ANTI LAUNDERING REGULATION

The Federal Money Laundering Prevention and Identification Act (better known as the Anti-Money Laundering Act) was promulgated on July 17, 2012, and came into effect nine months later, with the purpose of identifying specific transactions conducted between individuals outside the financial system that may involve funds from an unlawful source.

The act establishes the following obligations:

• Identifying transactions considered as vulnerable and that should be reported.
• Identifying the end user (normally the customer) or beneficiary.
• Controlling the value of transactions conducted by each user identified and per type of vulnerable activity.
• Reporting users, type of transaction and amount to the Treasury Department when the limits specified by law for reporting purposes are exceeded.
• Introducing and maintaining formal policies and procedures in order to comply with the law.
• Paying fines if the tax authorities come across any transgression.

Our consultancy services in this area, in compliance with the law, include:

• Diagnosing (auditing) to what extent the organization is complying with the law.
• Advising on interpretation of and compliance with the law.
• Evaluating, developing and/or improving policy, procedures and standard formats for complying with the law.
• Report processing (outsourcing).

The Financial Societies of Multiple Purpose, non-regulated entities (“SOFOM ENR” per its acronym in Spanish) are those with capital provided by other persons different from Credit Institutions or Financial Groups Holdings (mainly Banks) part of Credit Institutions. SOFOMS ENR have in addition to comply with regulations established in the Anti-Money Laundering Act and with certain obligations established by the National Commission for Protection and Defense of Financial Services Users (“CONDUSEF” per its acronym in Spanish), with the related report established in the general regulations referred by the article 115 of the Credit Institutions Act in connection with the article 87-D of the General Law for Credit Auxiliary Activities and Organizations and the article 95-Bis of that Law..

This report, covers the validation by a monitoring authorized body over the compliance with those regulation on an annual basis, report that must be submitted to the National Banking and Financial Instruments Commission (“CNBV” per its acronym in Spanish) using the established procedures.

In connection with this obligation, our Firm counts with the certification by the CNBV for external auditors, providing services acting as the monitoring authorized body with the issuance and submission of such annual compliance report over the aforementioned regulations, mainly related to:

• Clients and end-user identification.
• Knowledge over the client and end-user.
• Reports submission.
• Internal structure.
• Training and diffusion.
• Automatized systems.
• Other obligations.