Mexico Approves Anti-Money Laundering Reform, Targets New Sectors

Mexico’s Chamber of Deputies has approved a reform to the Federal Law for the Prevention and Identification of Operations with Illicit Resources and the Federal Penal Code, aimed at strengthening the country’s anti-money laundering (AML) framework. Supporters argue the initiative incorporates input from civil society, financial institutions, and international bodies. However, opponents warn that vague definitions, particularly concerning politically exposed persons (PEPs), could open the door to political persecution and excessive government overreach.

The legislation, which had already passed in the Senate, was approved in general with 297 votes in favor from MORENA, the Labor Party (PT), and the Green Party (PVEM). PAN and MC abstained, while PRI voted against. In the detailed vote, the pattern held 349 in favor, 38 against (PRI), and 91 abstentions (PAN and MC). The ruling coalition rejected all opposition amendments.

The reform expands the list of “vulnerable activities,” sectors required to report suspicious transactions to prevent money laundering. Real estate development, cryptocurrency trading, and trust service providers have now been added. Entities involved in these activities will be required to identify and report the final beneficiaries of financial transactions to the Ministry of Finance.

The reform also expands the list of authorities that can investigate money laundering to include the National Guard, alongside the Financial Intelligence Unit (UIF), the Attorney General’s Office (FGR), the Ministry of Finance, and the Ministry of Security.

One of the most controversial elements is the inclusion of PEPs, referring to individuals who hold or have held public office in Mexico or abroad. Authorities will now have the legal basis to monitor these individuals’ financial activity.

“This vague definition opens the door to political persecution and arbitrary use of power,” said MC Deputy Juan Ignacio Sampiero. PAN Deputy Héctor Saúl Téllez also criticized the reform’s ambiguity. “It opens the possibility of investigating anyone connected to a PEP, family, friends, advisers. It is excessive.”

In response, MORENA Deputy Julio César Moreno defended the legislation, saying it was informed by dialogue with civil society, financial institutions, and international bodies. “These proposals enriched the reform. They aim for balance and effectiveness in the fight against money laundering, without imposing unfair rules on those who pose no risk,” he stated.