Mexico Senate Approves New Anti-Money Laundering (AML) Law

On June 25, the Mexican Senate passed substantial amendments to its Federal Anti-Money Laundering (AML) Law and Penal Code. This amendment is a practical response to the international recommendations of the Financial Action Task Force (FATF).

As a part of ongoing efforts to align with the FATF recommendations, Mexican Senator Javier Corral presented a bill proposal in 2024. This effort is particularly for the FATF mutual evaluation scheduled for 2025.

Some Key highlights from the 2024 proposal

• The expansion of the Financial Intelligence Unit (FIU) to access information of Politically Exposed Persons (PEPs) who are at a higher risk of money laundering.
• The proposal emphasizes the necessity of promptly reporting changes in ownership structure and registering beneficial owners in corporate entities.

The recent amendment reflects key areas outlined in the 2024 reform initiative. It has been initially presented as a comprehensive framework to align with the FATF evaluation. Finally, the Mexican government calls for adherence to AML law.

This reform is a step forward in promoting financial security in Mexico, particularly transactions from high-risk sectors such as gambling, betting, lotteries, and retail, which have been categorized as ‘vulnerable’ to illicit finances.

It generally aims to strengthen Mexico’s anti-money laundering (AML)  and Terrorist Financing (TF) frameworks to prevent the use of illicit funds in the financial system.

This amendment requires urgent approval to align Mexico’s legal code with global AML standards and the upcoming FATF evaluation.

Mexico is scheduled for a review by the FATF this year (2025).

Read More: 

• FATF Renews Its Guidance on Financial Inclusion and AML Measures
• T3 Financial Crime Unit Freezes Over $100M in Anti-Money Laundering Operations
• Key Outcomes from the FATF Plenary held on 23-25 October 2024

To prepare Mexico for the upcoming FATF assessment, several political leaders and parliamentarians have endorsed the reform. Former Governor of Chihuahua,  Senator Javier Corral, who presented a reform proposal last year, is supporting the new legislation.

Likewise, the supporters of the Morena ruling party believe that this modification will contribute to a more stable financial system, enhance transparency, and ensure economic integrity.

This emendation not only updates existing legislation but also represents a way forward to preserve investors’ confidence and block criminals’ access to legal markets

Mexico’s revised legislation intensifies the inspection of sectors like gambling and luxury sales. Businesses in these industries have to comply with strict compliance requirements. Those who fail to meet new requirements may face severe consequences, including the loss of operating licenses.

Although this new AML reform will enhance Mexico’s ability to combat financial crimes, it imposes heavier monitoring responsibilities and operational demands. However, this timely regulatory pressure will fully prepare Mexico for its upcoming FATF evaluation.

Under the June 25, 2025, Mexican AML reform, business entities are required to perform enhanced customer due diligence, which includes identifying beneficial owners and screening for PEPs.

In addition, they have to keep records for ten years and notify the Financial Intelligence Unit(FIU) of any suspicious activity within twenty-four hours. In accordance with FATF guidelines, sanctions compliance has been strengthened, with more sectoral coverage and stronger enforcement.

Partner With AML Watcher to Stay Ahead of Mexico’s New AML Law

With global reforms now in effect, Mexico’s compliance landscape is entering a new era. From enhanced PEP screening to stricter beneficial ownership reporting, businesses need to act fast and smart. They require a key solution to comply with the new AML reform.

What does AML Watcher offer?

• Spanish-language dashboards for local compliance teams
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