• MEX DP published agreement through which the minimum essential information on beneficial owners was approved, which will serve as criteria for its disclosure.

Background

• In June 2018, reforms to the General Law of Commercial Companies were published.
• Requiring corporations and limited liability companies submit a notice to the Ministry of Economy about changes in their shareholding / beneficial ownership structure.
• This measure was meant to comply with the FATF recommendations on legal, regulatory and operational measures to combat money laundering, terrorist financing.
• The anonymity of the person who ultimately controls and benefits economically from a legal vehicle allows various illegal activities to take place in a hidden manner.
• Such legal entities include commercial company, trust, foundation, among others.
• MEX DP INAI, in December 2021, was charged with issuing a technical opinion on the set of data that would allow for the identification and disclosure of final beneficiaries.
• It delivered its opinion on 31 March 2022 which identifies various criteria on publication of personal data to legal structures that are related to the government.
• It is now necessary for MEX DP to approve the data that it considers can be made public, through a public interest test, while complying with protection of personal data.

Agreement Highlights

• The Agreement approves minimum essential data on final beneficiaries, which will serve as criteria for their disclosure, in accordance with the Annex to the Agreement.
• Data is contained in different databases and pertains to natural persons or legal persons, who are the final beneficiaries of commercial and civil legal entities.

Effectiveness

• Agreement shall enter into force on the day following its publication in official gazette.