Adaptability in times of change: New regulations in Mexico 2025
Season 6 Episode 09
Transcript
Juan José Ríos (host):
Mexico is at a turning point in the fight against money laundering. Why? On June 30, 2025, a reform was approved that completely changes the rules of the game. We are not talking about simple adjustments, but a profound redesign that includes greater control over beneficial owners, a stricter approach to politically exposed persons, tougher regulation for virtual asset providers, and an expansion that reaches sectors that were previously off the radar.
If you are a bank, fintech, real estate agency, notary, accountant, or provide any service classified as a vulnerable activity, this change is for you. Adaptation is not optional. Penalties will be harsher, audits more detailed, and the expectations of the authorities much higher. The adaptation period is short, and organizations that do not act quickly could pay a very high price: fines, reputational damage, and even criminal consequences.
Welcome to Mundo Financiero Seguro, the Plus TI podcast. I'm Juan José Ríos.
Today, we are going to transform the letter of the law into real, actionable steps for your institution. In this episode, we will share the keys to understanding what has changed, how to adapt effectively, and how to turn compliance into a real competitive advantage. Because today, it is not enough to comply; now you have to demonstrate it, document it, and, above all, integrate it into your business culture.
We will discuss how financial institutions can keep up with constant regulatory changes and why adaptability has become the cornerstone of any solid and effective strategy.
We are joined by two experts for this conversation. From Mexico, Israel López, CEO of Nore Fraud Mexico, who has advised financial institutions in nine countries on anti-money laundering and anti-fraud strategies, delivering sustainable results and a strategic vision for compliance areas.
We are also joined by Raúl Castellanos, AML product manager at Plus TI, with more than 20 years of international experience in financial software, specializing in money laundering and fraud prevention.
Thank you both for joining us.
Israel López:
Thank you, Juan José. It's a pleasure to be here with you and Raúl. I am honored to participate in this conversation and very excited to address such an important topic for regulatory compliance.
Raúl Castellanos:
Hello, Juan José. I am very pleased to join you in this new episode of the podcast focused on the new regulatory provisions in Mexico. It is a pleasure to share this space with Israel, whom I have known for several years and who plays a fundamental role for institutions in the area of regulatory compliance.
Juan José Ríos:
Thank you, Israel. Getting down to business, I want to start with you. In a constantly evolving regulatory environment, what do you consider to be the biggest global challenge facing financial institutions today in keeping up with money laundering prevention?
Israel López:
Thank you, Juan José. To answer this question, it is important to put the regulatory changes and new requirements from regulators into context. These changes are a result of the rapid evolution of technology and financial services, but also of a significant transformation in organized crime.
As a result, regulators are requiring banks to implement increasingly sophisticated and robust controls that go far beyond what was seen a few years ago. The main challenge I see today for compliance officers and compliance departments is the ability to adapt through a dynamic, flexible, and effective strategy.
Previously, there was a perception that these areas were slower in analysis and reaction, especially in fraud prevention. However, this has already changed in Mexico and will soon be reflected in other countries. Today, adaptability is key.
Juan José Ríos:
Speaking of adaptability in this era of constant transformation, what, in your experience, are the key elements that every institution must ensure in order to build a truly flexible and effective AML strategy?
Israel López:
Throughout my years of experience in the financial sector, I have identified three fundamental elements for addressing these challenges.
The first is to have a highly configurable and flexible system that allows you to create new controls and strategies without relying on third parties or complex developments that take time.
The second is to have an internal team that is truly capable of executing the anti-money laundering strategy. Continuous training is essential.
And the third is to have an expert integrator who thoroughly understands the institution's requirements and operations, but who also masters the technology, i.e., the anti-money laundering system and the analysis engine used by compliance areas. These three elements, taken together, enable a rapid response to regulatory changes.
Juan José Ríos:
Thank you, Israel. Now I'm coming with you, Raúl. We know that the regulatory framework in Mexico is constantly evolving and that every year new provisions emerge that directly impact the operation of institutions. In this context, what technological challenges does the anti-money laundering landscape in Mexico present as a result of the most recent regulatory updates?
Raúl Castellanos:
Thank you, Juan José. A key challenge is transforming technology into a real competitive advantage in order to adapt to regulations.
In 2024, general provisions were published that include onboarding for digital and remote channels, as well as the need to reduce time to market for new products. This allows institutions to pioneer new niches, such as virtual asset management.
The regulations require enriching the profile of the customer and related persons, which implies more information and greater control over who the customer is and who is the ultimate beneficiary or controller of the account. In the case of corporations, the shareholding threshold is reduced from 50% to 25%, aligning with transparency standards adopted in the United States and Europe.
All of this requires handling information that is often fragmented across different systems. Therefore, a centralized database is needed to consolidate information on customers, devices, jurisdictions, and transactional behavior in order to assess risk and establish predictive models. In addition, the new provisions broaden the scope of politically exposed persons, add vulnerable activities, and modify reporting and management thresholds. This requires adaptable software and clarity on the part of the regulated entity, where the integrator plays a key role.
