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Mexico’s Corporate Compliance Landscape: A Guide for Companies

As companies operating in Mexico navigate the complexities of doing business in the country, it is essential to understand the corporate compliance landscape. The lack of proper controls can lead to criminal liability if a crime is committed using company resources or for its benefit.

In such cases, having an effective integrity policy or compliance program in place can serve as an affirmative defense. This includes measures such as:

  • A clear and complete organisational and procedural manual that defines functions and responsibilities.
  • A code of conduct with systems for implementation and reporting.
  • Adequate controls, monitoring, and auditing to ensure compliance.
  • Whistle-blewing systems and disciplinary processes.
  • Training on ethics standards.
  • Human resources policies to avoid hiring employees who could compromise the company’s integrity.
  • Mechanisms to ensure transparency and disclosure of interests.

Recent cases have highlighted the importance of effective corporate risk and compliance management. The National Institute of Transparency, Access to Public Information and Data Protection (INAI) has levied significant fines for data protection violations, while the Federal Economic Competition Commission has fined companies for antitrust violations.

Government Obligations

The Mexican government has its own obligations regarding risk and compliance management. The Organic Law of Federal Public Administration requires government agencies to conduct business according to policies in various areas, including:

  • Public safety
  • Crime prevention
  • Environmental protection

State-owned enterprises, such as Petróleos Mexicanos (Pemex), have their own obligations on risk management and compliance, including establishing policies for:

  • Environmental, health, and safety compliance
  • Employment practices
  • Third-party contracting

Digital Transformation

Mexico is promoting digital transformation through the use of blockchain technology and artificial intelligence. The government has launched initiatives to innovate public services and create a digital economy. However, there are few legal developments that regulate new technologies like artificial intelligence and blockchain.

The FinTech Law regulates financial services rendered through new technologies and IT platforms, while the United States–Mexico–Canada Agreement (USMCA) promises to promote growth in digital commerce and cybersecurity cooperation between the three countries.

Risk and Compliance Governance Framework

The risk and compliance governance framework for Mexico’s digital transformation includes:

  • The National Digital Strategy, which aims to build a ‘digital Mexico’ through innovation and the adoption of information and communication technologies.
  • The National Development Plan 2013–2018, which sets forth five objectives, including:
    • Government transformation
    • Digital economy
    • Quality education
    • Effective universal healthcare
    • Citizen participation and innovation

As companies navigate Mexico’s corporate compliance landscape, it is essential to understand these obligations and frameworks to ensure compliance with regulations and avoid potential risks.