Mexico’s Looser Dollar Deposit Rules Likely to Create Compliance Issues for U.S. Banks

By Colby Adams and Kira Zalan

Mexico's recent decision to ease limits on deposits of American currency has breathed new life into the illicit finance risks associated with U.S. dollar clearing operations, according to sources. In an effort to boost border trade, Mexico's President Enrique Pena Nieto last month announced the lifting of the country's $14,000 cap on monthly dollar deposits on Mexican businesses that have operated for at least three years, can demonstrate a legitimate need for U.S. currency and agree to undergo tougher due diligence measures. Removal of the limits, which were adopted in 2010 to combat bulk cash smuggling, "reawakens" a "serious issue...