How U.S. Whistleblower Laws Offer Opportunities to Combat Corruption in Mexico

From June 12-15 , Stephen M. Kohn, leading whistleblower attorney of Kohn, Kohn & Colapinto LLP, delivered keynote speeches at a series of events in Mexico City and Monterrey. The discussions focused on how whistleblowing can be used as a tool aimed at fighting corruption in Mexico.

Kohn, who also serves as the Chairman of the Board of the National Whistleblower Center (NWC), made the visit as part of NWC’s Americas Project. This initiative is an ongoing effort to increase awareness and support the adoption of effective whistleblower protection laws and transnational cooperation throughout the Americas.

The events were co-organized by the Tecnologico de Monterrey’s Inviativa de Transparecia, Anticorrupción y Digitalization ITAC. The ITAC initiative was established in 2018 by the Tecnologico de Monterrey, to promote transparency, accountability, honesty, integrity, prevention, and the fight against corruption.

During his talks, Kohn highlighted the use of whistleblowing as a means of fighting corruption in Mexico and the significance of the Foreign Corrupt Practice Act (FCPA) as international law. He provided several examples of FCPA cases demonstrating that whistleblowers have been instrumental in exposing fraud and misconduct over the years and that, as whistleblower laws have become more robust, there has been an increase in the number of whistleblowers coming forward.

“This law is the first trans-national anti-corruption law that incorporates the most powerful and effective whistleblower provisions ever adopted, it’s unbelievable,” Kohn explained. “It has the most important transnational meaning as it can fight corruption anywhere in the world.”

Kohn also emphasized the significance of whistleblowers in fighting corruption, citing the United States Strategy Countering Corruption and OECD reports. Both reports recommend urgent implementation of laws that safeguard whistleblowers who report in good faith and with reasonable grounds.

“When whistleblowers challenge corrupt power structures, the corrupt often fight back with physical threats and legal harassment,” Kohn said. “The United States stands in solidarity with whistleblowers and will take the following measures to protect their freedom by providing support and engaging in increased education.”​

Kohn additionally emphasized the importance of the AML Whistleblower Improvement Act, a landmark law which he worked for two years to help get passed. This law offers protection and incentives for those who report money laundering and sanctions violations, turning the AML Whistleblower Program into an effective whistleblower program. Kohn believes that this law is a crucial tool in the fight against corruption in Mexico, stating that it places significant legal pressure on banks to combat money laundering.

“Anti-Corruption forces in Mexico appear to be serious about tackling money laundering and bribery. The Tecologico de Monterrey has provided clear leadership addressing these issues, and members of Congress, representatives of the Embassy, local city mayors, and anti-corruption organizations are all dedicated to turning the Corruption Tide around and starting on a pathway to accountability,” Kohn said. “We look forward to working with our colleagues in Mexico to achieve these incredibly important goals.”