Mexican banks face huge money laundering threat – FIU

From: RegTech Analyst

Seven big Mexican banks face a huge risk of being used for money laundering, according to new research from the Financial Intelligence Unit.

The regulator named the so-called G7 banks – BBVA, Santander, Citibanamex, Banorte, HSBC, Scoticabank and Inburse – as the biggest conduits of dirty money, according to El Economista.

The report looked into the G7 banking sector, which represents almost 80% of the banking sector’s assets, and the banks that carry out foreign exchange activity.

The risk is due to these two sectors conducting a higher volume of operations and having more users, which means more transactions are being made through them.

To make things worse, Santiago Nieto Castillo, head of the FIU, said that one of the problems with illicit operations in exchange centres was that anyone could use them to exchange currencies for up to the equivalent of $10,000 dollars per day, without need to present identification.

“This is an area of ​​opportunity, it is a risk that must be anticipated, and for that a legislative amendment is enough,” Nieto Castillo told El Economista.

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