Mexico’s New Era in Anti-Corruption Enforcement: A Shift Towards Targeted Action

Mexican authorities have been working diligently to combat corruption, with significant changes in their approach under the administration of President Andrés Manuel López Obrador (AMLO). Two key mechanisms have emerged as game-changers in the fight against corruption: the use of financial intelligence and a redefinition of what constitutes corrupt behavior.

Financial Intelligence: A New Tool Against Corruption

The Power of Financial Intelligence

The government has established a robust financial intelligence unit, which serves as a national center for receiving and analyzing suspicious transaction reports and other information relevant to money laundering, terrorist financing, and related offenses. This unit has access to timely financial, administrative, and law enforcement information, enabling it to effectively combat corruption.

Redefining Corruption: The Austerity Law

Freezing the Revolving Door

The AMLO administration has introduced the Federal Republican Austerity Law (Austerity Law), which outlines measures to reduce government spending and promote a more austere public sector. Article 72 of the Responsibilities Law prohibits government officials from working for companies they supervised, regulated, or had privileged information about for up to 10 years after leaving office. This law has frozen the revolving door between government and private sectors, prompting many high-ranking officials to leave their positions.

Tax Compliance: A New Corruption Standard

Cracking Down on Evasion Practices

The administration has shifted its focus towards tax compliance, using anti-corruption tools to crack down on evasion practices. Tax enforcement procedures have been rebranded as corruption-fighting efforts, receiving increased media attention.

A Shift in Enforcement Strategy

From Complex Frameworks to Targeted Action

The AMLO administration’s approach to anti-corruption enforcement differs significantly from the previous strategy. The complex SNA framework has given way to a more targeted form of enforcement, with forceful tools used to tackle rogue sectors and characters identified by the government.

Outcomes and Concerns

Increased Efforts Against Corruption

While the new anti-corruption enforcement policy has led to increased efforts against corruption, concerns remain about its consistency and potential impact on public servants. The 10-year employment ban for government officials has prompted many long-serving employees to depart from office, potentially depriving the public sector of valuable expertise.

Conclusion

A New Standard in the Fight Against Graft

Mexico’s anti-corruption enforcement landscape has undergone significant changes under AMLO’s administration. A more targeted approach, leveraging financial intelligence and redefining corruption, has emerged as a new standard in the fight against graft. However, the shift towards greater forcefulness raises concerns about the long-term sustainability of these efforts and their impact on public servants.