SPID – The tool to make and receive USD wire transfers

SPID – La manera de hacer y recibir transferencias en dólares

After a long wait, the Bank of Mexico has decided to allow wire transfers between USD dollars accounts. This is made through the System of Interbank Payments in Dollars, abbreviated SPID for its initials in Spanish.

 

According to the information that Banxico itself gives to the general public, the SPID is born because of an increase in the demand for wire transfers in dollars. This is of great importance within a globalized world, where the companies are always looking to make their processes more time and cost efficient.

 

Requisites to be able to participate in the SPID

 

One of the main advantages of the wire transfers in dollars is the security that they offer. Because of this, there is a list of requisites that the banks as well as the clients have to comply.

 

The Bank of Mexico explains that there are around 100,000 clients with dollars accounts, but they don’t fulfill the requisites needed to make use of the SPID. This, without a doubt, is a problem since one of the main objectives of the system is to speed up the operations between companies.

 

Among the requisites needed to use this tool, is to have Electronic Signature (Firma Electrónica) and provide to the bank certain information that allow the institution to grant access to the SPID.

 

The SPID as a tool to prevent Money Laundering

 

Given that the participants require to comply with strict requisites, the system is an appropriate method of prevention of transactions with resources from illegal source.

 

Banxico takes pride in saying that the standards required by them are superior to those used internationally. Some of the requisites related with the prevention of money laundering are:

 

-          Designate a responsible for the compliance of the regulations in anti-laundering.

-          Classification of risk depending of the activity performed.

-          Integration of files for each client.

-          Automatized systems for the detection of unusual transactions.

 

What is expected from this System in the future?

 

Banxico is really focused in making the SPID the only way possible to make transactions in USD dollars, since it is expected that all clients are integrated into the system.

 

And the institution goes even further, by making it mandatory the registration to this tool for the companies that open dollar accounts.

 

This obligation was expected to begin in February 2017, but, as it usually happens with changes of this magnitude, it was extended until the 31st of May of 2017 so the banks could comply with the required information to start with this new project. Currently, there are 25 banks that offer this service.

 

Without a doubt the SPID is a tool that could reduce the costs and operating times of companies with dollar accounts. But in order to be able to take advantage of this benefit, you need to comply with all the established requirements.

 

If you need help or require more information about how to make the processes of your company more efficient by using the SPID, please do not hesitate to contact us.

 

L.C.P. | Daniel Ramsés Ramírez Cerecero

Terán Rojas & Associates.