The specialist stressed that, although Mexico already has a robust legislation on money laundering prevention (PLD) and terrorism financing, traditional banks, Fintech and other financial entities must press their controls.
“This executive order is what Mexican entities – mainstreams above all, and those dedicated to vulnerable activities – will have to strengthen their controls, processes, money laundering prevention manuals because this (the designation of cartels) put a new layer of greater approach to the activities in Mexico at all levels, “Valderrama explained.
An example of what can happen after the designation of cartels as terrorists is that if the Mexican subsidiary of a company native to the United States pays an extortion of organized crime, it will be accused of “financing” terrorism, says Steven Dudley, co -director and co -founder of the Insight Crime Thought Center to the AFP agency.
In addition, a report of the law firm DLA Piper points out that the announcement of the United States government will imply that financial institutions comply with the regulation blocking or freezing funds involved with cartels.
Discard changes in regulation
But the designation of Mexican cartels as terrorist associations seems not to worry the financial authorities in Mexico.
The Bank of Mexico (Banxico), headed by Victoria Rodríguez, refused to make changes in the regulation because the financial system is robust.
“Mexico has a robust regulatory framework regarding money laundering prevention and combat of terrorism financing,” Rodríguez explained at the Banxico quarterly report conference.
The official said that Mexico, being part of the International Financial Action Group (GAFI), complies with international regulations for the prevention of these crimes.
“There are already mechanisms that allow to follow up natural and moral persons who have illegal activities and work to address this additional event,” he said. “With regard to the Bank of Mexico, for the moment we do not consider it necessary to make any indication to the circulars that regulate payment systems.”
The Mexican Association of Insurance Institutions (AMIS) declared that, where appropriate, it is the authorities as the National Insurance and Bonds Commission (CNSF), as well as the Ministry of Finance, which would have to call these drug cartels as terrorist associations so that there was an adjustment in the coverage of their policies.
The Ministry of Finance and Public Credit (SHCP), the National Banking and Securities Commission (CNBV), as well as the Association of Banks of Mexico (ABM), were sought by Expansion and discarded comment on it.
Morena leaders see effects for Mexico
After the president of the United States appointed the drug cartels terrorist groups, Legislators of Morena said that this decision will have effects in Mexico.
The president of the Senate, Gerardo Fernández Noroña, said that this designation is an excuse of Donald Trump to intervene in the country.
The coordinator of the deputies of Morena, Ricardo Monreal, said that the country and the companies “honest, in good faith” that they market with Mexico will have affectations by the decision of the United States to declare terrorists to criminal groups.
It minimized the possibility that with the executive order of US President Donald Trump there could be combat activities to these groups extraterritorially but, he explained, the impact will be economic.
The United States decision “has economic, financial, banking repercussions, since many honest companies in good faith will be affected that are marketing with Mexico products of lawful origin.”
With information from Yared de la Rosa and AFP
