What is anti-money laundering (AML) compliance?

First: what is money laundering?

Broadly, money laundering is the process of giving an appearance of legality to resources that come from illicit activities, so they can be used in the formal economy without raising suspicion. Anti-money laundering is, precisely, the effort to detect it and cut off that flow before it happens.

So, what is AML compliance?

Mexican law states it clearly. Its purpose is to protect the financial system and the national economy, establishing measures and procedures to prevent and detect acts or operations involving resources of illicit origin, through inter-institutional coordination.

Source: LFPIORPI, art. 2 · DOF, Jul 16 2025.

Which law governs it in Mexico?

The base rule is the LFPIORPI (Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin), known as the “Anti-Money Laundering Law,” together with its Regulations and the general rules. Both were recently amended.

Several authorities take part: the Ministry of Finance (Secretaría de Hacienda), the SAT —which receives and safeguards the Reports— and the FIU (Financial Intelligence Unit).

Source: LFPIORPI (amended DOF Jul 16 2025) and its Regulations (amended DOF Mar 27 2026).

Who does it apply to?

It does not apply to everyone equally. Beyond the financial system, the law reaches those who carry out one of the Vulnerable Activities listed in article 17. If you carry out one of them, you are an obligated party.

Source: LFPIORPI, art. 17 · DOF, Jul 16 2025.

What does it require in practice?

For an obligated party, AML compliance usually involves:

• Identifying your clients and verifying their identity, building a file.
• Identifying the beneficial owner (who ultimately benefits or controls).
• Considering risk, including whether the client is a Politically Exposed Person.
• Filing Reports where applicable and keeping the information and evidence.

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