Money Laundering Prevention: Modification of the General Business Law to Identify Partners and Shareholders.
Adjustments to money laundering prevention regulations are still underway, and today we go over one of the latest modifications on the subject of companies, shareholders and third-party stakeholders.
As you may probably remember, a number of adjustments to the legal framework of corporate, tax and money laundering prevention provisions have taken place during the last few years, with the purpose of making several operations performed by companies, shareholders and third-party stakeholders increasingly transparent.
In relation to the above, a proposition for the modification of the General Business Law (Ley General de Sociedades Mercantiles, LGSM) was presented before Congress in November of 2017 with the purpose of compelling company stock transfers (for sociedades anónimas and responsabilidad limitada) and the final beneficiaries of these transactions to get registered and notify the authority (Secretariat of Economy) through its electronic publication system. This modification proposition was finally approved and published by Decree in the Official Journal of the Federation last June 14, 2018.
The above is particularly important, since it implies a transparency in the process of stock transfer in companies, where the authorities will know the persons involved in those transactions with the purpose of identifying situations that may imply unusual operations; however, it will safeguard the legal nature of sociedades anónimas and will not imply additional costs, since the electronic publication system is free and operates 24 hours a day.
The provisions mentioned above will come into force in December of 2018.
By Luis Velasco.
Certified Bachelor of Accounting,
Tax Specialist with experience in consultancy focused in compliance and strategic planning on tax, accounting, legal, financial and property matters for national and transnational companies and their shareholders.