Archive for October, 2012

Mexico passes new AML legislation

Saturday, October 13th, 2012

On October 11, Mexico’s Congress approved a long-awaited law aimed at cracking down on money laundering in a bid to attack the finances of the country’s powerful drug cartels.

This legislation was proposed in 2010 years ago by outgoing President Felipe Calderon as part of his offensive against drug gangs. On October 11, 2012, it was passed by the Senate.

The new federal law puts restrictions on cash purchases of real estate, jewelry, armored cars and other assets that criminals use to launder illicit funds.

Companies will be required to report large cash purchases under the law. Car sales of more than 200,000 pesos (about USD 16,000) and real estate purchases of more than 500,000 pesos (about USD 39,000) must be reported.

The bill carries a minimum penalty of 5 years in prison.