In accordance with the Anti-laundering Law and its interpretation, the Regulations of the Law, and general rules, the payment method agreed between the parties to a real estate transaction must be made between buyer and seller, Duh, I know!, but read this, since the majority of investors agree to make an initial deposit, or pay the whole purchase price in advance (which they shouldn’t for all practical purposes) with funds from the country of origin of the investor, make sure you understand this is illegal, your Mexican company will be the buyer, not the investors, thus payment, per the law, must be made from a Mexican bank account by check or wire transfer of funds, to the sellers bank account in Mexico.

The Money Laundering Law (Anti-laundering) requires the fulfillment of various circumstances and requirements. One of such conditions is regarding the worth of the transaction and the form of payment. On this regard, the law and the regulations prohibit payment in cash. In any case, the payment must be made directly from the buyer to the seller. Thus the shareholders or partners have following options: a) Shareholders may lend the funds to the company, in addition to their share contribution, which can be later considered an increment to the company’s capital; and b) The shareholders can enter a loan agreement through a shareholders meeting where it is so resolved and the Minutes must be notarized. Once the funds lent by the shareholders or the loan agreed within the Minutes, then a bank account must be opened by the company and such funds may be wired or deposited so that the payment is made by the purchasing company.

Source: SEGOB

ANNEX 4 OF AGREEMENT 02/2013 BY WHICH THE GENERAL RULES REFERRED TO IN THE FEDERAL LAW ARE ISSUED FOR THE PREVENTION AND IDENTIFICATION OF OPERATIONS WITH RESOURCES OF UNLAWFUL SOURCES, DATA AND IDENTIFICATION DOCUMENTS OF THE CLIENTS OR USERS OF THOSE WHO CARRY OUT VULNERABLE ACTIVITIES, INVOLVING MEXICAN NATIONALS.


a) Provide the following information:

i) Denomination or company name;

ii) Date of incorporation;

iii) Country of origin;

iv) Business scope, activity or corporate purpose for the cases in which a Business Relationship is established;

v) Address: name of the street, avenue or road in question, duly specified; external and, where appropriate, internal number; colony or urbanization; territorial demarcation, municipality or similar political demarcation that corresponds, where appropriate; city ​​or population, federative entity, state, province, department or similar political demarcation that corresponds, where applicable; zip code and country;

vi) Telephone number (s) belonging to said address, including the long distance code and, where applicable, extension, when they have one;

vii) Email, if applicable;

viii) Federal Tax ID number, and

ix) Name (s) and surnames, as well as date of birth, Tax Id number, CURP (Population Register number of the shareholders and that of their legal representatives or persons who perform the act or transaction on behalf of the company. Additionaly, the company must submit official identifications.

Yes, I agree, there are some notaries that neglect to observe the law, but you must acknowledge the fact that the Law exists, that is current and that it will be enforced by the Mexican IRS and the Mexican company and its shareholders will be audited and eventually punished for failing to observe the law.

Know the law, follow the law.