The recent reform to the LFPIORPI represents a major change in the system of prevention of money-laundering mexican, to incorporate new activities to be vulnerable, among other changes.
Context of the LFPIORPI
The Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin was published in the Official Journal of the Federation on 17 October 2012 and entered into force on 17 July 2013.
This standard was designed to establish mechanisms for the prevention and detection of related operations with resources of illicit origin, in compliance with the commitments made by Mexico as a member of the Financial Action task force (FATF).
As part of the follow-up to these international commitments, in January 2018, the FATF published the Report of Mutual Evaluation on Mexico, which identified a number of deficiencies, regulatory and institutional frameworks, particularly in relation to the regime applicable to the Activities and Professions are Not Financial Designated (APNFD) and with the lack of effective mechanisms for the identification of the beneficiary driver in companies and other legal structures.
In response to these observations, and in preparation for the Fifth Round of Evaluations, the FATF in 2025, the Federal Executive presented the October 31, 2024 , an initiative of comprehensive reform to the LFPIORPI, as well as the Federal Criminal Code.
The initiative was approved in general by the Senate on June 25, 2025 and, subsequently, on June 30, 2025, the Chamber of Deputies approved the opinion without any modifications. Currently, it is only pending its publication in the Official Journal of the Federation for its entry into force.
Among the changes most relevant highlights the inclusion of the prevention of the financing of terrorism within the object of the act, in addition to the following substantive changes.
New activities to be vulnerable
Incorporate new activities vulnerable subject to the fulfilment of the obligations laid down in the law, such as:
- Real estate development (previously regulated only in secondary rules).
- Sale of virtual assets (for example, criptomonedas).
- Trust and fiduciary services.
- Other financial activities are not traditional.
Additional obligations and sanctions
1. Automated monitoring for high-risk clients
Is required of the subject required the use of automated systems for the periodic monitoring of clients classified as high-risk. This will allow you to identify suspicious transactions in a more efficient and timely manner, improving the institutional capacity to prevent money laundering and the financing of terrorism.
2. Profile transactional Approach and Risk-Based (EBR)
Establishes the obligation to meet, monitor and periodically evaluate the profile transactional customers.
According to the definition of the Secretariat of Finance and Public Credit (SHCP), the profile transactional is the set of characteristics that describe the behavior of financial usual a customer, determined based on:
- The information provided by the client itself
- The history of its operations
- The source and destination resources
- The knowledge that you have about him
In line with this, the reform introduces the concept of risk and requires the subjects required to adopt an Approach Based on Risk (EBR), which shall assess, manage and mitigate the risks arising from their activities, considering profiles transactional individual.
3. Obligation of training and audit
The reform establishes the obligation to implement mandatory training on the prevention of money laundering and financing of terrorism (AML/FT).
It also imposes the obligation to train the staff on their legal duties and carry out internal audits or external when identified high risks, with the aim of evaluating the effectiveness of prevention measures implemented.
4. Notices in cases of suspicion, even in operations not completed
Is obliged to submit a notice within the 24 hours following the suspicion or knowledge of indications that the resources may have illicit origin or link with the financing of terrorism, even where the operation has not been carried out.
5. Extension of the term of conservation documentary
The reform extends the period of time required from receipt of the information and documentation-related activities vulnerable, setting a minimum term of 10 years counted from the date of its realization.
This obligation applies both to physical files and electronic. In addition, if in respect of such information promotes any remedy or judgment, the computation of the period is interrupted until there is final resolution firm.
6. Sanctions regime
The reform significantly strengthens the sanctions regime applicable to those who fail to comply with the obligations laid down in the LFPIORPI, to:
- Provide the ability to revoke authorization to operate activities vulnerable.
- Impose fines, with extenuating circumstances in the case of regularization spontaneous.
- Punish criminal conduct negligent act, eliminating the requirement of intent.
Also expands the type of crime to include the sending of information unreadable in the notices, and empowers the authority to initiate proceedings against jurymen public when there are serious shortcomings in the performance of their duties.
Beneficiary driver
It extends the concept of beneficiary driver (aligning it with the fiscal criteria), to reinforce the obligation of the subjects obliged to always identify individuals, and reporting, strengthening the supervision over those who control or benefit from the operations.
It also expands the definition of business relationship to include both formal relationships as casual, extending the obligations of identification.
Additionally, it incorporates the figure of Politically Exposed Persons (PEP), setting its definition, an official list and the obligation to identify and monitor their operations.
With the addition of articles 33 Bis, 33 Ter and 33 C to the LFPIORPI, establishing a new regime of corporate transparency:
- The corporations, in the case of transfer of domain or constitution of rights on securities representative action or social, should submit an electronic notice through the system of the ministry of Economy and attend to the requirements of the authority to identify the beneficiary controller and retain the supporting documentation.
- In consequence, the companies will be required to record electronically the necessary information to identify the beneficiary controller, in accordance with the guidelines issued by the ministry of Economy.
Operational challenges and conceptual
The implementation of mechanisms of compliance with these new obligations poses a major challenge for the subjects required, especially for small and medium-sized enterprises, due to the technological requirements, training and resources they demand.
Conclusions
The reform of the LFPIORPI reflects an effort to clear by strengthening the system of prevention and detection of illicit operations in Mexico, aligning it with international standards and recommendations of the FATF.
The focus on the risk and transparency more strictly imposed on the subjects required a responsibility reinforced in the construction of a culture of compliance, more robust and proactive. Without a doubt, the compliance of the reform represents challenges and significant risks to the subjects required.
Angel Escalante Carpio is a founding partner of Escalante & Associates (E&A).