MEXICO

On May 12, the Bank of Mexico (Banxico) published two circulars on financial transactions in the Official Journal of the Federation (DOF, in Spanish). The first establishes the issuance of prepaid cards for Mexican migrants so that they can carry out banking transactions from any geographic location. The second proposes guidelines for the alienation of foreign currency by regulated entities and credit institutions. Both circulars will become effective on May 13. On May 7, the Secretariat of Finance and Public Credit (SHCP, in Spanish) published in the DOF the resolution that regulates the operation of credit institutions that receive cash remittances from the United States. The text is already in effect.

The first circular determines that credit institutions may issue prepaid bank cards in Mexican pesos to foreigners (who can prove their identity by means of a passport), against the receipt of foreign currency in cash or against the charge of a credit or debit card issued by a foreign financial institution. The second circular sets forth the terms and conditions to be followed by the agencies and entities of the Federal Public Administration that are not financial intermediaries in terms of foreign exchange transactions and their maintenance.

Likewise, the resolution that regulates the receipt of remittances amends articles 33 bis and quater of the General Provisions referred to in article 115 of the Law of Credit Institutions. In this sense, it determines a new electronic mechanism to list and update the municipalities and mayors’ offices that may receive cash remittances from the United States.