On January 20, 2023, the Ministry of Finance and Public Credit issued resolutions that amend the Anti-Money Laundering ("AML") General Provisions (the "Amendments") applicable to Investment Advisors, and Credit Unions, (jointly the "Entities") highlighting the incorporation of a new regulatory report, and the update of the remote process for the identification of their customers through technological solutions ("Digital Onboarding").
I. New regulatory report
- The Entities must file with the National Banking and Securities Commission ("CNBV"), within the last ten business days of April of each year, quantitative information of the prior calendar year on their transactions, distribution channels, type of customers, type of products and services, as well as the geographic areas in which they operate.
- The format of the report is pending to be issued by the competent authorities.
II. Digital onboarding
III. Authorization application and thresholds
The authorization of the CNBV is required to perform Digital Onboarding regarding:
1. Agreements in which the aggregate amount of transactions does not exceed ~USD$11,000 in a calendar month; and
2. Agreements without a transactional limit, if biometric information is verified against the records of the National Electoral Institute ("INE").
No authorization is required when investment advisors enter into agreements with a transaction limit of ~USD$11,000 and biometrics are verified against the INE, which allows investment advisors to use Digital Onboarding for these type of accounts in a simple manner.
The authorization of the CNBV is required to perform Digital Onboarding regarding:
1. Credits for a principal amount not exceeding ~USD$11,000; and
2. Credits for a principal amount not exceeding ~USD$22,000, if biometric information is verified against the INE.
No authorization is required for credits up to ~USD$11,000 and if biometrics are verified against the INE, which allows Credit Unions to use Digital Onboarding for these type of accounts in a simple manner.
IV. Transitory provisions
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