Client Alert

According with the Federal Income Law for 2019 (LIF by its acronym in Spanish), the subjects who have not fulfilled their obligations provided in articles 17 and 18 of the Anti-Money Laundering Law  (LFPIORPI by its acronym in Spanish) could be regularized.

Vulnerable activities are those that by their nature, are exposed to the entry of money obtained from illegal sources, affecting the national economy.

Among the vulnerable activities are the following:

• Activities related to the practice of betting games, contests or sweepstakes, ticket sales, tokens, etc.
• The issuance or commercialization of service or credit cards.
• The issuance of prepaid cards, vouchers and tickets.
• Certificates of returns or rewards.
• Traveler’s checks.
• Mutual services, loans or credits.
• Armoring services.
• Real estate services.
• Commercialization of precious stones, precious metals, jewelry and watches.
• Commercialization of artworks.
• Commercialization of vehicles, new or used, whether aerial, marine or terrestrial.
• Transfer or custody of money or securities.
• Providing professional services independently.
• Service provision of public faith services.
• Receiving donations from non-profit associations and societies.
• Service provision of foreign trade services as agent or Customs broker.
• Lease real property.

The fourteenth transitory article of the LIF (2019) establishes that, subjects who have not fulfilled the obligations mentioned on the article 18 of the “LFPIORPI” regarding the period from July 1^st, 2013 to December 31^st, 2018, would be able to implement self-regularization programs, with previous authorization of the Tax Administration Service (SAT by its acronym in Spanish), as long as they fulfill all their tax obligations.

Likewise, the SAT could waive fines that have been set in terms of the “LFPIORPI” during the period of non-compliance with the self-regularization program.

Finally, the SAT should issue and publish in the Official Gazette of the Federation (DOF by its acronym in Spanish) the general rules that are going to regulate the application of the programs of self-regularization, within a maximum period of 60 days counted from January 1^st, 2019.

If you have any comments, questions, or need any additional advice, please contact us.

Contact

Gabriel Espinosa de los Monteros
gespinosa@cuestacampos.com

Jesús Bueno
jbueno@cuestacampos.com

www.cuestacampos.com

The above is provided as general information prepared by professionals with regard to the subject matter. This document only refers to the applicable law in Mexico. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions. The information contained herein should not be relied on as legal, accounting or professional advice being rendered.