February 13, 2024

Top Challenges in the Fight Against Corruption in Mexico in 2024

The 2023 Transparency International Corruption Perceptions Index (CPI) was published
Holland & Knight Alert
Magda Karina Reza | Oscar Alejandro Quiroz-Chavez

Mexico’s Transparency International Corruption Perception Index (CPI) was published on Jan. 30, 2024. It aims to annually evaluate countries regarding the level of corruption perceived in the public sector. The CPI evaluates 180 countries on a scale from 0 (very corrupt) to 100 (very clean).

For the second consecutive year, the CPI gave Mexico a rating of 31 out of 100, placing it 126th out of 180, being the worst evaluated country among the countries that make up the Organization for Economic Cooperation and Development (OECD).

In addition to the challenge of dismantling the structures of corruption so deeply rooted in Mexico that have hurt Mexican society for decades, the country now faces new challenges from the use of artificial intelligence (AI), cyberattacks, vulnerability in compliance with sustainability indicators, and environmental, social and corporate governance (ESG) criteria, among others.

In this sense, it is essential that companies carry out periodic audits of their compliance programs, update their risk analysis, adjust their internal policies in order to consider these new risks and threats, and implement measures and controls to mitigate these risks.

Therefore, it is very important to continue to promote a culture of compliance, making internal policies known through dynamic training, establishing reliable reporting channels and implementing strong disciplinary sanctions that allow Mexico to eradicate bad practices and improper conduct of officers, directors, employees and third parties, which could seriously damage the reputation of the companies and put the continuity of operations at risk.

It should be remembered that a compliance program that meets the minimum requirements and standards established by competent authorities, in addition to promoting an ethical culture within companies, can mean a significant reduction in the imposition of administrative or criminal sanctions in the event of the commission of an administrative offense or crime.

At Holland & Knight, our team of compliance professionals can support you with the implementation of these risk mitigation measures and compliance policies and programs within your company.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.

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