No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights

Global Trends in Anti-Corruption Legislation: Mexico to Ramp up Enforcement Activity

by Kyle Petersen
January 4, 2016
in Uncategorized

U.S. federal prosecutors recently investigated Wal-Mart de Mexico, Wal-Mart Stores, Inc.’s largest foreign subsidiary, for alleged violations of the Foreign Corrupt Practices Act (FCPA). The FCPA is a U.S. criminal statute prohibiting bribery of foreign government officials to obtain or retain business. It generally applies to U.S. companies and citizens. U.S. companies doing business outside the country must be aware of FCPA prohibitions and understand when and how it is enforced to avoid costly investigations. Wal-Mart expects to pay between $130 and $150 million in FCPA and compliance-related costs for the 2015 fiscal year.

However, the FCPA is no longer the only anti-corruption law U.S. companies need to pay attention to when conducting business abroad. Several countries have adopted their own anti-corruption legislation, including Mexico. Some mirror the FCPA, while others are more inclusive. For example, the UK Bribery Act prohibits bribery in general, regardless of whether the recipient of the bribe is a government official or private citizen.

Additionally, violations of anti-corruption laws rarely occur in a vacuum. An investigation by one foreign government under its anti-corruption statute may very well trigger an investigation by the U.S. government under the FCPA—and cross-border cooperation between governments has improved considerably in recent years. U.S. and Mexican officials, for instance, both participated in the Wal-Mart de Mexico investigation.

 

While the number of FCPA enforcement actions remains relatively consistent year to year, the dollar amount of settlements is on the rise. In 2014, the Department of Justice and Securities and Exchange Commission collected a combined $1.56 billion in FCPA recoveries—double the amount collected in 2013.  Outside the U.S., a number of countries with newly adopted anti-corruption laws have reported significant increases in enforcement actions, including China, Brazil and European Union member states. To avoid hefty fines and possible prison sentences, multinational companies must understand the global anti-corruption landscape—especially in countries intent on making significant efforts to crack down on corruption, like Mexico.

 

In 2012, Mexico adopted the Federal Law Against Corruption in Public Procurement (Ley Federal Anticorrupción en Contrataciones Públicas—LFACP). Like the FCPA, the LFACP prohibits companies and individuals from offering money or gifts to secure a business advantage in the procurement of public contracts with the Mexican government. The law also criminalizes bribery of non-government officials. However, since its enactment, the LFACP has rarely been enforced. The problem in many jurisdictions is not a lack of anti-corruption laws, but the enforcement of those laws.

 

Earlier this year, the Mexican Chamber of Senators approved a constitutional reform to address the Mexican legal system’s shortcomings in enforcing anti-corruption efforts. The new framework, called the National Anti-Corruption System (Sistema Nacional Anticorrupcion—SNA), does not create new corruption crimes, but does strengthen penalties for corruption and sends a clear message that the Mexican government intends on enforcing violations of the LFACP.

 

Notably, the reforms introduce a whistleblower provision allowing citizens to report corrupt activities to the Mexican House of Representatives. Additionally, the SNA will coordinate enforcement efforts at the municipal, state and federal level and will (1) establish the Federal Tribunal of Administrative Justice and appoint a special prosecutor to impose sanctions on violators, (2) require states to do the same, (3) require public servants to declare their assets and interests, (4) extend the statute of limitations for serious administrative misconduct from three to seven years and (5) allow the Federal Audit Office and Public Administration Ministry to investigate and conduct audits more frequently and advocate for enforcement of violations against potential violators.

 

In light of new country-specific anti-corruption laws, a rise in enforcement actions globally and the multi-jurisdictional cooperation of such enforcements, U.S. based multinational companies must recognize their compliance obligations with the FCPA and local anti-corruption legislation—especially in countries like Mexico, where many expect the government to ramp up its enforcement activity.


Tags: Tone at the Top
Previous Post

Best of 2015: Employee Fraud Collusion Puts Companies at High Risk

Next Post

Cybersecurity – The New Normal for Boards

Kyle Petersen

Kyle Petersen

November 5 - Petersen headshot (400x600)Kyle Petersen, an Associate with Kirton McConkie, focuses on assisting clients with cross-border business transactions. He can be reached at (801) 350-7629.

Related Posts

personnel management

Preparing for Budget Cuts in 2023? Be Sure Personnel Management Isn’t on the Chopping Block

by Vera Cherepanova
March 1, 2023

For compliance departments that need to do more with less, it’s tempting to lean into automated systems. Compliance and ethics...

boris johnson resigns as UK prime minister

Them’s the Breaks: What Companies Can Learn From Boris Johnson’s Downfall

by Miller & Chevalier
July 27, 2022

Embattled Prime Minister Boris Johnson resigned after a revolt in his own party. While the political repercussions of Johnson’s tenure,...

Corporate Liability Reform in the UK is Accelerating: Your GRC Teams Need to Future-Proof Compliance  

Corporate Liability Reform in the UK is Accelerating: Your GRC Teams Need to Future-Proof Compliance  

by Fabio Feretti and Sarah Wrigley
March 30, 2022

The UK’s just-enacted corporate crime legislation is a step in the right direction but failed to address a wide range...

Making Money Is Not a Mission: 10 Essays on the Compliance Culture Revolution From Michael Volkov

Making Money Is Not a Mission: 10 Essays on the Compliance Culture Revolution From Michael Volkov

by Corporate Compliance Insights
February 11, 2022

As broad terms like "culture" continue to gain devotees, it may seem natural to conclude that more businesses and organizations...

Next Post
Cybersecurity – The New Normal for Boards

Cybersecurity – The New Normal for Boards

Compliance Job Interview Q&A

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Code of Conduct Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime Financial Crimes Enforcement Network (FinCEN) GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring RegTech Reputation Risk Risk Assessment SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2022 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe

© 2022 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT