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 remains a significant issue in Mexico, affecting both the public and private sectors, with common practices including bribery and fraud. Despite the government's efforts to implement anti-corruption reforms, such as the establishment of the National Anti-Corruption System and the Independent Prosecutor General's office, civil society argues that more systematic actions are needed to effectively combat corruption. The OECD has highlighted the necessity for Mexico to enhance its enforcement of foreign bribery laws and to implement recommended reforms to improve accountability and transparency.

In 2023, Mexico's economy grew by 3.1 percent, with an average GDP growth of 2 percent from 1994 to 2023. The country is a significant trading partner for the United States, being its largest trading partner in goods and the second-largest export market, while also attracting substantial foreign direct investment, particularly from the U.S., which amounted to USD 236 billion in 2022.

Mexico is generally open to foreign direct investment (FDI) across most sectors, 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 access to reliable energy and regulatory certainty. Despite these challenges, the U.S. remains the largest source of FDI in Mexico, with significant investments concentrated in sectors such as automotive, aerospace, and telecommunications.