Money-laundering situation pushes Mexico into dollar transfer business

Money-laundering situation pushes Mexico into dollar transfer business

Jul 12, 2017

Bloomberg reports that Mexico’s government is taking an unusual step to weather a U.S. money-laundering crackdown that threatens to hobble dollar-fueled businesses from Cancun hotels to Tijuana beauty salons: It’s getting into the dollar-transfer business. The country’s central bank will soon unveil an electronic system designed to ease U.S. dollar transfers between Mexican businesses, said Banco de Mexico spokesman Ricardo Medina. The network will let businesses send U.S. currency to each other through a clearinghouse overseen by the central bank and moving through a bank in the U.S., according to a central bank official familiar with the program, who said the system could be introduced as soon as next month. The move addresses a growing problem in Mexico: Several foreign banks have cut ties with Mexican counterparts in recent years. Bankers and officials in Mexico fear further barriers to financial flows between their country, Latin America’s second-largest economy, and the U.S., its biggest trading partner. Large swaths of Mexico’s $1.3 trillion economy rely on the dollar, from manufacturers in border zones such as Ciudad Juarez to travel-industry businesses in spots like Puerto Vallarta. Transferring dollars through the U.S. has become harder, Mexican lenders say, after U.S. regulators and law enforcers cracked down on banks that didn’t flag transfers linked to Mexican drug cartels or other criminals. In recent years, international banks have paid more than $2 billion for lapses including the failure to flag suspicious dollar transactions between the countries. That has led other banks to sever ties pre-emptively — a process euphemistically known as “de-risking.” The illicit drug trade in the U.S. generates $64 billion a year, according to an estimate by the U.S. Treasury Department, which calls Mexico the primary supplier or transit point for some drugs. But illicit-drug revenues pale in comparison with the $531 billion in legitimate trade between the two countries. “Clearly, the U.S. government doesn’t want to drive banks into such de-risking activity that they can’t bank anymore with Mexico,” said Robert McBrien, a former associate director for global targeting at the U.S. Treasury’s Office of Foreign Assets Control. “You don’t want to wipe out that financial flow — you want transparency.” No ‘Silver Bullet’ That’s where the central bank steps in. Banco de Mexico...

U.S. energy secretary promotes pact with Mexico and Canada amid NAFTA changes

U.S. energy secretary promotes pact with Mexico and Canada amid NAFTA changes

Jun 30, 2017

The U.S. has a unique opportunity to develop a “North American energy strategy” with Canada and Mexico, Energy Secretary Rick Perry said, striking a conciliatory tone with the other members of the North American Free Trade Agreement. Bloomberg News reported that while President Donald Trump has blasted Nafta and moved to renegotiate it, Perry referred to the upcoming talks to rework the 1994 trade pact as a “massage” of it, saying it presents an opportunity to bolster energy ties, not enact new trade barriers. “That relationship I don’t think has ever been more important than it is today, particularly from an energy perspective,” Perry told reporters at the White House last week, while stressing his close ties with his counterparts in Ottawa and Mexico City. “Energy is going to play a very important role.” His comments came at the outset of so-called “Energy Week” from the White House, as Trump highlights his efforts to reduce regulations on energy producers and jump-start energy exports. Perry’s comments are nonetheless the latest signal Trump’s cabinet is warming to trade ties with Canada and Mexico — whether it’s lauding Nafta and its impact on farmers or saying any revisions of the pact will be good for the U.S. neighbors, as well. “Energy is an ideal area for the Trump administration to move forward with the relationship,” Duncan Wood, director of the Mexico Institute at the Woodrow Wilson Center, said in a telephone interview. Trump has long advocated for American energy dominance, Wood said: “But everybody knows that for the United States to do that on its own is a pipe dream in the short term at least — but for North America working together, it becomes feasible.” To read complete article click here. Source: Bloomberg...

Governor Kiko Vega’s tour will continue in Italy and Spain

Governor Kiko Vega’s tour will continue in Italy and Spain

Jun 22, 2017

The European schedule of Governor Kiko Vega will continue after the Paris Air Show, but he will be back to Mexico on July 1st, and Secretary of Economic Development, Carlo Bonfante will continue working visiting Germany and Iceland, in the last leg of the investment attraction and State promotion tour. Governor Kiko Vega will meet with Mexico’s Ambassador in Rome, Italy, Juan Jose Guerra Abud where he will visit some industrial parks in an event coordinated by ProMexico. In Milano, with Mexico’s Consul, Marisela Morales, he will get together with the Wine Producers Association of Italy to establish links and bonds with this relevant sector and the wine producers from Guadalupe Valley, Baja California. Next, Vega de Lamadrid will visit Spain, where he will meet representatives from companies which might become feasible investment prospects in relevant areas such as infrastructure and metal-mechanics. The last leg of the tour , from June 30th to July 5th will be headed by Carlo Bonfante, Economic Development Secretary who will attend investment seminars altogether with ProMexico in Munich, Germany and will gather with top executives of Ossur an Iceland company already operating in Baja...

Mexican peso recovers but fuel prices remain high

Mexican peso recovers but fuel prices remain high

Apr 20, 2017

ALFREDO AZCARATE VARELA THE BAJA POST/EDITOR The Mexican Government demagogic language seems mockery to Mexicans, two and a half months ago the reason for the so called GASOLINAZO (huge fuel price raise) was that the dollar was too expensive, now that it has gone down almost four pesos fuel prices are the same which goes to show how Mexican Federal Gov. lies and conceals its inefficiency, corruption and lack of interest for Mexico. After all that was said and done in January, now “the Mexican peso is quite competitive and might strengthen even more due to probable volatility episodes in the near future” said Secretary of the Treasure (SHCP in Spanish), José Antonio Meade, but he didn’t even mentioned the fuel prices. He also said that the peso recovered after record lows caused by the election of Donald Trump, “at this pace, Mexico is really competitive” said Secretary Meade: “from the conceptual point of view there could be margin for appreciation and the exchange rate is now better lined up with economic fundamentals of the country”. Mexico still waits for the fuel prices to...

Trump’s tax returns revealed

Trump’s tax returns revealed

Mar 15, 2017

  US President Donald Trump paid 38 million dollars in tax on more than 150 million  income in 2005, a leaked partial tax return shows. The two pages of tax return, revealed by US TV network MSNBC, also showed he wrote off $103m in losses. It gave no details on income sources. The White House said publishing the tax return was against the law. Mr. Trump refused to release his tax returns during the election campaign, breaking with a long-held tradition. How was it found? On Tuesday evening, MSNBC announced that it had a copy of one of Mr. Trump’s tax returns, dating from 2005. The details were revealed on a show later that night, anchored by journalist Rachel Maddow. MSNBC said they received the document from financial journalist and Trump biographer David Cay Johnston, who received it in the post from an anonymous...

Kiko Vega launches financial aid program for Baja CAlifornia

Kiko Vega launches financial aid program for Baja CAlifornia

Feb 22, 2017

The main goal is to create 50 thousand new Jobs and attract 2.6 billion dollars of private investment to Baja California as a means to protect the economy of Baja California inhabitants through programs and financial aids adding up to 1.59 billion dollars a year, said Governor Kiko Vega in the launching of the “Crusade for the Family Economy and Economic Growth”. Vega proposed to leave personal interests aside and work in concrete programs, protect employment and investments for Baja California, a strategy which would foster the economic situation for many Baja Californians working all together to create conditions and economic development which may allow personal and social development. Secretary of economic Development, Carlo Bonfante said that the Economic Development Secretary has a financial aid fund made up of federal and state resources which aim to help micro, small and mid-size entrepreneurs which adds up to 695 million pesos, Bonfante also remarked the Gov. intention of helping people who want to start or enhance small business operations in the State. Farming Development Secretary, Manuel Valladolid, announced 47 million pesos of federal and state resources to purchase equipment, production input and infrastructure, 60% in cattle watering fees for cattle raising and milk production for the Tijuana and Rosarito suburban areas and 60% discount on fine payments. Tourism Secretary announced 74.4 million pesos for 9 infrastructure projects such as Medical Tourism District in Mexicali, and other projects involving Tijuana tourist downtown, Urban Image in Tecate, 53 million pesos for tourist promotion of Baja California, and several other support projects with financial aid and training...