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.

Crime and corruption remain significant challenges in Mexico, with various forms of corruption permeating both the public and private sectors, including bribery, fraud, and conflicts of interest. Despite the government's efforts to implement anti-corruption reforms and establish frameworks for accountability, civil society advocates argue that more systematic and effective actions are necessary to combat corruption at all levels of government.

The country is also a major hub for organized crime, particularly drug trafficking, human trafficking, and extortion, with criminal organizations exerting substantial territorial control and engaging in a range of illicit activities. The government's militarized approach to tackling organized crime has seen limited success, compounded by a judicial system plagued by corruption and inefficiency, which has eroded public trust in law enforcement and hindered effective crime prevention and prosecution efforts.

Mexico's economy has shown resilience, becoming the largest trading partner of the United States in goods by 2023, with bilateral trade increasing significantly since 1994. The country's GDP growth averaged around two percent over the past three decades, with a notable increase to 3.1 percent in 2023, although inflation has surpassed the Central Bank's targets, prompting concerns about fiscal stability, particularly with a projected budget deficit of 4.9 percent of GDP for 2024. While Mexico remains an attractive destination for foreign direct investment, especially from the U.S., recent regulatory changes and policy uncertainties—particularly in the energy sector—have raised concerns among investors regarding the operating environment and the government's commitment to transparency and competitive practices.