digital landscape in line with local regulations, fostering trust and growth in their business operations. 

Georgina Hernandez



Preferred shares are a type of equity security that grants specific rights and benefits to shareholders over those of the shareholders that hold common shares. Issuing preferred shares in a Sociedad Anónima Promotora de Inversión (“SAPI”), can bring several advantages and implications to both the company and the shareholders. This article will explore the potential benefits, added flexibility, and implications of issuing preferred shares in a SAPI.

One of the significant advantages of issuing preferred shares in a SAPI is the ability to attract and retain investors, as well to allow the controlling shareholders to keep control of the company. Preferred shares offer a fixed dividend payment that is typically higher than the dividend paid to common shareholders, and preference in the payment of the dividends over the common stocks. This fixed income stream appeals to income-focused investors, such as retirees or those seeking stable returns on their investments. By offering preferred shares, a SAPI can tap into this investor segment and broaden its investor base.

Moreover, issuing preferred shares provides additional flexibility to a SAPI in terms of capital management. Unlike common shares, preferred shares can be tailor-made to suit the company’s specific needs. For example, a SAPI can issue preferred shares that grants voting rights in specific matters, but that will entitle its holders to receive dividends before any payments are made to common shareholders. This feature can be valuable during times of financial distress or when the company needs to suspend dividend payments temporarily. Additionally, a SAPI can issue redeemable preferred shares, allowing the company to repurchase the shares at a predetermined price, providing more control over its capital structure.

Another advantage of issuing preferred shares is the potential to raise capital without diluting the ownership of existing shareholders. By offering preferred shares, a SAPI can obtain funding from new investors without compromising the control and decision-making power of the existing shareholders. This is particularly relevant for SAPIs that have a concentrated ownership structure or a group of controlling shareholders who wish to maintain their influence over the company.

Furthermore, issuing preferred shares in a SAPI can be an effective tool for mergers and acquisitions. In such scenarios, the acquiring company can offer preferred shares as part of the acquisition deal, providing an attractive alternative to cash consideration. This approach can be advantageous for both the acquiring company and the target company’s shareholders. The acquiring company can conserve its cash reserves and reduce the financial burden of the acquisition, while the target company’s shareholders can receive a stable income stream through the preferred shares.

However, it is essential to consider the implications of issuing preferred shares in a SAPI. One significant implication is the potential limitation on voting rights. While preferred shareholders have priority over common shareholders in terms of dividend payments, their voting rights may be limited or completely excluded. This can result in a concentration of decision-making power in the hands of common shareholders, possibly leading to conflicts of interest or dissatisfaction among preferred shareholders.

Another implication is the higher cost associated with issuing preferred shares compared to issuing common shares. Preferred shareholders expect a higher dividend payout, which can increase the company’s financial obligations over time. Additionally, the complexity of designing and structuring preferred shares can lead to increased legal and administrative costs for the company.

In conclusion, issuing preferred shares in a SAPI offers several advantages and implications. The ability to attract income-focused investors, the flexibility in capital management, and the potential to raise capital without losing control of the company, are among the benefits of issuing preferred shares. However, limitations on voting rights and higher costs should be carefully considered. Ultimately, the decision to issue preferred shares should align with the SAPI’s strategic objectives and the interests of both the company and its shareholders. 

Yumiko Suzuki
Jr Partner 




As the Mexican fintech industry continues to experience unprecedented growth and advancements, it is imperative for foreign investors to understand and prioritize the significance of cybersecurity. Here we aim to outline specific clauses that should be included in a fintech contract to ensure the minimum provisions for cybersecurity, including data encryption, incident response protocols, and regular vulnerability assessments. By incorporating these clauses, both foreign investors and Mexican fintech companies can mitigate potential risks and establish a secure and trustworthy ecosystem. 

Clause 1: Data Encryption 

Data encryption is the foundation of any robust cybersecurity framework. It is crucial to include a clause in the fintech contract that mandates data encryption protocols across all systems and operations. This clause should outline the encryption algorithms, encryption key management procedures, and data storage requirements. Additionally, it should stipulate compliance with international standards, such as the Advanced Encryption Standard (AES) and the latest encryption protocols, ensuring the secure transmission and storage of sensitive data. 

Clause 2: Incident Response Protocols 

In order to effectively handle and mitigate cyber threats, a well-defined incident response protocol is essential. This clause should provide specific provisions on how incidents will be detected, reported, and responded to promptly. It should include guidelines on incident categorization, roles and responsibilities of relevant stakeholders, communication channels, and escalation procedures. A comprehensive incident response plan ensures that the fintech company and the investor are prepared to tackle potential breaches and minimize any potential damage. 

Clause 3: Regular Vulnerability Assessments 

To ensure ongoing cybersecurity, regular vulnerability assessments must be conducted. Embedding a clause in the contract that mandates regular vulnerability assessments will guarantee that cybersecurity risks are continuously monitored and identified. This clause should specify the frequency, scope, and methodologies for vulnerability assessments, including network penetration testing, software code reviews, and thorough system audits. By conducting regular assessments, potential vulnerabilities can be identified and addressed promptly, fortifying the fintech company’s defenses against cyber threats. 

Clause 4: Data Privacy and Protection 

Data privacy and protection should be a top priority for any fintech company. Including a clause in the contract that outlines provisions for data privacy and protection ensures compliance with prevailing national and international data protection regulations, such as the Mexican Federal Data Protection Law (LFPDPPP) or the General Data Protection Regulation (GDPR). This clause should emphasize the importance of informed consent, secure data transfer mechanisms, limits on data retention, and procedures for handling customer data breaches. It should also require the fintech company to establish privacy-aware practices and implement secure data management systems. 

Clause 5: Third-party Security Assessments 

The reliance on third-party vendors or service providers in the fintech industry necessitates a clause that mandates security assessments for these entities. This clause should require the fintech company to conduct thorough due diligence on third-party vendors, evaluating their cybersecurity posture and ensuring they adhere to robust security standards. It should establish procedures for assessing their security practices, contractual obligations, and liability in the event of a security incident. By conducting regular assessments of interconnected partners, potential weak links can be identified and adequate measures taken to minimize overall cybersecurity risks. 


The Mexican fintech industry provides lucrative opportunities for foreign investors, but the evolving threat landscape necessitates an increased focus on cybersecurity. Incorporating specific clauses in fintech contracts outlining minimum provisions for cybersecurity, such as data encryption, incident response protocols, regular vulnerability assessments, and data privacy can set a solid foundation for a secure and trustworthy fintech ecosystem. By prioritizing cybersecurity through comprehensive contractual agreements, foreign investors can ensure their interests align with the best practices and regulatory frameworks in Mexico, ultimately fostering sustainable growth in the fintech industry. 

Giselle Villanueva