Legal considerations in light of the Promotion of Citizen Confidence Law

Last January, it was published in the Official Gazette of the Federation and the Promotion of Citizen Confidence Law (hereinafter, the “Citizen Confidence Law”) whose objective is the basis for the implementation of actions and programs that the dependencies of the Federal Public Administration must implement, in order to promote public confidence, granting benefits and administrative facilities related to the economic activities carried out by natural and moral persons.

Said law shall not be applicable in fiscal, customs, labor, social security, foreign trade matters and with respect to operations with resources of illicit origin, given that such matters have specific regulations in this regard and will continue to be subject to their applicable legal framework.

The Citizen Confidence Law provides for the creation of a registry that has as its purpose the capture, storage, custody, security, consultation and administration of information concerning the beneficiaries of the programs that the federal government instructs.

Registration for said registry will be voluntary and will be understood as an act of good faith, whereby the beneficiaries declare that they are in compliance with their regulatory and fiscal obligations, in accordance with the economic activity they perform.

In accordance with the provisions of the Citizen Confidence Law, at the time of registration in the register of the beneficiaries, they must state under protest of telling the truth, that they commit to continue fulfilling the obligations derived from the regulations that regulate them, as well as with its fiscal obligations to receive the benefits granted under it.

As of today, there is no knowledge of the benefits that the register that the Citizen Confidence Law will have and leaves open many questions for individuals and corporations to register for it.

Likewise, it does not contemplate the way in which compliance with regulatory and fiscal obligations will be monitored, which could generate additional obligations to those provided in the applicable legal provisions and, as a consequence, generate that moral persons need to expand their vision in Compliance issue to comply with the Citizen Confidence Law and any applicable provisions that are issued in follow-up to it.

It is important to mention that the imposition of sanctions is not clear and refers to the applicable legal provisions in the matter in question and leaves open the possibility of inspection visits at any time.

Undoubtedly a law that should be thoroughly analyzed and wait to see the provisions that are issued in follow-up to it to make a decision in this regard.