Heightened Awareness and Enforcement
operations of international companies
doing business in Mexico. All such
companies should be aware of important
U.S. and Mexican anti-corruption laws
that imply increased business costs.
The stepped-up enforcement of the
U.S. Foreign Corrupt Practices Act
(FCPA) over the last several years as
well as anti-corruption reform in Mexico
means that companies doing business
in Mexico must create and maintain
improved compliance structures. This
article reviews key elements of the
FCPA and the new anti-corruption
reform in Mexico, and discusses general
considerations for compliance programs
for international companies that have a
presence in Mexico.
seq.) is the most important United States
anti-corruption law
The anti-bribery provisions prohibit U.S.
money or anything of value to foreign
governmental officials and public figures
in order to obtain or retain business. The
accounting provisions require detailed
accounting of overseas payments and
certain accounting controls. The U.S.
Department of Justice (DOJ) and the
Securities and Exchange Commission
(SEC) share enforcement responsibility
of the FCPA.
Parent-subsidiary liability is an issue
for Mexican operations that are owned
by U.S. companies. Successor liability
may be implicated when companies
merge with or acquire another company.
Therefore, liability for anti-bribery
violations is not limited to the actions of
a company's existing employees, but is
also applied to pre-existing relationships
with business partners, distributors,
customers and potential merger partners.
Potential consequences for violations
of the FCPA include hefty fines to
companies, as well as fines, criminal
charges, and even jail terms imposed
on responsible individuals, which could
stockholders or agents. In addition, the
DOJ and SEC have civil enforcement
authority and may pursue civil actions
under relevant anti-bribery provisions.
For operations in Mexico, common
compliance risks include the following:
government/state owned entities;
authorizations, licenses, permits
or approvals (building permits,
occupancy permits, land use rights);
party consultants);
safety inspection authorities;
authorities; and,
hospitality.
of Cacheaux, Cavazos & Newton, L.L.P., where she serves as of
counsel to the firm. She is licensed in Texas and has more than
15 years' experience living and working in Mexico. She provides
FCPA training programs for companies in Mexico. She also assists
U.S. clients doing business in Mexico and advises individual and
corporate clients from Mexico on a variety of U.S. legal matters.
Edificio VAO 2 David Alfaro Siqueiros
No. 104, Int. 1505 Colonia Valle Oriente
San Pedro Garza Garcia, Nuevo Léon
Mexico C.P. 66269
Fax: +(52) 81 83 68 00 06
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