New Trust (Fideicomiso) Documentation Requirements

by Carole Sinclair
21 Mar 15
mazmessenger.com

 

In the past few months the Mexican banks have been scurrying to meet the new documentation requirements for Trusts (Fideicomisos). This relates to current clients, as well as new clients acquiring property.

 

In the past, trusts were set up by simply providing passports, a Mexican immigration document (tourist or resident) and general information. For the substitute beneficiaries, it was sufficient to provide nothing more than the person’s name.

For the most part, the trust banks now require the following information related to the beneficiary owner(s) as well as substitute beneficiary(s):

• Full Names
• A clear and legible copy of a valid passport (the two pages that show your picture and signature)
• Copy of Immigration document (if applicable)
• Social Security Number
• Address
• Copy of proof of domicile (a utility bill that is no more than 3 months old and shows your address)
• Telephone number
• E-mail address

There are also a number of forms that may need to be signed such as the KYC (Know Your Client), Privacy Notifications and a Declaration Form stating the source of the funds used to acquire a property (i.e. savings, investments, etc.).

Although this may seem rather intrusive, the requirements were established to meet new legal requirements to prevent the illicit movement of funds, for which banks are highly liable at an international level. On the positive side, having this detailed information prevents complications at the time of a sale. Also, for anyone who has had a trust for many years, it is a good opportunity to review who is listed as a substitute beneficiary on your deed.

Please keep in mind that each bank is different so you should contact the trust department representative of your bank for further information.