Mexico Country Summary

FATF Status

Mexico is not currently on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mexico was undertaken by the Financial Action Task Force (FATF) in 2023. According to that Evaluation, Mexico was deemed Compliant for 10 and Largely Compliant for 24 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Corruption in Mexico is pervasive across both public and private sectors, with government officials often implicated in bribery, fraud, and misappropriation of funds. Despite the government's implementation of anti-corruption reforms and the establishment of the National Anti-Corruption System, civil society argues that more effective and systematic actions are needed to combat corruption at all levels. Additionally, Mexico faces significant challenges related to organized crime, human trafficking, and financial crimes, exacerbated by a lack of public trust in law enforcement and a weak civil society.

In 2023, Mexico experienced a GDP growth of 3.1% and maintained a stable public debt-to-GDP ratio below 50% throughout President Andres Manuel Lopez Obrador's term. The country is the largest trading partner of the United States, with bilateral trade increasing nearly eightfold since 1994, while inflation reached 4.9%, exceeding the Central Bank's target. Despite being open to foreign direct investment, recent regulatory changes have raised concerns among investors regarding the investment climate, particularly in the energy sector.

Mexico maintains an open investment climate for foreign direct investment (FDI), particularly benefiting from its proximity to the United States and a large domestic market. However, recent regulatory changes, particularly in the energy sector, have raised concerns among investors regarding policy uncertainty and access to reliable clean energy. Despite these challenges, Mexico continues to attract significant FDI, with the United States being the largest source, accounting for 36 percent of the total FDI stock.