IAFIE Supports Intelligence Efforts in Mexico

On May 7, IAFIE members John Pyrik (Canada) and Marilyn Peterson (U.S.) provided a ninety-minute webinar to IAFIE’s emerging chapter in Mexico. The topic of the webinar was the designation by the U.S. government of Mexican cartels as foreign terrorist organizations and the impact of that and other changes on the business community in Mexico. While Mexico has anti-money laundering reporting processes and procedures, they have not covered counter-terrorism financing in the past. Forty five people attended, some from as far away as the Seychelles.
 
Mr. Pyrik discussed the laws in the U.S. that support the designation as a Foreign Terrorist Organization, material support statutes, the importance of enhanced due diligence between businesses and their customers, and the differences between terrorism financing and drug profits. He suggested that terror groups are smaller and may operate with smaller sums of currency, while drug traffickers are larger with much larger sums of money. He also covered trade-based money laundering, Canada’s Fintrac organization and the coalition between Mexico, the U.S. and Canada to combat fentanyl. Pyrik futher highlighted two key distinctions; the advantage Mexican authorities have in that their terrorist organizations are also often very conspicuous money launderers and the increased risk of civil liability.
 
Ms. Peterson spoke about the U.S. designations of six Mexican cartels as Foreign Terrorist Organizations and how this may impact Mexican businesses that could be considered to be illegally providing them with ‘material support’ which could lead to prosecution by U.S. authorities. She also talked about the weakening of U.S. regulations regarding beneficial ownership reporting and how that might encourage ‘front’ or ‘shell’ companies to engage with the cartels. It was also noted that increased militarization along the Mexico- U.S. border (in Texas, Arizona, California and New Mexico) could lessen the traffic normally through the borders.
 
The seminar was hosted by Mr. Carlos Hernandez Vasquez and his training organization, Nzaya. He is working to establish a regional IAFIE Latin America chapter as well as with Keyla Vargas to begin a local one in Mexico. Mr. Robin Lobb, IAFIE’s membership director and vice-president, assisted in arranging the program.