Mexico's Tax Authority Clarifies the Rules on Keeping Cash at Home

Mexico: Clarifying the Law on Cash Savings Mexicans have been questioning the legality of keeping large amounts of cash at home, fearing potential investigations by the tax authority, the SAT. A recent video by El Heraldo de México clarifies this issue. The video explains that while the Federal Law for the Prevention of Operations with Resources of Illicit Origin (better known as the Anti-Money Laundering Law) sets limits on cash purchases for high-value items such as real estate and vehicles, it does not penalize individuals for simply saving money at home. "The objective is to stop suspicious operations, not to sanction those who simply save," the video explains. For instance, the limit for cash purchases of houses is 907,000 pesos, while for cars or precious metals, it's 363,000 pesos. Transactions exceeding these limits must be made through banking channels and reported to the SAT. Failure to comply with these limits for large purchases could lead to audits or even intervention by the Financial Intelligence Unit (FIU). However, the video reassures viewers that as long as they are not making large cash purchases, there is no reason for concern. The video concludes with a call to action, asking viewers to share their thoughts in the comments section. This clarification from a trusted Mexican media source provides much-needed reassurance to citizens and promotes financial transparency.