Which obligations does a person subject to the Anti Money Laundering Law have?

After determining if we are subjects to the Anti-Money Laundering Law, the next step is to understand that there are obligations that need to be complied with. Each vulnerable activity has different obligations, but there are obligations established in the Anti-Money Laundering Law that apply to all the subjects, which are the ones that we will learn about in this article.

To register to the Anti-Money Laundering Obligated Subjects list

The first obligation after conducting any vulnerable activity is to register to the obligated subjects list through the SAT, as long as the operation surpasses the identification threshold corresponding to the vulnerable activity that is being conducted, in future entries we will explain this further. For this, it is necessary that the obligated subject has an RFC and also to have the FIEL (Firma Electrónica). The SAT has a website with the sole purpose of attending everything related to the Anti-Money Laundering Law. In this website is where the subject has to upload all the needed information in order to register to the obligated subjects list.

To identify Clients and Users

The Clients or Users are whoever makes any operation with subjects obligated to comply with the Anti-Money Laundering Law. To comply with this obligation, it is a must to integrate files with the necessary information to identify them, such as:

–        Name, address, telephone.
–        Economic activity.
–        Birth date / constitution date.

These files need to be physical and need to be kept archived for any revision by the authority. The Law establishes that if a client does not want to provide their documents, needed for this file, then the operation should not be carried over.

To submit reports to the Financial Intelligence Unit, through the SAT

The information related with the operations subject to the anti-money laundering law, must be sent to the Financial Intelligente Unit (FIU), through the reports and formats established by the laws. These reports will be sent through the anti-money laundering website managed by the SAT. They must be sent, at the latest, on the 17th of the following month after the operation was conducted.

These files will be submitted as long as the operations surpass certain thresholds, that will depend on the type of activity and that will be mentioned in future individual entries.

Among other things, what the reports must include is:
–        General information about who is doing the Vulnerable Activity
–        General information about the Client or User
–        General description of the Vulnerable Activity

Designating a Representative in charge of the compliance of the Law

This obligation only applies for companies. This designation has to be notified to the Secretary. It is important to mention that the person that gets designated, must accept that position personally, by using his/her own FIEL on the SAT’s Anti-Money Laundering Website.

As long as the companies don’t designate a compliance representative, the administration board or the sole administrator will be the ones who will have this responsibility.

Elaboration of a Procedures and Policies Manual for the correct compliance of the Anti-Money Laundering Law

Without a doubt this is one of the obligations that creates more inconveniences for the obligated subjects. This Manual has to be practical and cover all the possible situations that might arise in the operation of the obligated subject, as well as the steps to follow in order to ensure the correct compliance of the Law. It must be elaborated within the following 90 days after doing the first vulnerable activity that detonates the obligation to register in the anti-money laundering website.

It has to be customized, meaning that it has to be made according and specifically for the vulnerable activity of the obligated subject. Special care needs to be taken in the elaboration of the Manual, since it is the document that, in case of a revision, will serve as a way of making the authorities see that there is a sufficient enough knowledge in anti-laundering matters, and, therefore, the compliance level will be high.

To close, as it was already mentioned, the Anti-Money Laundering Law supposes a strong administrative burden , which is why it is highly advised to look for the services of knowledgeable professionals that can take care of the correct compliance of these obligations.