Mexico’s Supreme Court Limits Access about Banking Secrecy. – Local Prosecutors Now Require Judicial Authorization to Obtain Bank Records

On May 21st, 2025, the First Chamber of Mexico’s Supreme Court of Justice of the Nation (“SCJN”) declared the unconstitutionality of Article 142, Section II of the Law on Credit Institutions (as amended in 2016) on the grounds that it violates the right to privacy by granting local prosecutors the authority to request banking information in the context of criminal investigations without prior judicial authorization.

The precedent, adopted by a four-justice majority in Constitutional Appeal No. 119/2025 (Amparo Directo en Revisión), is fully consistent with the ruling previously issued in Constitutional Appeal No. 58/2021, which addressed the powers of the Office of the Attorney General of Mexico. Through this decision, the SCJN reaffirmed that no local prosecutorial authority may access banking information without first obtaining a duly grounded and reasoned judicial order.

Constitutional Scope of Banking Secrecy

This ruling reinforces the constitutional nature of banking secrecy as a direct expression of the rights to privacy and informational self-determination. While the law provides for certain exceptions in the context of criminal investigations, the SCJN makes clear that such exceptions are only valid where there is prior judicial authorization supported by due legal reasoning and justification.

Key takeaways for Financial Institutions:

I. Requests for banking information submitted by local prosecutors without prior judicial authorization are now deemed unconstitutional and must be formally denied.

II. Financial institutions must adopt and implement internal protocols to ensure the verification of the existence, validity, and scope of the corresponding judicial order prior to disclosing any client information.

III. Breach to comply with this judicial standard may result in legal liability, including potential administrative sanctions and violations of the fundamental rights of data subjects.

This decision also aligns Mexico’s legal framework with the most stringent international standards on data protection and due process.

Compliance and Regulatory Advantages

This ruling offers a strategic opportunity for financial institutions to:

I.  Review and update their internal compliance policies, enhancing control and traceability mechanisms related to access to confidential customer data.

II. Engage in proactive dialogue with the relevant authorities, with the aim of establishing clear and standardized procedures for judicial requests under the newly defined constitutional framework.

III. Strengthen client trust, by reaffirming that the protection of their financial information is secured by constitutional safeguards and reinforced legal standards.

Please stay updated on developments related to this matter.

*This document is for informational purposes only and does not constitute a binding legal opinion.*