ANTI-MONEY LAUNDERING LAW AMENDMENT BILL; GEOLOCATION, TECHNOLOGICAL IDENTIFICATION MECHANISMS AND TRANSACTIONAL LIMITS

As of July 29th, of this year, the draft resolution was available on the official website of the National Commission for Regulatory Improvement, in which different general provisions referred to in Article 91 of the Investment Funds Act were established. The main purpose is to include new technological mechanisms within the authentication factors, in order to carry out the identification process NOT in person, but through videoconference in real time and online in accordance with the standards established by the group of international financial action described in the digital identification guide.

As a result, from the above, the following changes are expected:

a.     Geolocation: In the event that customers enter into contracts or perform non-face-to-face transactions from a device that, due to its characteristics, cannot provide geolocation, entities shall obtain the geographic coordinates of latitude and longitude based on the pairing of the internet protocol address provided by the customer's device with a geographic location for the approximate obtaining of such coordinates with the customer's prior consent. 

b.     Technological identification mechanisms: They are defined as those through which the entities carry out the collation of the valid identification document and the application of life tests.

Transactional limits: In the remote execution of operations, the following transactional limits will be considered depending on the mechanism used by the entity:

1.     Investment funds: Operations for up to 30,000 UDIS in the course of a calendar month;

2.     SOFIPOS[1]: i) Contributions of capital stock and opening of a deposit account for up to 30,000 or 60,000 UDIS in the course of a calendar month and ii) Consumer and commercial credits up to 60,000 or 100,000 UDIS.

3.     SOFOMES[2]: Credits that do not have a real estate guarantee up to 30,000 or 60,000 UDIS

4.     Brokerage Houses: Operations for up to 30,000 UDIS in the course of a calendar month.

In the execution of non-face-to-face operations within the aforementioned transactional limits, the client must be identified by means of a recording containing image and sound, which must be kept without editions in its entire duration during the entire term of the contract, and, once this ends, for a period of at least ten years from the conclusion of the contractual relationship.

When these limits are exceeded, either the applicant’s biometric information must also be verified to match, with the records of the National Electoral Institute, the Ministry of Foreign Relations or with those of any other Mexican authority that provides a biometric information verification service; Or, carry out the face-to-face interview, in order to integrate the client's identification file with all the corresponding information and documentation.

Finally,  it is important to mention that the technological identification mechanisms in the execution of operations in a remote manner require prior authorization from the National Banking and Securities Commission.

That is why the entities will have a period of 4 to 18 months from when said resolutions are published in the Official Gazette of the Federation, in order to comply with the new obligations contained in the provisions.

Those interested in obtaining more information can contact Mtra. Thaís Béjar in the email thais.bejar@vila.com.mx.

[1] The Popular Financial Societies (SOFIPOS) are members of the non-speculative and non-profit social sector that, according to the General Law of Cooperative Societies and the Popular Savings and Credit Law, are intended to carry out savings and loan operations with their Partners.

[2] Multiple Purpose Financial Companies (SOFOMES) are public limited companies that have a current registration with the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF), and whose main corporate purpose is the regular and professional performance of a or more of the activities of granting credit, financial leasing or financial factoring.

Article by: 

Mta. Thaís Béjar

Thais.bejar@vila.com.mx

Edition:

Diana Oropeza

diana.oropeza@vila.com.mx