The initiative proposes extending the maximum deadline for the entry into force of the CNPCF from April 1, 2027, to January 31, 2030. Nevertheless, it maintains the gradual implementation framework, under which the federal and state jurisdictions could adopt the Code before such date through the corresponding declarations of entry into force.

The initiative also proposes to:

• Align the transitional provisions with the new structure of federal and state judicial administration bodies;
• Require the Judiciary Branches, no later than January 31, 2030, the regulatory, organizational, technological, and operational adjustments necessary for the implementation of the CNPCF;
• Provide that, upon expiration of such deadline, the CNPCF will automatically enter into force throughout the national territory, even if any Judiciary Branch has not completed the necessary adjustments;
• Strengthen coordination among the Judiciary Branches for the implementation of the Code and the development of the National Judicial Information System (Sistema Nacional de Información Jurisdiccional);
• Incorporate provisions regarding budget allocation and fiscal discipline for the implementation of the new procedural framework.

At this time, the proposal remains solely a legislative initiative and does not formally modify the current deadline for the entry into force of the CNPCF. Accordingly, the current deadline for the CNPCF to enter into force remains April 1, 2027. Its potential approval will therefore depend on the applicable legislative process.

David Delgado
Counsel
ddelgado@k-g.com.mx

El cargo INICIATIVA DE REFORMA A LAS DISPOSICIONES TRANSITORIAS DEL CÓDIGO NACIONAL DE PROCEDIMIENTOS CIVILES Y FAMILIARES apareció primero en KAVANAGH | GOROZPE.

These amendments derive from the reform to the LFPIORPI published on July 16, 2025, which expanded the catalog of Vulnerable Activities, modified the definition of Ultimate Beneficial Owner, incorporated the annual audit and mandatory training, among other aspects, as well as from the reform to the Regulations of the LFPIORPI published in March 2026, which specified the powers of the Tax Administration Service (SAT), the logic of transaction accumulation and the regime applicable to Politically Exposed Persons (PEPs). The Resolution constitutes the final piece of that regulatory update and seeks to strengthen the Risk-Based Approach, the identification of the Ultimate Beneficial Owner, the use of technological tools and the professionalization of obligated subjects.

In summary, the most relevant amendments consist of: (i) the migration to a Risk-Based Approach ("RBA") with a documented risk assessment methodology; (ii) the classification of the Risk Level of Clients or Users, with at least semi-annual review, and the creation of the Transactional Profile; (iii) the enhanced obligation to identify the Ultimate Beneficial Owner; (iv) the incorporation of a specific regime for Politically Exposed Persons; (v) the comprehensive update of the Internal Policies Manual; (vi) the implementation of automated mechanisms for permanent transaction monitoring; (vii) the performance of annual compliance audits; and (viii) the establishment of mandatory training programs and personnel selection criteria. The new GR will enter into force on November 30, 2026, with obligations enforceable on a staggered basis in accordance with the calendar detailed below.

I. Analysis

I.1 Purpose of the Reform and New Obligations

The reform aims to establish the minimum measures and procedures that must be observed by those who carry out Vulnerable Activities referred to in Article 17 of the LFPIORPI. It requires obligated subjects to implement compliance programs based on a Risk-Based Approach together with automated monitoring mechanisms.

I.2 Risk-Based Approach (RBA) and Risk Level Classification

Those who carry out Vulnerable Activities must design and implement a documented Risk assessment methodology that considers: (a) acts or transactions, types of clients, countries and geographic areas, and distribution channels; (b) the National Risk Assessment of the Financial Intelligence Unit ("FIU"); and (c) existing Mitigating Controls. It must be applied prior to new products or services, updated at least every 12 months, and available for review by the SAT from March 1, 2027. The classification must be divided into at least three Risk Levels: low, medium, and high, with reassessment at least every six months. A Transactional Profile is introduced to detect deviations in the Client's or User's behavior.

I.3 Client or User Identification

Those who carry out Vulnerable Activities must directly identify and know their Client or User, for which purpose they shall prepare and analyze the internal criteria, measures and procedures required. The obligation to "identify and know" unfolds into two complementary duties: identification (compiling the file with the Client's or User's data and documents at the beginning of the relationship) and customer knowledge (understanding their activity, the origin of their resources and their expected behavior during the Business Relationship). They must compile and maintain a single identification file for each of their Clients or Users, available to the FIU or the SAT.

I.4 Ultimate Beneficial Owner

The new GR create Chapter III Quinquies "On the Ultimate Beneficial Owner" (Articles 23 Quinquies to 23 Quinquies 3), which constitutes one of the most relevant innovations. The definition of Ultimate Beneficial Owner is specified and expanded, reducing the control threshold from 50% to 25% of the capital stock, and a sequential hierarchical methodology for its identification is established: (a) first, whoever directly or indirectly holds 25% or more of the capital stock; (b) if this does not allow identification, whoever has control through other means related to strategy, direction or decision-making; and (c) failing that, the highest-ranking officer.

The obligation to collect information on shareholders, partners, settlors, trust beneficiaries, management bodies and economic dependents is established. For trusts and other legal arrangements, the GR require ascending the chain of ownership to the natural person who exercises ultimate control. The procedure followed—not only the result—must be documented, records must be maintained and kept updated throughout the duration of the business relationship.

I.5 Ter Politically Exposed Persons (PEPs)

The new GR incorporate a specific chapter on Politically Exposed Persons. A PEPs is considered to be a natural person who performs or has performed relevant public functions, in Mexico or abroad. The following are assimilated to this category: spouse, common-law partner, blood or affinity relatives up to the second degree, and partners with patrimonial ties. A domestic PEP retains that character during the year following separation from office. To verify this status, the possibility of consulting the FIU's Consulta PEP 2.0 application is introduced, available from August 30, 2027. When a Client or User is a PEP and has a high Risk Level, enhanced due diligence measures must be applied, including approval by a senior officer before entering into the act or transaction.

I.6 Internal Policies Manual

Those who carry out Vulnerable Activities must have an Internal Policies Manual that integrates the risk methodology and contains, at a minimum: Client identification and knowledge criteria; Risk classification and proportional due diligence mechanisms; procedures for PEPs and Ultimate Beneficial Owner; detection of deviations from the Transactional Profile; procedures for Notices and Reports; functions of the Compliance Officer; training programs; internal control, supervision, audit and confidentiality mechanisms; and procedures for updating the Manual itself. The updated Manual must be available from March 1, 2027.

I.7 Automated Mechanisms

Those who carry out Vulnerable Activities must have automated mechanisms—which may be implemented through spreadsheets, databases or other equivalent means, not necessarily specialized software—that allow them to: maintain files, group transactions by client, detect deviations from the Transactional Profile, execute the risk classification model, generate alerts for high-risk clients and monitor the use of cash and precious metals. The historical record of the Risk Level must be maintained for no less than ten years. Implementation deadline: June 1, 2027.

I.8 Audits

Those who carry out Vulnerable Activities must undergo an annual audit covering from January 1 to December 31 of each year, with the audit report deliverable no later than the last business day of March following the audited year. If the risk is low or medium, an internal audit is sufficient; if high, it must be performed by an external independent auditor with a professional degree in related fields, at least three years of experience in anti-money laundering matters and a current certification from the FIU. The evaluation is classified into five levels (Compliant, Mostly Compliant, Partially Compliant, Non-Compliant and Not Applicable). The first period subject to audit will be fiscal year 2028, with the audit report due no later than March 2029.

I.9 Training and Personnel Selection

The new GR establish the mandatory requirement of having an annual training program directed at members of the board of directors, the sole administrator, officers, executives, the Compliance Officer and employees who serve the public, identify clients, submit Notices or perform audits. Courses must be provided at least once a year, be consistent with the risk methodology, and be taught by persons with at least five years of experience in the field. Documentary evidence must be maintained for a minimum period of ten years. Likewise, guidelines for personnel selection are established: a signed declaration must be obtained regarding prior experience in obligated sectors and regarding the absence of convictions for property crimes or disqualifications. These procedures shall be applicable to new hires from March 1, 2027.

I.10 Electronic Notifications

Consultation of the SAT Portal, previously biweekly, becomes mandatory at least once every business day. Electronic notification is deemed served on the fourth business day following its delivery, even if the obligated subject has not opened it. In practice, it is advisable to designate a responsible person and an alternate for the daily consultation and maintain an access log, as deadlines will run regardless of whether the Portal is reviewed.

II. Compliance Calendar

A staggered compliance scheme is established according to the following dates:

• November 30, 2026: General entry into force of the new GR (First Transitory Article).

• January 1, 2027: The first annual period of mandatory training begins (Seventh Transitory Article). Documentary evidence must be maintained for a minimum of ten years.

• March 1, 2027: Enforceable: the RBA methodology, Risk Level classification, Transactional Profile, Ultimate Beneficial Owner identification, updated Internal Policies Manual and personnel selection procedures (Second, Third, Fourth and Sixth Transitory Articles).

• May 30, 2027: Deadline to update information under Article 10 Bis for habitual virtual asset exchange services (Twelfth Transitory Article).

• June 1, 2027: Deadline for automated mechanisms to be implemented (Ninth Transitory Article).

• August 30, 2027 (estimated): Availability of the FIU’s Consulta PEP 2.0 application.

• January 1, 2028: The first period subject to the annual compliance audit begins (Eighth Transitory Article). Audit report due no later than March 2029.

III.  III. Implications for Companies

The provisions of the Resolution are mandatory for all natural or legal persons who carry out Vulnerable Activities. The obligated subject that today complies only with the documentary standard will face, in 2027 and 2028, traceability, technology and evidentiary requirements that cannot be improvised. The March and June 2027 deadlines leave less than one year to: (i) redesign the RBA methodology and the Manual; (ii) implement the automated mechanisms; and (iii) determine whether the 2028 audit will be covered with internal personnel or a FIU-certified external auditor.

IV. Next Steps and Recommendations

In light of the staggered entry into force of these obligations, we recommend adopting the following actions:

• Begin the collection and analysis of transactions from the last 12 months (from March 2026) as the basis for the Risk assessment.
• Design and implement the Risk-Based Approach methodology and document it in the Internal Policies Manual.
• Prepare or update the Internal Policies Manual with all minimum required elements, including the designation of the Compliance Officer.
• Classify Clients or Users by Risk Level (low, medium, high) with semi-annual reassessment.
• Adopt automated monitoring mechanisms operational no later than June 1, 2027.
• Schedule annual AML/CFT training (first period: January 1, 2027).
• Plan for the annual audit; if the Risk is high, it must be external, independent and FIU-certified.
• Implement procedures to identify and document the Ultimate Beneficial Owner pursuant to the hierarchical methodology.
• Establish policies for PEP identification and monitoring with enhanced due diligence for high risk.
• Conduct an analysis to assess the human, technological and budgetary resources necessary for implementation.

If you have any questions about the scope or implementation of this note, please do not hesitate to contact us.

Bernardo Mendoza: bmendoza@k-g.com.mx

Dorothy Lerch: dlerch@k-g.com.mx

El cargo REFORMA A LAS REGLAS DE CARÁCTER GENERAL DE LA LFPIORPI (ACUERDO 115/2026) apareció primero en KAVANAGH | GOROZPE.

The Registry does not constitute a permit; it merely enables persons who currently carry out the dispensing of petroleum products for self-consumption to continue operating while they apply for and obtain the definitive permit from the CNE.

Important note: The Program enters into force on the business day following its publication in the DOF (i.e., August 12, 2026). The CNE will make the electronic form available on its institutional portal (https://www.gob.mx/cne) on the day following the entry into force.

1. Background

This Program forms part of the institutional reform of the Mexican energy sector. The principal regulatory background is as follows:

• Article 28, ninth paragraph, of the Political Constitution of the United Mexican States, which grants the Federal Executive, through the agency responsible for energy policy, powers of technical and economic regulation, as well as sanctioning authority in energy and hydrocarbons matters.
• On March 18, 2025, the decree implementing the constitutional reform on organic simplification of December 20, 2024 was published in the DOF, enacting the Law of the National Energy Commission, extinguishing the Energy Regulatory Commission (“CRE”) and creating the CNE. References to the former CRE are understood to be made to the Ministry of Energy (“SENER”) or to the CNE.
• On the same date, the Hydrocarbons Sector Law (“LSH”) was published; its Article 3, section IV, has as its purpose the regulation of, among other activities, the dispensing of petroleum products for self-consumption. Article 76, section II, subsection b) of the LSH provides that such activity requires a permit granted by the CNE.
• On October 3, 2025, the Regulations to the Hydrocarbons Sector Law (“RLSH”) were published in the DOF. Its Article 3, section XVI, defines “dispensing for self-consumption” as the activity of receiving, storing and supplying petroleum products used exclusively to supply motor vehicles owned or held by the permit holder, directly related to its economic activity or corporate purpose, without the possibility of selling to private parties. Article 140 of the RLSH requires a CNE permit for this activity.
• A significant universe of facilities carried out dispensing for self-consumption prior to the LSH. These facilities serve legitimate internal-consumption needs in strategic sectors such as freight and passenger transportation, agriculture and mining. An abrupt interruption would compromise critical logistics chains, and therefore the CNE opted for a transitional mechanism to ensure operational continuity, supply, traceability and oversight.

2. Key Aspects of the Program

Purpose and scope

The Program establishes a temporary and exceptional Registry for persons (individuals, legal entities, State public enterprises or parastatal entities) that currently carry out dispensing for self-consumption and do not hold a permit. It is mandatory throughout the national territory. Holders of Distribution or Marketing permits for petroleum products are not subject to registration, but must observe the Program when operating with Interested Parties.

Scope of the activity

Dispensing for self-consumption comprises receiving, storing and supplying petroleum products used exclusively for motor vehicles (including locomotives and maritime vehicles) owned or held by the Interested Party, related to its economic activity or corporate purpose. It does not involve sale; petroleum products may not be assigned, transferred or conveyed to third parties, nor may invoices be issued for their sale. Those carrying out a different activity must obtain a permit for Retail Sale to the Public of Petroleum Products or LP Gas.

Registration period

From the entry into force of the Program until December 31, 2026. Once the period ends, only those who have obtained the Registration Certificate may carry out the activity. Registration must be completed for each facility through the CNE’s institutional portal.

Nature of the Registry

The Registration Certificate does not constitute a permit, authorization or favorable resolution. It only temporarily enables the continuation of the activity until the definitive regulation is issued and permits are applied for. The Interested Party must obtain a favorable resolution on the permit within the period established by the future regulation.

Registration requirements (Article 10)

The electronic form requires, among others:

• Type of person, name or corporate name, RFC (Federal Taxpayers’ Registry) and a current Tax Status Certificate.
• Description of the economic sector (under the North American Industry Classification System, “SCIAN”) and the predominant activity.
• Articles of Incorporation (legal entity) or official identification (individual).
• Name and identification of the legal representative and notarized power of attorney.
• Address of the facility and a georeferenced plan of the property polygon in .kml or .kmz format (WGS84 system).
• Description of tanks (type, nominal volumetric capacity in liters, petroleum products stored) and dispensing systems.
• List of motor vehicles supplied, with serial number/VIN, type and license plate (Excel format, Annex 2).
• Total annual volume of petroleum products used for dispensing for self-consumption during 2024, 2025 and 2026, broken down monthly by product and in liters.
• Details and the last three invoices from the Marketers/Distributors evidencing the lawful origin of the petroleum product.
• Plan or technical report describing the facilities, their age, and photographic evidence.
• Advanced Electronic Signature (e.firma).

Representations under oath

The applicant must represent, among other things: that the information is truthful; that it undertakes to comply with the regulatory framework; that it is not included in the list under Article 69-B of the Federal Tax Code (taxpayers with presumably non-existent transactions); that the facility is not subject to a ministerial or judicial investigation for any offense nor under seizure; and that the petroleum products are of lawful origin.

Automatic issuance of the Certificate

The CNE issues the Registration Certificate automatically, with a folio in the format CNE/DA/[PL or GLP]/[6 digits]/[year]. The Certificate is valid from its issuance until the permit is obtained or the period established in the regulation ends.

Obligations of Distributors and Marketers

Holders of Distribution and Marketing permits must only conduct commercial operations with persons that hold a Registration Certificate or a valid dispensing-for-self-consumption permit. The CNE will publish and keep updated the list of registered persons so that Distributors and Marketers may verify validity before supplying.

Grounds for cancellation

The CNE may cancel the registration when:

• Petroleum products are sold, assigned, transferred or conveyed to third parties, or invoices are issued to third parties.
• Lawful origin is not evidenced or the facility is under seizure by a ministerial/judicial authority.
• Health, industrial safety, operational safety or the environment is placed at risk.
• False or incomplete information or documentation, or documentation that does not correspond to the facility, is submitted.
• The required information is not submitted or the CNE’s visit or inspection is prevented.

Definitive regulation

Once the registration period ends (December 31, 2026), the CNE has a maximum term of up to 12 calendar months to issue the regulation on the granting of dispensing-for-self-consumption permits. The CNE may establish priority processing for those who register in the Registry.

3. Implications for companies

The Program has direct implications for companies that operate vehicle fleets and have internal supply facilities, particularly in the energy, freight and passenger transportation, agriculture, mining, logistics and construction sectors:

• Registration obligation: Companies operating self-consumption stations or facilities without a permit must register each facility before December 31, 2026 in order to continue operating lawfully.
• Temporary nature: The Registry does not grant rights or a definitive permit. After the registration stage, it will be necessary to obtain the permit under the regulation issued by the CNE.
• Risk of supply disruption: After the Registry closes (December 31, 2026), Distributors and Marketers will only be able to sell petroleum products to those holding a Registration Certificate (and subsequently a permit). Without registration, companies will not be able to lawfully acquire fuel for their self-consumption operations.
• Tax and criminal compliance: The representations under oath include not being on the list under Article 69-B of the Federal Tax Code, evidencing the lawful origin of the petroleum products, and the absence of investigations or seizures. There is exposure to cancellation and sanctions for false information or non-compliance.
• Traceability and volumetric controls: Monthly disaggregated volume reporting for 2024, 2025 and 2026 is required. Companies must have robust volumetric controls and complete technical documentation.
• Prohibition on supply to third parties: Selling, assigning or transferring petroleum products to third parties is strictly prohibited. Companies should review intra-group arrangements, since supply to affiliates or third-party vehicles may not qualify as self-consumption and may require a Retail Sale to the Public permit.
• Contractual impact: It is necessary to review and adjust purchase and supply contracts with Marketers and Distributors, who must verify the validity of the Registry before supplying.
• Corporate and technical documentation: It is necessary to organize documentation (articles of incorporation, powers of attorney, e.firma) and technical information (georeferenced .kml/.kmz WGS84 plans, technical reports, inventory of tanks and vehicles).

4. Recommended actions

In light of the entry into force of the Program, the following actions should be considered immediately:

1. Identify all facilities that carry out dispensing for self-consumption and determine which lack a permit.
2. Confirm whether the operation qualifies as “dispensing for self-consumption” (exclusive use in owned or held vehicles, related to the economic activity, without sale or invoicing to third parties). Otherwise, assess obtaining a Retail Sale to the Public permit or other applicable permit.
3. Gather and prepare the documentation and information under Article 10 for each facility: RFC and Tax Status Certificate, articles of incorporation or identification, notarized power of attorney, e.firma, georeferenced .kml/.kmz plans (WGS84), inventory of tanks and dispensing systems, list of vehicles with VIN/license plate, monthly 2024-2026 volumes, supplier invoices, technical report and photographic evidence.
4. Verify compliance with the representations under oath (Article 69-B of the Federal Tax Code, lawful origin, absence of investigations or seizures) and resolve contingencies before registering.
5. Obtain or validate the e.firma of the person or legal representative.
6. Register each facility on the CNE’s portal within the established period (no later than December 31, 2026) and retain the Registration Certificate.
7. Review and, where appropriate, renegotiate contracts with Marketers and Distributors to ensure continuity of supply and compliance with Article 19 of the Agreement.
8. Implement or strengthen volumetric controls, traceability systems and industrial, operational and environmental safety standards.
9. Monitor the issuance of the definitive regulation (up to 12 months after the Registry closes) and prepare the application for the definitive permit, taking advantage of the possible priority processing for those who have registered.
10. Facilitate CNE visits and inspections to avoid grounds for cancellation of the Registration Certificate.

5. Next steps and deadlines

The critical dates and deadlines to observe are summarized below:

You can consult the full Agreement as published in the DOF at the following link.

Should you have any questions regarding the scope or implementation of this note, please contact us.

Legal Notice: This analysis is for informational purposes only and does not constitute legal advice. Its content should not be construed as specific legal counsel.

Bernardo Mendoza: bmendoza@k-g.com.mx

Dorothy Lerch: dlerch@k-g.com.mx

Demetrio Fernández: dfernandez@k-g.com.mx

El cargo PROGRAMA DE REGISTRO PARA DESPACHO DE AUTOCONSUMO DE PETROLÍFEROS apareció primero en KAVANAGH | GOROZPE.

Important Note: The Regulation will enter into force on August 5, 2026, the day following its publication in the DOF, pursuant to its first transitory article. As of that date, the Regulation published on May 27, 2011 is abrogated, and any administrative provisions that contradict the new regulation are repealed, except as provided in its transitory regime.

1. Background

Prior Regulatory Context for National Waters

The Mexican national waters regime derives from Article 27 of the Political Constitution of the United Mexican States, under which waters located within national territory are the property of the Nation, and the State may transfer dominion to private parties without relinquishing original ownership. Implementing this principle, the National Waters Law (“LAN”) regulates the exploitation, use, or utilization of national waters through concession and allocation titles, subject to grounds for termination provided, among others, in Articles 20 and 29 BIS 3 thereof.

Within this framework, total or partial lapse may be declared when the holder ceases to exploit, use, or utilize national waters for two consecutive years. The non-lapse guarantee fee operates as a legal option to prevent the authority from declaring such lapse with respect to unused volumes, without substituting the need to timely demonstrate compliance with applicable procedural and payment requirements.

From the Preliminary Draft to Publication in the DOF

The immediate regulatory precedent is the Regulation published in the DOF on May 27, 2011, which established the guidelines for the application of the non-lapse guarantee fee and assigned to SHCP the determination of the corresponding government fee under the terms of the Federal Revenue Law. The new Regulation, published in the DOF on August 4, 2026, updates that procedural framework and, pursuant to its transitory regime, abrogates the 2011 Regulation and repeals any administrative provisions that contradict it, except as expressly provided.

The Regulation was initially disseminated as a preliminary draft on the Comprehensive Regulatory Governance Platform (the “Platform”) on June 16, 2026, within the regulatory improvement process, prior to its definitive publication in the DOF. The amendment process is also linked to the fiscal authorization contained in Official Letter No. 349-B-143, dated May 13, 2026, through which SHCP authorized CONAGUA, under the figure of government fees, 40 rates per cubic meter necessary to determine and pay the non-lapse guarantee fee during fiscal year 2026. SHCP justified the fee as the social opportunity cost caused by ceasing to use conceded or allocated national waters for two consecutive years, with the objective of rationalizing conceded and allocated volumes through better allocation of titles.

2. Key Aspects of the Regulation

Purpose and Effect of Payment

The Regulation’s purpose is to establish the procedure for the determination and payment of the non-lapse guarantee fee and its extensions, pursuant to Article 29 BIS 3, section VI, third paragraph, numeral 3 of the LAN. The effect of payment is to prevent the application of partial or total lapse of the conceded or allocated water volume that has not been exploited, used, or utilized.

Relevant Definitions

Article 2 of the Regulation establishes the following key definitions:

• Authorized rate per m³: the rate set by SHCP for each cubic meter of water, under the terms of the Federal Revenue Law for the corresponding fiscal year.

• Two consecutive years: the last eight quarters in which the conceded or allocated volume has been partially or totally unexploited, unused, or unutilized.

• Non-lapse guarantee fee: the amount calculated pursuant to Article 4 that the concessionaire or allottee opts to pay so that its volume does not lapse totally or partially.

• Covered volume: volume not subject to lapse because payment has been made.

• Uncovered volume: volume subject to lapse because it has not been used for two consecutive years and the fee has not been paid, or because the extension request was denied.

• Non-lapse extension: CONAGUA’s authorization to extend up to two occasions the option to pay the fee with respect to unused volumes.

Computation of the Two-Year Period

The period is computed by concluded quarters: January–March, April–June, July–September, and October–December (Article 3).

Formula for Determination of the Fee (Article 4)

CGNC_t = CA_t × VASEUA_t

VASEUA_t = Minimum [(VAACA_t-1 – VAEUA_t-1), (VAACA_t-2 – VAEUA_t-2)]

Where:

CGNC = Non-lapse guarantee fee

CA_t = Authorized rate per m³ in effect at the time of payment

VASEUA_t = Minimum volume of water unexploited, unused, or unutilized in the last eight quarters

VAACA = Annual conceded or allocated water volume

VAEUA = Water volume exploited, used, or utilized

_t = Eight-quarter period for which the non-lapse guarantee fee is calculated.

expiration

_t-1= Period comprising the first four quarters of period t.

_t-2= Period comprising the last four quarters of period t.

Volumes are expressed in cubic meters (m³).

Notice and Payment Obligations (Article 5)

• Prior notice: file a notice with CONAGUA at least 15 business days before the end of the eighth quarter, through the corresponding platform or electronic system.

• Payment deadline: within 45 business days following the conclusion of the two-consecutive-year period.

• Payment methods: offices authorized by SHCP or CONAGUA’s electronic means (Sistema Declar@gua, internet portals, or authorized bank windows).

• Information required in payment: start and end date of the period, concession or allocation title (and annex, if applicable), and unexploited/unused/unutilized volumes used as the basis for calculation.

• Proof of payment: within 15 business days following payment, submit proof to CONAGUA for validation and application of the lapse interruption.

Extension Regime (Article 6)

• Application: at least 15 business days before the end of the eighth quarter, accompanied by justification of the reasons for non-use, reasons for retaining the volume in relation to the purpose of the concession/allocation, and supporting documentation.

• Resolution: CONAGUA determines admissibility within 45 business days thereafter.

• Payment upon authorization: 15 business days from notification to pay and submit proof.

• Limit: up to two extension occasions (consecutive or not) during the term of the title.

• If extensions are not consecutive, the holder is not authorized to leave volumes unused for two-year periods in the interval; other grounds for lapse interruption under Article 29 BIS 3, section VI, LAN, may be triggered.

Consequences of Non-Compliance

CONAGUA will apply the lapse provisions set forth in the LAN and its Regulation with respect to uncovered volumes. Additionally, CONAGUA may request clarifications within 30 business days following the expiration of the payment deadline, granting the holder a period of no more than 15 business days to respond to the request.

Relevant Transitory Provisions

• Entry into force: August 5, 2026, the day following its publication in the DOF (first transitory article).

• Abrogation of the 2011 Regulation and repeal of conflicting provisions (except the fifth transitory article of the abrogated instrument).

• Pending proceedings: those initiated before entry into force shall be resolved under the provisions in effect at the time of filing.

• Initial computation: the first occasion and the two extensions shall be computed for each title from the first complete two-consecutive-year period without use following entry into force (August 5, 2026).

• Special transitory provision: for titles with periods shorter than two years at the time of entry into force that conclude thereafter, the 2011 Regulation shall apply on a one-time basis; such payment shall not count as the first occasion or an extension, but if not made, the title may not benefit from the new regime.

3. Fees Authorized for Fiscal Year 2026

Through SHCP Official Letter No. 349-B-143, published in the DOF on July 14, 2026, 40 government fees were authorized. The fees vary according to the type of use, the source (surface or groundwater), and the water availability zone defined in the Federal Duties Law. Below is a summary of the main fees (pesos per m³):

Note: Water availability zones are defined pursuant to the Federal Duties Law. Fees for hydroelectric generation are uniform across all zones and sources.

4. Practical Implications for Clients in the Energy and Natural Resources Sectors

El Reglamento tiene relevancia directa para titulares de concesiones o asignaciones de aguas nacionales que, por diversas razones operativas, no estén aprovechando la totalidad de sus volúmenes autorizados. Al encontrarse ya en vigor, los periodos de dos años consecutivos comenzarán a computarse conforme a su régimen transitorio, por lo que resulta prioritario evaluar la exposición de cada título. Entre los escenarios más frecuentes se encuentran:

• Scheduled or unscheduled operational shutdowns (major maintenance, force majeure).

• Delays in obtaining permits, environmental authorizations, or interconnections.

• Gradual project expansion or incomplete water infrastructure.

• Projects in the development stage with concessions already granted (renewable energy, thermoelectric, mining, oil and gas, hydrogen, storage).

• Contracted capacity exceeding current demand (cooling systems, auxiliary industrial services).

Sector-Specific Considerations

Hydroelectric generation: The specific fee is very low ($0.0087/m³, uniform); however, the main risk is not the economic cost but rather the loss of the conceded volume if the fee is not paid or non-use is not adequately justified.

Thermoelectric and industrial projects: General fees (up to $34.54/m³ in Zone 1 groundwater) may represent a significant cost. The cost-benefit analysis between paying the fee and retaining the strategic volume is critical.

Mining and beneficiation, oil and gas: Projects with multiple titles and diverse sources require granular monitoring by title, source, and annual volume, not merely by plant or project.

Agroindustry and food: The relationship between conceded volumes and actual consumption by season should be reviewed, assessing whether underutilization is seasonal or structural.

5. Recommended Actions

In light of the entry into force of the Regulation, holders of national water concessions and allocations are advised to adopt the following measures:

1. Comprehensive title inventory: Update the registry of concessions and allocations, including annexes, sources (surface/groundwater), water availability zones, annual authorized volumes, and specific uses.

2. Utilization assessment: Review the volumes effectively exploited, used, or utilized during the last eight quarters for each title, and calculate the minimum unused volumes pursuant to the formula in Article 4 of the Regulation.

3. Economic exposure estimate: Apply the fees authorized by SHCP to unused volumes and budget the payment when retaining the volumes is strategically appropriate.

4. Compliance calendar: Design an alert system with critical dates: (a) 15 business days before the end of the eighth quarter for the notice; (b) 45 business days following the close of the period for payment; and (c) 15 business days to submit proof of payment.

5. Extension support preparation: When seeking an extension, gather documentation evidencing the causes of non-use and the reasons for retaining the volume.

6. Internal coordination: Align the legal, environmental, operations, finance, and projects areas; designate a responsible person per title for compliance with the Regulation.

Should you have any questions regarding the scope or implementation of this note, please contact us.

Legal Disclaimer: This analysis is based on the text of the Decree issuing the REGULATION FOR THE DETERMINATION AND PAYMENT OF THE NON-LAPSE GUARANTEE FEE FOR NATIONAL WATER RIGHTS, published in the DOF on August 4, 2026, and on SHCP Official Letter No. 349-B-143. This document is for informational purposes only and does not constitute legal advice.

Bernardo Mendoza: bmendoza@k-g.com.mx

Dorothy Lerch: dlerch@k-g.com.mx

Demetrio Fernández: dfernandez@k-g.com.mx

El cargo Reglamento para la Determinación y Pago de la Cuota de Garantía de No Caducidad de Derechos de Aguas Nacionales apareció primero en KAVANAGH | GOROZPE.

Criterion 43/ISR/PI arises from the SAT’s identification of multiple payment schemes made through civil associations or other forms of partnership or association to workers, partners, or shareholders for work incentives, bonuses, commissions, complementary compensation for inventions, other labor compensation, or any other similar concept related to compliance with Official Mexican Standard NOM-035-STPS-2018 (the "NOM-035"). These payments are not treated by the paying companies as salaries and wages, income assimilated to salaries, or dividends and, therefore, are not considered subject to income tax ("ISR").

According to the criterion, these amounts do not qualify as tax-exempt income for workers. Therefore, they must be treated as wages, salaries, salary-equivalent income, or dividends, as applicable, with the corresponding withholding and remittance of the applicable ISR. Pursuant to Article 93 of the Income Tax Law ("LISR"), only the income expressly identified therein qualifies as exempt.

The criterion provides that payments made by employers to civil associations or other types of entities for subsequent delivery to their employees, classified as “administration” or “provision of related services,” are neither deductible for income tax purposes nor creditable for value-added tax purposes, since they do not qualify as strictly indispensable expenses.

In this regard, the criterion identifies the following as improper tax practices:

• Making payments to workers, partners, or shareholders through associations or other entities for work incentives, compensation for compliance with NOM-035, or any other similar concept, and granting them the tax treatment of exempt income when they in fact correspond to salaries and wages, income assimilated to salaries, or dividends.
• Failing to withhold and remit the ISR applicable to these amounts.
• Beneficiaries not treating the amounts received as accruable income for ISR purposes.
• Deducting payments made to associations, companies, or intermediaries involved in these schemes.
• Crediting the VAT transferred in connection with these payments.

Our team of experts is ready to support you with any questions related to this criterion:

Paul Kavanagh: paul@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx

El cargo NUEVO CRITERIO DEL SAT: PRÁCTICA FISCAL INDEBIDA EN PAGOS LIGADOS A LA NOM-035 apareció primero en KAVANAGH | GOROZPE.

Unlike previous amendments, the Bill does not merely modify specific provisions of the current legislation. Rather, it proposes a comprehensive restructuring of Mexico’s federal environmental legal framework through the incorporation of new environmental principles, environmental management and assessment instruments, environmental enforcement mechanisms, and a strengthened inspection and sanctions regime.

If enacted in its current form, the Bill could have significant implications for companies whose projects or operations are subject to federal environmental authorizations, particularly in sectors such as infrastructure, energy, mining, manufacturing, transportation, real estate and industrial development.

I. Analysis

I.1     New Environmental Principles and Instruments

The Bill significantly expands the principles that will guide the actions of environmental authorities and the interpretation of environmental legislation.

Among others, it expressly incorporates the principles of Precaution, Environmental Justice, Best Interests of the Environment, Maximum Disclosure and Circular Economy, which may influence project assessments, permitting decisions and the resolution of administrative proceedings.

The Bill also introduces legal concepts that are not currently developed to the same extent under the existing LGEEPA, including environmental compensation, economic valuation of environmental damage, commutation of sanctions, preventive measures and Strategic Environmental Assessment.

Finally, the Bill transforms the National Commission for the Knowledge and Use of Biodiversity (“CONABIO”), which currently operates as an inter-ministerial commission, into a decentralized public entity with its own legal personality and assets.

II.2    Strategic Environmental Assessment

The Bill introduces Strategic Environmental Assessment as a new environmental planning and management tool intended to identify and assess, from the earliest planning stages, significant, cumulative, synergistic and residual environmental impacts associated with certain national infrastructure plans, programs or strategic projects promoted by public entities.

Its purpose is to incorporate prevention, mitigation, compensation and, where appropriate, environmental restoration measures. The assessment must be submitted to SEMARNAT by the governmental agency, public entity or state-owned enterprise responsible for the relevant plan, program or project during the initial stages of its formulation or development.

SEMARNAT may, although it is not required to do so, request the opinion of other governmental agencies, academic institutions, civil society organizations, professional associations or expert groups. Only opinions issued by governmental agencies or public entities will be binding with respect to the environmental measures to be incorporated.

II.3    Relevant Changes to the Environmental Impact Assessment Regime

The Bill amends the environmental impact assessment regime by expanding the minimum content required for Environmental Impact Statements (“MIAs”) and strengthening the prevention, mitigation and environmental compensation measures that must be proposed for projects subject to authorization.

Among the principal changes are the express incorporation of direct and indirect environmental compensation measures, additional requirements for the preparation of MIAs, and enhanced public participation and access-to-information mechanisms within environmental assessment procedures.

The Bill would also allow applicants to request that entire environmental files remain confidential based on industrial property rights or commercial confidentiality. Unlike the current regime, which protects specific information, this provision could reduce transparency and limit public scrutiny of projects with potential environmental impacts.

II.4    Regularization of Projects or Activities

The Bill introduces a mechanism to regularize projects or activities that have commenced, or have even been completed, without obtaining the required environmental impact authorization. In such cases, the project sponsor must submit an environmental damage assessment including compensation and restoration measures, as well as implementation and compliance mechanisms.

The filing of such request does not limit or suspend the environmental authority’s inspection, investigation or enforcement powers.

II.5    Environmental Notice

The Bill introduces the Environmental Notice mechanism for certain projects or activities that, due to their location, size, characteristics or scope, do not generate significant environmental impacts or ecological imbalance and therefore are not subject to the environmental impact assessment process.

The mechanism is also extended to certain environmental restoration projects and activities carried out by authorities, private parties or organizations, which will be subject to specific monitoring and reporting obligations.

II.6    Highly Hazardous Activities

The Bill introduces a new mechanism for determining highly hazardous activities, requiring consideration of the hazardous nature of the substances or materials involved, the risks associated with their handling, and their potential impacts on the environment, ecosystems and human health.

II.7 Elimination of Affirmative Administrative Silence

The Bill eliminates affirmative administrative silence in environmental matters, except where expressly provided otherwise. It also allows authorities to dismiss incomplete applications, strengthens the use of electronic means, and establishes consequences for the submission of false or inaccurate information.

Additionally, certain resolution periods are reduced and authorized projects must commence within a maximum period of five years.

II.8. Strengthening of Investigation and Enforcement Procedures

The Bill creates an Administrative Investigation Procedure separate from the Infringement Procedure.

It expands the catalogue of administrative sanctions

• To include annotation of resolutions in the Public Property Registry,
• Cancellation of environmental certifications and seals
• Demolition of works or facilities where appropriate
• Formal administrative warnings

The Bill also significantly increases the maximum administrative fines applicable to environmental violations, from a maximum equivalent to 50,000 minimum-wage units under the current LGEEPA to 7.5 million UMA units.

While the current LGEEPA allows fines to be replaced through environmental investments, the Bill establishes specific procedures for the modification and commutation of fines.

II.9. Investigation of Environmental Violations

The Bill incorporates specific procedures for investigating environmental violations and introduces mechanisms aimed at preventing, correcting and remedying environmental harm, including voluntary acknowledgment of facts, alternative dispute resolution mechanisms and procedures for determining environmental damage.

II.10. Environmental Offenders Registry

The Bill creates an Environmental Offenders Registry in which individuals and legal entities sanctioned for environmental violations may be registered. Registration could have reputational consequences and may be considered by authorities in future authorization, supervision or regulatory-benefit procedures.

The newly renamed Federal Environmental Justice Prosecutor’s Office will have up to two years to implement the Registry.

II.11. Protected Natural Areas, Biodiversity and Environmental Restoration

The Bill strengthens biodiversity conservation through new environmental protection instruments. It expressly recognizes biological corridors, introduces new conservation categories, strengthens environmental restoration programs, and expands the protection of genetic resources, biocultural heritage and pollinators.

It also institutionalizes the National Biodiversity Strategy and State Biodiversity Strategies as environmental policy instruments.

II.12. Strengthening of Self-Regulation Mechanisms

The Bill expands environmental self-regulation programs through voluntary environmental audits and authorizes environmental authorities to issue compliance certificates, environmental benefit certificates, recognitions, distinctions and environmental quality seals.

II.13. Change of Land Use in Forest Areas

The Bill provides that authorizations for changes of land use in forest areas relating to national infrastructure projects may be granted without the environmental authority making any determination regarding ownership or possession of the affected land, potentially expediting approvals for strategic projects.

II. Transitional Regime

Administrative proceedings, authorizations, permits, licenses and other procedures initiated prior to the entry into force of the new law will continue to be governed by the legislation in effect when they commenced, unless the applicant elects to be governed by the new regime where applicable.

It will be important to monitor the issuance of secondary legislation necessary for implementation of the new law.

III. III. Implications for Companies

Although the Bill must still be discussed and approved by Congress, it reflects a clear trend toward strengthening environmental regulatory, supervisory and enforcement powers.

Companies should assess the impact of these changes on environmental permitting, regulatory compliance, environmental risk management, and inspection and enforcement proceedings.

If you have any questions about the scope or implementation of this note, please do not hesitate to contact us.

Bernardo Mendoza
Partner
bmendoza@k-g.com.mx

Dorothy Lerch
Counsel
dlerch@k-g.com.mx

Karla P. de la Torre
Associate
kdelatorre@k-g.com.mx

Gerardo H. Estrada
Attorney
gestrada@k-g.com.mx

El cargo INICIATIVA: NUEVA LEY GENERAL DEL EQUILIBRIO ECOLÓGICO Y LA PROTECCIÓN AL AMBIENTE apareció primero en KAVANAGH | GOROZPE.

• Given the effects of the EO, major know-your-customer and anti-money laundering (“KYC/AML”) overhauls are foreseen, so banks should prepare for stricter customer due diligence rules targeting undocumented account holders.

• The U.S. Department of the Treasury (“Treasury”) will issue by July 18, 2026, a formal Advisory listing specific red flags and typologies for payroll fraud, off-the-books wages, and cross-border illicit transfers.

• The Bank Secrecy Act (“BSA”) regulations will be strengthened under the EO by: (i) August 17, 2026, authorizing banks to collect immigration status information when risk indicators warrant it, and (ii) November 15, 2026, the Treasury and the appropriate federal functional financial regulators shall consider changes to strengthen risk-based customer identification program requirements, taking into account the risks foreign consular identification cards pose to the integrity of the U.S. financial system.

• The Consumer Financial Protection Bureau (“CFPB”) shall consider by July 18, 2026, whether deportation risk and loss of wages qualify as ability-to-repay factors regarding its regulation on the eligibility of individuals to obtain consumer credit transactions secured by dwellings.

• The use of an individual taxpayer identification number (“ITIN”) by non-US persons, for identification purposes to obtain credit products or depository accounts, may be flagged as an enhanced due diligence trigger.

• By July 18, 2026, all four federal functional regulators (the Board of Governors of the Federal Reserve [“Fed”], the Office of the Comptroller of the Currency [“OCC”], the Federal Deposit Insurance Corporation [“FDIC”], and the National Credit Union Administration [“NCUA”]) shall issue credit risk guidance on lending to non-work-authorized borrowers.

I. Analysis.

I.1. Background and scope.

Executive Order 14406 frames immigration-related financial activity as a national security and systemic banking risk. The EO specifically references fentanyl-related financial flows tied to Mexico-based cartels, Chinese money laundering networks using U.S.-based accounts, and the structural ability-to-repay risk of extending credit to undocumented borrowers.

It directs the Fed, OCC, FDIC, and NCUA as all 4 federal functional regulators, the Treasury and the CFPB to take coordinated action within defined deadlines, including regulation changes.

I.2. Enhanced KYC/AML obligations.

The most immediate compliance impact falls on BSA-covered financial institutions. The Advisory to be issued from Treasury by July 18, 2026, will introduce specific red-flag typologies that compliance teams should incorporate into their reporting programs and transaction monitoring systems. The six categories of concern are:

• Payroll tax evasion by employers using non-work-authorized workers (failure to withhold/remit federal employment taxes).

• Use of foreign identity documents, nominee accounts, shell companies, or funnel structures to conceal beneficial ownership or disguise payroll flows.

• Routing of off-the-books wages through unregistered money services businesses (“MSBs”), third-party payment processors, or peer-to-peer platforms.

• Structuring and micro-structuring: repetitive, sub-threshold cash transactions correlated with payroll cycles.

• Financial patterns indicative of labor trafficking or forced labor, including mixing proceeds with legitimate business revenue.

• ITIN-based account opening or credit applications where the holder lacks verified lawful immigration status, triggering enhanced due diligence obligations.

However, the customer due diligence rulemaking expected to be issued by August 17, 2026 is the most structurally significant change. As of today, the Treasury’s Financial Crimes Enforcement Network current CDD rules only require beneficial ownership information but do not mandate collection of immigration status data. The proposed changes would authorize, and in some cases require, institutions to obtain immigration status and work authorization information as part of a risk-based CDD program when other indicators raise compliance concerns.

Similarly, the regulations of the BSA regarding the customer identification program will be reviewed by November 16, 2026, to specifically address the risk profile of foreign consular identification cards.

I.3. Credit risk and the ability to repay.

• Likewise, the EO directs CFPB to consider amending its regulations to explicitly recognize that deportation risk and the associated loss of wages constitute material factors in an ability-to-repay analysis for mortgage and consumer credit. If the CFPB acts on this directive, lenders extending credit to ITIN holders or non-work-authorized borrowers would need to document how this risk was assessed in underwriting.

I.4. Implications.

For financial institutions and businesses with U.S.–Mexico cross-border exposure, the EO carries immediate action from their U.S. counterparties:

• Heightened scrutiny of low-dollar remittance transfers to Mexico, which the EO characterizes as a vector for cartel-related flows;

• Likely increases in suspicious activity report filings on cross-border wires involving ITIN-linked accounts; and

• Potential de-risking pressure on MSBs and payment processors operating in the U.S.–Mexico corridor.

II. Transitory Regime.

Finally, the EO is effective the same day of its signing, i.e. May 19, 2026; therefore, the expressed timelines therein are constructed as follows:

• Day 0: May 19, 2026. Executive Order 14406 is signed and effective.

• Day 0 + 60: July 18, 2026. (i) Treasury issues formal Advisory with red-flag typologies, (ii) CFPB considers regulatory ability-to-repay guidance, (iii) Fed, OCC, FDIC, and NCUA issue credit risk guidance on lending to non-work-authorized borrowers.

• Day 0 + 90: August 17, 2026. Treasury proposes BSA CDD rule amendments to require, where risk warranted, collection of immigration status and work-authorization information.

• Day 0 + 180: November 15, 2026. Treasury and federal regulators consider BSA customer identification program rule changes, including new risk treatment for foreign consular identification documents.

If you have any questions about the scope or implementation of this note, please do not hesitate to contact us.

Bernardo Mendoza
Partner
bmendoza@k-g.com.mx

Dorothy Lerch
Counsel
dlerch@k-g.com.mx

Karla P. de la Torre
Associate
kdelatorre@k-g.com.mx

Gerardo H. Estrada
Attorney
gestrada@k-g.com.mx

El cargo ORDEN EJECUTIVA EN EE.UU.: NUEVAS RESTRICCIONES FINANCIERAS PARA EXTRANJEROS EN SITUACIÓN IRREGULAR apareció primero en KAVANAGH | GOROZPE.

• • According to the amendments to the Regulations of the Federal Law for the Prevention and Identification of Transactions with Illicit Proceeds (the “Regulations” and the “Law”), among other things, clarifying provisions are established regarding the filing of reports for cumulative transactions, indicating that these must be filed when the established thresholds are reached with respect to a client or user.

• It regulates the requirements for the integration of a list of domestic politically exposed persons (“PEPs”) by the Mexican Financial Intelligence Unit (“FIU”).

• An exception regime is established that facilitates the Servicio de Administración Tributaria (Tax Administration Service, “SAT”) to impose administrative sanctions without the need to exhaust an administrative proceeding, also indicating that all information already held by SAT may be used to support its resolutions.

• Also, when SAT exercises its verification authority, it will not be required to demonstrate which databases it consulted nor to disclose the results of such consultation, provided that it concerns information or documentation that was generated or provided by the obligated subject.

• Finally, the obligations regarding safeguarding and preservation of information are substantially expanded, establishing that reports, statements, and their supporting documentation must be preserved for a minimum period of 10 years.

• The transitional period for the issuance of new general rules originally provided in the Law's amendment is not modified; that is, these are expected to be issued on June 30, 2026.

I. Regulation Content.

I.1. General Aspects.

• According to the amendments, definitions are adjusted, including the express introduction of “Statements” as an obligation differentiated from “Reports” as well as the explicit inclusion of trusts and other legal entities as obligated subjects.

• Clarifying provisions regarding the filing of reports for cumulative transactions are included, establishing that the obligation to file the corresponding “Report” is triggered when, with respect to the same client or user, the applicable threshold is reached or exceeded, considering the accumulation of transactions within a period of up to six months, without the need to exhaust such period.

• Likewise, the obligation to file so-called “24-hour” reports is expressly introduced in the Regulations, even when the act or transaction has not been completed, provided there are sufficient elements to identify the person who attempted to carry out the transaction as a client or user, that is, what is known as a report for “attempt”.

• It is specified that the application of simplified identification measures for clients or users will only be appropriate when derived from their risk-based approach assessments at the entity level.

• Additionally, the specification regarding amounts, thresholds, and specific conditions applicable to vouchers, coupons, and electronic wallets is eliminated, suppressing the criteria that limited the filing of Reports, so that the applicability of identification and Report filing obligations must be determined exclusively based on the scenarios provided in the Law and, where applicable, in the general rules.

• Also, the criteria for determining the timing and amount of the act or transaction in certain non-financial designated businesses and professions (“DNFBPs”) are adjusted, establishing that, (i) in loan, lending, or credit transactions, these will be considered performed when the funds are effectively made available to the client, and that, (ii) in money or securities transfer or custody services, the lack of determination of value does not exempt from the obligation to file a Report, considering such transactions as reportable in all cases.

I.2. PEP List.

• The mechanisms for the integration, updating, and administration of the domestic PEP list under FIU's responsibility are regulated, establishing that competent authorities and public entities must provide, in the format and electronic medium defined in the general rules, information corresponding to public positions and persons who should be considered PEPs, as well as their updates within 5 business days following any relevant modification.

• For their part, it is provided that private parties and obligated subjects may only consult the FIU, through the electronic medium determined by the FIU, in a restricted manner and case-by-case basis, to verify whether a client or user person is included in the PEP list, without this implying access, reproduction, or disclosure of the complete content of the list.

• In this context, a strict confidentiality regime applicable to this list is established, specifying that such information must comply with the provisions of the Ley General de Transparencia y Acceso a la Información Pública (General Law on Transparency and Access to Public Information) and the Ley de Seguridad Nacional (National Security Law), so that information classified as reserved or confidential may not be shared with any person, authority, or entity, whether domestic or international.

• Along the same lines, the FIU may only share specific and necessary information from its PEP list with decentralized bodies of the Secretaría de Hacienda y Crédito Público (Ministry of Finance and Public Credit) that exercise supervisory functions in matters of money laundering prevention, and only following execution of the corresponding agreement, exclusively for the exercise of such powers.

I.3. Sanctions.

• Likewise, an exception regime is regulated that allows SAT to impose administrative sanctions without the need to exhaust an administrative sanctioning proceeding, when the following circumstances occur:

• Omission or late compliance with information requests,
  • Failure to file reports, statements, or mandatory documentation, or
  • Delivery of incomplete or different information than requested, even after the obligated subject has been required.

• It is also established that, when SAT exercises verification powers, it will not be required to demonstrate which databases it consulted or to communicate the results of such consultations, provided that it concerns information or documentation that was previously generated or provided by the obligated subject itself.

• Likewise, the procedure for spontaneous compliance through a signed writing addressed to SAT is established, with clear and complete acknowledgment of faults committed, corresponding transactions and periods, declaration under oath that irregularities have been completely corrected along with documentation evidencing such compliance, as a condition to access the benefits provided in Article 55 of the Law, subject to compliance with general administrative provisions.

• Finally, the amendments substantially expand obligations regarding safeguarding, preservation, and custody of information, establishing that Reports, Statements, supporting documentation, and electronic acknowledgments must be preserved for a minimum period of ten years, both by obligated subjects and by Collegiate Entities.

II. Transitory Regime.

Finally, transitional provisions are incorporated that regulate the entry into force and gradual application of various obligations, establishing specific rules for their implementation, among which the following stand out:

Should you have any questions regarding the scope or implementation of this note, please contact us.

Bernardo Mendoza
Partner
bmendoza@k-g.com.mx

Dorothy Lerch
Counsel
dlerch@k-g.com.mx

Karla P. de la Torre
Associate
kdelatorre@k-g.com.mx

Gerardo H. Estrada
Attorney
gestrada@k-g.com.mx

El cargo REFORMAS AL REGLAMENTO DE LA LEY FEDERAL CONTRA EL LAVADO DE DINERO apareció primero en KAVANAGH | GOROZPE.

On April 9, 2026, a decree was published in the Official Gazette of the Federation amending Article 141 of the Federal Tax Code (“CFF”, for its acronym in Spanish) regarding guarantees for the protection of the tax interest.

The reform eliminates the order of priority that previously required taxpayers to provide guarantees following a pre-established sequence. As of its entry into force, taxpayers may freely choose the type of guarantee that best suits their particular situation, without being subject to any order of priority.

Under the previous framework, guarantees had to be provided in the following order:

1. Deposit certificate.
2. Letter of credit.
3. Pledge and mortgage.
4. Surety bond.
5. Joint and several obligation.
6. Attachment.

According to this order, the cash deposit certificate was the mandatory first option, up to the limit of the taxpayer’s financial capacity, thereby restricting their ability to act when needing to challenge resolutions issued by the tax authority.

Guarantee procedures initiated between January 1, 2026, and April 9, 2026, as well as guarantees granted during that period in accordance with the order established prior to the amendment of Article 141, may be subject to the provisions of the amended text.

This applies to the extent that the taxpayer expressly requests it before the authority within thirty calendar days following the entry into force of the decree amending the CFF.

If you have any questions or require advice regarding the above, our team of experts is available at the following email addresses:

Paul Kavanagh: paul@k-g.com.mx
Miguel Alonso: malonso@k-g.com.mx
Luis Kanchi: Lkanchi@k-g.com.mx

El cargo DECRETO POR EL QUE SE REFORMA EL ARTÍCULO 141 DE CÓDIGO FISCAL DE LA FEDERACIÓN apareció primero en KAVANAGH | GOROZPE.

I. General Scope

The main purpose of the Draft Decree is to reduce the weekly workweek from 48 to 40 hours through a gradual implementation scheme that would begin on May 1, 2026 and conclude in 2030. In addition, the Draft Decree seeks to: (i) amend the regime applicable to overtime, (ii) incorporate new employer obligations, and (iii) modify the concepts of employer and workday.

II. Reduction of the workday

The Ley Federal del Trabajo (Federal Labor Law, “LFT”), currently provides for a maximum of 48 weekly hours (8 daytime hours over 6 days), a weekly work schedule that has been in force since 1917. Through the Draft Decree, the following changes are proposed:

• Establishment of a new maximum limit of 40 hours per week for the regular workday.

• The current daily limits (8 daytime hours, 7 nighttime hours, 7.5 mixed hours) would be maintained, but now aligned with the new weekly cap.

• Introduction of the possibility for the workday to be distributed by mutual agreement between employer and employee.

• Implementation of a gradual reduction of the weekly workday as follows:

III. Overtime Regime

With respect to overtime work, the Draft Decree eliminates the current regime, which allows employees to work up to 3 hours of overtime per day, on a maximum of 3 days per week, for a total of 9 overtime hours, which must be paid at 100% of the regular wage. In addition, the current rule provides that the employer must pay 200% of the regular wage for overtime beyond that limit, without prejudice to the penalties set forth in the law.

The Draft Decree, in turn, establishes a new model that limits overtime to 12 hours per week, which may be distributed in workdays of up to 4 overtime hours, on a maximum of 4 days per week, and which must be paid at 100% of the regular wage.

With respect to extended overtime, the Draft Decree caps such additional time at 4 extra hours per week, which must be paid at 200%.

It is important to note that the Draft Decree prohibits the sum of the regular workday, overtime and additional overtime from exceeding 12 hours in a single day, which constitutes a new legal safeguard intended to prevent excessive workdays.

IV. New concepts

The Draft Decree also amends the definition of certain key concepts in the FLL:

• For the first time, it expressly incorporates the definition of “Employer or Employing Person” (“Patrón or Persona Empleadora”), understood as the individual or legal entity that hires one or more workers to perform subordinated activities in exchange for remuneration.
  
  This new definition strengthens clearer and more inclusive language and helps to more precisely allocate responsibilities, particularly in complex outsourcing arrangements or corporate structures with multiple operating entities.

• Likewise, the concept of “workday” is amended. Under the current framework, the workday corresponds to the period during which the worker is at the employer’s disposal; under the reform, it is redefined as the period during which the worker performs subordinated activities for the benefit of the employer.
  
  This change may have significant implications for the interpretation of waiting times, internal transfers, operational pauses or any period during which the worker is not effectively performing activities.

IV. New obligations: electronic timekeeping.

A new obligation is created for employers to electronically record the workday of each worker, including the start and end time of their activities.

IV. Continuity of existing obligations

The Draft Decree preserves certain essential elements of the current LFT:

• The maximum daily duration of daytime, nighttime and mixed shifts, as well as the right to 1 rest day for every 6 days of work, remain unchanged.

• The minimum Sunday premium of 25% also remains unchanged.

• With respect to overtime, the 100% additional payment continues to apply for overtime within the new permitted limit and 200% for additional overtime.

V. Entry into force

• The general reform would enter into force on May 1, 2026.

• There would be a gradual annual implementation for the workday and overtime limits.

• The obligation to maintain an electronic timekeeping register would begin in January 2027.

Should you have any questions regarding the scope or implementation of this note, please do not hesitate to contact us.

Bernardo Mendoza
Partner
bmendoza@k-g.com

Dorothy Lerch
Counsel
dlerch@k-g.com.mx

El cargo SE PUBLICA PROYECTO DE DECRETO POR EL QUE SE REFORMAN, ADICIONAN Y DEROGAN DIVERSAS DISPOSICIONES DE LA LEY FEDERAL DEL TRABAJO apareció primero en KAVANAGH | GOROZPE.