Senate approves Anti-Money Laundering Law: What it consists of and why it causes controversy

With 74 votes in favor, 13 against, and 19 abstentions, the Senate approved, in general and specific terms, the reform to the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds and the Federal Penal Code.

This new legislation, promoted by Morena and its allies, seeks to strengthen the fight against money laundering and terrorism. However, it has raised red flags due to the scope it gives the Ministry of Finance and Public Credit (SHCP) to access citizens' personal data .

Key points of the reform include:

• The expansion of the SHCP's powers , allowing it to request information from departments, autonomous bodies, unions, and state-owned companies without requiring judicial authorization, as established in the controversial Article 51 bis.
• The inclusion of new activities considered vulnerable, such as real estate development , virtual assets (cryptocurrencies) and trusts .
• The definition and monitoring of so-called politically exposed persons , that is, those who have held public office in Mexico or abroad, as well as their families and associates, in accordance with criteria to be established by the Ministry of Public Prosecution (SHCP).
• Cooperation between the SHCP and the National Guard to prevent and detect illicit transactions has raised fears of a possible "militarization" in the fight against financial crimes.

Opposition legislators and various experts warn that this law could open the door to abuse. Citizen Movement Senator Alejandra Barrales criticized the reform for allowing the state to access sensitive data on citizens, political parties, unions, and companies without a court order.

Article 3, Section IX bis, which expands the concept of politically exposed person, has been identified as a privacy risk, as it allows for extended scrutiny even to family members of former public servants.

Furthermore, the article allowing cooperation with the National Guard worries those who fear the Army's involvement in financial investigations. "There is a risk of criminalizing opponents or hindering investment by generating uncertainty in the private sector," said PAN Senator Francisco Ramírez.

The initiative will now move to the Chamber of Deputies , where a new debate is planned. For now, human rights organizations and business sectors have already requested adjustments to avoid excesses and ensure a balance between security and citizen rights.

It's worth noting that the government justifies the reform as part of its commitment to the Financial Action Task Force (FATF) standards, in a context where Mexico seeks to demonstrate progress in the fight against money laundering and terrorist financing.