Money Laundering

Non-profit Organization Obliged to Follow Money Laundering Prevention Rules

To have a legal entity as a Non-profit Organization (NPO) dedicated to helping society and thus receiving donations, commonly known as a “donee”, carries a lot of fiscal responsibilities, and throughout our trajectory some important aspects have been mentioned on our website; but in this particular occasion we will focus on the legal issues regarding these kind of entities, leaving the accounting approach on the side, and showing that ignorance does not exempt the responsibilities with the law.

Money Laundering
Money Laundering Prevention Rules

But what does it mean by ignorance does not exempt the responsibilities with the law?

Sometimes when the right team of advisors is not available this question can have quite a few unfavorable implications before the authorities, and most of the times when they learn of this negligence it is way too late to be able to repair the damage done, and that is why we specialize in not leaving you and your organization unnoticed of all the requirements that the law states.

We bring to your attention that there is a law known as Federal Law for the Prevention and Identification of Operations with Resources derived from Illicit Sources (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita- LFPIORPI in Spanish), which is in charge of regulating Money Laundering Prevention, hence a donee is under constant surveillance before the eyes of the authorities because its social purpose can be embezzled; the previously mentioned law indicates certain necessary requirements  for the smooth running of these kind of entities, and our consultants can advise you in a more specific manner.

In general terms…

This law was created in Mexico based on international rights; there is an intergovernmental body established in 1989 called the Financial Action Task Force (FATF). FAFI’s mandate is to set standards and promote the effective execution of legal, regulatory and operational measures to combat the laundering of assets, terrorist financing and the financing and proliferation of other threats to the integrity of the international financial system.

That being said, to keep the adequate running of our donee, it is necessary to file notices, to create manuals and records that can help us show the authorities the correct routing of assets in our organization and thus avoid sanctions that can affect its functioning.

We want to extend a kind invitation to ask our legal and accounting consultants more about the correct functioning of your Non-profit Organization and with our help avoid the costly infringements which can occur when not properly informed about the LFPIORPI and its regulations. We will gladly clear up any doubts or concerns for the sound management of your organization.

Author: Oscar Alejandro Lomeli Ocampo

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