If your company makes loans between companies in the same business group, it is essential to be informed about the recent regulatory changes. In Mexico, since January 2021, the Financial Intelligence Unit (UIF) has considered these operations vulnerable activities, as established in the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds (LFPIORPI).
Previously, intra-group loans were treated as internal operations and did not require specific reporting to the financial authorities. However, the current change in criteria implies that corporate groups must assume new responsibilities and comply with strict prevention and control obligations to avoid significant regulatory risks and possible administrative sanctions.
This new context represents a significant challenge for companies, as routine and seemingly simple financial operations are now under strict surveillance and require careful management to comply with current regulations.
What specific requirements must your company meet?
To adequately adapt to this regulatory change and keep your company in line with legal requirements, your corporate group must consider the following:
- Designate a Compliance Officer: A person responsible for coordinating and supervising compliance with all obligations established in the Anti-Money Laundering Law.
- Submit monthly reports to the SAT: You must report operations in the Anti-Money Laundering Portal monthly.
- Document and keep records: All transactions must be appropriately documented and kept for at least 5 years.
- Facilitate verification visits: Authorities may conduct periodic inspections to validate compliance.
- Identify the beneficial owner: It is essential to be clear about who the natural person is who ultimately benefits from the financial transactions.
What happens if you do not comply?
Ignoring these obligations can lead to serious consequences, including heavy fines and possible legal proceedings. What may have once seemed like a routine financial management operation now requires a proactive approach to regulatory compliance.
Mario César Núñez, director of Englobally Mexico, emphasizes: “An oversight or non-compliance can result in severe penalties. This is a clear example of how a common operation in financial planning can generate significant legal implications if current regulations do not attend to it.”
If your business group has not yet updated its internal policies in compliance with Article 27 Bis of the Anti-Money Laundering Rules, it is crucial to do so immediately. Doing so will avoid unnecessary risks and ensure your organization’s financial and operational peace of mind.
Remember, prevention and timely compliance are key to avoiding future complications.