Latest news with #CNBV
Yahoo
4 days ago
- Business
- Yahoo
The Future of Digital Asset Infrastructure in Latin America
An overlooked monetary shift has started in Latin America that might provide actual financial liberty to large numbers of individuals while also challenging long-standing institutions. A 2024 Chainalysis analysis claims that stringent restrictions on capital and inflation levels above 100% are driving the adoption of cryptocurrencies in nations like Argentina and Venezuela. This change leads to a greater dependence on digital wallets and stablecoins to gain access to U.S. dollars beyond the established banking industry. With this digital asset infrastructure comes the immediate need for education and regulatory certainty so that this new framework does not become just another apparatus that fails the most disadvantaged. Financial literacy is one of the most significant obstacles to adoption. The intricacies of cryptocurrency can be daunting, and many people become disoriented by the deluge of perplexing internet data. Common lack of knowledge about finance poses a risk to long-term acceptance and a barrier to market adoption for institutions. Without sufficient educational systems, the usage of digital assets might continue to be restricted to unregulated or informal users — those who do business outside of the established or conventional banking system. A community-based, individualized education plan is crucial. A localized, community-oriented way of teaching is already emerging. According to the Crypto Council for Innovation, local authorities and non-governmental organizations have implemented classroom-style sessions and courses on digital wallets to educate on important subjects like stablecoin usage and private-key protection. People may confidently join the digital assets revolution once they know the fundamentals, such as what blockchain is and how to handle their assets safely, which lowers the chance of fraud and loss. Another significant barrier to adoption is the absence of clear policies. Digital asset service provider (VASP) licensing regimes have been created in Brazil and Colombia; nevertheless, regional legislation about taxes, cross-border transactions and consumer safeguards is still dispersed. Building trust and promoting growth in Latin American markets can be achieved by taking inspiration from more developed crypto laws and regulations, such as what we see in the Canadian market. For instance, early cooperation between cryptocurrency companies and the CNBV has influenced the development of fintech laws in Mexico. Early regulatory engagement by businesses lowers compliance risk and contributes to developing frameworks that foster sustained industry growth. Openness and collaboration between companies and authorities are paramount for successful development. There are practical obstacles as well. Currency conversion is expensive and difficult in many places, restricting access to money and trade. The average remittance cost from the United States, vital for many Latin American households, stands at 6.4%, and there are plans to raise it. Crypto infrastructure can lower costs and streamline payments across borders. Examples of this include crypto ATMs and adaptable, API-friendly systems. For example, areas on the Pacific coast of Costa Rica have embraced "crypto tourism" in which companies take digital assets directly, solving how foreign visitors pay local, frequently unbanked merchants. I recently had the honor of presenting at the British Virgin Islands 2025 Conference about the need for accessible banking alternatives and the relationship between cryptocurrency and tourism. These discussions demonstrated how cross-jurisdictional cooperation may hasten adoption and create an infrastructure that serves varied communities. Ambitious administration, easily available knowledge and adaptable, compatible technology will determine the future of digital assets in Latin America. Without these changes, this region risks re-creating historical disparities. By providing increased financial autonomy and possibilities, cryptocurrency has a chance to strengthen underrepresented groups, particularly minorities. With unbanked rates of over 50% and 43% in nations like Mexico and Peru, a sizable section of people in Latin America are still unbanked. Opportunities for wealth and monetary independence are hampered by these underprivileged populations' restricted access to conventional financial services; these groups are frequently low-income, rural or ethnic. To close this gap in financial inclusion, cryptocurrency and blockchain systems present a viable substitute by offering safe, affordable ways to transfer funds without requiring a bank account. The advancement of digital asset adoption in Latin America has begun. The real question is, can we design its infrastructure to be fully inclusive of everyone it serves? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
15-07-2025
- Business
- Mint
Mexico Fined Financial Firms Targeted by US Over Drug Claims
Mexican regulators imposed 185 million pesos in fines last month on three firms that were targeted by the US Treasury for potentially aiding drug traffickers, according to government data. Intercam Banco SA and its brokerage were fined 92 million Mexican pesos for violations of anti-money laundering rules such as failing to have an automated registry of unusual activity or follow its own guidelines on high risk clients, according to newly released data in regulator CNBV's database of fines. CIBanco SA and its brokerage were fined nearly 67 million pesos, also under anti-money laundering rules, for failing to maintain records and processing inordinate amounts of US dollars in cash. Brokerage Vector Casa de Bolsa SA was not called out for breaking anti-money laundering rules, but was fined almost 27 million pesos for faults including failing to notify clients of changes in its fund information. Last month, the US Treasury department's Financial Crimes Enforcement Network slapped orders on the same firms that will prohibit transfers with them, using new powers for the first time from last year's FEND Off Fentanyl Act. The bulk of Intercam's fines were imposed on the same day as the US action while most of CIBanco's and Vector's were levied on June 26, one day later, suggesting coordination between the countries' authorities. After the US orders were published, President Claudia Sheinbaum said the US had not provided proof of money laundering to justify such a drastic move. Last week, the US extended the deadline to cut off the firms to Sept. 4, citing Mexico's cooperation and quick move to take over management of the banks. With assistance from Jose Orozco. This article was generated from an automated news agency feed without modifications to text.
Bloomberg
15-07-2025
- Business
- Bloomberg
Mexico Fined Financial Firms Targeted by US Over Drug Claims
Mexican regulators imposed 185 million pesos ($9.8 million) in fines last month on three firms that were targeted by the US Treasury for potentially aiding drug traffickers, according to government data. Intercam Banco SA and its brokerage were fined 92 million Mexican pesos for violations of anti-money laundering rules such as failing to have an automated registry of unusual activity or follow its own guidelines on high risk clients, according to newly released data in regulator CNBV's database of fines. CIBanco SA and its brokerage were fined nearly 67 million pesos, also under anti-money laundering rules, for failing to maintain records and processing inordinate amounts of US dollars in cash.
Yahoo
27-06-2025
- Business
- Yahoo
Mexico Steps In to Run Banks Tarred by US Drug Accusations
(Bloomberg) -- Mexico's bank regulator stepped in to temporarily run three financial firms on Thursday, an extraordinary measure aimed at protecting customers following money-laundering accusations by US authorities the day before. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Mapping the Architectural History of New York's Chinatown US State Budget Wounds Intensify From Trump, DOGE Policy Shifts The claims that the firms were potentially facilitating drug cartels' money laundering sent shock waves through a country scarred by banking scandals and raised questions about whether more institutions could become targets of Washington. Mexico's banking lobby rushed to say the interventions wouldn't impact the country's financial system. The National Banking and Securities Commission, or CNBV, said in a statement Thursday that it was replacing management at the CIBanco SA and Intercam Banco SA 'in order to safeguard the rights of these institutions' savers and clients, given the potential implications for these banks of the measures announced by the United States Department of the Treasury.' CIBanco said in a statement that it would cooperate with the intervention and assured clients that their funds were safe under Mexican law. 'We will collaborate at all times with regulatory authorities in both Mexico and the United States, within the legal framework governing financial institutions, to address any potential concerns identified by the CNBV and FinCEN,' CIBanco said, referring to the US Treasury's Financial Crimes Enforcement Network. Intercam didn't immediately respond to a request for comment, but had denied the accusations on Wednesday. Late Thursday, Mexico said it was also using a separate law to take over management at Vector Casa de Bolsa SA, a brokerage without deposits. Vector representatives did not immediately respond to a request for comment. FinCEN slapped CIBanco, Intercam and Vector with orders that will prohibit certain fund transmissions with US entities. The orders take effect 21 days following publication in the US Federal Register. The register's website does not yet include publication of the orders. The regulator's move comes amid risks that clients could be spooked by the allegations even as President Claudia Sheinbaum responded defiantly to the US measures, arguing she's seen no evidence to support the designations. Mexicans have seen their fair share of banking scandals, from failures tied to related-party loans in the 1990s to HSBC Holdings Plc's admission to anti-money laundering and sanctions violations that facilitated the laundering of at least $881 million in drug proceeds. The news of the US accusations snowballed with Attorney General Pam Bondi's comments before senators putting Mexico on the list with Russia, China and Iran as US adversaries. Meanwhile, Mexico's senate on Wednesday approved a new anti-money laundering law. The Asociacion de Bancos de Mexico, or ABM, said the bank interventions wouldn't impact the stability of the country's banking system. 'The announced intervention seeks to create an environment of certainty that will allow institutions to operate normally for the time required to ensure that they meet regulatory standards,' ABM said in a statement. Investors also seemed little concerned the US measures poised a major risk to Mexico, with the peso currency posting its fourth day of gains. With Mexico's economic fundamentals still intact, long-term investors are not worried by the news, Karobaar Capital's Chief Investment Officer Haris Khurshid said, even if bank stocks could see some pressure. 'This is a serious reputational hit for Mexico's banking system, even if the fundamentals remain stable,' he said. 'The real risk is contagion, not just client outflows, but broader pressure on cross-border capital flows and compliance costs.' While the three firms tagged by the US are small, they are all well-known for foreign exchange operations and overseas branches that invest the wealth of Mexicans. Vector was founded by a key ally of former President Andres Manuel Lopez Obrador. Intercam is known for its foreign-exchange traded funds. CIBanco has a nightly segment on Milenio TV explaining market moves. Manuel Somoza, a CIBanco executive, had to abandon his routine TV slot to defend his bank. He said CIBanco had not been contacted by US authorities prior to the announcement and was open to clearing up any concerns immediately. Somoza said he had been on the phone with clients throughout the afternoon, assuring them their investments were safe. 'Rumors hurt you more than formal accusations,' he said. 'That's why we want them to conduct the investigation as quickly as possible.' (Updates with Vector intervention in paragraphs one, six and seven as well as Pam Bondi comments in paragraph 11 and an anti-money laundering bill in paragraph 12.) How to Steal a House America's Top Consumer-Sentiment Economist Is Worried Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Mexico Steps In to Run Banks Tarred by US Drug Accusations
(Bloomberg) -- Mexico's bank regulator stepped in to temporarily run three financial firms on Thursday, an extraordinary measure aimed at protecting customers following money-laundering accusations by US authorities the day before. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Mapping the Architectural History of New York's Chinatown US State Budget Wounds Intensify From Trump, DOGE Policy Shifts The claims that the firms were potentially facilitating drug cartels' money laundering sent shock waves through a country scarred by banking scandals and raised questions about whether more institutions could become targets of Washington. Mexico's banking lobby rushed to say the interventions wouldn't impact the country's financial system. The National Banking and Securities Commission, or CNBV, said in a statement Thursday that it was replacing management at the CIBanco SA and Intercam Banco SA 'in order to safeguard the rights of these institutions' savers and clients, given the potential implications for these banks of the measures announced by the United States Department of the Treasury.' CIBanco said in a statement that it would cooperate with the intervention and assured clients that their funds were safe under Mexican law. 'We will collaborate at all times with regulatory authorities in both Mexico and the United States, within the legal framework governing financial institutions, to address any potential concerns identified by the CNBV and FinCEN,' CIBanco said, referring to the US Treasury's Financial Crimes Enforcement Network. Intercam didn't immediately respond to a request for comment, but had denied the accusations on Wednesday. Late Thursday, Mexico said it was also using a separate law to take over management at Vector Casa de Bolsa SA, a brokerage without deposits. Vector representatives did not immediately respond to a request for comment. FinCEN slapped CIBanco, Intercam and Vector with orders that will prohibit certain fund transmissions with US entities. The orders take effect 21 days following publication in the US Federal Register. The register's website does not yet include publication of the orders. The regulator's move comes amid risks that clients could be spooked by the allegations even as President Claudia Sheinbaum responded defiantly to the US measures, arguing she's seen no evidence to support the designations. Mexicans have seen their fair share of banking scandals, from failures tied to related-party loans in the 1990s to HSBC Holdings Plc's admission to anti-money laundering and sanctions violations that facilitated the laundering of at least $881 million in drug proceeds. The news of the US accusations snowballed with Attorney General Pam Bondi's comments before senators putting Mexico on the list with Russia, China and Iran as US adversaries. Meanwhile, Mexico's senate on Wednesday approved a new anti-money laundering law. The Asociacion de Bancos de Mexico, or ABM, said the bank interventions wouldn't impact the stability of the country's banking system. 'The announced intervention seeks to create an environment of certainty that will allow institutions to operate normally for the time required to ensure that they meet regulatory standards,' ABM said in a statement. Investors also seemed little concerned the US measures poised a major risk to Mexico, with the peso currency posting its fourth day of gains. With Mexico's economic fundamentals still intact, long-term investors are not worried by the news, Karobaar Capital's Chief Investment Officer Haris Khurshid said, even if bank stocks could see some pressure. 'This is a serious reputational hit for Mexico's banking system, even if the fundamentals remain stable,' he said. 'The real risk is contagion, not just client outflows, but broader pressure on cross-border capital flows and compliance costs.' While the three firms tagged by the US are small, they are all well-known for foreign exchange operations and overseas branches that invest the wealth of Mexicans. Vector was founded by a key ally of former President Andres Manuel Lopez Obrador. Intercam is known for its foreign-exchange traded funds. CIBanco has a nightly segment on Milenio TV explaining market moves. Manuel Somoza, a CIBanco executive, had to abandon his routine TV slot to defend his bank. He said CIBanco had not been contacted by US authorities prior to the announcement and was open to clearing up any concerns immediately. Somoza said he had been on the phone with clients throughout the afternoon, assuring them their investments were safe. 'Rumors hurt you more than formal accusations,' he said. 'That's why we want them to conduct the investigation as quickly as possible.' (Updates with Vector intervention in paragraphs one, six and seven as well as Pam Bondi comments in paragraph 11 and an anti-money laundering bill in paragraph 12.) How to Steal a House America's Top Consumer-Sentiment Economist Is Worried Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags ©2025 Bloomberg L.P.
