Mexico’s Anti-Corruption Efforts Intensify with New Enforcement Trends

In a significant shift in Mexico’s anti-corruption policy, the government has adopted new strategies to combat corruption, leveraging existing legal frameworks and international best practices. The Mexican financial intelligence unit (UIF) has played a key role in this effort, using its powers to monitor and investigate suspected corruption cases.

Deferred Prosecution Agreements

One of the most notable changes is the introduction of deferred prosecution agreements, which allow individuals accused of corruption to avoid criminal charges by cooperating with authorities. This new approach has led to several high-profile convictions, including that of a former governor who pleaded guilty to bribery charges in exchange for immunity from prosecution.

Increased Use of Financial Intelligence

The UIF has also seen an increased use of financial intelligence to track and investigate suspected corruption cases. The agency’s powers have been expanded to allow it to monitor transactions and analyze data to identify patterns of suspicious activity. This has led to several successful investigations, including one that uncovered a large-scale bribery scheme involving government officials.

New Definitions of Corruption

The administration has also redefined what constitutes corruption, adopting a more stringent approach to enforcement. The Federal Republican Austerity Law, enacted in 2019, sets out broad propositions for ideal conduct by government officials and prohibits certain activities deemed corrupt. For example:

• Government employees occupying senior positions are banned from working for companies they previously supervised or regulated.
• Other prohibited activities include:
  • Using public office for personal gain
  • Receiving gifts or favors in exchange for official actions
  • Failing to disclose conflicts of interest

Increased Focus on Tax Compliance

Tax compliance has also become a key area of focus, with the government seeking to increase tax collection by cracking down on evasion practices. The use of anti-corruption tools and financial intelligence mechanisms has been ramped up, leading to several successful investigations and convictions.

Conclusion

Mexico’s anti-corruption enforcement policy has undergone significant changes since the AMLO administration took office. While the complex procedures of the SNA may have given way to a more targeted approach, the use of forceful enforcement tools has ensured that specific policy aims are furthered. As the government continues to refine its strategy, it remains to be seen whether this new approach will ultimately lead to greater success in combating corruption.

References

[1] FATF Recommendations, number 29: “[c]ountries should establish a financial intelligence unit (FIU) that serves as a national centre for the receipt and analysis of: (a) suspicious transaction reports; and (b) other information relevant to money laundering, associated predicate offences and terrorist financing, and for the dissemination of the results of that analysis. The FIU should be able to obtain additional information from reporting entities, and should have access on a timely basis to the financial, administrative and law enforcement information that it requires to undertake its functions properly.”