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U.S. Banks Turning Away Would-Be Clients from Mexico Over Due Diligence Hurdles
By Brian Monroe
printDozens of U.S. banks along the country's southern border are denying new accounts to wealthy Mexican nationals and corporations because of due diligence troubles caused by drug-related violence in Mexico. Bank compliance officers are deciding that it's too dangerous to conduct onsite anti-money laundering (AML) checks of potential corporate and private banking clients in Mexico, whether the potential customers are in violence-plagued border towns or elsewhere in the country, according to a financial regulatory official who works with financial institutions in Texas. "There are a lot of Texas banks not accepting new Mexican customers," including businesses, foreign nationals and money...
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