Reform
Enrique Pena Nieto, signed into law
constitutional changes establishing a
new National Anti-Corruption System
(el Sistema Nacional Anticorrupción) that
aim to greatly strengthen existing anti-
corruption legislation in Mexico.
Mexican Constitution, and the passage
of the amendments required approval
from both houses of Congress and the
approval of more than half of Mexico's
state legislatures (17, since Mexico has
31 states and a Federal District). The
purpose of the reform is to coordinate
the actions and policies of federal,
state and municipal governments in the
prevention, detection and sanctioning of
corrupt acts. Congress now has one year
to pass a number of related laws in order
to complete the reform's implementation.
The reform does the following:
prosecutor with power to investigate
and sanction corrupt officials across
the three levels of government
(municipal, state and federal);
administrative sanctions from three
to seven years after crimes have been
committed;
body responsible for coordinating
various government institutions in an
effort to apply checks and balances,
giving more power and independence
to investigative bodies;
spending occur more frequently and
in real time. The Federal Audit Office
(ASF) will have greater powers to
trace the use of public money;
their assets and any conflicts of
interest;
and
private companies that engage in acts
of corruption and adds suspension of
activities and dissolution to existing
penalties.
Mexico's ability to implement and
enforce the anti-corruption program,
proponents see it as a strong basis for
combatting corruption of public officials
in Mexico. Regardless, the new anti-
corruption program inevitably increases
compliance concerns for international
companies with operations in Mexico,
and it comes at a time when the fairness
and oversight of public spending will
face one of its biggest tests. With the
opening of the country's energy sector to
foreign investment, the signing of billions
of dollars of contracts with international
companies is expected. For those
investing in this environment, the new
rules could mean less risk, but increased
compliance obligations.
Compliance in Mexico
measures for multinational companies
with operations in Mexico: (i) leadership
and compliance programs and policies;
(ii) risk assessment, due diligence
and monitoring; and (iii) training and
communication.
figure responsible for monitoring
compliance and providing leadership.
The organizational structure
should also include a compliance
department and chief compliance
office for overseeing and coordinating
compliance policies, as well an
individual in each department who
is responsible for oversight. Second,
robust compliance programs and
policies within the company help
detect and prevent noncompliance.
should comply with Mexican and U.S.
anti-corruption laws and include a
company code of ethics signed by all
employees.
well as a company's third party
network, including a review of its
business partners, third parties,
distributors, suppliers and potential
merger partners. Due diligence is
particularly important in relation to
making decisions and entering into
contracts with customers, suppliers
and other third parties. For this, a
structured program requiring due
diligence is essential.
Mexico's anti-corruption laws.
While the best training is in-
country, conducted face-to-face,
online compliance courses are also
commonly available. In addition
to FCPA training, signing codes of
ethics ensures that employees are
aware of the rules.
inevitably face corruption and bribery
concerns and need to be aware of U.S.
FCPA and Mexican anti-corruption
laws. In addition to knowing what their
divisions, employees, subsidiaries and
third party agents are doing in Mexico,
it is imperative that international
companies enact and maintain robust
corporate compliance programs in
order to ensure compliance with both
countries' anti-corruption laws.
Act (Additional 2002), anti-money laundering laws
including the Bank Secrecy Act (1970) and the USA
Patriot Act (2001), Dodd-Frank Wall Street Reform and
Consumer Protection Act, mail and wire fraud laws,
and U.S. tax laws.
corruption laws in Mexico include Mexico´s Federal
Criminal Code, Federal Law on the Prevention and
Identification of Transactions with Funds from Illegal
Sources (anti-money laundering law), Federal Law on
Protection of Personal Data Held by Private Parties,
and Federal Law on Economic Competition, among
others.