Vulnerable Activities

The Federal Law to Prevent and Identify Operations with Resources of Illicit Origin, commonly known as the “Anti-Money Laundering Law“, establishes that in our country there are 16 activities considered as vulnerable, the most common being the following:

Gambling, vehicle armoring, loans, purchase and sale of real estate, donations, marketing of works of art, public notary services, purchase and sale of jewelry, marketing of vehicles, transfer of securities, leasing of real estate, among others.

Therefore, those individuals or companies known as Regulated Entities that carry out any of the aforementioned activities, have specific obligations in terms of money laundering prevention, among which the following stand out:

– Identification of the client and safekeeping of files.

– Preparation and issuance of Vulnerable Activity Notices; and

– Limitation to the receipt and use of cash transactions.

If regulated entities fail to comply with any of the processes or obligations established in the Anti-Money Laundering Law, they will shall be subject to sanctions, fines, loss of registrations or even criminal liability, so it is important to have regulations and processes within the businesses that help them comply with the applicable regulations.