Banks warned of potential impact from IPAB deduction elimination by ABM, urging dialogue with Hacienda
In the heart of the second quarter of 2025, Mexico's banking sector paid a total of 9,500 million pesos, marking a 10.6% increase compared to the same period the previous year.
Amidst this growth, two Mexican banks, CIBanco and Intercam, have been signaled by the US Department of the Treasury for potential money laundering activities. In response, the US Department of the Treasury was willing to grant extensions to avoid disrupting the Mexican banking system's operation.
The conversation between Mexican banks and the US Department of the Treasury regarding CIBanco and Intercam was reported as very satisfactory. Emilio Romano, the president of the Mexican Banks Association (ABM), expressed a sense of seriousness about the impact on the banks and stated that they are taking the matter very seriously.
The government, led by President Claudia Sheinbaum, seeks to obtain around 10,000 million pesos with the elimination of the tax deductions on the fees paid to IPAB. However, the ABM has expressed concern about the potential impact of this change on Mexican banks, and Romano mentioned that they have already approached the Secretary of Finance for discussions.
The U.S. government has agreements with Mexican banks to implement anti-money laundering measures, including customer identification rules, monitoring and reporting obligations, and cooperation with financial intelligence units to investigate money laundering cases. These efforts are part of broader efforts to combat cross-border money laundering offenses.
Emilio Romano also mentioned that Mexican banks will collaborate with the US in preventing money laundering, but no further details were provided. The banks have also pledged to maintain a high alert, continually evaluating the quality of their clients and observing for any patterns that do not fit.
INEGI projects slight economic activity growth in August, after the July decline. The article does not provide information about the size of the impact that the elimination of tax deductions on fees paid to IPAB could have on Mexican banks, as this information was previously mentioned. Similarly, no new discussion between the Mexican Banks Association and the Secretary of Finance regarding the potential impact of eliminating tax deductions on fees paid to IPAB was reported.
Mexican banks and the US Department of the Treasury agreed to continue closing gaps in money laundering and terrorism financing. Scenarios and mechanisms used in other countries for prevention will be shared between Mexican banks and US financial authorities.
Despite the challenges, no major problem in the Mexican banking system has been caused by the orders related to CIBanco and Intercam. The banks remain committed to upholding the highest standards of financial integrity and combating money laundering activities.
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