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Mexico’s FinTech Law

The “Act to Regulate Financial Technology Institutions” has come into effect. It is setting the standards for Latin American countries.

The president of the National Banking and Securities Commission, Bernardo González Rosas, reported that the legislation was published in the Federal Official Gazette. Mr. González Rosas declared that the law would affect crowdfunding, online payments, and cryptocurrency companies, while emphasizing the flexibility in the legislation. The secondary regulation further covers the following topics: inter-institutional committee, technological risk and business continuity plans, cash limits, auto-correction plans, sandbox sign ups, payment claimant behaviour, accountancy criteria, financial states, investment limits, and investment applications.

Companies wishing to enter the regulatory framework can now start doing so, in a 6 to 12-month process. Banks were previously requested to incorporate customer biometric data in all onboarded customers by August, although banks part of a nationwide platform were given an extension.

Anti-money laundering (AML) reports will be handled through Mexico’s Ministry of Finance’s new Financial Intelligence Unit. This law has drawn from regulation in other countries and guided by international committees such as the Financial Action Task Force (FATF).

The law was originally presented by President Enrique Pena Nieto in March 2018. It has been focusing largely on cybersecurity and fraud issues. The regulation will now be implemented in the next 12 months.

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