Mexico’s Supreme Court Upholds Financial Intelligence Unit’s Power to Freeze Bank Accounts

Mexico City — Mexico’s Supreme Court ruled that the Financial Intelligence Unit can freeze bank accounts based on evidence of illicit activity without requiring formal requests from foreign authorities.

The Supreme Court of Justice of the Nation determined that account freezes ordered by the Financial Intelligence Unit are constitutional when supported by indications of illegal operations and when they respect the fundamental rights of those involved.

In a plenary session, the court resolved two cases confirming the validity of these measures, considering them part of the Mexican state’s preventive mechanisms to combat money laundering and other activities linked to illicitly obtained resources.

Provisional Measure, Not Final Sanction

The justices established that freezing accounts does not constitute a final sanction but rather a provisional precautionary measure. Its objective is to prevent the dispersal of resources while financial investigations develop.

The court also emphasized that such actions must guarantee the right to a hearing and defense for affected parties, who can challenge the measures through both administrative and judicial avenues.

Unit Can Act Without Formal Foreign Request

One key point of the ruling is that the Financial Intelligence Unit does not require a formal request from foreign authorities to proceed with account freezes.

The Supreme Court specified that the unit can base its actions on national or international information, provided it meets globally recognized standards.

The decision highlighted Mexico’s alignment with guidelines from the Financial Action Task Force, the international body that establishes criteria for preventing money laundering and terrorist financing.

Strengthening Legal Framework Against Illicit Operations

With this resolution, the Supreme Court strengthens the legal framework for financial intelligence and reinforces the state’s tools for detecting and stopping illegal economic flows.

The ruling also sets a relevant precedent for future actions by the Financial Intelligence Unit by delimiting the scope of its powers and ensuring a balance between financial security and protection of fundamental rights.