It is common knowledge that corruption is a pressing issue in Mexico, as we constantly hear about the high levels of corruption in the country. In more objective terms, and according to the most recent statistics, the organization Transparencia Mexicana released that Mexico once again fell in the Corruption Perception Index, going from the 123rd position it obtained in 2016, to 135th out of 180 countries that are rated in the ranking.
In response to this complex situation, in 2015 and as a result of a citizen’s initiative, a constitutional reform was achieved, thus seeking to establish the basis for a system that would effectively attack corruption at all levels. The creation of the National Anticorruption System represents the largest anti-corruption effort ever undertaken in the country. Together with the constitutional reform, the creation of the National Anticorruption System also implied the creation of new laws and the reform of some others.
Among the new laws created, the so-called “3 of 3 Law” stands out, which was created by citizen initiative, and is well known because, among other things, it establishes the obligation for public officials to submit three declarations: tax, asset and interest declarations. This law, known as the General Law of Administrative Responsibility, establishes important changes in this area, one of the main changes being that its scope of application includes not only public officials, but also individuals who commit serious administrative offenses. The new law establishes penalties for both individuals and corporations, which is an innovation, since previous legislation on the matter did not clearly address the part of individuals.
The new law provides for sanctions that are applicable not only to individuals involved in serious violations of the law, but also sanctions for legal entities, which may be dissolved, temporarily closed or intervened in their administration, subject to the imposition of fines, or disqualified from participating in acquisitions, leasing, services or public works.
It is important to point out that the new law also contemplates mitigating and aggravating factors for the imposition of sanctions, highlighting the content of Article 25 of said law, which establishes that in determining the liability of legal entities, it will be considered whether they have an integrity policy. This article also details the minimum elements that must be included in an integrity policy in order to be considered as such: i) an organization and procedures manual; ii) a code of conduct; iii) control, monitoring and auditing standards and procedures; iv) an internal system for reporting, investigating and sanctioning acts of corruption; v) ongoing training and information programs on the integrity policy, the risk agenda and internal measures to prevent and mitigate liabilities; vi) objective, stable and measurable human resources policies to prevent the incorporation of persons at risk to the integrity of the corporation; and vii) internal and external mechanisms to ensure transparency and publicity of its interests.
Therefore, it is important for managers, shareholders and, in general, for people involved in the business world, to check whether their companies already have such an integrity policy in place. The foregoing is not a minor task, because although in the business world anti-corruption policies are usually known for compliance with foreign regulations, such as the Foreign Corrupt Practices Act (FCPA) of the U.S. or the UK Bribery Act of the United Kingdom, the review to be carried out due to the entry into force of the new General Law of Administrative Responsibility, involves the preparation of certain documents (codes of conduct, manuals, policies, etc.), as well as certain activities for its implementation, for example, the preparation of programs for staff training and the inclusion of anti-corruption clauses in contracts entered into by the company. ), as well as certain activities for their implementation, for example, the preparation of personnel training programs and the inclusion of anti-corruption clauses in contracts entered into by the company.
The implementation of a corporate integrity program is of utmost importance in the prevention of serious administrative offenses, which is why it is essential to take this issue into account when reviewing a company’s compliance with anti-corruption matters.
