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Home Mexico Towards a Bank of Mexico with a social perspective 2021/01/14

Towards a Bank of Mexico with a social perspective 2021/01/14

January 14, 2021

By Alejandro Armenta

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In the Senate of the Republic we have given the approving vote to an initiative with a legitimate social objective, to strengthen the economy of migrants and their families who receive cash remittances, as well as those who depend on tourism and commerce in the region. border. The reform to the Bank of Mexico Law provides new tools to the regulatory body to create a series of controls whose application, with trained personnel, will allow the verification of user practices in which there is doubt in the financial system, with the objective of eliminating the risk of accept capital of doubtful origin.

Carrying out this task does not start from scratch, as there is a well-established scheme currently operating in the national and international financial system to prevent, identify and block risk.

These are tasks that banks, government institutions and Banxico itself already carry out, to which provisions are now added in the reform approved in the Senate and that the Chamber of Deputies will analyze. It would be unimaginable if the financial system did not have such mechanisms in place and in place.

The opinion that was voted by a majority of senators from various parties, based on the initiative of the senator Ricardo Monreal, coordinator of the parliamentary group of Morena, raises, for example, Article 20 Ter, with six control tools in matters of foreign exchange.

The article incorporates —in summary— diverse obligations to reinforce controls, from having processes, systems, suitable personnel and automated means to collect, verify and preserve customer information in order to evaluate and mitigate risk. They include the detection of unusual operations, fine-tuning policies and procedures that institutions already have regarding risks.

In addition, it is flexible, since the risk assessment model will be approved by the provisions determined by Banxico itself, as clearly established by the reforms that will shortly enter a technical table, to hear new voices.

From 1993 to date, six reforms have been made to the Bank of Mexico Law, already with the autonomy assigned to it by the Congress of the Union.

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In none of these reforms was there a claim or report from the central bank regarding a violation of autonomy. Experience indicates that inaction cannot be maintained in the face of a new scenario, as the ruling justifies. The president of Mexico himself, Andrés Manuel López Obrador, has considered that this issue should not be exaggerated.

Autonomy is not violated. The Legislative Power makes use of its powers, since Banxico is not outside the legal framework or in an exceptional situation.

The social purpose that the reforms seek must be kept in mind, the defense of Mexican migrants, workers in the tourism industry and others described in the ruling.

Migrants who return to Mexico with dollars as a result of their work and cannot exchange them in banks fall into the black market, a phenomenon that can be seen at first glance at crossings and border cities and destinations for fellow citizens.

For years the issue that now generates unusual reaction has been omitted. But it is important to avoid mistreatment of migrants and to end the lack of certainty in the financial system. Companions must be treated with respect and ensure that their efforts have fair pay for their work in their country. It is about seeing how things happen in your favor.

We are committed to promoting laws in favor of migrants, who are the economic support of millions of families and in favor of international tourism, which translates into foreign exchange, employment and growth for our country.

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