New law imposes heavy sanctions on individuals and companies offering money and gifts to obtain an advantage in the procurement of public contracts. Mexico has joined a growing number of Latin American countries that have enacted anti-corruption laws aimed at cracking down on public corruption. Mexico's Federal Law Against Corruption in Public Procurement (Ley Federal Anticorrupción en Contrataciones Públicas or the Anti-Corruption Law), which took effect on June 12, 2012, is analogous in many respects to the U.S. Foreign Corrupt Practices Act (FCPA). The Anti-Corruption Law holds individuals and companies accountable for offering money or gifts to obtain or maintain a business advantage in the procurement of public contracts with the Mexican government. Further, the Anti-Corruption Law mirrors the extraterritorial footprint of the FCPA by prohibiting any such actions by Mexican entities or individuals with respect to foreign (non-Mexican) authorities and public officials, whether directly or indirectly. Violators are subject to heavy administrative sanctions, including the imposition of significant monetary fines and the prohibition of future participation in federal procurement contracts for up to a decade.
Provisions of the Anti-Corruption Law The law applies broadly to Mexican and non-Mexican companies and individuals engaged in federal government contracting in Mexico, including bidders, participants in tenders, request for proposal recipients, suppliers, contractors, permit holders, concessionaires and their shareholders, and agents. The acts and omissions prohibited by the Anti-Corruption Law include, but are not limited to, the following:
Promising, offering, or delivering money or gifts to a public official or a third partyregardless of whether the money or gift is acceptedso that the public official will either act or refrain from acting in his or her official capacity, in order to obtain or maintain an advantage in procuring public contracts
Engaging in acts or omissions with the purpose or effect of participating in federal public contracting when prohibited from participating under the law or relevant regulations
Engaging in acts or omissions with the purpose or effect of evading the rules or requirements established in federal contracting procedures
The Anti-Corruption Law also criminalizes bribery of non-Mexican government officials.
The Anti-Corruption Law sets forth a two-tiered procedure for enforcement, handled...