Law Regulating the Activities of Cooperative Savings and Loan Societies

Mexico

(enacted in 2009)

The Law Regulating the Activities of Cooperative Savings and Loan Societies (Ley para Regular las Actividades de las Sociedades Cooperativas de Ahorro y Préstamo) modifies the Mexican regulatory scheme of the Popular Savings and Credit Law (LACP) of 2001. The law provides a separate legal framework for Popular Savings and Loan Societies (SCAPs) in Mexico, regulating their activities in a way intended to recognize their non-profit nature. Under the law, auxiliary supervision will be transferred from Popular Savings and Credit Federations to the Auxiliary Oversight Committee (CSA), an internal organ of the dedicated Protection Fund for SCAPs. The Protection Fund for SCAPs is to be founded by the Ministry of Finance, which acts as a trustee. However, it is to be organized as a private development bank. The savings and credit activities of SCAPs are regulated under this law, while governance and corporate organizational issues are covered by the General Law on Cooperative Societies. The National Banking and Securities Commission (CNBV) still has a mandate to issue prudential regulations for SCAPs.

The law is organized as follows:

  • Title I General Provisions;
  • Title II Cooperative Savings and Loan Societies:
    • Includes provisions on SCAP registration and authorization by the CSA; defines asset levels that determine prudential requirements;
  • Title III Organization, Prudential Regulation, and Accounting Standards for SCAPs Levels I-IV:
    • Includes provisions on accounting and external auditing requirements;
  • Title IV The Protection Fund:
    • Includes provisions on the establishment, organization, functions, and required participation in the Protection Fund;
  • Title V Assignment of Authority:
    • Includes provisions on the ultimate authority of the CNBV over the Protection Funds and SCAPs, and establishes governance and reporting requirements for SCAPs;
  • Title VI Division, Merger, Dissolution and Liquidation, and Bankruptcy Proceedings; and
  • Title VII Sanctions, Criminal Offenses and Notice.

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 General Law on Auxiliary Credit Organizations and Activities, and the Popular Savings and Credit Law, among others.