Real Estate Transactions and Your Personal Information
In Mexico, all real estate transactions are considered “vulnerable” activities due to their susceptibility to money laundering risks. As a result, you must comply with the country’s Anti-Money Laundering (AML) regulations designed to combat money laundering. As part of this framework, compliance with AML laws involves implementing Know Your Customer (KYC) procedures.
What is KYC?
KYC, or Know Your Customer (or Know Your Client), is a mandatory process for identifying and verifying a client’s identity in real estate transactions in Mexico. KYC requirements must be followed through via customer vetting and stringent checks, regardless of the transaction size.
What personal information is required in a KYC?
Under KYC regulations, customers must provide detailed personal information to verify their identity, including their Social Security Number (SSN in United States) or its equivalent Social Insurance Number (SIN in Canada).
Personal information required on a KYC includes the following:
- Proof of home address (e.g. utility bills, mortgage bills, etc.)
- SSN or SIN
- Date of birth
- Nationality
- Marital Status
- Source of income
- Place of work
- Drivers’ License
- Passport
- Government or state-issued and approved IDs
If purchasing as a corporation, additional information will be required about the corporation and its shareholders.
Who has access to my KYC?
All parties involved in the property transaction require KYC information for both the buyer and the seller. This includes the buyer’s agent, the seller’s agent, the closing attorney, the closing agent, and the Notario handling the transaction. As a result, you may need to complete KYC forms multiple times throughout the process.
