Mexico recently created the National Anti-Corruption System, as a part of a constitutional overhaul to curb corruption in Mexico. Within this System, Congress enacted the General Administrative Liabilities Law, effective since mid-2017. This law sets strict sanctions for public officials, individuals, and companies involved in bribery, unlawful participation in public tender procedures, influence peddling, use of false or altered information, misuse of public resources, and unlawful contracting with former public officials. This is the first time that a Mexican law includes sanctions not only for government officials involved in acts of corruption but also for private entities and individuals.

Yes. On July 18, 2016, as part of the National Anti-Corruption System, the following laws were enacted:

• General Law of the National Anti-Corruption System;
• General Administrative Liabilities Law (effective July 2017);
• Organic Law of the Federal Tribunal of Administrative Justice; and
• Law for Federal Auditing and Accountability.

In addition, the Federal Criminal Code, the Organic Law of the Federal Public Administration, and the Organic Law of the Attorney General were amended to comply with the National Anti-Corruption System.

Yes. The General Administrative Liabilities Law, article 66, prohibits bribes to domestic government officials and may be applied to sanction administratively both the government official and the private entities and individuals involved. Furthermore, according to the Federal Criminal Code, corruption is also a felony that may be punished with incarceration.

As per the General Administrative Liabilities Law, a bribe payment to foreign government officials is not specifically considered within the definition of “bribe”.

Notwithstanding the foregoing, the General Administrative Liabilities Law expressly prohibits collusion in domestic and foreign transactions (e.g. bid-rigging), in which a Mexican individual or entity participates, and is carried out by any public entity of a foreign state or foreign public official.

Yes, the General Administrative Liabilities Law, article 66, expressly prohibits requesting or accepting bribes. In addition, the Federal Criminal Code considers this conduct as a criminal offense, whether requested or accepted by either a private individual or a public servant.

Public Officers, former Public Officers, individuals and companies are subject to the legislation.

Yes, corporate entities whose agents or representatives participate in corrupt practices may face criminal liability. Additionally, any person who committed corrupt practices on behalf of such an entity is both administratively and criminally liable for separate penalties.

Sanctions included in the General Administrative Liabilities Law include:

• Fines;
• Temporary disqualification to participate in public procurement proceedings ranging from three months to eight years;
• Indemnity for damages and lost profits to the Federal Treasury; and
• In certain cases, criminal sanctions as well.

Furthermore, according to the Federal Criminal Code, corruption is also a felony that may be punished with incarceration.

Sanctions included in the General Administrative Liabilities Law for grave offenses are as follows:

• Fines;
• Temporary disqualification to participate in public procurements from three months to ten years;
• Suspension of all activities from three months to three years;
• Indemnity for damages and lost profits to the public treasury; and
• In particularly grave cases, dissolution and liquidation of the entity.

In addition, if the authorities prove administrative grave conduct, the company could also face criminal penalties.

Yes, according to the General Administrative Liabilities Law, sanctions to companies that have strong and efficient internal compliance mechanisms will be more lenient. Compliance mechanisms are considered as a mitigating factor for corporate liability. The referred law outlines basic compliance mechanisms that must be effective, including:

• Organization Manual;
• Code of Business Conduct;
• Control, Surveillance and Audit Systems;
• Reporting Systems and Disciplinary Processes;
• Training and Training Systems;
• Human Rights Policies; and
• Transparency and Publicity Mechanisms.

Yes, according to the General Administrative Liabilities Law, articles 88 and 89, an individual or entity may confess a violation to the law in order to benefit from leniency when penalties are imposed.

In order to determine the level of leniency, the authority will consider the timing of the disclosure as well as the supporting evidence provided.