Mexico’s Supreme Court of Justice (SCJN) has ruled that the Financial Intelligence Unit (UIF) possesses the legal authority to freeze bank accounts as a preventive measure against financial crime. The court issued the decision while resolving the Unconstitutionality Action 58/2022, which challenged the government’s power to add individuals to its restrictive list of blocked accounts.
Justices concluded that freezing an account does not constitute a criminal sanction. Instead, the court defined the measure as a protective mechanism designed to insulate the financial system from identified risks. Because the action is preventative rather than punitive, the UIF can execute these blocks without obtaining a prior judicial order.
Under this framework, the UIF’s role is strictly limited to the detection and containment of high-risk financial operations. The court clarified that the underlying investigation into potential criminal activity remains under the jurisdiction of the appropriate federal authorities.
New standards for financial blocks
A critical shift in the court’s ruling involves the removal of requirements for foreign intervention. Previously, the UIF often relied on requests from international authorities to justify account blocks. The new criteria allow the agency to act based on either domestic or international information, provided the action complies with established legislation and Mexico's treaty obligations.
Despite the immediate nature of these freezes, the SCJN emphasized that affected individuals retain full rights to due process. The legal framework guarantees a right of audience, allowing account holders to contest their inclusion on the block list through both administrative channels and the court system.
To ensure the measure is not applied arbitrarily, the authority must provide documented evidence to support its decision. Officials are required to substantiate each case with verifiable information before a freeze can be enforced. If the authority fails to provide a well-founded and motivated resolution, the account holder may seek legal recourse to have the funds released.
