If your company has or seeks to have any kind of tie with the Mexican government —such as a supplier, contractor, concessionaire, or simply as a legal entity that interacts with public officials— the National Anti-Corruption System (SNA) is not something you can ignore. Since 2016, this system radically transformed the rules of the game between the private sector and the State: it is no longer enough for officials to be accountable.

Companies are also subject to investigation, sanction, and, in the worst cases, disqualification. Understanding how this legal framework works is, today, a business necessity.

What is the National Anti-Corruption System and what is it for companies?

On May 27, 2015, a series of constitutional reforms on anti-corruption were published in the Official Gazette of the Federation, with the reform of Article 113 of the Constitution being particularly relevant; through it, the National Anti-Corruption System was created as a coordination body among authorities of all levels of government competent in the prevention, detection, and sanctioning of administrative offenses and acts of corruption.

In practical terms, the SNA is the institutional architecture connecting the main entities responsible for combating corruption in Mexico. To put it into operation, it was necessary to issue, amend, and repeal various legal provisions. The secondary laws approved by Congress include the General Law of the National Anti-Corruption System, the General Law of Administrative Responsibilities, the Organic Law of the Federal Court of Administrative Justice, the Audit and Accountability Law of the Federation, and amendments to the Federal Criminal Code and the Organic Law of the Federal Public Administration.

For companies, the central message is clear: the SNA extended the reach of the anti-corruption regime beyond public service. The General Law of Administrative Responsibilities aims to distribute competences among levels of government to establish the administrative responsibilities of public servants, their obligations, the applicable sanctions, and those corresponding to private parties linked to serious administrative offenses.

Which bodies make up the SNA and how do they coordinate?

The SNA is not a single agency, but a system of several institutions operating in a coordinated manner. Its main members are:

• SNA Coordinating Committee: governing body responsible for establishing comprehensive policies, measurement methodologies, and indicators. It includes the Anti-Corruption and Good Governance Ministry, the Superior Audit Office of the Federation (ASF), the Federal Court of Administrative Justice (TFJA), the Specialized Anti-Corruption Prosecutor's Office (FECC), the National Institute for Transparency (INAI), and the Federal Judiciary Council.

• Citizen Participation Committee: civil society body that monitors the system's performance and acts as a citizen counterweight.

• SNA Executive Secretariat (SESNA): technical arm of the Coordinating Committee, responsible for coordinating policies and maintaining the National Digital Platform.

• Local Anti-Corruption Systems: replicas of the SNA in each federal entity, meaning the system's reach covers the three levels of government.

The National Digital Platform integrates and interconnects various electronic systems with data and information necessary for the competent authorities to carry out their anti-corruption and control functions. The initial PDN systems include the asset evolution and interest declaration system, public servants involved in public procurement, sanctioned public servants and private parties, and a complaints system.

At what point does a private company become subject to the SNA?

This is the question that most worries the business sector: when does it stop being a government problem and become my problem? The answer lies in the General Law of Administrative Responsibilities (LGRA).

The provisions of the LGRA apply to acts by private natural or legal persons linked to serious administrative offenses. These offenses include bribing public servants directly or through third parties, illicit participation in administrative acts, influence peddling, the use of false information in administrative proceedings to obtain authorizations, benefits, or advantages, and obstruction of investigations related to administrative offenses.

Additionally, the law contemplates:

• Improper use of public resources: when a company handles, administers, or has access to public funds and diverts them or fails to account for them.

• Improper hiring of former public servants: hiring someone who was a public servant during the previous year, who possesses privileged information acquired by virtue of their previous position, and that such information allows the employer to obtain a market benefit or an advantage over competitors.

The turning point is that the link to a serious administrative offense does not require the private party to have initiated the corrupt act; it is enough that they participated in, facilitated, or tolerated the conduct.

What sanctions can a company sanctioned by the SNA face?

The consequences for legal entities go far beyond a fine. The General Law of Administrative Responsibilities establishes various sanctions for private parties, including economic penalties that can reach up to twice the benefits obtained or, if there were none, up to MXN $113,235,000 for legal entities. It also contemplates disqualification from three months up to eight years to participate in public acquisitions, leases, services, or works, and compensation for the damages caused to the Federal Public Treasury. In the most extreme case, the sanction can lead to the dissolution of the company.

A critical aspect is the corporate aggravating factor: it is considered an aggravating circumstance for imposing sanctions on legal entities if their governing, representative, oversight bodies or partners were aware of alleged acts of corruption by the natural persons belonging to them and these were not reported.

On the other hand, active cooperation and timely reporting operate as mitigating factors.

The authority's powers to impose sanctions prescribe in seven years in the case of serious offenses or private-party offenses, counted from the day after the infringement was committed.

What is an Integrity Policy and why can it save your company?

The LGRA introduced a concept every company linked to the public sector must know thoroughly: the Integrity Policy. This internal compliance program is not a corporate decoration; it is a factor that authorities value directly when determining liability and grading the sanctions of a legal entity.

A fundamental aspect established by the General Law of Administrative Responsibilities is that in determining the liability of legal entities, it will be assessed whether they have an Integrity Policy that includes, at minimum: an organization and procedures manual that defines the functions and responsibilities of each area, chain of command and leadership; a duly published Code of Conduct and communicated to staff; and adequate and effective systems of control, monitoring, and auditing over compliance with integrity standards throughout the organization.

The minimum elements this policy must contain, according to the law, are:

• Organization and procedures manual that defines functions and responsibilities by area

• Code of Conduct published and communicated to staff

• Internal control, monitoring, and audit systems

• Internal reporting mechanisms (reporting channels)

• Training and capacity-building programs in integrity matters

The logic behind this is clear: a company that can show it had robust internal controls before an act of corruption occurred is in a significantly better position in an administrative liability proceeding than one that did not. This is precisely why implementing an Integrity Policy goes beyond ethics and becomes a legal risk management strategy.

According to the Corporate Integrity Index 500 (IC500) 2024, the average score of the 500 most important companies in Mexico went from 36.8 in 2017 to 75.2 in 2024, reflecting significant progress, although one in five companies still has a score below 60 out of the 100 possible.

How does the SNA affect companies participating in public contracts and tenders?

For companies supplying the government, the SNA has direct implications in the full public procurement cycle. The internal control bodies of the agencies have the authority to supervise the execution of procurement procedures to ensure they are carried out according to law. Any irregularity detected may lead to an investigation involving both the public servant and the supplier company.

For those managing government contracts, this framework means paying special attention to three critical moments:

• Before contracting: verify that no company executive, attorney-in-fact, or representative appears in the Registry of Sanctioned Public Servants and Private Parties of the National Digital Platform, since agencies are required to consult it before formalizing any contract.

• During execution: thoroughly document compliance with contractual obligations, since discrepancies between what was agreed and what was delivered may lead to allegations of improper use of public resources.

• In the event of disputes: know the available defense mechanisms when disputes arise over the scope or performance of contracts.

When the conflict arises in the award phase, it is also essential to understand the legal remedies available. Companies have the right to challenge a direct award or any act in the bidding process they consider irregular, without this necessarily implying an accusation of corruption; in many cases, these are procedural errors that have a legal remedy.

Corruption has not only permeated government institutions and the services they provide; it has also been accepted as a social norm in interactions with private enterprise, promoting favoritism and arbitrariness in public procurement processes. The 2018 Public Procurement Corruption Risk Index noted that 0.02% of the total registered suppliers in government obtained one-fifth of national public procurement spending, and that one thousand companies received 71% of contracts through direct award during the 2012-2017 period.

What risks does a company face when dealing with former public servants?

One of the least known but most relevant aspects of the SNA is the restriction on hiring former officials. A company may commit a serious administrative offense without any of its members having bribed anyone, simply by hiring the wrong person at the wrong time.

The law states that a private party incurs improper hiring when it hires a former public servant during the year following the end of their term, provided that person possesses privileged information derived from their duties and that the information is used so the company obtains advantages in the market or over competitors. In that case, both the former official and the hiring company may be sanctioned.

For companies operating in highly regulated sectors or frequently interacting with authorities—such as health, energy, telecommunications, or import and export—this risk is especially relevant. Companies with foreign trade operations, for example, must be particularly careful; anyone facing a procedure in the area of legal defense in IMMEX or export operations knows that the line between legitimate conduct and behavior the SNA may qualify as irregular is thinner than it seems.

What role does the Superior Audit Office of the Federation play in supervising companies?

The Superior Audit Office of the Federation (ASF) is one of the most active bodies within the anti-corruption system, and its reach over the private sector may be surprising. The ASF audits the use of federal public resources, which includes verifying how private parties who receive or manage those resources comply with their obligations.

When the ASF determines that public resources were transferred to a private party without legal basis, or that there was improper use, it can demand their repayment. If this does not occur within the established period, the amounts automatically become tax debts and the SAT can proceed with their coercive collection.

Understanding how a serious administrative offense works and how to defend yourself before the ASF or the SFP is essential for any company that has received public resources, participated in construction contracts, or provided services to government agencies, since administrative liability procedures have very specific deadlines and procedural rules that determine whether a company can mount an effective defense.

How can you legally shield your company from the SNA?

Beyond complying with the law's minimum requirements, companies that want to operate safely in Mexico need to adopt a proactive approach. These are the essential steps:

1. Implement a robust Integrity Policy It should include a code of conduct, internal controls, an anonymous reporting channel, a training program, and periodic audits. Its existence and effectiveness are legally recognized mitigating factors.

2. Conduct due diligence on partners and suppliers Before partnering with or contracting third parties that have ties to the government, verify their history on the National Digital Platform.

3. Establish controls for hiring former officials Implement specific filters to detect whether a candidate recently held public office and whether the information they possess could generate a legal risk for the company.

4. Thoroughly document relations with the public sector Every meeting, contract, service delivery, or payment must be properly documented to demonstrate the legitimacy of operations in the event of an investigation.

5. Have specialized legal advice before facing a proceeding Deadlines in administrative liability proceedings are short and errors in the investigation stage can be irreparable. The defense must be built from the first request for information, not once the Report of Alleged Administrative Liability has already been issued.

What every company should know before signing a contract with the Mexican government

The National Anti-Corruption System is not an abstract threat to the private sector: it is a current regulatory framework, with active authorities, quantifiable sanctions, and a public registry of sanctioned private parties that can close the government market's doors to any company that fails to comply with its provisions. The best strategy is not to wait for a problem to arrive, but to build from within a culture of integrity and the controls that the law already requires and that authorities value when deciding.

Companies that participate in public procurement, that seek to recover debts from agencies through government debt collection, or that simply provide services to any state entity must assume that the SNA rules apply to them directly. Compliance is not just a legal obligation: it is a competitive advantage in an environment where business integrity is increasingly an evaluation criterion.

Frequently Asked Questions 

Does the SNA apply only to companies that have contracts with the government? 

Not exclusively. While companies supplying the State are the ones most frequently exposed to its provisions, the law sanctions any private legal entity or individual that participates in a serious administrative offense by a public servant, even if there is no formal contract in place. Occasional bribery or influence peddling is enough to trigger the sanctioning regime.

Can a company be sanctioned even if the public servant is not? 

Yes. The LGRA expressly establishes that the imposition of administrative liability for private-party offenses is determined autonomously and independently of the public servant's participation. This means that even if the official is acquitted or the proceeding against them is dismissed, the company can still be sanctioned.

What is the Registry of Sanctioned Private Parties and how does it affect my company? 

It is a public system integrated into the National Digital Platform where the sanctions imposed on natural persons and legal entities for serious administrative offenses are recorded. Appearing in this registry means being disqualified from contracting with any federal, state, or municipal government entity during the sanction period, which in practice may mean total exclusion from the government market.

Is a foreign company with operations in Mexico also subject to the SNA? 

Yes. The LGRA applies to any natural or legal person who commits the conduct defined in Mexican territory, including in international commercial transactions. In addition, Mexico is a signatory to the OECD Anti-Bribery Convention, which creates additional obligations for companies operating in the country originating from member nations.

How long does the authority have to investigate a company? 

For private-party offenses linked to serious administrative offenses, the limitation period is seven years counted from the day after the infringement was committed or from when it ceased. This means that a company may face an investigation for acts that occurred several years earlier.

What happens if a company employee commits an act of corruption without the executives knowing? 

The company can still be sanctioned. However, if the governing, representative, or oversight bodies reported the conduct or cooperated in the investigation once they became aware of it, this is considered a mitigating factor. Ignorance does not automatically exempt the legal entity, but the existence of internal controls and effective reporting channels is a factor the authority weighs favorably.

What is the difference between a serious and a non-serious administrative offense for companies? 

Non-serious offenses apply exclusively to public servants and are resolved by internal control bodies. Serious offenses —including the so-called "private-party offenses"— are handled by the Federal Court of Administrative Justice (or its local equivalents) and are the ones that can involve private companies with the harshest sanctions. The distinction matters because it defines which authority has jurisdiction to investigate and sanction, and what legal remedies are available for the defense.