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 pervasive issue in Mexico, affecting both public and private sectors, with reports of bribery, fraud, and conflicts of interest. Despite the government's efforts to implement anti-corruption reforms, including the establishment of the National Anti-Corruption System and the appointment of an Independent Prosecutor General, civil society argues that more systematic actions are needed to combat corruption effectively. The OECD has highlighted the need for Mexico to enhance enforcement of foreign bribery laws and implement further reforms to improve transparency and accountability.

In 2023, Mexico experienced a GDP growth of 3.1%, with an average growth rate of 2% from 1994 to 2023. The country is the largest trading partner of the United States in goods, and the U.S. is Mexico's primary source of foreign direct investment, amounting to USD 236 billion as of 2022. However, inflation reached 4.9% in December 2023, exceeding the Central Bank's target, and the government proposed a budget deficit of 4.9% of GDP for 2024.

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, especially in the energy sector, have raised concerns among investors regarding policy uncertainty and access to reliable energy. Despite these challenges, Mexico attracted USD 36.1 billion in FDI in 2023, with significant investments concentrated in sectors like automotive, aerospace, and telecommunications.