Mexico, as part of its fight against corruption, is an active party to international agreements that bind it to improve and increase preventive measures to inhibit dishonest and unethical practices. These measures include the creation and implementation of codes of conduct for governmental and private entities.
Since 2016 the General Law of Administrative Responsibilities involves companies as an active subject in the fight against corruption, establishing as main measure the implementation of an Integrity Policy. The Integrity Policy must contain at least seven elements, which, at the time of being assessed by the authority, will determine the company’s responsibility for possible sanctions resulting from any act or omission that could happen inside, outside or through it, in relation to items such as: corruption, bribery, collusion, illegal participation on administrative proceedings, among others.
Moreover, since 2016 and for the first time in Mexico, companies can be directly criminally responsible for crimes committed on behalf of, through or for their benefit. Given this possibility, the commissioning of a permanent control body, responsible for verifying compliance with all applicable legislation and crime prevention internal policies, will serve as a mitigating effect against penalties.
This new challenge that Mexican Companies face has international implications, as is important to also consider the extraterritorial laws of our business partners including: the US Foreign Corrupt Practices Act (FCPA); the UK Bribery Act (Bribery Law) and the Law of Transparency, the fight against Corruption and the Modernization of Economic Life in France (better known as Sapin II).
These laws base their extraterritorial scope on elements such as the use of assets or the participation of individuals subject to the jurisdiction of the authorities of the countries that apply such laws or the probable damage to the institutions, assets, financial systems, among others, of those countries and that bind the subsidiaries, suppliers and customers of the companies of those countries to have effective crime prevention policies against acts of corruption and misconduct (known as a compliance system).
A compliance system will depend on the nature, size and activity of each company. It is important to point out that it should be preventive and provide control into and outside the company.
The measures that the Mexican legislation establishes for companies of all sectors and of any size, comprise a system that (if properly implemented) will protect the company and its employees against penalties that might be imposed against both the company and individuals within the company, in addition to creating a culture of prevention.
We invite all our clients to join this culture of self-regulation and greater business ethics, designing a compliance system that allows them to be up to date and in compliance with the obligations and responsibilities set forth by Mexican law, as well as to protect their companies, partners, executives and personnel in Mexico and abroad.
We are at your service for any questions or comments.
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