Entities and Individuals in the Crosshairs Understanding Key - PowerPoint PPT Presentation

Presenting a live 90-minute webinar with interactive Q&A Mexico's New Anti-Corruption Laws and Implementing Regulations: Private Entities and Individuals in the Crosshairs Understanding Key Provisions, Ensuring Compliance and Mitigating Legal Risks TUESDAY, NOVEMBER 8, 2016 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Matteson Ellis, Member, Miller & Chevalier , Washington, D.C. Diego Sierra, Partner, Von Wobeser & Sierra , Mexico City, México The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .

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July 2016 Anti- Corruption Legislation in Mexico: Going Beyond FCPA Compliance Matteson Ellis Diego Sierra Member Partner Miller & Chevalier Von Wobeser & Sierra mellis@milchev.com dsierra@vwys.com.mx 5

Bribery risks- Mexico Corruption Perception Ranking by Transparency International 95 2015 16 10 Mexico 103 2014 17 14 106 2013 19 14 United States 105 2012 19 17 100 2011 24 16 United 98 2010 22 Kingdom 20 89 2009 19 17 72 2008 18 16 0 20 40 60 80 100 120 6

Bribery risks- Mexico Source: Fraud and Corruption Survey in Mexico, KPMG 2008. Casar, María Amparo, México: Anatomía de la Corrupción . 7

Companies subject to FCPA Actions based on Mexico Activities 8

Mexico’s new anti - corruption laws and implementing regulations • May 27, 2015. Constitutional amendments on anticorruption matters were published in the Official Journal. • The reform creates the National Anticorruption System (“ NAS ”), a coordinating “agency” between authorities of all levels of government competent in prevention, detection and sanctioning corruption. • July 18, 2016. President Peña Nieto enacted Anticorruption legislation. Noteworthy, the General Law of Administrative Responsibilities enters into force in July 2017. 9

National Anticorruption System New Legislation Amendments to Existing Laws General Law of National Anti- Corruption Organizational Law of the Federal Public System Administration General Law for Administrative Organizational Law of the General Responsibilities Attorney’s Office Organizational Law of the Federal Federal Criminal Code Administrative Law Tribunal Law of Audit and Rendering of Accounts 10

General Law of the National Anticorruption System In force  July 19, 2016 Determines coordination mechanisms between the authorities at all levels (federal, state and municipal) of government regarding: Accounting Sanction for Use of Administrative Prevention Detection Auditing Offenses and Public Corruption Funds 11

General Law of the Coordinat National Anticorruption System ing Committe e National Managing Committee Committee of Citizen Anticorrup of Participati tion NationalA on uditSystem System Representati ves of State Anticorrupti on Systems 12

General Law of the National Anticorruption System NAS ExecutiveSecretariat TechnicalSupport Agency of the NAS CoordinatingCommittee Internal Control Bodies Executive Government with in government Commission Agency agencies 13

General Law of the National Anticorruption System 14

General Law of the National Anticorruption System Coordinating Committee Requests information from Implements mechanisms and Designs, promotes and public institutions about principles for collaboration evaluates anticorruption compliance with national with audit and control policies anticorruption policies authorities Implements National Digital Issues annual report Platform (“NDP”) where Determines coordinating containing progress and results anonymous reports will be mechanisms between the of implementation of uploaded for investigation. National and the State anticorruption policies and (NDP to include list of Anticorruption Systems programs companies and/or individuals sanctioned for corrupt acts.) 15

General Law of the National Anticorruption System Committee of Citizen Participation  Involves 5 citizens appointed by the Senate based on their contributions to fighting corruption  Their mandate will last for five years  Responsible for liaising with social and academic organizations 16

General Law of the National Anticorruption System National Audit System Superior Local Ministry of Local Audit Auditor of Secretaries of PublicService Agencies theFederation PublicService • Interagency coordination mechanism between the responsible bodies for government audit in the various levels of government. • Will determine collaboration actions and mechanisms between its members. • Managing Committee involves representatives of Superior Auditor of the Federation, Ministry of Public Service and 7 members of the Local Audit Agencies. 17

General Law of the National Anticorruption System System of public officials Assets evolution, disclosure of involved in public interests and proof of tax procurement declaration system Information and communication NAS National system of sanctioned system of the National National public officials, individuals Anticorruption System and the Digital and corporations National Audit System Platform System for public accusations Public information system of of administrative offenses and procurement corrupt conducts 18

General Law of Administrative Responsibilities Into force  July 19, 2017 PreventionMechanisms - Collaborating agreements - Selection of members of the with chambers of commerce internal organs of control of the and business associations in - Public officials’ ethics code different government agencies order to bolster an integrity culture - Self-regulation mechanisms - Recommendations from the including internal control NAS Coordinating Committee - Credit for having integrity systems and programs of programs once companies are integrity for companies under investigation 19

General Law of Administrative Responsibilities Accountability - Assets evolution, disclosure of interests and proof of tax declaration System - National System of sanctioned public officials, individuals and corporations - Assets declaration and disclosure of interests - System of public officials involved in public procurement - Rules of conduct in public procurement - Public information System of Procurement 20

General Law for Administrative Responsibilities Declaration of assets and disclosure of interests CoordinatingCom mitte will Subjects: determine Publicofficials theformatsfordecla rations Declarationswill be Informationwill be published, uploaded in exceptforthose itemswhosedisclosure theNational Digital mayaffectpublicoficial Platform s ’ privacy 21

General Law for Administrative Responsbilities Minor Administrative Offenses Acts or omissions of public officials who engage in: Failure to report acts Nonperformance or omissions that of powers, may result in functions and administrative commissions. offenses. Ignoring instructions Delay in presentation No providing of their superiors of assets and tax accounts of the when they are declaration/ performance of related to public disclosure of their duties. service. interests. 22

General Law for Administrative Responsibilities Serious Administrative Offenses Acts or omissions of public officials, such as: Deviation of Bribery Embezzlement public funds Misuse of Abuse of Obstruction of information justice authority 23