Corporate Compliance: Preventing Legal and Operational Risks
The term compliance, within the corporate world, refers to a set of procedures and best practices that companies must adopt in order to identify, prevent, report, and monitor the operational and legal risks they may face as a result of their activities. Its purpose is to establish internal prevention, supervision, and control mechanisms aimed at regulatory compliance. Implementing and analyzing these types of practices allows Mexican companies to anticipate and avoid conflicts arising from misconduct, negligence, and non-compliance with laws, which could otherwise result in sanctions, fines, or legal actions brought by authorities or third parties.
Among the main areas covered by corporate compliance are the following:
- Anti-corruption and anti–money laundering;
- Internal policies and labor compliance;
- Supply chain;
- Cybersecurity;
- Antitrust; and
- Consumer protection.
Anti-corruption and Anti–money laundering
The Mexican State, through the National Anti-Corruption System, has established regulatory mechanisms to combat corruption and money laundering. Among the most relevant provisions are the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (the “Anti–Money Laundering Law”) and the General Law of Administrative Responsibilities (“LGRA”). Within the corporate compliance framework, these ordinances require companies and obligated parties to establish effective internal controls.
The Anti–Money Laundering Law imposes specific obligations on individuals and entities that perform the vulnerable activities listed therein, such as: (i) identifying and collecting information from clients or users with whom such activities are carried out; (ii) submitting notices and reports to the Ministry of Finance and Public Credit when required; and (iii) having manuals, policies, and internal procedures for the identification and control of the vulnerable activities performed, in order to prevent or facilitate the detection of transactions carried out with resources of illicit origin.
Likewise, pursuant to the LGRA, companies must adopt measures to prevent, detect, and sanction acts of bribery, influence peddling, or misuse of public resources. Among such obligations is the implementation of an integrity program, which must include: (i) an organization and procedures manual defining the functions and responsibilities of each area of the company; (ii) a code of conduct; (iii) control, monitoring, and audit systems to verify compliance with integrity standards; (iv) internal and external reporting systems; (v) training and education systems regarding integrity measures; (vi) human resources policies; and (vii) mechanisms to ensure transparency. Additionally, companies with global operations must comply with international standards, including the U.S. Foreign Corrupt Practices Act and/or the UK Bribery Act, as applicable.
Accordingly, the directors and officers of each company must conduct a comprehensive analysis of their operations, structures, and commercial relationships in order to identify specific risks of corruption, conflicts of interest, or misuse of public resources arising from their business activities and interactions with public authorities. This analysis should serve as the basis for the implementation and continuous updating of internal policies, controls, and procedures.
Internal policies and labor compliance
Within the corporate compliance framework, internal policies are essential instruments that allow companies to guide their conduct in accordance with institutional objectives and regulatory requirements. Their purpose is not limited to achieving business goals, but also ensuring that operations are carried out under standards of legality, transparency, and corporate ethics. In addition to the policies mentioned above, this category includes, among others, codes of conduct, operating manuals, confidentiality policies, and other guidelines that strengthen regulatory compliance.
Labor compliance constitutes a fundamental pillar of corporate management, as it requires strict observance of the Federal Labor Law (“LFT”), social security regulations, and occupational risk prevention provisions. This area includes the creation and implementation of internal work regulations, internal protocols against discrimination, harassment, and workplace harassment, compliance with various Official Mexican Standards (NOMs) related to psychosocial risk factors, and the proper drafting and formalization of individual and collective employment agreements in accordance with the LFT in force. The legal purpose of these measures is to prevent administrative sanctions, avoid labor claims, and reduce the likelihood of contingencies that could compromise the company’s stability, both collectively and individually, thereby ensuring a fair, safe, and legally compliant work environment.
For these policies to be effective, reporting, control, and sanction mechanisms must also be incorporated, as well as procedures for addressing improper internal or external conduct. This way, the implementation of internal compliance policies not only helps preserve a harmonious workplace, but also reduces legal and reputational risks, strengthening a culture of integrity and compliance with the obligations set forth in the applicable legislation.
Supply chain
Within a company’s operations, activities such as importation, exportation, transportation and distribution of products, or the provision of services, are regulated by different legal ordinances. It is therefore crucial for companies to ensure that their supply chain complies with the standards established by applicable laws. These standards are mainly contained in the LFT, the Federal Tax Code, and in executive decrees. When required, our firm can advise clients regarding their applicable obligations, with the objective of preventing authorities from interrupting or shutting down business operations.
Cybersecurity
Digital transformation has generated significant operational benefits for organizations, but it has also introduced substantial risks related to breaches of information systems, making it necessary to adopt preventive measures regarding cybersecurity and protection of information. In the financial and technology sectors, the National Banking and Securities Commission, the Bank of Mexico, and international standards have established mandatory guidelines and best practices governing technological risk management. This technical and regulatory framework requires the implementation of information security policies, periodic incident-response simulations, and continuous monitoring of critical systems to anticipate and mitigate potential attacks or failures.
Another essential aspect of digital-era compliance is the protection and privacy of personal data, regulated in Mexico by the Federal Law on the Protection of Personal Data Held by Private Parties, which requires companies to clearly inform data owners about the use of their information and to obtain their express consent for its processing. Organizations must also monitor channels through which confidential information is shared, in order to prevent contractual breaches with suppliers or clients and the improper disclosure of trade secrets to third parties. The legal purpose of these measures is to prevent economic damage, avoid civil liability for inadequate data protection, and reduce the risk of incurring in criminal liability arising from cybercrimes, therefore strengthening the integrity and legality of the digital business ecosystem.
Antitrust
In antitrust matters compliance is strategically relevant, as companies must ensure that their operations adhere to the principles of free competition and fair market practices established in the Federal Antitrust Law. The main purpose of this legislation is to prevent absolute and relative monopolistic practices, as well as market-distorting conduct such as price-fixing agreements, market segmentation, exclusive distribution arrangements, or restrictive commercial associations.
Companies must implement internal policies and compliance controls to ensure early identification of potentially antitrust conduct, as well as response protocols to mitigate risks arising from investigations or sanctions by authorities. Non-compliance to such provisions may result in significant fines, contract nullification, and even criminal liability for the company’s managers, putting both financial stability and corporate reputation at risk.
Thus, antitrust compliance is not only a legal prevention measure, but also a mechanism that fortifies market confidence, promotes transparent business relationships, and contributes to the development of a balanced economic environment. Implementing a compliance program in this area will allow companies to anticipate regulatory risks and ensure that their market participation abides by the principles of legality, equality and economic efficiency.
Consumer protection
Consumer protection laws and regulations affect many aspects of a company’s operations, from advertising and marketing practices to customer data privacy and security. CONDUSEF and PROFECO are government entities created to regulate consumer relationships arising from the commercialization of goods and services. Based on the regulations issued by these entities, our firm can provide advice to align company documentation and/or commercial processes with applicable legislation, as well as to review supplier contracts to ensure compliance with the Federal Consumer Protection Law.
Not all companies are subject to all of the areas discussed herein; likewise, some may require the implementation of additional compliance programs; therefore, each case must be reviewed and addressed on a case-by-case basis.
At JATA, we have the knowledge and experience required to advise companies in the creation and implementation of internal policies and design of an action plan within the Mexican regulatory framework to identify, prevent, and address misconduct and non-compliance with applicable laws for each company.
February 2026.
This article was originally written in 2022 and updated in February 2026. Please send any questions or comments to info@jata.mx. One of the authors is a Partner at JATA – J.A. Treviño Abogados and the other one is a Senior Associate at JATA, and they may be contacted at vcantu@jata.mx and ecardona@jata.mx, respectively. JATA is a Mexican law firm with offices in Monterrey, N.L., Mexico, and Houston, Texas.
Disclaimer: J.A. Treviño Abogados S.A. de C.V. (the “Firm”) does not necessarily endorse, and is not responsible for, any third-party opinion expressed in this article, and therefore the Firm will not be liable for the content of such opinions. Any article, comment, quote or any other information appearing under the authorship of any person or legal entity other that the Firm, even if related to the Firm, solely represents the opinion, comment or position of such author. The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any subject matter. The information contained in this article is protected as property of the Firm. No recipient of this article, client of the Firm or otherwise, should act or refrain from acting on the basis of any content included in the article without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the relevant jurisdiction. This article contains general information and may not be updated. The Firm expressly disclaims all liability in respect to actions taken or omitted based on any or all of the contents of this article.
