Investment and Enforcement Updates
Mexico’s ambitious new plan to invest 5.6 trillion pesos (approximately $323 billion) in public-private partnerships in eight critical sectors–including infrastructure, energy, and healthcare–presents significant opportunities for foreign investors but is set against a backdrop of intensified US enforcement against cartels and other transnational criminal organizations (TCOs).
Under the new plan, announced on February 3, 2026 by President Claudia Sheinbaum, Mexico’s government will implement these investments–in which it will hold majority shares in joint ventures with private partners–before 2030. Although the plan promises exciting new investment opportunities over the next four years, these opportunities are complicated, in part, by the Trump Administration’s enforcement aim of “total elimination” of cartels–many of which are based in Mexico.
Recent events have shown the Mexican government’s willingness to help the US Government combat cartels. On January 21, 2026, Mexican authorities extradited 37 alleged cartel members to the United States. Among those arrested were individuals affiliated with the Sinaloa and Jalisco New Generation cartels, which the US State Department designated as foreign terrorist organizations (FTOs) in February 2025. These alleged cartel members now face charges of narcoterrorism and providing “material support” to an FTO.
In light of the current spotlight on FTO-related enforcement and the opportunity to participate in joint ventures with the Mexican government, companies may want to consider implementing an enhanced compliance framework when investing in Mexico.
Implications
Companies that engage with FTOs–including Mexican cartels–may face investigations and civil or criminal liability under US law. As we’ve previously discussed, the Anti-Terrorism Act (ATA), which carries significant civil liability in the form of treble damages, allows US nationals injured by an act of international terrorism to sue companies that do business with FTOs. See 18 U.S.C. § 2333. Companies could also face exposure for violations of US sanctions, anti-money laundering laws (AML), and criminal anti-terrorism statutes.
Moreover, companies partnering with or regularly engaging with the Mexican government may face heightened scrutiny under the Foreign Corrupt Practices Act (FCPA), the primary US law prohibiting bribery of non-US officials. The FCPA’s anti-bribery provisions prohibit offering, promising, or providing money or anything of value, directly or indirectly, to foreign officials (i.e., non-US government officials) to influence their decisions or secure an improper business advantage. Violations of such provisions can result in criminal and civil liability.
Furthermore, as we noted in a prior post, the Trump Administration’s FCPA Guidelines explicitly direct enforcement agencies to prioritize investigations where the alleged misconduct: “(1) is associated with the criminal operations of a Cartel or TCO; (2) utilizes money launderers or shell companies that engage in money laundering for Cartels or TCOs; or (3) is linked to employees of state-owned entities or other foreign officials who have received bribes from Cartels or TCOs.”
Key Takeaways
With the eyes of the US government turned towards Mexico, potential investors may consider the following steps:
- Evaluating supply chains. Evaluate the existing or proposed supply chain and seek to address potential exposure to FTOs or other sanctioned parties, as cartels are known to operate in and/or own a variety of businesses within traditional supply chains, such as shipping and licensing.
- Enhancing and/or implementing due diligence and monitoring practices. Assess existing due diligence processes, and anti-bribery, AML, and Know Your Customer (KYC) protocols to determine if they should be amended in light of the US Government’s stated enforcement priorities. This may include: strengthening the due diligence of vendors, suppliers, customers, or other third parties to identify and mitigate any potential FTO exposure; and implementing ongoing monitoring processes to track these relationships and regular updates to screening lists/tools to account for new designations.
- Crafting comprehensive training programs and effective escalation processes. Review and revise policies and training to reflect the risks related to FTOs and engagements with Mexican government officials. These materials should incorporate any “lessons learned” from past instances of misconduct and be updated on a regular basis. Enhance compliance hotlines and other reporting mechanisms to facilitate prompt escalation, investigation, and remediation of concerns by legal and compliance teams.
- Conducting ongoing risk assessments. Revaluate risks as business operations and government enforcement priorities evolve, allocating compliance resources dynamically and responsively.
Mexico’s new public-private investment plan presents significant economic potential, yet the heightened US focus on FTOs and anti-corruption laws introduces a critical layer of risk. To capitalize on these opportunities while safeguarding against legal and reputational harm, investors may consider adopting a proactive and robust compliance strategy–supply chain vetting, enhanced due diligence, comprehensive training, and continuous risk assessment–to navigate this complex, evolving landscape.
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This blog post is part of an ongoing series exploring the legal, commercial, and strategic complexities of operating in conflict zones and high-risk jurisdictions. Contributors to this series include Freshfields attorneys Timothy Harkness, Nabeel Yousef, Kate Cooper, Joshua Kelly, Sylvia Noury, Alexandra van der Meulen, Carsten Wendler, Matthew Haggans, Piusha Bose, Maria Slobodchikova, Paige von Meheren, Andrew Bulovsky, Jackson Myers, Heather Cameron, Elischke de Villiers, Keian Razipour, Omeed Askary, Jordan McGuffee, and Paloma Palmer. Stay tuned for upcoming posts, and please reach out with topics, questions, or experiences you’d like us to cover as part of this ongoing conversation.
For a collection of related previous posts and webinars, please click this link.
