Through our News Bulletins No. 7 /2018 and No. 1/2019, we inform you the obligations for taxpayers and the related powers of the tax authorities in connection with the enforcement of the provisions set forth in the Federal Law for the Prevention and Identification of Transactions with Funds from Illicit Sources (“LFPIORPI” for its Spanish initials or “Anti-Money Laundering Law”.) 

As we mentioned in our News Bulletins, the coming into effect of this Law brought the establishment of some obligations for individuals to identify, and in some cases, to inform to the Financial Intelligence Unit (UIF for its Spanish initials), the performance of transactions that fall within the assumption of vulnerable activity in terms of article 17 of the LFPIORPI, through the filing of Notices, as well as the obligations provided for in the Rules of general nature.  

In addition, we informed you that the Decentralized Tax Collection Administrations have been enforcing their review and enforcement powers on anti-money laundering matters and that, as part of that process, they have determined omissions and have imposed penalties as a result therefrom; however, in some cases the activities carried out by the taxpayers fined did not fall within the assumption of vulnerable activity, which have risen to considerable amounts.    

In connection with the foregoing, we informed you that on December 28, 2018, the Ministry of Finance and Public Credit published in the Federal Official Gazette (DOF for its Spanish initials) the Ruling whereby the Federal Income Law for Fiscal Year 2019 (the “Ruling”) became effective on January 1, 2019. 

From the previously mentioned Ruling, we can see that the provisions of Transitory Article Fourteen provide for the implementation of a Self-Regularization Program as to the compliance with the taxpayers’ obligations on anti-money laundering matters, specifically on the filing of Notices or Reports in terms of articles 17 and 18 of the LFPIORPI (the “Program” or the “Self-Regularization Program”.)

This will grant the possibility to cure omissions incurred from July 1, 2013 through December 31, 2018, and to be granted forgiveness for fines resulting from such omissions. Moreover, the tax authority will not be able to determine fines for omissions during the self-regularization program.  

Current Situation

On April 16, the Federal Official Gazette published the General Provisions for the Regulation of Self-Regularization Programs (the “Rules”) that will become effective 45 days after their date of publication; that is, the Program Rules will come into effect on June 21, 2019.  

1. Self-Regularization
   In accordance with the provisions of the Income Law no fines will be imposed in connection with the period of noncompliance considered in the Program, making the benefit conditional to the following:   
2. Taxpayers must comply with its anti-money laundering obligations in 2019. 
3. There must be a prior authorization from the SAT (to the request for Self-Regularization)
4. The Self-Regularization Program must be covered in full and all irregularities or omissions concerning the obligations established by the Law, Regulations or General Rules to which the taxpayer is subject must be corrected.   

These are the requirements and forms to access the Program:

• 
  Means to file the request: Anti-money laundering website.
  • Term to file the request: Up to 30 business days after the coming into effect of the Rules (the term would expire on August 2, 2019.)
• Form to submit the request: There is not an official form yet, we recommend that you be alert to its publication before the Program Rules become effective. 

Currently the website does not have an entry to write. The Rules only sets forth the formality that in the request you must declare: “that you are willing to correct and cure all the irregularities or omissions incurred under oath to tell the truth.”  

• Information to attach to the request: the Self-Regularization Program.
  • Information to attach to the Self-Regularization Program:
  o Description of the irregularities or omissions, specifying the legal precepts of the Law, Regulations or General Rules that were not met. 
  o Explanation of the circumstances that caused the irregularity or omission.
  o Description of the actions that will be adopted to cure the omission.

In the event the corrective actions include the filing of “Notices,” please bear in mind that you can file them only on the first and last eight business days of each month. Moreover, if the notices are massive notices, they must contain only the transactions of the month in question. Upon filing notices, you must mention in the field “Reference” the word “Programaregula.”