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Mexico: Tax administration addresses money-laundering activities

Mexico: Tax administration addresses money-laundering

The tax administration continues to focus on money-laundering activities.

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The tax administration (Servicio de Administración Tributaria—SAT) has identified taxpayers that are involved in activities that may be vulnerable to assertions of money laundering and has sent letters “inviting” these taxpayers to regularize or clarify their legal status. The letters from the tax administration inform the subject taxpayers that they have been identified by information obtained from institutional systems and databases to which the tax authorities have access, and that the identified activities being conducted by the taxpayers are possibly at risk of violating the anti-money laundering law (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita—LFPIORPI—also referred to as Ley Antilavado).

The SAT letters advise taxpayers that they have 15 business days, beginning from the date following the date of notification, to respond to certain items and when necessary, to regularize the activities. A failure to comply can result in certain actions by the tax administration including the imposition of penalties under the LFPIORPI (penalties can be a set amount or can range from 10% to 100% of the value of the transaction or operation).

Taxpayers that have received a letter from the tax administration need to consider what are the “vulnerable activities” and what steps need to be considered to regularize the activity as well as how to respond to the SAT letter in a timely manner.

Read an October 2019 report (Spanish) prepared by the KPMG member firm in Mexico

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