Proposed security pact between Mexico and the EU may contradict AMLO's approach, according to Banamex; potential for undermining criminal networks
In the realm of international diplomacy, a potential Mexico-US security agreement is generating significant interest, with Banamex, a prominent Mexican financial institution, highlighting its potential benefits.
The agreement, if materialized, could significantly enhance bilateral cooperation, fostering a more stable economic and security environment. According to Banamex, this cooperation could reduce regulatory risks, particularly in the financial sector, where alignment of anti-money laundering (AML) and financial compliance frameworks between the two countries would be crucial. This alignment could help prevent incidents like those seen with Mexican banks such as Intercam, which faced US Treasury sanctions under the Fentanyl Act.
Beyond regulatory alignment, the agreement could attract investment and stimulate market growth. By mitigating security risks and demonstrating cooperation on cross-border issues, the agreement would foster an investment-friendly climate. This could support initiatives like Banamex’s planned Initial Public Offering (IPO) and potentially attract both domestic and foreign investors, including high-net-worth Mexican individuals targeted for stakes in Banamex.
Trade and economic benefits are another key aspect. Enhanced security collaboration could help ease tension around trade, potentially avoiding higher US tariffs on Mexican exports. This is crucial for Mexico’s economy and indirectly supports the banking sector by promoting economic growth and stability.
The agreement could also facilitate financial sector consolidation under regulatory supervision. With security and compliance frameworks more coordinated, banking consolidation could proceed more smoothly, improving operational efficiencies and institutional resilience within the sector.
From Banamex’s perspective, and the broader financial landscape, a Mexico-US security agreement promises to enhance regulatory cooperation, reduce cross-border risks, support market confidence, and stimulate both investment and trade. These factors collectively contribute to a more robust and secure banking sector in Mexico.
For Mexico, such an agreement could be a historic opportunity to face and weaken criminal organizations operating in the country. An international security agreement would provide an institutional framework for cooperation to address the growing complexity and reach of Mexico's largest criminal organizations.
However, it's important to note that the terms of the agreement would need to be negotiated, involving not just Mexico and the US, but potentially Canada as well. Banamex emphasizes that no unilateral action should be taken under the agreement, and the agreement could include chapters on strategic intelligence sharing, strengthening investigative capabilities, training of high-performance operational groups, confidence levels, police corporation training, adoption of border control, customs, and migration technology.
For the Mexican government, it would be politically and strategically valuable for the US to commit, through an international legal instrument, to only act in agreement with Mexico, not unilaterally. The effects of isolated actions have been disconnected, according to Banamex, and a bilateral legal security instrument could address this issue.
To materialize the benefits, Mexico would have to be willing to thoroughly review its security strategy and commit to determined actions against cartel members and political and institutional lines that collaborate with them. This could mark a departure from the current AMLO administration's strategy on the issue.
In conclusion, a Mexico-US security agreement, as outlined by Banamex, presents a promising path towards a more secure and economically stable future for both nations.
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