FIU Reports Money Laundering Risk Possessed By Banks In Mexico

Jyoti  |  Aug 28, 2020

The Financial Intelligent Unit (FIU) of Mexico has recently published a report claiming that compared to the companies related to cryptocurrencies, the commercial banks of the country are more prone to the risk of money laundering.

The study published by FIU called ‘G7 banking group’, notified that some of the banks which are considered to be the biggest channel for managing money laundering are BBVA, Santander, Citibanamex, Banorte, HSBC, Scotiabank, and Inbursa.

FIU’s G7 Banking Group

Recently, El Economista reported that apart from commercial banks, some of the brokerage firms and foreign exchange entities also possess the same risk of money laundering.

As per the FIU report, the G7 banking group regulates the 80 percent of asset which are owned by the financial sector of Mexico.

Recently, the second National Risk Assessment report of Mexico has been released which does not reveal the actual figures lost by the banks due to the money laundering activities. 

While talking about the G7 banking group in Mexico, the leader of FIU, Santiago Nieto Castillo, stated that although the banking group is considered to be the most regulated sector in the country, still the money laundering operations are carried out through this sector only.

Regulatory Bodies Skeptical About Crypto-Related Companies

The regulatory bodies around the world always have remained a bit suspicious towards the bitcoin exchanges and other crypto companies. According to the regulators, there is a possibility crypto exchanges and companies use their own platform to process the illegal transfer of money.

Currently, the crypto exchange operators and other blockchain companies around the world are facing a lot of pressure from the regulatory bodies regarding anti-money laundering (AML). To operate in a country, it is important for the exchanges and the companies to comply with the regulatory body's AML requirements.

Like in Mexico, if the digital asset firms process a transaction of over $2500, then they would have to report about it, to the financial regulators.

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