Why are Bank Wire Confirmations Needed for the Title Deed Process in Mexico?

Written By Akil Franklin

Mexican federal law requires notaries to verify and document the lawful origin of funds in any real estate transaction, as part of anti–money laundering (AML) compliance. That is why notaries routinely ask for bank transfer receipts before signing the title deed (escritura).

1. Federal Law

Law: Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (LFPIORPI)

English title: Federal Law to Prevent and Identify Transactions with Illicit Proceeds

Spanish source: https://www.diputados.gob.mx/LeyesBiblio/pdf/LFPIORPI.pdf

Article 13

The rendering of public faith services by Notaries, in connection with acts or operations involving the transmission or constitution of rights over real property, shall be considered “vulnerable activities” under this Law.


Article 17

Persons carrying out vulnerable activities must identify their clients, verify their identity, and collect documentation and information concerning the origin of the resources used in the transaction.

2. SAT Guidelines (Mexico’s Tax Authority)

The SAT’s official AML portal for Notaries confirms:

Notaries must obtain and keep supporting documents that allow verification of the identity of the parties and the origin of the funds used in the transaction. (Source: https://sppld.sat.gob.mx/pld/interiores/fedatarios.html)


3. What This Means in Practice

  • Buyers must provide proof of payment (bank wire confirmations)

  • The notary must file an AML report to the SAT if the amount exceeds roughly MXN 1.2 million pesos (~USD 70,000) or shows risk indicators. 

  • Failure to provide documentation can prevent the notary from completing the deed, since the notary could be fined or lose license for noncompliance.

Summary Explanation

Under Mexican anti–money laundering law (LFPIORPI, Articles 13 & 17), the notary is legally responsible for verifying the identity of the buyer and the lawful source of the funds. Proof of the bank transfer is how that obligation is met. It’s not an internal policy—it’s a compliance requirement under federal law.


Akil Franklin