(Reuters) - Mexico’s Supreme Court set an important precedent in February that should make it easier for securities and banking regulator CNBV to overturn gag orders that prevent it from naming violators.
At least 13 Mexican executives and companies have filed suits to block the CNBV from using powers given to it in 2014 to publish sanctions, according to officials, court documents and the CNBV’s database.
Here are some of the biggest cases in which the CNBV won the right in lower courts to publish limited details of the charges:
- The bank and broker of financial group Intercam were levied a total of 11 fines in June last year totaling 59 million pesos ($3.2 million) for lax money laundering controls, including failing to report suspicious transactions.
Intercam said in a statement to Reuters that the fines were only for “administrative faults” and that “at no time has there been money laundering in our organization.” Intercam said it was appealing, saying the fines were disproportional in light of the “low severity of the observations” and that its bank and broker had both been fined for the same transactions.
- Chief executive Humberto Garza and Chief Financial Officer Abelardo Garcia of furniture store operator and bank Grupo Famsa (GFAMSAA.MX) were fined nearly 3.9 million pesos ($204,000) each last November for filing 2015 results that did not comply with accounting rules.
In a response to questions from Reuters, Famsa said: “The fines were paid in a timely manner. However, all sanctions were challenged, and such processes are still ongoing.”
- Famsa’s Garza was also reprimanded, without a fine, in November for failing to reveal relevant information. Famsa was fined 4.6 million pesos ($241,000) in the same investigation, the company confirmed.
- Raul Revuelta Musalem, former CFO of builder OHL Mexico OHLMEX.MX, was fined 1.4 million pesos ($73,000) in March 2016 for filing erroneous earnings information in early 2015. He was named chief executive of Grupo Aeroportuario del Pacifico in February this year.
Revuelta declined to comment.
Reporting by Michael O'Boyle, Editing by Rosalba O'Brien