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Insights and Expertise

dendum to the existing U.S. relationship. If a Mexican com- LATAM
pany is required, foreign investors can own 100 percent of
it. Mexico also has a tax treaty with the United States that Each of the other countries in Latin America has its own
prevents the same income from being taxed twice. payment regulations, but most leave room for a sales rela-
tionship with a legal light touch.
Mexico has specific federal rules governing card acquir- Sanctions and AML
ing. Unlike Canada's Code of Conduct, which focuses
heavily on merchant rights and pricing disclosure, Mexi- Foreign merchants may present irresistible volumes and
can regulation focuses more on card networks. Of particu- willingness to pay fees. Be careful. Some of these mer-
lar importance is the regulated category of Aggregator. chants are fronting for sanctioned individuals (that is,
OFAC-listed persons) or are otherwise laundering funds.
An ISO that contracts with merchants to provide card It is illegal under U.S. law for a U.S. person to assist in
acceptance under an arrangement with an acquirer may breaching U.S. sanctions or money laundering laws even
qualify as an Aggregator and needs to use a Mexican com- if the activity takes place entirely outside of the United
pany. A pure sales or referral ISO, with the acquirer con- States. Despite these considerations, there's nothing stop-
tracting directly with the merchant, is easier to implement. ping you from taking your payment skills on the road in
the Americas.
Mexico does not have a direct equivalent of Canada's Bank
of Canada PSP registration regime. However, an ISO that In publishing The Green Sheet, neither the author nor the publisher are
handles funds, provides merchant acquiring or aggrega- engaged in rendering legal, accounting, or other professional services.
tion, or offers other regulated payment services may come If legal advice or other expert assistance is required, the services of a
within Mexico's payments or fintech law framework. competent professional should be sought. For further information on
this article, please contact Adam Atlas, Attorney at Law email: atlas@
adamatlas.com, Tel. 514-842-0886.

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