It’s the Law: Global anti-fraud legislation
This new column will review anti-fraud legislation from around the globe. — ed.
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following Financial Action Task Force (FATF) and European Union
directives on money laundering, issued its anti-money laundering law on
Oct. 17, 2012, which came into full force on July 17, 2013. (The
official name of the law is Ley Federal para la Prevención e
Identificación de Operaciones con Recursos de Procedencia Ilícita.) The
law applies to Mexican businesses and individuals and foreigners who
operate subsidiaries, offices or branches in Mexico.
President Felipe Calderon proposed the law in 2010 as part of his
offensive against drug gangs, but fraud examiners should know how it
could also affect their cases.
“The purpose of this law is to
protect the financial system and the national economy, establishing
rules and procedures to prevent and detect transactions or operations
that involve illegal proceeds,” the legislation states. (See an overview of the law in English.)
TO WHOM DOES IT APPLY?
new law, which doesn’t target specific industries or business lines,
lists 15 vulnerable activities of individuals and/or companies,
including gambling games, construction services and auction or marketing
of works of art, among others.
Depending on the size of their
operations, the vulnerable activities are subject to compliance with the
law, reporting monthly to the Secretaría de Hacienda y Crédito Público,
(SHCP) — the Secretariat of Finance and Public Credit — and