Between the Lines of Compliance

On September 10, 2025, the first session of the webinar series “Corporate Compliance Roadmap: From Strategy to Practice” was held in collaboration with Kilpatrick Executive and with the support of the Italian Chamber of Commerce in Mexico. Today’s business environment demands more than just talent—it requires solid structures, transparency, and strict regulatory compliance, with this premise in mind, this project was created with a clear objective: to support executives, board members, and companies in adapting to ongoing regulatory changes, while fostering a space for dialogue between legal and corporate experts. It’s not just about “explaining regulations,” but about translating them into practical tools that help fulfill legal obligations, mitigate risks, and strengthen corporate reputation in an increasingly scrutinized market.

In the first episode, titled “Between the Lines of Compliance,” we explored three critical topics on Mexico’s corporate agenda: Corporate Governance, Anti-Money Laundering, and Ultimate Beneficial Ownership. Below, we share the key highlights from the session.

Corporate Governance: A Compass for Sustainability and Trust

In today’s business world, where trust and transparency are more valuable than ever, corporate governance and compliance have become inseparable allies. Although they are sometimes seen as technical or distant concepts, they are in fact deeply embedded in the decisions companies make every day.

Corporate governance establishes the structures and processes through which shareholders, boards of directors, executives, and other stakeholders interact. It is the framework that provides order and direction. Compliance, on the other hand, is the practical expression of corporate governance, it encompasses the practices and procedures that ensure adherence to external laws and regulations.

Both elements work together to strengthen three fundamental pillars of any organization: transparency, accountability, and reputation. These factors are not only important for attracting investment or talent, but also for ensuring long-term sustainability.

During the webinar, the new edition of the Code of Principles and Best Corporate Practices in Mexico was highlighted, a key document that guides companies toward more modern and responsible management. Among the most relevant changes, the roles of the risk and compliance area were reinforced, and new recommendations were introduced, such as a chapter dedicated to family-owned businesses.

One of the most notable points was the expansion of the functions of the risk and compliance body. It is no longer enough to review financial or legal aspects: today, social, environmental, reputational, psychosocial, organizational, and general ethical or integrity-related risks must also be considered.

In addition, the importance of companies knowing and complying with applicable laws was emphasized. To this end, it is recommended to implement compliance programs that include, for example, the protection of personal data through a Personal Data Security Management System.

Regarding family businesses, their importance in the Mexican business ecosystem is recognized, and it is suggested that they adopt mechanisms that allow them to transcend generations, such as the creation of a family protocol to help define clear rules on participation and succession within the business.

Anti-Money Laundering Law: Obligations That Impact the Board’s Agenda

One of the most discussed topics was the reform of the Anti-Money Laundering Law, which regulates multiple sectors (construction/real estate, non-profits, professional service providers, notaries, among others). Among the obligations for those engaged in vulnerable activities are: registration in the registry, client identification, information retention for 10 years, risk-based assessments, having manuals, training, automated monitoring, and audits. Even if your organization does not engage in “Vulnerable Activities,” it now faces cross-cutting duties related to identifying the Ultimate Beneficial Owner.

Non-compliance can not only result in multimillion-dollar fines or criminal penalties but also cause serious reputational damage. Hence the urgency to evolve toward a preventive strategy, integrating risk management into the corporate DNA.

Ultimate Beneficial Owner: Transparency as a Pillar of the System

Starting in 2022, all Mexican companies must identify the individual(s) who ultimately benefit from or control the company; however, this year, as a result of the reform to the Anti-Money Laundering Law, this obligation has been reinforced and lengthened. The webinar analyzed the differences between the regulations governing the concept of the Ultimate Beneficial Owner. For example, the threshold for control under the Anti-Money Laundering Law is 25%, while under the Federal Tax Code (CFF), it is 15%.

It was also discussed how recent regulatory changes have affected procedures involving notaries, who are required to verify and identify the Ultimate Beneficial Owner when involved in certain legal acts.

In practice, identifying the Ultimate Beneficial Owner can become a true exercise in “corporate archaeology,” especially in multinational groups with structures spanning multiple jurisdictions. Documentary precision and procedural clarity will be key to avoiding sanctions.

At Cannizzo, Ortiz y Asociados, S.C., we can advise you on the implementation of the changes to remain in compliance and avoid possible sanctions. Our team of experts is available to provide personalized advice and support in the adoption of this new regulation.

 For more information, please contact Anahí Serrano at [email protected] and Karen Ortega at [email protected]

Yours sincerely,

Cannizzo