FinCEN Delays Effective Date of Banking Restrictions on 3 Mexican Entities
The Treasury Department’s Financial Crimes Enforcement Network is extending the effective dates for its June orders that were set to designate three Mexican financial institutions as primary money laundering concerns, which will block U.S. banks, securities brokers and other money services businesses from transmitting certain funds involving those entities (see 2506260014). Financial institutions will now have until Sept. 4 "to implement the orders prohibiting certain transmittal of funds involving" the three entities, FinCEN said. The designations were scheduled to take effect 21 days after they were published in the Federal Register on June 30.
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The extension reflects that the Mexican government has "taken further steps to address the concerns raised in FinCEN’s orders, including by assuming temporary management of the affected institutions to promote regulatory compliance and the prevention of illicit finance," FinCEN said. Treasury said it will continue to work with Mexico "and will carefully consider all facts and circumstances in considering any further extensions to the implementation date of the orders."