ASAP

ASAP

Mexico: New Interpretation of Anti-Laundering Law Provision Regarding Outsourcing

By Mónica Schiaffino and Rogelio Alanis

  • 2 minute read

On October 21, 2016, Mexico's Ministry of Finance and Public Credit1 (“SHCP” for its acronym in Spanish) published its interpretation of a provision under the Anti-Laundering Law2 that adds outsourcing to the list of activities that must be disclosed and reported to the government.

Specifically, section XI, subsection b) of Article 17 of the Anti-Laundering Law establishes that providing independent administration and financial management services to a client outside of an employment relationship shall be considered an activity that must be disclosed.  In the recently published interpretation, the SHCP specified that contractors under Article 15-A of the Federal Labor Law are covered under the Anti-Laundering Law’s provision and are, therefore, subject to these disclosure obligations.

The concern is that a company’s voluntary compliance with the obligations contained in the Anti-Laundering Law could be deemed an acknowledgement of outsourcing, which might not be the case for the company. Whether a company is engaging in outsourcing of services requires a fact-specific analysis and legal determination. A company’s inadvertent acknowledgement of engaging in outsourcing could be used as evidence against the company in subsequent litigation. 

It is recommended that, before filing any disclosures pursuant to this Anti-Laundering Law requirement, companies verify whether their existing relationship with a contractor would, in fact, be deemed as engaging in outsourcing activities, as defined under the Federal Labor Law.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.

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