Mexico’s Financial Intelligence Unit can freeze your trust without a court order. Your trustee is not liable for that
Many individuals and companies in Mexico use management trusts to protect assets and isolate risks. The rationale is straightforward: assets are transferred to a trustee institution and are placed outside the reach of creditors and corporate disputes. However, they are not outside the reach of the Financial Intelligence Unit (UIF). The Supreme Court of Justice […]
When Your Debtor Enters Commercial Insolvency Proceedings, the Clock Is Already Ticking
You are the administrator of a company that regularly extends credit. You document those receivables through promissory notes, invoices, and contracts. One of your clients has failed to pay you for several months, and one day you see in Mexico’s Federal Official Gazette (DOF) that it has initiated commercial insolvency proceedings. From that moment on, […]
SA, SRL or SAPI? What your corporate structure defines before the investor arrives
When an investor appears on the horizon, most growing companies in Mexico face the same situation: they have been operating for years under a corporate structure that nobody reviewed since incorporation. What seemed like an administrative decision turns out to determine who can call a shareholders’ meeting, how shares are transferred, and what real protection […]
When Mexico’s Financial Intelligence Unit Freezes Accounts, There Is No Backup: What Directors Must Know Before It Happens
On April 6 of this year, the Supreme Court of Justice of Mexico upheld that the Financial Intelligence Unit (UIF) may freeze a company’s bank accounts without requiring a prior court order. It is sufficient for the authority to determine, based on reasonable indicia, that the company may be linked to offenses such as terrorist […]