Holland & Knight Mexico Practice - Corporate Compliance & Anticorruption

Corporate Compliance and Anti-Corruption The Corporate Compliance and Anti-Corruption Team is a multidisciplinary group of lawyers with experience in laws and regulations related to anti-corruption, anti-bribery, anti-laundering, economic sanctions, anti-harassment, anti-discrimination, internal investigations/audits and rapporteurs/protection against retaliation. The Holland & Knight team has bilingual and bicultural lawyers. The combination of years of practical experience and knowledge of our lawyers provides clients with a comprehensive approach to meet their compliance and training needs in order to comply with applicable laws and regulations, and thus avoid problems that domestic and foreign companies face in the challenging environment of compliance today.

The central mission of our team is simple: to design or reinforce compliance programs that are practical and adjusted to the client's business model, with the least possible alterations, and in a way that is efficient, timely and economically viable. Our customer base includes large and small companies in virtually every industry.

WHAT WE DO? Regardless of whether a client is a private company starting out or a public company within the Fortune 100, adequate and up-to-date corporate governance is more important today than ever.

We offer:  corporate clients a compliance and training program that is tailored to their needs, economically viable, cutting-edge, robust and requires only a modest commitment in terms of time  an appropriate corporate governance and compliance program that can literally save the assets of a company and its investors  years of knowledge and experience  advice that a small investment today can potentially prevent huge costs in the future and, in some cases, the closure of the company

WHY ARE COMPLIANCE AND TRAINING PROGRAMS IMPORTANT?  U.S. Sentencing Guidelines: a company must have standards of conduct and internal controls reasonably capable of reducing the possibility of criminal conduct and other inappropriate behaviors  They operate as an "insurance policy" in case an employee or consultant acts illegally  Banks and investment funds in the United States are requiring a robust compliance program as a condition for conducting business  Increase the value of the company  Reduce the probability of being investigated under the Foreign Corrupt Practices Act (FCPA); once an investigation begins, the average time until a resolution is reached is approximately 4.25 years  It is necessary to provide employees, third parties, executives and directors with a detailed guide on the approach that the company intends to follow in its business relationships

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WHAT ARE THE LATEST TRENDS? In November 2017, a new and updated corporate criminal prosecution policy was announced under the FCPA.  Presumption: the U.S. Department of Justice (DOJ) will not criminally prosecute a company that 1) discloses the facts voluntarily, 2) cooperates fully, and 3) implements timely and adequate amends (aggravating circumstances may defeat this presumption)  This new policy details how the DOJ evaluates an appropriate compliance program, which varies depending on the size and resources of the company  International cooperation in criminal matters has reached unprecedented levels  There has been a remarkable growth in multijurisdictional investigations

WHAT DOES THE GOVERNMENT WANT TO SEE?  A "compliance culture" implemented, emphasized and tailored by the most important executives of the company  Training programs for key personnel, including: o employees in high-risk areas o external consultants o sales and business development teams  Robust internal controls and automated scanning and detection software  Reasonable and continuous due diligence regarding clients and counterparts  Periodic risk assessments audits and results measurements Holland & Knight's team is always at the forefront with respect to those developments in compliance and training that affect different industries. Our attorneys are frequently invited to speak at seminars and conferences on compliance and research issues, as well as to publish articles related to the subject.

MEXICO'S NATIONAL ANTI-CORRUPTION SYSTEM  In response to increased social pressure triggered by corruption allegations involving top Mexican officials, Mexico has undertaken one of the most comprehensive and ambitious anti-corruption reforms in the world.  A sweeping constitutional amendment in 2015, and seven legislative statutes passed in 2016, gave birth to the Mexican National Anti-Corruption System (Sistema Nacional Anticorrupción), an intricate network of laws, governmental institutions, public officials and civilians designed to prevent, investigate and sanction corrupt practices involving public officials, as well as companies and individuals in the private sector.  The National Anti-Corruption System – the most important element of which came into force in July 2017 – raises multiple compliances and enforcement challenges for companies doing business in Mexico.  Focusing on offenses such as bribery, embezzlement, influence peddling, misuse of government resources and obstruction of justice, among others, the Mexican system imposes stiff penalties for responsible companies or individuals that may include imprisonment, fines up to twice the amount of

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any illegally obtained benefits, disqualification to participate in public procurement, suspension of the company's activities and even compulsory dissolution.  The National Anti-Corruption System is overseen and enforced by a coordinated web of public institutions representing all branches of government (executive, legislative and judicial) at both the federal and state levels, including the newly created National Prosecutor's Office, tasked with investigating and prosecuting corrupt practices.  Companies operating in Mexico may now be subject to the National Anti-Corruption System, as well as to other major anti-corruption regimes (including the FCPA and the U.K. Bribery Act), which stresses the need to adopt a global approach toward compliance and government enforcement.

TAKE ADVANTAGE OF OUR EXTENSIVE LEGAL REPRESENTATION We have vast experience in counseling and advising Mexican and foreign companies of all sizes and in all industries on virtually every type of anti-corruption issue. Our team offers a proactive approach that is tailored to the specific issues and needs of each client.

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