Editor’s Note
This article outlines new cash transaction limits set by Mexico’s Tax Administration Service (SAT) for 2024, aimed at enhancing financial transparency and combating money laundering.
In an effort to strengthen financial transparency and prevent money laundering, the Tax Administration Service (SAT) has announced stricter measures regarding the use of cash in financial transactions starting in 2024.
These new regulations, backed by the Anti-Money Laundering Law, primarily aim to combat the misuse of cash and prevent illicit activities that could undermine the integrity of the financial system.
These new restrictions on the use of cash have been established in accordance with the Anti-Money Laundering Law, which seeks to reduce the risks associated with a lack of traceability in financial operations.
From now on, specific limits are imposed for different types of transactions, in order to limit the amount of cash that can be used, providing a greater level of transparency and traceability in financial activities.
The limits established by the SAT cover a wide range of financial operations, including the acquisition of vehicles, purchase of real estate, buying and selling of shares, rental operations, acquisition of jewelry or watches, contests, games and bets, as well as vehicle or real estate armoring activities.
These limits, expressed in Units of Measurement and Update (UMAS), represent a concerted effort by the Mexican government to combat corruption and strengthen the integrity of the country’s financial system.
Acquisition of vehicles: Applies to any type of land, air, or marine vehicle, with a maximum limit of 3,210 UMAS, equivalent to 346,326.90 pesos.
Purchase of real estate: Here the use of cash is limited to 8,025 UMAS, which is equivalent to 865,817.25 pesos.
Buying and selling of shares: For this, the limit is 3,210 UMAS, equivalent to 346,326.90 pesos.
Rental operations: Maximum limit for cash use is 3,210 UMAS, equivalent to 346,326.90 pesos.
Acquisition of jewelry or watches: Maximum cash allowed is 3,210 UMAS, equivalent to 346,326.90 pesos.
Contests, games, and bets: In this case, the cash use limit is 3,210 UMAS, equivalent to 346,326.90 pesos.
Armoring of vehicles or real estate: For this activity, the cash use limit is 3,210 UMAS, that is, 346,326.90 pesos.
The Federal Law for the Prevention and Identification of Operations with Illicit Proceeds, commonly known as the Anti-Money Laundering Law, is a fundamental piece in this effort, as it establishes a solid legal framework for the prevention and detection of illicit activities related to money laundering, providing tools and mechanisms to effectively combat this type of crime.