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AML glossary: the key terms, in plain language.

The concepts most often used when talking about anti-money laundering and the Anti-Money Laundering Law, defined simply and with their official reference.

18 terms · LFPIORPI and Regulations Informational · not legal advice

Base concepts

Money laundering
Process of giving an appearance of legality to resources of illicit origin and incorporating them into the formal economy. The law treats it as Operations with Resources of Illicit Origin.
LFPIORPI, art. 2
Anti-money laundering (AML)
Set of measures and procedures to prevent and detect operations involving resources of illicit origin.
LFPIORPI, art. 2
LFPIORPI (AML Law)
Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin; the base framework for AML in Mexico.
DOF, amendment Jul 16 2025
LFPIORPI Regulations
Rule that details how to apply the AML Law: identification, reports, Politically Exposed Persons and more.
DOF, amendment Mar 27 2026

Who it applies to and what it requires

Vulnerable Activity
Economic activity that the law subjects to identification and reporting obligations due to its exposure to money laundering.
LFPIORPI, art. 17
Obligated party
Whoever carries out a Vulnerable Activity and must therefore comply with the AML Law.
LFPIORPI, art. 17
Report (Aviso)
Report the obligated party files with the authority about certain operations, in the official formats (via SAT/FIU).
LFPIORPI, arts. 17 & 23
Identification file
Set of client data and documents the obligated party must build, maintain and keep.
LFPIORPI Regulations
Threshold
Amount above which an operation must be identified or reported. Varies by Vulnerable Activity and is set by the law and its rules.
LFPIORPI, art. 17
Record-keeping
Obligation to safeguard information, supporting documents and evidence for the periods set by the rules.
LFPIORPI / Regulations

Figures and persons

Beneficial Owner
Individual who ultimately obtains the benefit or exercises control. Equivalent to the ultimate beneficial owner (UBO).
LFPIORPI, art. 3, sec. III
Politically Exposed Person (PEP)
In Mexico it is anchored to an official list of public-servant positions; identifying it is part of the risk approach.
LFPIORPI, art. 51 Ter
Client or User
Person with whom the obligated party carries out the acts or operations related to the Vulnerable Activity.
LFPIORPI / Regulations
Risk-based approach
Criterion that weighs the risk of each client and operation to calibrate the applicable compliance measures.
LFPIORPI / Regulations

Authorities and rules

Ministry of Finance
Lead AML authority in Mexico (Secretaría de Hacienda); the FIU and SAT report to it in this area.
LFPIORPI
FIU
Financial Intelligence Unit, of the Ministry of Finance: analyzes information to prevent and detect money laundering and compiles the PEP List.
Regulations, arts. 2 & 45 Bis
SAT
Mexico's Tax Administration Service; among other functions, receives and safeguards the Reports of Vulnerable Activities.
Regulations, arts. 2 & 3
General rules
Provisions that detail procedures, formats and technical requirements of the law and its regulations.
LFPIORPI / Regulations

Go deeper by topic

What is anti-money laundering (AML) compliance? Vulnerable Activities: are you an obligated party? Beneficial Owner: what it is and how to identify it Politically Exposed Person (PEP): what it is

Notice: informational definitions, written in plain language and based on official sources (DOF). They are not literal legal definitions nor legal advice. For the current text, consult the official source.

From concept to operation: PLD Central

PLD Central, by CoreWorks, turns these concepts into a real operation: files, risk, beneficial owner, PEP, reports and an audit log — with traceability.

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