Anti-Bribery and Corruption Laws in Mexico

Corrupt practices may be pursued through both administrative and criminal avenues. 

National Anti-corruption System 

In 2015 and 2016, as a result of the effort of the Federal Government to eradicate bribery and corruption, several reforms were carried out in order to create a National Anti-Corruption    System (NAS). The NAS coordinates social entities and authorities of different levels of   government, in order to prevent, investigate and punish corruption. According  to  the  NAS website, it is currently operating in 95% of Mexican territory. In order to function properly, the   NAS implemented operational and structural changes, the most relevant being the following: 

• The creation of the Anti-corruption Prosecution Bureau and the Citizen Participation Committee. 
• The establishment of penalties to private entities which engage in bribery and corruption. 
• The implementation of new laws and the reform of existing laws, such as: 
  • new  National  Anti-corruption  System  Law; 
  • new  General  Administrative  Liabilities  Law; 
  • new Federal Court of Administrative Justice Law; 
  • new Audit and Accountability of the Federation Accounts Law; 
  • reform of the Federal Criminal  Code,; 
  • reform of the Organic Law of Federal Public Administration,; and 
  • reform of the Attorney-General’s Office Organisation Act. 
• State legislatures were required to pass new legislation or to amend existing laws to conform with the provisions of the General Administrative Liabilities Law. 
• The creation of a Coordinating Committee responsible for establishing coordination mechanisms between members of the NAS. 
• The implementation of a National Digital Platform that connects various electronic systems in order to establish policies and measurement methodologies, to which Authorities will have access. 

Criminal Code 

The Federal Criminal Code, and the criminal codes of several states, contain a specific chapter covering felonies associated with acts of corruption. 

By public officials 

Bribery (Article 222, I): “Unduly requesting or receiving, by himself or through an intermediary, money or any benefit, or accepting a promise, for himself or a third party, to act or not act a function inherent to their duty”. 

Traffic of Influence (Article 221, I., II.): (I) “The official who, directly or through intermediaries, promotes or performs an improper act in the exercise of his functions; and (II) the official who solicits or promotes any resolution or realisation within the post, charge or commission of a public official, which results in economic benefits for himself or for a third party”. 

Embezzlement (Article 223, I., II.): “Embezzling money, goods, properties or any other object belonging to the State, or to an individual, whether for their own or someone else’s benefit, if they received them through administration, in deposit or for any other cause by reason of their post”. 

By others 

Bribery (Article 222, II): “Giving or offering money or any other gift to an official (including a foreign official) for any form of performance or non-performance of his or her functions.” 

Traffic of Influence (Article 221 II): “Any person who promotes the illicit conduct of the official or assists with the promotion or management of such illicit conduct.” 

Embezzlement (Article 223, III, IV): “Any person who solicits or accepts the offer to act or not to act contrary to his duty in exchange for public funds or to enjoy the benefits deriving from undue use of power and faculties.” 

Law on Administrative Liabilities 

The General Administrative Liabilities Law establishes administrative penalties for improper payments to government officials, bid rigging in public procurement processes, the use of undue influence, and other corrupt acts. 

The General Administrative Liabilities Law applies to all Mexican public officials who commit what the law calls “non-serious” and “serious” administrative offences and private parties (entities or individuals / domestic or foreign) who engage in corrupt practices. 

Non-serious administrative offences include the failure to uphold certain responsibilities of public officials, as defined by the General Administrative Liabilities Law (e.g. cooperating with judicial and administrative proceedings, reporting misconduct etc.). Serious administrative offences include accepting (or demanding) bribes, embezzling public funds and committing  other corrupt acts, as defined by the law. 

By public officials 

Bribery (Article 52): “The public official who, by himself or through third parties, demands, accepts, obtains or intends to obtain, any benefit beyond their legitimate renumeration for the fulfilment of their functions commits an act of bribery.” This article extends to political campaigns and political candidates. “Also considered bribery will be the public official who    does not return payment in excess of their legitimate renumeration according to the applicable tabulators within 30 calendar days of receiving it.” 

Embezzlement (Article 53): “The public official who authorises, requests or performs acts for the use or appropriation of public resources, whether human, material or financial, without legal basis or contrary to the applicable rules will commit public embezzlement.” “Public officials will not be able to provide for the services of members of a police corporation, public security or armed forces, in the exercise of their functions, to provide personal security, unless contemplated by regulation or it is deemed necessary in the circumstances to provide such security…”

Conflict of Interest (Article 58): “The public official who intervenes, due to his employment, position or commission in any way, in the attention, procedure or resolution of matters in which he has a conflict of interest or legal impediment, acts in conflict of interest.”

Hidden Enrichment or Concealment of Conflict of Interest (Article 60): “The public official who fails to comply with the veracity in their financial declaration or fails to declare a conflict of interest with the purpose of concealing the increase in his finances or the unjust use and enjoyment of goods and services, will engage in hidden enrichment of concealment of conflict of interest.”

Simulation of a legal act (Article 60 Bis): “A public official commits a simulation of a legal act when he uses legal personality other than his own to obtain, for his own benefit or that of a family member…public resources contrary to the law.”

Traffic of Influence (Article 61): “The public official who, through his position, promotes or performs an improper act in the exercise of his functions, which results in an economic benefit for himself or for a third party, will engage in traffic of influence.”

Nepotism (Article 63 Bis): “A public official commits nepotism when he, through the attributes of his employment or position, directly or indirectly, designates, appoints or intervenes…to employ a person who has kinship ties up to the fourth degree…or through marriage or common-law bond.”

By others
Bribery (Article 66): “Any individual who promises, offers or delivers any undue benefit referred to in Article 52 [see above] of this Law to one or more public official, directly or through third parties, in exchange for such public official to perform or refrain from performing any act shall be an act of bribery.”

Asset Forfeiture Law
The recent Asset Forfeiture Law overhauls forfeiture of assets deriving from illicit activities, including those related to organised crime, kidnapping, hydrocarbon theft, health, human trafficking, corruption, motor vehicle theft, illicit proceeds, and those committed by public officials, has become one of the most relevant laws affecting the response to corruption in Mexico.

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Federal Criminal Code 

Individuals (public officials or  others) 

Traffic of Influence: 

Imprisonment of two to six years, a fine of 30 to 100 times the minimum current daily salary in Mexico City. 

Bribery: 

• Where the advantage does not exceed the equivalent to 200 times the current Unit of Measurement and Update (UMU) value: three months to two years’ imprisonment, a fine of 30 to 100 times the minimum daily salary in Mexico City and dismissal or disqualification    for one to ten years from occupying another public post, charge or commission 
• If the quantity or value of the gift, promise or amount borrowed exceeds 200 times the current UMU: two to fourteen years’ imprisonment, a fine of 100 to 150 times the minimum daily salary in Mexico City and dismissal and disqualification for ten to twenty years from occupying another public post, charge or commission 

Embezzlement: 

• Imprisonment for three months to two years, a fine of 30 to 100 times the minimum daily salary in Mexico City 
• When the sum of the diverted funds exceeds 500 times the UMU, or is not quantifiable, imprisonment for two to fourteen years, a fine of 100 to 150 times the minimum daily salary in Mexico City 
• When the diverged funds are state contributions with the aim of public safety, a third of the above penalties shall be added to the total sentence 

General Administrative Liabilities  Law 

By public officials 

• Suspension of employment, position or  commission 
• Termination of employment, position or commission 
• Fine 
• Temporary disqualification from performing jobs, positions or commissions in the public service and from participating in acquisitions, leases, services or public works 
• If the benefit improperly obtained or granted through bribes does not exceed the equivalent of 5,000 times the UMU, and the excess amount is delivered or deposited in accordance with the applicable tabulator, the administrative fault will be considered not serious 

By others including legal entities 

• Individuals: 
  • Economic penalty 
  •  Temporary disqualification from performing jobs, positions or commissions in the public service and from participating in acquisitions, leases, services or public works for three months to eight years
  • Compensation for damages and losses to the  authority 
• Legal Entities: 
  • Economic penalty 
  • Temporary disqualification to perform jobs, positions or commissions in the public service   and to participate in acquisitions, leases, services or public works for three months to ten  years
  •  The suspension of activities, for a period that will not be less than three months or more than three years, which will consist of stopping, deferring or temporarily depriving individuals of their commercial, economic, contractual or business activities 
  • Dissolution of the entity 
  • Compensation for damages and losses to the  authority 

For simulation of legal act, public officials can be disqualified for five to ten years 

Demonstrating the existence of adequate procedures and a compliance structure in place at the time of the commission of the bribery offence can be a mitigating factor for  determining sanctions under the Federal Criminal Code and reduce sanctions by up to 25%. 

Pursuant to the General Administrative Liabilities Law, the existence of an adequate integrity policy or a compliance programme is a mitigating factor for reducing sanctions. 

In addition, under the provisions of the General Administrative Liabilities Law confession of wrongdoing may reduce penalties by between 50% and 70%.