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FIU accused 12 cryptocurrency exchanges of illegal operations

Exchange

www.thecoinrepublic.com 29 July 2021 15:36, UTC
  
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According to the report filed by the Financial Intelligence Unit, over 12 cryptocurrencies are operating illegally in Mexico. The names of these exchanges have not yet been announced. But they are not registered with the authorities. 

There are almost 12 cryptocurrency exchanges that are operating illegally in Mexico. The Financial Intelligence Unit (FIU) has accused all of them of not complying with its reporting requirements. 

Santiago Nieto Castillo, Head of the FIU, has informed that the 12 exchanges are not registered with the agency and have been operating illegally in the country. The names of the exchanges have not yet been disclosed. 

Combating money laundering 

The local newspaper of the region had reported this incident and talked to Castillo about the action being taken by the authorities. Castillo informed that the authorities are generating cases so that the attorney general office can operate. Castillo further stated that combating money laundering is the priority of the FIU. 

The authorities will have to handle the fundamental issue to analyse cryptocurrencies and their relationship with criminal groups. It is shocking to know that many of the cryptocurrency exchanges which are operating illegally are installed in many municipalities in the state of Jalisco. It is an area dominated by a drug cartel named Nueva Generacion. 

In September 2019, the platform that provides this service had to start with the integration of identification files of their clients and as of April 2020, report the notices to the authority of the operations that they register and represent. As per the Fintech law of 2020, the exchanges must start reporting transactions exceeding 645 units of accounts (UMAS, in Spanish), which are equivalent to M$57,804 (US$2,896).

The regulations 

So far, 3,400 notifications from 23 exchanges have been received by the FIU. The information was reported to the Mexican Tax Administration Service (SAT), said Castillo. FIU has identified three money laundering cases through the use of cryptocurrencies. These cases were identified immediately after the filing of the complaint. 

The Secretariat of Finance looks after the working tasks of the FIU and is in charge of analysing information related to illicit money operations. Arturo Herrera, Finance Minister, Mexico, said that cryptocurrencies are not considered to be legal tender. The assets are not treated as currencies under the current regulatory framework of the country. 

The policies cannot be changed in the short term. Herrera also informed that last month a global anti-money laundering group had been confiscated by the authorities during a presentation to the Financial Action Task Force. 


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