According to the Mexican government’s recent warning, digital asset service providers must comply with reporting requirements of all financial laws. These rules apply whether the company is based in Mexico or elsewhere in the world.
Through its Money Laundering Prevention Portal, the Mexican government reminded businesses of their responsibilities. Among these responsibilities is the requirement to notify the appropriate authorities of any transaction worth more than $87,000.
Transactions worth more than 645 Measurement and Update Units (UMAs) — one UMA is now worth 2,724 Mexican pesos — must be recorded, translating to 1,756,980 Mexican pesos ($87,805), according to the Central Bank of Mexico’s statement.
The most recent clarification was fairly specific in that it covered both local and offshore exchanges. In addition, it noted that these laws apply to any digital asset service provider, even if the technological infrastructure used to serve them is located in another nation or is provided by corporations incorporated in that country.
The web page also defined digital assets, making it one of the few in the world.
- “A virtual asset will be understood as any representation of value registered electronically and used among the public as a means of payment for all types of acts and whose transfer can only be carried out through electronic means,” – it stated.
Digital currency enterprises have not always been subject to anti-money laundering legislation. However, financial laws were updated in 2018 to include firms that provide the regular and professional exchange of virtual assets and those that assist the operations, custody, or storage of such assets, according to CVBJ.
The new warning follows Mexico’s rather tight adherence to the Financial Action Task Force (FATF) principles. Mexico received an “excellent” rating from the FATF for its compliance with the standards, noting that it had implemented 22 of the 40 requirements.
Despite tight adherence to FATF rules, the Mexican digital assets market has a few bad apples. For example, the country’s Financial Intelligence Unit said earlier this month that 12 exchanges were operating unlawfully.