End of the year message

End of the year message

End of the year message

Published on december 01 , 2022

Foto de Benjamín  Valdez Iraheta

Benjamín Valdez Iraheta - Partner

The year is coming to an end and with it, the fiscal year. It is time to take stock, not only accounting, but also personal, professional, business and political. It is also time to prepare budgets and projections for 2023.

No one can deny that preparing a business budget for the coming year is full of challenges; the national political landscape is uncertain, with many questions. But the international arena also continues to get more complicated with the prolongation of the war in Ukraine, pandemic closures in China, runaway inflation, the slow re-establishment of supply chains; in short, a host of problems outside our sphere of influence.

December is always a hectic month for the Firm; many of our clients, when trying to close the annual cycle, realize that they are missing documents, minutes and contracts. Others, in an effort to improve their numbers, urge us to sign agreements or, better yet, finish closing pending transactions.

I believe that at Benjamin Valdez & Associates we are prepared to face all these challenges and many more; but regardless of the busy days, festivities and Christmas gifts we want to communicate to our clients and friends optimism and above all, a new year full of prosperity, happiness and lots of love.

I would also like to take this opportunity to thank the legal and administrative staff of Benjamín Valdez & Asociados for their commitment and dedication to their work, their patience for the long hours worked and their willingness to work hard. We have all met the challenge and we have no doubt that in 2023 we will continue to provide our clients with the best service possible, accompanied by a smile and the best intentions.
email
Last June, the new Instructions for the Prevention, Detection and Control of Money Laundering, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction, issued by the Attorney General's Office (FGR), under the framework of the Anti-Money Laundering Law (LCLDA), came into force. In its Article 2, the LCLDA establishes that every person must submit information to the FGR that allows demonstrating the licit origin of any transaction he/she carries out. This leads us to conclude, then, that every person must prepare the manual and internal policies for the implementation of a money laundering prevention system, and the continuous development of these.

What is the difference between the new Instructions and the prevention systems elaborated before it came into force? Article 4 of the Instructions requires individuals to apply a risk-based approach, which consists of identifying, assessing and understanding the risks of their sector and operation, and applying resources aimed at ensuring that they are effectively mitigated. Therefore, it is necessary to update the manuals and policies that companies had developed in the past, so that they have a risk-based approach and comply with the new provisions.

From the manuals prepared, it is necessary to comply with other obligations, among them, to develop due diligence and KYC policies to identify the final beneficiary of the company's business relationships, to detect and mitigate all unusual or suspicious transactions and report them to the FGR (not only cash transactions), to train employees, to keep a historical record of the files analyzed, and above all, to appoint a compliance officer.

Why is it important to comply? Article 8 of the LCLDA establishes that, if there is any encumbrance due to negligence, impertinence or ignorance of the directors or employees of the companies, there will be a sanction of two to four years in jail.

Therefore, as a Firm we recommend:


We offer you our services, in order to comply with these legal obligations, so that your company has the peace of mind and support of a money laundering prevention system.

For more information about how this may affect your company, please contact our specialized team at bvaldez@bvaldezlaw.com  or  benjamin@bvaldezlaw.com