Mexico: The Mexican Fintech Law: What International Entities Need To Know

Last Updated: 12 April 2019
Article by René Arce Lozano and Luis Dávalos
Most Popular Article in Mexico, April 2019

The publication of the Financial Technology Institutions Law (Fintech Law) on 9 March, 2018 was a long awaited piece of legislation which aimed to promote financial inclusivity and technological innovation through a joint collaboration between Mexican regulators, legislators, and important private actors in the field. This article considers the requirements under the Fintech Law that any third country entities will need to comply with in order to operate in Mexico in this space.

The Fintech Law intends to build a regulatory framework aimed at the development of innovative financial services, increasing the level of competition and financial inclusion, as well as placing Mexico at the forefront of the industry. The Fintech Law currently recognizes two types of financial technology institutions (FTI) and an innovative or sandbox model:

  1. crowdfunding institutions;
  2. electronic money institutions (EMI); and
  3. the innovative model.

The first of the recognized FTIs, crowdfunding institutions, connect people so that investors can fund investment seekers through mobile applications, interfaces, websites or any other means of electronic or digital communications. EMIs on the other hand offer services of issuance, management, accountability and transfer of electronic payments. The funds recorded in an electronic transaction accounting ledger and kept by an EMI will be considered as electronic payment funds.

The Fintech Law also establishes the possibility of operating on a temporary basis under an innovative model, namely institutions that provide financial services through technological tools with different characteristics to the ones available in the market. A temporary authorization will be granted to this type of FTI, in compliance with the Fintech Law.

As a matter of law, any entity that wishes to operate as an FTI will need to file for authorization to operate as an FTI with the National Banking and Securities Commission (known by its acronym in Spanish as CNBV).

This means that international entities—even those that are already a Fintech company in their jurisdiction—who wish to incorporate and operate as an FTI in Mexico need to file for an authorization with the CNBV. International entities should therefore bear in mind that in order to operate in Mexico, all their activities should be conducted through an authorized FTI.

Under the Fintech Law, EMIs are allowed to outsource services, domestic or foreign, to third-party providers as needed in order to successfully carry out and fulfill their operations (Outsourced Services).

A foreign corporation may therefore lend their international service-provider platform as an Outsourced Service to EMIs in order for them to carry out their day-to-day activities. The result of this is that even though an EMI will always be the entity to have the legal relationship with the client (marketing, contracting, liability, etc.), EMIs may use the Outsourced Services of a foreign Fintech platform to their advantage.

The Fintech Law also states that third-party service providers are not exempt from complying with certain provisions of the Fintech Law. These provisions serve the purpose of making EMIs—or any other FTIs for that matter—the party facing the client, and not any other third party which may be carrying out services for an EMI related to electronic fund transfer operations. Set out below are the main requirements under the Fintech Law that foreign third party service providers should bear in mind.


Financial authorities such as the CNBV and Bank of Mexico are empowered to supervise third-party service providers hired by EMIs at all times. Such supervising powers include the ability of the CNBV and Bank of Mexico to request for audits to be performed by EMIs on their third-party service providers. The purpose of any inspection or audit request will have to be specified and its scope limited to the contracted service, compliant with the provisions of the Fintech Law and its secondary regulation.

Publicity requirements

With regards publicity requirements for EMIs, the Fintech Law requires such institutions to be transparent about certain relevant aspects with their clients and investors. Of particular note is the provision that requires EMIs, including all other FTIs, to expressly state that no government entity will guarantee or be accountable for any funds or assets used in any operation entered into with an EMI. Such statements must be communicated to clients through the relevant EMI's respective webpages, their digital applications and other means of electronic communication, as well as in the advertising and the contractual documentation they enter into with their clients.

The Fintech Law also has strict requirements regarding company names and expressly prohibits the use of any of the acronyms associated with financial technology institutions without permission. Authorized FTIs, however, must include "electronic money institutions" or "crowdfunding institutions" in their company name, as relevant.

Client classification

Under the Fintech Law, EMIs are required to classify customers depending on their risk level. The customer's risk level will depend on the result of due diligence procedures undertaken at the moment of account creation and the subsequent transaction limits set for each customer.

The general provisions regarding AML/KYC determine that level 1 and level 2 customers are low risk and therefore have simpler due diligence procedures. For level 1 customers, operations are limited to approximately US$2501 per month and for level 2 customers, operations are limited to approximately US$985 per month. These types of accounts also have more lenient information requirements, which is one of their main advantages.

Fund transfers

With regards to limits on fund transfers, EMIs must request authorization from the CNBV to receive or transfer cash funds in Mexican Pesos (MXN) to or from their clients. The limits for cash deposits per client are US$3,290 per month and the cash withdrawal is limited to US$490 per day per client.

Furthermore, fund transfers in national or foreign currency, to or from deposit accounts opened in foreign financial entities are limited to US$550 per month per client for accounts classified as low risk in accordance with the current regulation. Transactions for individuals are limited to US$10,000 per month, whereas for corporations there are no amount limits on international fund transfers.

Final thoughts

In conclusion, a Fintech foreign investor that is considering doing business in Mexico should bear in mind the various requirements set out in the Fintech Law that will need to be met regarding client relationship, publicity, and money transfers.


1. All amounts are indexed to the Investment Units value ("UDIs") (Unidad de Inversión) and are subject to change in time. UDIs value is reported by Banxico on a daily basis.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions