TalkingPoint: Anti-money Laundering In Latin America

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FinancierWorlwide moderates a discussion focusing on the prevention of money laundering in Latin America between Michael Diaz, Jr. at Diaz Reus and José Luis Rojas at Grant Thornton.
FW: What steps have been taken to crack down on money laundering activities in Latin America over the last 12-18 months?

Rojas: Since the visit of the Financial Action Task Force (FAFT) to some Latin American countries, we have seen that our regulatory framework is evolving toward a tighter and more controlled environment. In Mexico’s case, there has been a great effort focused on regularising entities that were not previously monitored properly. Also, there are plans to enact a law to make non-financial sectors comply with anti-money laundering programs.

Diaz: While many Latin American countries are working to enforce their anti-money laundering rules and regulations, they are encountering difficulties. Mexico, for example, is struggling to deal with the rampant money laundering problems occurring in its country due to large and powerful drug cartels, as well as corruption within the government and regulatory bodies. To improve its odds of success, Mexico has turned to the US for help. Undercover Drug Enforcement Agency officers are working with Mexico to identify the sources and destination of illegally-laundered criminal proceeds, as well as the methods by which such funds are laundered. The goal of this cooperation is two-fold: to identify weaknesses in the financial sector that new legislation can correct and to identify the principal leaders of powerful drug cartels. Mexico has also implemented legislation similar to Argentina’s financial laws, which limit the exchange of pesos for dollars. Mexico’s Ministry of Finance estimates that $10bn is laundered in the country every year. The new legislation aims to significantly reduce that amount. Argentina is likewise working to improve its anti-money laundering track record and working to strengthen laws governing its financial sector.
Detailed interview link: here

 

FW moderates a discussion focusing on the prevention of money laundering in Latin America between Michael Diaz, Jr. at Diaz Reus and José Luis Rojas at Grant Thornton.