Mexico's Anti-Corruption Laws: Private Entities and Individuals in the Crosshairs

Description

In the 2020 Latin America Corruption Survey, more than 60 percent of respondents with work experience in Mexico said that corruption is a significant obstacle to doing business there. Only 34 percent of Mexican respondents believe that an offender is likely to be prosecuted in the country, compared to 45 percent regionwide. These findings are surprising given that the country adopted the National Anti-Corruption System in 2016, representing an overhaul of its anti-corruption laws.

In particular, Mexico's anti-corruption laws hold companies and individuals liable for corrupt acts involving Mexican and foreign officials and governments. Individuals face sanctions of up to two times the amount of the acquired benefits. They may be disqualified from participating in public procurements, leases, services, or state-owned enterprise projects for up to eight years. Entities can face debarment of up to 10 years, suspension of activities up to three years, partnership dissolution, and damages.

U.S. companies doing business in Mexico are at risk of employees and agents violating these laws. Company counsel must implement policies and procedures to minimize legal vulnerabilities under the country’s anti-corruption laws.

Listen as our panel discusses the anti-corruption laws and implementing regulations, examining the distinctions between it and the FCPA. The panel will also discuss how the anti-corruption laws will be enforced and offer best practices for complying with the laws.