Banks in Mexico Pose Greater Money Laundering Risk Than Crypto Firms, Says Report

Banks in Mexico Pose Greater Money Laundering Risk Than Crypto Firms, Says Report

THELOGICALINDIAN - Commercial banks by far affectation the greatest accident of money bed-making in Mexico compared to cryptorelated companies according to a new address by the countrys Financial Intelligence Unit FIU

The abstraction singles out what it calls the “G7 cyberbanking group”, which includes BBVA, Santander, Citibanamex, Banorte, HSBC, Scotiabank, and Inbursa, as the better conduits of adulterous money in the South American country.

Brokerage firms and adopted barter entities accept additionally been flagged as “high risk”, El Economista reported.

The “G7 cyberbanking group” controls 80% of the assets aural Mexico’s banking sector. However, Mexico’s additional National Risk Assessment address did not accommodate abstracts for the abeyant accident from bank-linked money bed-making activities.

Santiago Nieto Castillo, who active the FIU, acclaimed that the “G7 cyberbanking group” is “the best adapted sector” in the country. But alike then, “multiple banking, fabricated up of the seven better banks in Mexico, is the area best acceptable to be acclimated to backpack out money bed-making operations,” he said.

Regulators throughout the apple accept continued been apprehensive that bitcoin (BTC) exchanges and added crypto companies ability be accountable to application their platforms to facilitate actionable banking transfers.

So, authorities accept been abbreviating screws about anti-money bed-making (AML) advertisement requirements for crypto barter operators and added blockchain companies.

In Mexico, agenda asset firms must report affairs of added than $2,500 to the banking regulator, in band with AML requirements. This may be a ancient transaction or those that action over a aeon of six months.

But operating a cryptocurrency business in the country requires that one pays $35,000 in licensing fees and accomplish up to $100,000 in accumulation per year, according to a new law targeting fintech companies, which came into force in 2019. The requirements reportedly beatific a cardinal of firms underground.

Now, in its latest report, Mexico’s Financial Intelligence Unit did not allocate basic assets-related accident – but that does not betoken the area is risk-free. Regulators still accede crypto affected to money bed-making and agitation financing, but alone as an “emerging risk”.

Cryptocurrency trading is booming in Mexico acknowledgment to a aggregate of a abridgement of accessible aplomb in the cyberbanking sector, the affiance of bargain banking transfers, and added factors.

Bitso, the country’s cardinal one crypto exchange, has reportedly added than tripled trading aggregate during the eight months to May 2024. The belvedere now boasts over one actor users, of which 92% are locals.

What do you anticipate about banks and money bed-making in Mexico? Let us apperceive in the comments area below.

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