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Do you know that there are preventive actions that can be implemented in your company to reduce the risk of being sanctioned in the National Anti-Corruption System?

Would you like to know how to reduce the risk that your employees and officials engage in illegal or irregular activities that affect the company, when contracting with the Government?

In 2015, the Constitution of the United Mexican States was amended to create the National Anti-Corruption System and, from then on, companies’ behaviors that can be sanctioned in their relationship with the government are regulated, derived from two new laws: (i) General Law of the National Anti-Corruption System, and (ii) General Law of Administrative Responsibilities; as well as amendments to the Federal Criminal Code.

Before the amendments, there was an approach to investigate corruption only in the government sphere, and currently the vision corresponds to the fact that, in acts of corruption, the private sector also has an important role that must be equally punished.

Currently, government inspection bodies can make home visits, demand the exhibition of books, contracts, documents; conduct interviews with individuals and promote the imposition of sanctions or criminal complaints, to private persons who have received public resources in payment.

Now the legal framework sets forth sanctions for companies that incur in faults in their relationship with the government: economic sanction that constitutes a tax credit executed by the Tax Administration Authority (up to approximately $8,190,000.00 US Dollars); disqualification to contract with the government (up to 10 years); suspension of activities, and even dissolution of the company.

The risks are economic and also reputational for companies that incur in serious offenses (bribery, influence peddling, use of false information, obstruction of investigative powers, improper hiring of former public servants, improper use of public resources, etc.)

In this sense, it is important that companies develop and update their integrity policy: organization and procedures manual, code of conduct, control and surveillance systems, complaint systems, training, etc., since when determining the responsibility of the company, the courts will assess its implementation.

If you need additional information regarding the contents of this document or if you need legal advisory, please contact the following person:

Jorge Ortega González – Of Counsel 

Teléfono:   +52 55 50015452

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