Mexican Labor Party Seeks to End Unauthorized Bank Account Freezes

Mexico City — The Labor Party (PT) in the Senate has introduced a reform initiative to prohibit the Financial Intelligence Unit (UIF) from freezing bank accounts without a prior court order, arguing that current regulations violate the presumption of innocence and property rights.

Reversal of Financial Oversight Policy

The PT parliamentary group, led by national leader Alberto Anaya, is promoting a legal change that would reverse a power they themselves, in coalition with Morena, approved in 2022. The proposal comes despite the fact that the current composition of the Supreme Court of Justice of the Nation (SCJN) recently upheld the constitutionality of those administrative powers of the Ministry of Finance and Public Credit (SHCP).

The initiative argues that the UIF’s current procedure directly contradicts Article 14 of the Constitution, which guarantees the right to a prior hearing, and Article 16, which states that no citizen may be disturbed in their possessions except by a written order from a competent authority. The party’s current position holds that the existing scheme allows assets to be frozen on mere suspicion, forcing the account holder to prove the legality of their funds, thereby reversing the burden of proof in criminal proceedings.

Economic Impact and Fundamental Rights

The legislative proposal emphasizes that freezing an account is not a simple administrative procedure but a drastic interruption of a person’s economic livelihood. Senators argue that the measure prevents covering basic needs such as:

• Paying rent and buying food.
• Keeping businesses operational and meeting payroll.
• Meeting auto loans and other basic financial obligations.

The central argument highlights that the measure affects both large business owners and people operating in the informal economy or running small businesses, effectively suspending their ability to engage in economic and financial activity.

Proposed Reform to the Credit Institutions Law

The initiative seeks to amend Articles 115 and 116 of the Credit Institutions Law to establish strict safeguards. Under the new framework, placing a person on the blocked accounts list would require:

1. Prior judicial authorization issued in writing.
2. Sufficient evidence linking to specific crimes.
3. A proven connection to terrorist financing or money laundering.

The bill has the unanimous support of the PT caucus members: Alberto Anaya, Alejandro González Yáñez, Geovanna Bañuelos, Lizeth Sánchez, Yeidckol Polevnsky, and Ana Karen Hernández.

Contrast with the 2022 Legal Framework

It is worth noting that in 2022, the PT itself voted in favor of the reform to Title Five of the Credit Institutions Law. That amendment allowed the SHCP to freeze accounts based solely on indications of illegal activity. The regulation was ratified by the full SCJN on April 6, on the grounds that the procedure is clear and guarantees the right to defense through defined deadlines, presentation of evidence, and reasoned decisions that can be challenged before administrative courts.