Global Trade Alert

On 6 December 2010, the Mexican Ministry of Finance and Public Credit amended the rules on the registration of foreign reinsurers. The new rules require that all non-Mexican reinsurers that reside in countries with which Mexico has a double taxation treaty and that are also registered in Mexico, must submit a residency certificate issued by their home tax authorities.
 
Foreign reinsurers that assume risks from Mexican insurance companies must be registered, and that registration must be renewed every year.
 
Failure to submit the registration renewal filing on time can result in the cancellation of the registration with a potential for substantial increases in reserve and regulatory capital requirements of the Mexican cedent company.