Mexico Finance Agency considered as the Biggest Money Laundering Threat

August 28, 2020

According to a new report from the Mexican Financial Intelligence Unit, some criminals still prefer traditional financial institutions to launder their dirty proceeds.

A new report has claimed the money launderers are mostly attracted to Banks in Mexico. The central banks in Mexico, the G7, are at the most risks of being made for money laundering as initially reported by Mexican daily El Economista.

The news report circulated in the previous week has the results of the National Risk Assessment (ENR) of money laundering and backing of terrorism by the country’s Financial Intelligence Unit (UIF) of the Ministry of Finance and Public Credit.

The conclusions say that regardless of the G7 banks being the most controlled, the highest amount of dirty money goes through them. The G7 consists of the biggest banks in Mexico: Banco Inbursa, Banco Santander Mexico, Banorte, BBVA Bancomer, Citibanamex, HSBC Mexico, and Scotiabank Inverlat.

Previously, the financial system’s four sectors were reflected most likely to be used for money laundering. As of now, the G7 and banks that implement foreign exchange activities are undoubtedly the culprits out of any financial institutions in Latin America’s second-largest economy.

Without mentioning the risks cryptocurrency exchanges or fintech companies have, both are typically considered attractive for those who want to “wash” dirty proceeds. In Latin America, Mexico is home to the most fintech startups. This is also home to Tauros, the region’s chief crypto debit card.

Banks in Mexico have long had trouble with money laundering. In 2012, HSBC agreed to pay a record $1.92 billion in fines to US authorities after Mexican and Colombian drug cartels were found to be using the bank to launder drug money.

However, the criminal groups in the country still prefer traditional finance, at least, according to some reports.

Money laundering has been a problem in Mexican Banks for a long time now. In 2012, HSBC decided to pay $1.92 billion in fines to US authorities after Mexican and Colombian drug cartels that were found to be consuming the bank to legalize drug money.