Puerto Vallarta, Jalisco, Mexico - On October 17, 2012 the Federal Government of Mexico published the Anti Money-Laundering Law that came into effect 9 months after, that is on July 17, 2013.

The goal of this law is to protect the national economy and the financial system of Mexico with measures and procedures to prevent and detect acts or transactions that involve illegal resources with inter institution coordination.

One of the activities this law considers vulnerable to illegal transactions is the development and the buying and selling of real estate. However, in this case, this law directly affects real estate agents and agencies and not so much the potential buyer nor seller. In fact, some of the measures this law requires is to have real estate agents and agencies collect basic information about clients, this is something that has customarily been done by agents to set up the real estate trusts.

If you have been involved in a real estate transaction in the last few years you would remember filling out a form known as KYC (Know Your Client) with a variety of personal information like your name, date and place of birth, nationality, marital status, and a statement that the funds for that transaction were not from illegal origin. These forms must be presented in original form (no copies) so if you are not attending the closing you will have to send them via DHL so they get to the Notary prior to the closing.

You may also remember providing a proof of domicile (a bank statement, or a utility bill with your name and street address) and, if you attended the closing, you also provided proof of legal stay in the country (the tourist Visa you get on the plane on your flight to Mexico or any other Visa you may have had at the time.)

This is the same kind of information that this Anti Money-Laundering Law requires the Public Notaries get from clients. What will change is that sellers will also have to provide their basic information in a new format, which will be dictated by the Federal Government.

Another requirement of this law is that now service providers are obligated to report to the proper authorities of any transactions above $40,000 that is paid in cash. Cash means hard currency, so paying with cash is now considered a concern.

As you can see, if you are considering buying a house or a condo in Puerto Vallarta, the changes in the law will have very little to no effect for you.

If you want to know more about the real estate market in Puerto Vallarta, give me a call at 322-142-6296 or via email at alfredoh(at)tropicasa.com and let's chat!

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Since 1997, Wayne Franklin and his team at Tropicasa Realty have been a trusted name in Puerto Vallarta real estate. Tropicasa Realty is the region's representative for "The Leading Agents of the World" and with over 100 years of combined experience in real estate, all agents of the company are affiliated with AMPI. Wayne Franklin or any member of his knowledgeable team can be contacted in-person at their Romantic Zone Office - Pulpito 145-A at Olas Altas or in their San Marino Office - San Marino Hotel at Rodolfo Gomez 111-4. While in PV they can be reached at (322) 222-6505 or by calling 866-978-5539 (Toll-Free) from the U.S.

Click HERE to learn more about Tropicasa Realty, or visit tropicasa.com.