Mexico AML/CFT Reforms June 2025

Regulation Name: Federal Law for the Prevention and Identification of Operations with Illicit Resources (LFPIORPI)
Date Of Release: 25 June 2025
Region: Mexico
Agency: Mexican Senate

Mexico’s Anti‑Money Laundering (AML/CFT) Reforms: Strengthening the Defense

In response to mounting domestic and international pressure, Mexico’s Senate approved major amendments on June 25, 2025, to the Federal Law for the Prevention and Identification of Operations with Illicit Resources (LFPIORPI) and the Federal Criminal Code. These reforms aim to tighten the legal framework against money laundering and illicit financial flows.

Firstly, the reforms significantly extend AML coverage to previously under-regulated sectors—real estate, trusts, fintech, virtual asset service providers (VASPs), remittance services, gaming, and professional firms like notaries and lawyers. This sectoral expansion intends to close loopholes commonly exploited by criminal networks.

Secondly, enhanced due diligence obligations are now mandatory for high-risk and politically exposed clients. Financial institutions must implement KYC, real-time transaction monitoring, and beneficial ownership transparency, while also improving cross-border and inter-agency data sharing—measures aligned with Financial Action Task Force (FATF) standards.

Additionally, the reforms introduce tougher penalties for non-compliance and reinforce regulatory enforcement. The National Banking and Securities Commission (CNBV) and other authorities gain expanded oversight tools to ensure adherence and prosecute breaches.

Mexico is preparing for its FATF mutual evaluation in April 2026. These legal changes signal a strategic alignment with FATF’s 2022 methodology, emphasizing not just technical adherence but real-world effectiveness against money laundering and terrorist financing.

Timing was critical: U.S. sanctions targeting Mexican financial institutions suspected of facilitating cartel money laundering under the FEND Off Fentanyl Act accelerated the urgency for reform.

Looking ahead, the reforms are expected to modernize financial compliance systems—particularly in fintech—enhance collaboration between Mexican and U.S. authorities, and reduce illicit finance channels used by criminal organizations. However, institutions must adapt swiftly: while enhanced transparency and risk mitigation promise long-term benefits, short-term compliance burdens could be considerable for affected sectors.

Read the full reforms here.

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