Mexico’s Treasury Seeks Power to Ban Cash Payments Sector by Sector

Mexico City — Mexico’s government wants Congress to give the Treasury Department broad authority to decide which industries and economic activities will be barred from accepting cash, along with the terms for implementing the restriction.

The proposed Digital Economy Law for Digital and Electronic Payments, presented by President Claudia Sheinbaum, states that the Treasury “will determine the strategic sectors and relevant activities in which the acceptance of digital and electronic payment methods may be the only form of payment.”

The legislation does not define what would qualify as a “strategic sector” or “relevant activity,” nor does it set the conditions, requirements or transition periods for phasing out cash.

The bill signals the government’s urgency on the issue: the Treasury (SHCP) would have only 15 business days after the law is published to designate the first sectors and activities where cash payments would be prohibited.

A Break From Mexico’s Anti-Money-Laundering Rules

The proposal departs from Mexico’s current Federal Law for the Prevention and Identification of Operations with Illicit Proceeds — the country’s anti-money-laundering statute, enacted at the end of Felipe Calderón’s administration — which caps cash payments for real estate, vehicles, jewelry, artworks, betting and lotteries.