Mexico Tightens Anti-Money Laundering Controls on Real Estate, Casinos, and Crypto Businesses

Mexico has introduced new regulations to combat money laundering by tightening controls on various sectors, including real estate developers, car dealers, non-bank lenders, casinos, and art and jewelry dealers.

The new legislation, known as LFPIORPI, requires these service providers to identify clients, track transactions, and detect possible illicit funds. It also imposes new obligations, such as automated monitoring systems using technology, annual audits, and stricter mechanisms to identify the beneficial owner of a business.

Crypto businesses are also affected by the regulations, which require them to keep detailed records of operations for up to 10 years, report suspicious activity within 24 hours, and register with the Tax Administration Service (SAT).

The move is in line with pressure from the United States to cut financial flows of criminal organizations. The new rules aim to unravel corporate structures, reducing anonymity surrounding companies and trusts used to move or conceal assets.