The Controlling Beneficial Owner in the 2025 Anti-Money Laundering Law: What Every Company Needs to Know
Jul 21, 2025
With the enactment of the reform, published on July 17, 2025, to the Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (Federal Law for the Prevention and Identification of Transactions Involving Illicit Proceeds or LFPIORPI), the concept of the Controlling Beneficial Owner has been redefined and now plays a central role in the Mexican government’s strategy against money laundering and corporate opacity.
What is a Controlling Beneficial Owner?
The law now defines a Controlling Beneficial Owner as any natural person who, directly or indirectly, obtains benefits from a legal relationship or exercises effective control over 25% or more of the share capital or voting rights in an entity. It also includes those who exert significant influence in decision-making, even without shareholding.
What Changed with the 2025 Reform?
Previously, the identification threshold was generally set at 50%. The reform lowers this limit to 25%, aligning Mexico with international standards (such as those of the Financial Action Task Force – FATF). Additionally:
- This definition is explicitly distinguished from that used in the Federal Tax Code.
- Companies must identify and retain documentary evidence for compliance with both regulations, implying a dual and more complex analysis.
- Non-compliance may result in fines of up to 10,000 UMA, which currently exceed one million Mexican pesos.
Types of Controlling Beneficial Owners
- By ownership: Those holding a direct or indirect interest greater than 25%.
- By control: Those who, without significant ownership, influence key decisions.
- By benefit: Those who receive economic gains from the entity, even if they are not formally linked as partners or shareholders.
What about Politically Exposed Persons (PEPs)?
The reform also introduces specific definitions for Politically Exposed Persons (PEPs), meaning individuals with prominent public functions (as well as their close family members and associates). Companies must apply enhanced due diligence measures when identifying PEPs as Controlling Beneficial Owners, given their higher exposure to risks of corruption and illicit financing.
What Should You Do Now?
- Audit your corporate structure and verify if any individuals meet the new criteria.
- Properly classify the types of Controlling Beneficial Owners based on their role.
- Prepare or update your documentary file.
- Consult your legal or tax department, as inconsistencies between SAT regulations and this law may arise if both types of beneficial owners are not correctly identified.
The role of the Controlling Beneficial Owner is no longer optional or ambiguous: it is a mandatory, dynamic requirement with severe legal consequences if not properly addressed. This is not just about compliance, but about protecting your company from reputational and legal risks that can escalate rapidly.
Do you have any questions or comments? Please feel free to contact Alejandro Vázquez at alejandrovazquez@ascg.mx.
This article was prepared by our Legal Partner, Mr. Alejandro Vázquez.
We are AS Consulting Group, a member of SMS Latinoamérica, a firm specializing in accounting, tax advisory, financial services, legal, labor, foreign investment, and consulting services for small and medium-sized enterprises (SMEs), both domestic and foreign, in Mexico since 1991. Our expertise ensures the peace of mind and growth of your business. Being part of SMS Latinoamérica allows us to have a presence in over 21 countries and to be a member of the Forum of Firms, a committee of the International Federation of Accountants (IFAC).
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