President Felipe Calderon is seeking to outlaw many transitions made with large sums of cash in a further bid to combat money laundering in Mexico.
If the new laws pass, no one would be allowed to make cash purchases for real estate, automobiles, watches, jewelry, boats and dozens of other luxury items over 100,000 pesos (7,700 dollars).
Neither could anyone buy a business or a share in a business for more than this amount in cash. Limits on cash wagers at casinos and horse race tracks are also included in the proposals.
The reforms sent to federal legislators last week call for five to 15 years in prison for transgressors.
In addition, many businesses, including those selling real estate and precious metals, would be obliged to report all their operations to financial authorities. Banks would also be required to provide greater information on their clients’ financial movements.
Mexican Finance Secretary Ernesto Cordero said the main objectives of the proposals are to “close the door on the use of resources obtained from kidnappings, extortions, drug trafficking and other criminal activity.”
He said criminals in Mexico have no problem passing themselves off as successful businessmen thanks to the ease of laundering large sums of illicitly obtained cash.
The Mexican Association of Automobile Distributors warned that the measure could seriously damage their members’ businesses, since 60 percent of all car sales in Mexico are conducted in cash.
Armando Trujillo Villa, the president of the Mexican Association of Real Estate Professionals (AMPI), said his organization has already taken its own measures, and banned its members from accepting cash sales for all real estate transactions.
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