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New national registry for mobile telephone users deemed to violate personal data

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published on 28 April 2021 | reading time approx. 3 minutes

The Mexican Congress approved a new law which has wide impact on mobile phone contracts. As Bank tokens are only working with mobile phones, the law has also impact for companies. Risks can appear for legal representatives of the company.

On April 16, 2021, the Mexican Congress approved a new law whereby the National Register of Mobile Telephone Users is created, in order to collect information that includes biometric data of Mexican cellphone users with the purpose of preventing crimes, such as kidnappings, frauds or extortions.

Content of the New Law

In order to obtain a SIM card, users must provide their name, address, nationality, an official ID with their photograph and biometric information. In case of legal entities, their legal representative shall provide his/her fingerprints, voice identification and facial recognition or iris scan. The Federal Telecommunications Institute still has 180 days to determine which of these data must be provided by users on a mandatory basis.

After the 180 days, all new users must provide their personal data on a mandatory basis, while users who already have a cellphone line will have additional two years as of the termination of the 180 days to comply with this requirement. In case of non-compliance with this new regulation, their cellphone line will be canceled immediately and sanctions  that may range from USD 90 to USD 67,845 will be imposed.

The New Law under consideration of Data Protection

According to the new law, the information contained in the National Register of Mobile Telephone Users will be confidential and protected in terms of the Federal Law of Transparency and Access to Public Information, the Federal Law of Protection of Personal Data in Possession of Individuals and the General Law of Protection of Personal Data Held by Obliged Subjects. The aforementioned laws themselves are currently under review for reform, to foster protection of sensitive personal data and user´s biometric information. 

Current Discussions in the courts

There is no need to mention that the National Register of Mobile Telephone Users affects constitutional rights. In fact, the Federal Court has issued a provisional suspension for this law declaring that even though this new regulation was made to support the investigation of crimes, it endangers the privacy of users. One judge even considered that the personal data required is not proportional or necessary in relation to the mentioned objective, that there is no correlation between the capacity of investigation of the authorities and the existence of this registry due to the fact that the National Criminal Procedural Code already mandates cellphone service providers to assist authorities during an investigation and that the cancellation of cellphone lines violates their right to access to information, their right to freedom of speech, the right to have access to IT and other communication services.
 
The court has not taken a definitive decision yet; still, there is a high probability that the law will be modified.

We will closely monitor the process and keep you informed. Please note that in Mexico to use corporate online banking a working cell phone is mandatory, so in practical life the new registration will be necessary in order to keep using online tokens for devices in its Mexican online banking, also when the token device is administered abroad. Please contact us if you need assistance in this regard or if you have questions regarding this law.

CONTACTS

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Liliana Becerra

Attorney at Law

Senior Associate

+52 222 689 45 19

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RÖDL & PARTNER MEXICO

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