Tables/Rankings                                                                                                                                Reports Library  
    Are there Sanctions in force against it?
No
    Is it on FATF list of non-cooperative countries?
No
    Has it been on any previous FATF list?
No
    Is it on OECD list of uncooperative Tax Havens?
No
    OECD - Implementation status of Tax Standard
Committed and Substantial
    Is it on EU 'white' list of equivalent jurisdictions?
Yes
    US Department of State assessment
Primary Concern
    Compliance with FATF 40 + 9
    recommendations
% Fully or Largely Compliant
Date of last Report
45%
2009
 
Country Ranking 2008
    Corruption (Transparency International)
72 (out of 180)
    Ease of doing business (World Bank)
56 (out of 181)
    Other
    In April, 2009, the IMF approved a credit line for Mexico of $47
    billion to aid economy during global financial crisis.
 
Average Risk Rating (Standard &
Poors/Moody's)
    Country Credit Rating
Medium
For Offshore Service Providers
    Bilateral exchange of information Agreements in place?
No
| General |
    Does the Country meet local anti-money laundering equivalence expectations?
Bahamas
Cayman Islands
Guernsey
Isle of Man
Jersey
No
Yes
No
No
No
    Last Updated:   30 April 2009
Background:

The site of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving
independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil,
triggering the worst recession in over half a century. The nation continues to make an impressive recovery. Ongoing
economic and social concerns include low real wages, underemployment for a large segment of the population,
inequitable income distribution, and few advancement opportunities for the largely Amerindian population in the
impoverished southern states. Elections held in July 2000 marked the first time since the 1910 Mexican Revolution that
the opposition defeated the party in government, the Institutional Revolutionary Party (PRI). Vicente FOX of the National
Action Party (PAN) was sworn in on 1 December 2000 as the first chief executive elected in free and fair elections.

Government type:
federal republic

Capital:
name: Mexico (Distrito Federal)
time difference: UTC-6
daylight saving time: +1hr, begins first Sunday in April; ends last Sunday in October
note: Mexico is divided into four time zones

Independence:
16 September 1810 (from Spain)

National holiday:
Independence Day, 16 September (1810)

Constitution:
5 February 1917

Legal system:
mixture of US constitutional theory and civil law system; judicial review of legislative acts; accepts compulsory ICJ
jurisdiction, with reservations

Suffrage:
18 years of age; universal and compulsory (but not enforced)


Disputes - international:

Prolonged drought, population growth, and outmoded practices and infrastructure in the border region have strained
water-sharing arrangements with the US; the US has stepped up efforts to stem nationals from Mexico, Central America,
and other parts of the world from illegally crossing the border with Mexico
Executive Branch:

Chief of state: President Felipe de Jesus CALDERON Hinojosa (since 1 December 2006); note - the president is both
the chief of state and head of government
head of government: President Felipe de Jesus CALDERON Hinojosa (since 1 December 2006)
cabinet: Cabinet appointed by the president; note - appointment of attorney general requires consent of the Senate
elections: president elected by popular vote for a single six-year term; election last held 2 July 2006 (next to be held 1
July 2012)
election results: Felipe CALDERON elected president; percent of vote - Felipe CALDERON (PAN) 35.89%, Andres
Manuel Lopez OBRADOR (PRD) 35.31%, Roberto MADRAZO (PRI) 22.26%, other 6.54%


Political Leaders:

Pres. Felipe de Jesus CALDERON Hinojosa Sec. of Agrarian Reform Abelardo ESCOBAR Prieto Sec. of Agriculture,
Livestock, Rural Development, Fisheries, & Nutrition Alberto CARDENAS Jimenez Sec. of Communications & Transport
Luis TELLEZ Kuenzler Sec. of Economy Gerardo RUIZ Mateos Sec. of Energy Georgina KESSEL Martinez Sec. of
Environment & Natural Resources Rafael ELVIRA Quesada Sec. of Finance & Public Credit Agustin CARSTENS
Carstens Sec. of Foreign Relations Patricia ESPINOSA Cantellano Sec. of Government Francisco Fernando GOMEZ
MONT Urueta Sec. of Health Jose Angel CORDOVA Villalobos Sec. of Labor & Social Welfare Javier LOZANO Alarcon
Sec. of National Defense Guillermo GALVAN Galvan Sec. of the Navy Mariano Francisco SAYNEZ Mendoza Sec. of
Public Education Josefina VAZQUEZ Mota Sec. of Public Security Genaro GARCIA Luna Sec. of Public Service Salvador
VEGA Casillas Sec. of Social Development Ernesto Javier CORDERO Arroyo Sec. of Tourism Rodolfo ELIZONDO
Torres Attorney Gen. Eduardo MEDINA MORA Icaza Governor, Bank of Mexico Guillermo ORTIZ Martinez Ambassador
to the US Arturo SARUKHAN Casamitjana Permanent Representative to the UN, New York Claude HELLER Rouassant
Economy - Overview:

Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and
agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in
seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income
is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly
tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries
including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of
trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able
to garner support from the opposition to successfully pass a pension and a fiscal reform. The administration continues
to face many economic challenges including the need to upgrade infrastructure, modernize labor laws, and allow private
investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and
creating jobs.

GDP (purchasing power parity):
$1.559 trillion (2008 est.)
$1.538 trillion (2007)
$1.49 trillion (2006)

GDP (official exchange rate):
$1.143 trillion (2008 est.)
GDP - real growth rate:
1.4% (2008 est.)
3.2% (2007 est.)
4.9% (2006 est.)

GDP - per capita (PPP):
$14,200 (2008 est.)
$14,100 (2007 est.)
$13,900 (2006 est.)

GDP - composition by sector:
agriculture: 3.7%
industry: 34.1%
services: 62.2% (2008 est.)

Exports - commodities:
manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Exports - partners:
US 82.2%, Canada 2.4%, Germany 1.5% (2007)

Imports - commodities:
metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair
parts for motor vehicles, aircraft, and aircraft parts

Imports - partners:
US 49.6%, China 10.5%, Japan 5.8%, South Korea 4.5% (2007)
Sanctions:

None applicable


Offshore Jurisdiction Blacklists – Further Information:

There are currently over 90 low-tax jurisdictions on Mexico's blacklist. Mexican resident companies and individuals are
taxable on their worldwide income, including most undistributed income from investments in those named jurisdictions.


US State Department Money Laundering Report (available only if rated Concern or Primary Concern):

Mexico is a major drug-producing and drug-transit country and is also one of the major conduits for proceeds from illegal
drug sales leaving the United States. Proceeds from the illicit drug trade is the principal source of funds laundered
through the Mexican financial system. Other major sources of illegal proceeds being laundered include corruption,
kidnapping, trafficking in firearms and persons, and other crimes. The smuggling of bulk shipments of U.S. currency into
Mexico and the repatriation of the cash into the United States via couriers, armored vehicles, and wire transfers remain
favored methods for laundering drug proceeds. In addition, criminal organizations have established networks with
criminal groups based in other countries to facilitate and develop new methods to launder illicit funds.

Investigation of money laundering activities involving the cross-border smuggling of bulk currency derived from drug
transactions remains a challenge for U.S. law enforcement officials. Sophisticated and well-organized drug trafficking
organizations based in Mexico are able to take advantage of the extensive U.S.-Mexico border and the large flow of
legitimate remittances. The combination of a sophisticated financial sector and relatively weak regulatory controls
facilitates the concealment and movement of drug proceeds. U.S. officials estimate that since 2003, as much as $22
billion may have been repatriated to Mexico from the United States by drug trafficking organizations. In April 2006, the U.
S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a warning to the U.S. financial sector on the
potential use of certain Mexican financial institutions, including Mexican casas de cambios (licensed foreign exchange
offices) and centros cambiarios (unlicensed foreign exchange offices), to facilitate bulk cash smuggling.

Corruption is also of concern: in the last year, various Mexican government officials have come under investigation for
alleged corruption and money laundering activities. The Government of Mexico (GOM) took on internal corruption in
2008 and launched a “cleaning operation” aimed at ending corruption inside its enforcement agencies, including the
Office of the Attorney General—Special Unit for Organized Crime (PGR-SIEDO), the Secretariat for Public Security
(SPP), the Federal Preventive Police (PFP), and the Federal Investigative Agency (AFI). In November 2008, PGR agents
apprehended the former Deputy Attorney General of SIEDO. To date, eight enforcement agents from PFP and PGR
have been apprehended and accused of leaking confidential information to drug cartels.

In January 2008, the International Monetary Fund (IMF) conducted a mutual evaluation of Mexico on behalf of the
Financial Action Task Force (FATF). The evaluation noted improvements to the GOM’s AML/CTF regime and identified
deficiencies, including a lack of criminal liability for legal persons and a lack of investigations for money laundering and
cross-border cash smuggling.

In 2000, Mexico amended its Customs Law to reduce the threshold for reporting inbound cross-border transportation of
currency or monetary instruments from $20,000 to $10,000. At the same time, it established a requirement for the
reporting of outbound cross-border transportation of currency or monetary instruments valued at $10,000 or greater.
Customs authorities send these reports to the financial intelligence unit (FIU) and cover a wide range of monetary
instruments including bank drafts. As a result of the cooperation between Mexican Customs, the Financial Crimes Unit of
the Office of the Deputy Attorney General against Organized Crimes (SIEDO), and various U.S. agencies, Mexico has
seized over $60 million in bulk currency shipments leaving Mexico City’s international airport since 2002. As of
November 2008, bulk-cash seizures amount to $53 billion.

Currently, there are 46 banks including 6 development banks and 71 foreign financial representative offices operating in
Mexico, as well as 95 insurance companies, 479 investment companies, 155 credit unions, and 24 casas de cambio.
The number of casas de cambio will likely decline due to actions the Mexican authorities have taken against those with
serious AML/CTF violations and the closure of correspondent accounts in the United States. Commercial banks, foreign
exchange companies, and general commercial establishments may offer money exchange services. The Ministry of the
Interior (SEGOB) issues temporary licenses for national lotteries, casinos, horse races, and sport pools, but these
operations as well as lawyers, accountants, real estate agents, dealers of precious metals and stones, and couriers are
currently not subject to anti-money laundering reporting requirements. Although the underground economy is estimated
to account for 20-40 percent of Mexico’s gross domestic product, the informality of that economy is considered to be
much less significant with regard to money laundering than the criminally-driven segments of the economy.

From 2000 to 2007, inbound remittances grew from $6.6 billion to $24 billion a year. However, remittances have
declined by 3.7 percent from January through September 2008 compared with the same period in 2007. Many U.S.
banks have partnered with their Mexican counterparts to develop systems to simplify and expedite the transfer of money,
including wider acceptance by U.S. banks of the matricula consular, an identification card issued by Mexican consular
offices to Mexican citizens residing in the United States that has been criticized as insecure. In some cases, the sender
or the recipient can simply provide his/her matricula consular as identification to execute a remittance, often without
having to open a bank account. While this makes licit remittances more accessible, it also leaves the system open to
potential money laundering and exploitation by organized crime groups. In 2007, electronic transfers accounted for 95
percent of all remittances to Mexico. It is likely that few first-tier commercial banks will reach down to serve low-income
clients who receive such remittances, with cajas populares and cajas solidarias (financial cooperatives that function as
credit unions) as the likely candidates to fill this gap. This presents a new set of concerns over whether this system will
present potential money laundering opportunities for bulk currency transactions.

The Tax Code and Article 400 bis of the Federal Penal Code criminalize money laundering related to any serious crime.
Mexico’s all-crimes approach to money laundering criminalizes the laundering of the proceeds of any intentional act or
omission, regardless of whether or not that act or omission carries a prison term. Rather than applying to proceeds of
criminal offenses, the statute applies to “the proceeds of an illicit activity”, which is defined as resources, rights, or goods
of any nature for which there exists well-founded certainty that they are derived directly or indirectly from or represent
the earnings derived from the commission of any crime, and for which no legitimate origin can be established. Money
laundering is punishable by imprisonment of five to fifteen years and a fine. Penalties increase when a government
official in charge of the prevention, investigation, or prosecution of money laundering commits the offense. This
construction of the predicate offense allows prosecutors, upon demonstrating criminality, to shift the burden of proof to
the defendant to establish the legitimate origin of the property. An offense committed outside of Mexico may also
constitute a predicate offense for money laundering. Because criminal proceeds generated abroad would have an effect
in Mexico when laundered in or through its national territory, the laundering of those proceeds could be prosecuted
under Mexican law.

Four supervisory agencies are responsible for the compliance with AML/CTF requirements. For AML/CTF purposes,
there are four main supervisory agencies: the National Banking and Securities Commission (CNBV), the National
Insurance and Bonds Commission (CNSF), the National Retirement Savings System Commission (CONSAR), and the
Tax Administration Service (SAT). The CNBV regulates and supervises banks, limited scope financial companies,
securities brokerage firms, foreign exchange firms, and mutual funds and subscribes to a risk-based approach to
supervision. The CNBV also has the remit to impose administrative sanctions for noncompliance, revoke licenses, and
conduct on-site inspections and off-site monitoring of regulated entities. The SAT supervises centros cambiarios
(nonlicensed foreign exchange retail centers), money remitters, and unregulated sofomes (multiple purpose financial
companies). A 2005 provision of the tax law requires real estate brokerages, attorney, notaries, accountants, and
dealers in precious metals and stones to report all transactions exceeding $10,000 to the SAT, which shares the
information with the FIU. According to the SAT, there are 882 registered money transmitters and 4380 unlicensed
centros cambiarios. In 2006, nonprofit organizations were made subject to reporting requirements for donations greater
than $10,000.

The Ministry of Finance, through the Banking, Securities and Savings Unit (UBVA), is responsible for issuing regulations
and criteria to interpret anti-money laundering (AML) regulations. Regulations require banks and other financial
institutions (including mutual savings companies, insurance companies, securities brokers, retirement and investment
funds, financial leasing and factoring funds, casas de cambio, and centros cambiarios to conduct customer due
diligence. The regulations impose customer identification requirements on a range of categories of clients which
includes legal persons, individuals, beneficiary owner information and specific provisions for nationals and foreigners.
Regulations require enhanced due diligence for higher-risk customers including politically exposed persons. Banks also
require identification of occasional customers performing transactions equivalent to or exceeding $500 in value, so that
banks can aggregate the transactions daily to prevent circumvention of cash transaction reports (CTRs) and suspicious
transaction reports (STRs) filing requirements. Institutions must maintain records of transactions for a period of ten
years. Financial institutions have also implemented programs for screening new employees and verifying the character
and qualifications of their board members and high-ranking officers. These institutions have also implemented regular
training for their employees on money laundering. With regard to wire transfers, financial institutions are required to
obtain originator information. However, the threshold for identification of occasional customers is $3,000 and does not
include the obligation to aggregate lower transactions for a single customer over a period of time. No guidelines have
been issued to assist financial institutions with meeting this obligation. In addition, money remitters are not subject to
wire transfer regulations.

The UBVA drafted a multifaceted reform which is under review by the Improvement Regulatory Commission (COFEMER),
and observers expect approval in early 2009. The reform, when effective, will harmonize the rules and standards
between larger banks and other smaller financial institutions such as credit unions, centros cambiarios, and sofoles
(limited purpose lending companies) undergoing deregulation and transitioning to sofomes. Sofomes can be subject to
or exempt from regulation depending upon their financial activities. The CNBV will supervise the regulated sofomes that
maintain a financial relationship with credit institutions and controlling companies of financial groups, and the SAT will
supervise the unregulated sofomes. There are currently 13 regulated sofomes and 634 unregulated sofomes. There are
no AML/CTF regulations and supervision has not commenced for these institutions as of yet.

The UBVA draft reform also includes regulations for prepaid cards and travelers checks. The government will provide
banks and other financial entities the authority to exchange information among themselves regarding money laundering
and terrorist financing without violating bank secrecy provisions. The new regulations will require entities to provide more
details, such as complete address and other relevant information in the reports submitted to the FIU. The implementing
rules will also include a specific definition between “user” (for remittances, casas de cambio, and centros cambiarios)
and “customer” (a person who signs a contract or has a bank account).

When implemented, the reform will reduce the threshold to identify a user of cash operations, travelers checks or
prepaid cards from $3,000 to $500. For operations larger than $3,000, the reform will require foreign exchange houses,
centros cambiarios, and money transmitters to create a complete file of the user. Financial institutions will need to
monitor and identify operations in pesos using a threshold of 300,000 pesos (approximately $21,600) for individuals and
500,000 pesos (approximately $36,000) for companies; formerly, institutions conducted such monitoring exclusively in
dollars. To improve the detection of money laundering, financial entities will have 30 days to report fractioned operations
exceeding $10,000. The reform will also enable Mexico to identify those sectors that do not comply with money
laundering preventive measures.

In 2004, the Ministry of the Treasury (SHCP) reorganized and renamed its financial intelligence unit (FIU), the Unidad de
Inteligencia Financiera (UIF). The UIF has approximately 70 staff, but officials expect this number to increase to 150 next
year. Forensic accountants, lawyers, and analysts comprise the majority of FIU staff. Regulated entities must report to
the UIF any suspicious transactions, currency transactions over $10,000 (except for centros cambiarios, which are
subject to a $3,000 threshold), and transactions involving employees of financial institutions who engage in suspicious
activity.

The UIF is responsible for receiving, analyzing, and disseminating STRs and CTRs, as well as reports on the cross-
border movements of currency. In 2008, UIF received 36,934 STRs and 6,513,147 CTRs. Following the analysis of the
reports, the UIF sends reports that are deemed to merit further investigation, and have been approved by the SHCP’s
legal counsel, to the PGR. The UIF sends an average of 60 cases per month to the PGR for its consideration for
prosecution. The PGR’s special financial crimes unit (within SIEDO) works closely with the UIF in money laundering
investigations. UIF personnel also have working-level relationships with other federal law enforcement entities, including
the Federal Investigative Agency (AFI) and the Federal Police (PFP), to help it support the PGR’s investigations of
criminal activities with ties to money laundering. From 2004 through 2007, 17 criminals have been convicted of money
laundering, and $4.5 billion have been seized by the PGR’s financial crimes unit. The UIF also reviews all crimes linked
to Mexico’s financial system and examines the financial activities of public officials. In 2007 and 2008, U.S. authorities
observed a significant increase in the number of complex money laundering investigations by SIEDO, with support from
the UIF and in coordination with U.S. officials. The number of investigations rose from 152 in 2004 to 198 as of October
2008. In 2007, 85 of 112 apprehension orders corresponded to money laundering operations.

The PGR’s special financial crimes unit is understaffed. The lack of personnel—including more field investigators,
prosecutors, and auditors- monetary resources, a comprehensive and modern database, technological equipment, as
well as the vulnerability of its facilities undermine the unit’s efforts. Of the estimated $10 billion circulating illegally in the
banking system, the PGR is only able to attack one percent of this amount. During the past three months the unit was
able to seize between $60 and $70 million. So far, efforts have targeted only key states, such as Tamaulipas, Sinaloa,
Nuevo Leon, Mexico City, and Jalisco, but the PGR believes there is reason to refocus on other regions such as the
southern states of Quintana Roo and Yucatan, where authorities have detected large movements of illicit resources.

In 2006, the UIF signed Memoranda of Understanding (MOUs) with the Economy Secretariat and the Mexican
immigration authorities that provides access to their databases. The UIF has also signed agreements with the CNBV and
the National Commission of Insurance and Finance (CNSF) to coordinate to prevent money laundering and terrorist
financing. The UIF is currently finalizing similar negotiations with the SHCP and the National Savings Commission
(CONSAR).

At the end of 2008, the GOM enacted legislation to reorganize Mexico’s law enforcement agencies that attempts to
create synergy among the different levels of local, state, and federal law enforcement agencies to combat drug cartels
and other organized crime groups. The law will create a National Public Safety Council (to provide assistance to victims
of crime, bolster law enforcement institutions, and evaluate the effectiveness of public safety programs) and a National
Intelligence Center.

Agencies involved in AML/CTF efforts are currently drafting an AML/CTF National Strategy, anticipated to be issued in
2009. The Strategy will outline Mexico’s AML/CTF short and long range objectives and the strategies that the GOM will
implement to meet them. It will also establish an interagency coordination group which will examine emerging money
laundering trends and identify and propose legal and regulatory measures to mitigate gaps. In August 2008, the GOM
approved an Integral Strategy Against Organized Crime. The strategy focuses on the isolation, neutralization, and
ultimate disbandment of organized crime through the abolition of their operational, logistical, commercial and financial
networks.

There have been a number of noteworthy cases in 2008. In the beginning of 2008, the U.S. Government froze funds
belonging to the Mexican money exchange house Casa de Cambio Puebla as part of a money laundering case filed in U.
S. District Court in Miami against Venezuelan national Pedro Jose Benavides Natera, who participated in a complex
money laundering scheme. Criminals used clean funds to purchase high-performance turbo-prop aircraft for drug
smuggling operations. Drug proceeds from Venezuela were sent to Casa de Cambio Puebla where cooperating
individuals sent the funds on to the U.S., into buffer accounts, operated by individuals who served as fronts for
Venezuelan drug traffickers. The buffer account holders then transferred funds to aircraft brokers for the purchase of
aircraft. The criminals then cancelled the aircraft registrations and had the aircraft shipped to front men in Venezuela.

In October 2008, at a mansion in Desierto de los Leones near Mexico City, PGR and PFP apprehended 15 major drug
dealers and money launderers, 11 of them Colombians, with links to the Beltran Leyva brothers. The leader of the
group, Teodoro Mauricio aka “El Gaviota”, is under investigation for money laundering and narcotics trafficking. These
apprehensions are part of an ongoing investigation initiated in 2005 of a group of Colombian traffickers in Mexico linked
to the Cali-based Norte Valle Cartel.

In November 2008, SIEDO arrested Jaime Gonzalez Duran, aka “The Hummer”, one of the most wanted criminals in
Mexico and allegedly one of the leaders and founders of the criminal group “Los Zetas” (considered to be the armed
branch of the Gulf Cartel). Gonzalez was apprehended in Reynosa, Tamaulipas where he had smuggled drugs into the
U.S., on organized crime, drug smuggling, money laundering, and possession of weapons charges.

Mexico has asset forfeiture laws and provisions for seizing assets abroad derived from criminal activity, and U.S.
requests to Mexico for the seizure, forfeiture, and repatriation of criminal assets have occasionally met with success.
Mexico does not have a civil forfeiture regime and can only forfeit assets upon a final criminal conviction; it can also
seize assets administratively if they are deemed to be “abandoned” or unclaimed. However, draft legislation pending in
the Mexican Congress includes constitutional changes that would enable a forfeiture regime similar to Colombia’s law of
extinguishment of ownership (extinción de dominio). The legislation would provide for seizing and forfeiting assets used
by organized criminals in executing drug trafficking, money laundering, kidnapping, car robbery, embezzlement, and
trafficking of persons. Currently, these assets remain untouched by enforcement authorities and the state even when
criminals are convicted and sentenced to prison. The legislation would permit specialized judges to authorize an asset
forfeiture procedure independently of the criminal process being followed against an alleged criminal, and before a final
ruling or conviction. Prosecutors from the Attorney General’s Office would have access to financial, tax, and real estate
information through the CNBV, SAT, and notaries. For assets marked for seizure and forfeiture located abroad, Mexico
would request international legal assistance under international treaties and reciprocal cooperation mechanisms. The
law would also include sanctions against individuals leasing or renting an asset or property to organized crime with the
knowledge that it will be used to commit illegal acts.

Senators amended a Presidential proposal to prevent corruption and abuse of power by PGR prosecutors. In addition to
that proposal, there are also Senatorial initiatives. One proposes that forfeited assets be included in a fund to prevent
and pursue felonies and organized crime. The Service for the Administration of Forfeited Assets would allocate
resources to the corresponding authorities and to cover damages to the victims. The three major political parties are
discussing the initiatives with the intention of to achieving consensus and approving the law in early 2009. Mexico City’s
local congress drafted a similar extincion de dominio law, which was approved at the end of November 2008.

In 2007, Mexico criminalized terrorist financing, with punishments of up to 40 years in prison. The law amends the
Federal Penal Code to link terrorist financing to money laundering and establish international terrorism as a predicate
crime when it is committed in Mexico to inflict damage on a foreign state. The law also imposes sanctions against an
individual or individuals who conceal a terrorist or a person who threatens to commit a terrorist act. The UBVA
distributes the list of individuals and entities that have been included in the UN 1267 Sanction Committee’s consolidated
list to other government agencies and to financial institutions through the CNBV. The GOM has responded positively to
international and USG efforts to identify and block terrorist-related funds, and it continues to monitor suspicious financial
transactions, although no such assets have been frozen to date.

Mexico has developed a broad network of bilateral agreements and its law enforcement authorities regularly meet in
bilateral law enforcement working groups with their U.S. counterparts. The U.S.-Mexico Mutual Legal Assistance Treaty
(MLAT) entered into force in 1991. Mexico and the United States also implement other bilateral treaties and agreements
for cooperation in law enforcement issues, including the Financial Information Exchange Agreement (FIEA) and the
Memorandum of Understanding (MOU) for the exchange of information on the cross-border movement of currency and
monetary instruments.

Mexico is a party to the 1988 UN Drug Convention; the UN Convention against Transnational Organized Crime; the UN
Convention against Corruption; and the UN Convention for the Suppression of the Financing of Terrorism. Mexico is a
member of the FATF and the Financial Action Task Force for South America (GAFISUD), a FATF-style regional body, of
which Mexico currently holds the presidency. In addition to its membership in the FATF and GAFISUD, Mexico
participates in another FATF-style regional body, the Caribbean Financial Action Task Force (CFATF), as a cooperating
and supporting nation. The UIF is a member of the Egmont Group of Financial Intelligence Units.

The Government of Mexico (GOM) has made fighting money laundering and drug trafficking one of its top priorities, and
has made substantial progress in combating these crimes over the course of 2008. However, Mexico continues to face
challenges with respect to is anti-money laundering and counterterrorist financing regime, particularly with its ability to
prosecute and convict money launderers.. The GOM should amend its legislation to ensure that legal persons can be
held criminally liable for money laundering and terrorism financing. Mexico should also amend its terrorist financing
legislation to fully comport with the UN Convention for the Suppression of Terrorist Financing; and enact legislation and
procedures to freeze terrorist assets of those designated by the UN Al-Qaida and Taliban Sanctions Committee. To
create a more effective regime, Mexico should fully implement and improve its mechanisms for asset forfeiture, control
the bulk smuggling of currency across its borders, monitor remittance systems for possible exploitation, improve the
regulation and supervision of money transmitters, unlicensed currency exchange centers, centros de cambiarios and
gambling centers, and extend AML/CTF requirements to designated nonfinancial businesses and professions.
    Does it have any Offshore Jurisdiction Blacklist in
    place? (If yes, you will find further info in the report)
Yes
    MEXICO