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‘Money Laundering risk is higher in banks in Mexico than crypto firms’, says FIU report

  • Wilbur Rodgers
  • August 29, 2020
  • 2 minutes read
  • 231
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According to the new report generated by the country’s financial intelligence unit (FIU), the banks in Mexico pose higher money laundering risks as compared to the crypto firms. The FIU’s report points out the “G7 banking group” as the biggest channels of illicit money in South America. These institutions include Citibanamex, BBVA, HSBC, Santander, Banorte, Inbursa, and Scotiabank.

Foreign exchange entities and brokerage firms have been marked as ‘high risk’ institutions, reported El Economista.

Within Mexico’s financial sector, the G7 banking group holds 80% of the assets. Despite, there weren’t any proper figures stated in Mexico’s second Nation Risk Assessment report about losses from bank-linked money laundering activities.

Though the G7 banking group is the ‘most regulated’ sector in the country, the head of FIU – Santiago Nieto Castillo – found it threatening. He stated, “multiple banking, made up of the seven largest banks in Mexico, is the sector most likely to be used to carry out money laundering operations.”

Globally, regulators are becoming more stringent in obligating anti-money laundering (AML)  laws because they find Bitcoin and other crypto exchanges inclined towards using their platforms for illicit funds transfer. 

In its latest report, Mexico’s Financial Intelligence Unit didn’t highlight virtual currency-related risks but it doesn’t mean the sector is free of risks. Regulators are still scrutinizing the crypto firms and consider crypto-related money laundering and terrorism financing an emerging risk.