Money Laundering Prevention in Outsourcing Services, by Miriam Name and Fernando Juárez

July 20, 2017
Money Laundering Prevention in Outsourcing Services, by Miriam Name and Fernando Juárez

In November 2016, the Financial Intelligence Unit ("UIF") of the Ministry of Finance and Public Credit ("SHCP") published on its website new rules in relation to outsourcing activities. In such rules, the UIF determined that the provision of services constituted a vulnerable activity under the terms of the Federal Law for the Prevention and Identification of Operations with Resources of Illegal Origin ("LFIPIORPI") or "Anti-Laundering Law". This new rule may reviewed at

The new rules imply that companies that provide personnel services (outsourcing and/or insourcing) must comply with a series of administrative burdens established by the Anti-Laundering Law. These obligations include identifying operations, appointing representatives before the UIF, filing notices and keeping documentation on file, among others. As can be seen, the obligations established by the Anti-Laundering Law generate a considerable administrative burden for companies. The fines for failing to give such notices, or late or erroneous deliveries, could be up to 65,000 times the Actual Minimum General Wage (approximately 5 million pesos) or from 10% to 100% of such activity that is considered vulnerable (whichever is greater).

In our view, in cases where the provision of services are in-house or between subsidiaries and/or related entities, such obligations provided by the referenced law are not applicable to companies with such structure. In this regard, working with a SHCP certified auditor in anti-laundering matters, we have obtained several favorable rulings for the benefit of our clients, and such rulings state that inter-company operations, including the rendering of services, are considered as non-vulnerable activity. Therefore, such related party contractual arrangements should not be subject to compliance with the requirements established in the Anti-Laundering Law. Such rulings benefit only the companies who obtain them. If your company is interested in obtaining more information about this, please contact Miriam Name ( and/or Fernando Juárez (fjuarez@ at 210-244-0224.

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