General Law on Auxiliary Credit Organizations and Activities of 1985

Mexico

(amended through 2008)

The General Law on Auxiliary Credit Organizations and Activities (Ley General de Organizaciones y Actividades Auxiliares del Crédito) is a specialized law that creates and regulates a handful of auxiliary credit organizations in Mexico. For financial inclusion purposes, the most important credit institutions under this law are the Multiple Purpose Financial Companies (SOFOMES), which has both regulated and unregulated forms. SOFOMES cannot receive deposits, but have been widely adapted for use as credit-only MFIs. SOFOMES are nonetheless subject to some limited oversight by the National Banking and Securities Commission (CNBV) and the National Commission for the Protection and Defense of Financial Services Users (CONDUSEF).

The law is organized as follows:

  • Title I General Provisions and Definitions;
  • Title II Auxiliary Credit Organizations;
  • Title III Accounting, Inspection, and Surveillance;
  • Title IV Powers of the Authorities;
  • Title V Auxiliary Credit Activities, including provisions on the creation of SOFOMES and requirements regarding their loan operations;
  • Title VI Infractions and Criminal Offenses; and
  • Title VII Protection of the Public Interest (superseded by statute).

In addition, the law includes provisions regarding anti-money laundering. Other anti-money laundering provisions can be found in the Law on Credit Institutions, the Popular Savings and Credit Law, and the Law Regulating the Activities of Cooperative Savings and Loan Societies, among others.