Financial Crime World

Anti-Bribery and Corruption Measures in Financial Services Providers: A Guide

Introduction

The Mexican financial services sector is subject to a range of anti-bribery and corruption (ABC) measures designed to prevent illicit activities and promote transparency. This guide provides an overview of the key ABC measures that financial services providers (FSPs) must implement, tailored to their specific needs and environment.

Key ABC Measures for FSPs

Training of Directors, Administrators, and Employees

  • Customized training: ABC measures should be tailored to the specific needs, characteristics, and operational capacity of each FSP.
  • Attention to ABC measures: Particular attention should be given to ABC measures, which are distinct from anti-money laundering (AML) measures.

Third-Party Due Diligence

  • Assessing third-party integrity: This is critical in assessing the integrity of third parties, business associates, and intermediaries before engaging with them or during their business relationship.
  • Corporate Criminal Liability Act implications: Given the broad liability attributed by the Corporate Criminal Liability Act for acts done on behalf of an undertaking.

Periodic Risk Assessment

  • Evolving risks: This ensures that the ABC programme remains adequate to the company’s evolving risks, dimension, and economic capacity.
  • Financial sector considerations: The financial nature of FSPs means their business is always changing with new technologies and regulations.

Additional Considerations for Effective ABC Implementation

Tone from the Top

  • High-level management commitment: High-level management should commit visibly and unequivocally to the ABC programme.
  • Minimizing risk: Clear records or avoidance of interactions between top officers and public officials are advised due to risk of liability under the Corporate Criminal Liability Act.

Internal Investigations

  • Approved investigation protocol: Having an approved investigation protocol by the governing body is essential for detecting and mitigating risks and justifying sanctions.
  • Employee bank account access: A specific consideration in FSPs is the potential misuse of accessing employees’ bank accounts, which can have severe legal implications.

Internal Officer or Team

  • Dedicated person or team: For large companies, having a dedicated person or team to develop and monitor the ABC programme is suggested.
  • Shared responsibilities: In smaller companies, this function might be shared among existing roles.