In the fast-paced world of global trade, organizations in Mexico face unprecedented attention from international regulators, and agreements like the United States-Mexico-Canada Agreement (USMCA) are raising the bar on compliance standards. Recent data underscores the urgency. According to reports from Mexico's National Banking and Securities Commission (CNBV), financial institutions faced fines exceeding 185 million pesos (about USD 9.8 million) in recent years for anti-money laundering (AML) compliance failures, including deficiencies in transaction monitoring and inadequate due diligence. The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has also intensified actions against illicit financing networks involving Mexico, highlighting the need for comprehensive risk mitigation.
This isn't just about avoiding fines—it's about safeguarding operations from risks that could impact everything from supply chains to day-to-day operations. To better understand this landscape, we connected with Sergio Dominguez, Pinkerton Country Director for Mexico, for his expert perspective. He shares insights on the investigative market, the sectors facing the greatest needs, and how Pinkerton guides clients through these challenges.
PNK: How is the regulatory environment in Mexico evolving, and what does it mean for businesses?
Sergio: Currently, Mexican companies are under increasingly intense scrutiny from the authorities of our main trading partner, the United States of America. Not only the financial institutions, but companies across all sectors are increasingly responsible for diligently and thoroughly implementing Know Your Customer (KYC) and Know Your Supplier (KYS) programs to mitigate the risk of associations with third parties linked to criminal activities such as fraud, drug trafficking, money laundering, and terrorism. So, the appetite for the most comprehensive due diligence investigations, such as those provided through our SCOUT reports, will be taking a preponderant relevance.
This assessment highlights a market ripe for growth, driven by regulatory pressures and the complexities of U.S.-Mexico trade. Consider a mid-sized Mexican exporter in the manufacturing sector partnering with a U.S. distributor. Without thorough KYS, they might unknowingly engage a supplier linked to money laundering schemes, leading to U.S. sanctions and business disruptions.
Pinkerton's SCOUT Due Diligence solutions, which include intelligence from global watchlists and open-source intelligence (OSINT), could identify such red flags early, preventing costly compliance breaches. Similarly, a tech firm expanding its operations might use these investigations to screen potential vendors for fraud risks, ensuring supply chain integrity amid tariff fluctuations and geopolitical tensions reported in trade analyses from 2023 to 2025.
PNK: Sergio, what makes Pinkerton stand out in Mexico, and why should businesses team up with you?
Sergio: It is a combination of both unparalleled global and local investigative capabilities.
- Access to Reliable Watchlists and Sanctions Databases: Pinkerton taps into the most trusted watchlists and sanctions databases, allowing for the prompt identification of red flags worldwide.
- Expertise in Open-Source Intelligence: Pinkerton’s open-source intelligence experts are true authorities, identifying relevant publicly available information that significantly impacts our clients' decision-making processes.
- Deep Knowledge of Mexican Databases and Records: The organization’s analysts have a solid grasp of Mexican databases and physical records needed to verify litigation history (including past criminal activities), business ownership, assets, and personal connections.
- Boots-on-the-Ground Capabilities: Our on-the-ground teams across the country handle essential field checks and intelligence gathering to fully understand third parties — whether individuals or companies — while always adhering to our clients' compliance standards.
What truly differentiates Pinkerton is this seamless blend of global reach and local expertise. Take, for example, a multinational bank in Mexico vetting a high-value client. A competitor might rely solely on online databases, missing nuanced local records. Pinkerton, however, can combine sanctions database checks with on-the-ground verifications, uncovering hidden affiliations that could signal terrorism financing risks. This approach not only mitigates immediate threats but also builds long-term trust. In the retail sector, for example, partnering with Pinkerton could involve field inquiries to confirm a supplier's asset position, avoiding partnerships with entities involved in drug trafficking networks, as seen in recent FinCEN advisories.
PNK: From what you've seen, what are the main sectors in Mexico that need SCOUT solutions, and how does Pinkerton adapt them to fit each one?
Sergio: Over the past 25 years, I’ve led and managed due diligence programs across multiple sectors. Any company with personnel recruitment activities and exposure to external vendors likely faces the same risks of engaging with questionable parties.
We have been receiving an increasing number of requests from our clients in the banking, pharmaceutical, and retail industries. Our approach includes both preventive and investigative solutions, such as assessing the clients’ current due diligence programs to provide them with gap analysis and corrective action plans; executing the clients’ high-risk KYC/KYS pre-transaction due diligence reviews through SCOUT; and performing specific SCOUT in-depth investigations when the client suspects collusion between specific individuals and locally known criminal groups.
Tailoring is key here. In banking, where CNBV fines for AML lapses are frequent, Pinkerton might conduct a gap analysis identifying weaknesses in KYC processes, followed by a SCOUT investigation for high-risk transactions with money laundering ties. For the pharma industry, amid supply chain vulnerabilities, an investigation could uncover collusion with counterfeit drug networks, providing detailed reports to inform swift action. In retail, SCOUT Business investigation could assess vendors during expansions, mitigating fraud risks and meeting compliance with U.S. trade regulations.
PNK: In your words, how would you summarize the value proposition of Pinkerton Mexico regarding due diligence solutions?
Sergio: We can provide tailored solutions leveraging our global capabilities, following an Assessment-Design-Deliver approach, with the best possible combination of technology, compliance, and human talent to help our clients mitigate the risks associated with new personnel, clients, and vendors, or correct any issues observed with their ongoing relationships.
As Mexico's business landscape evolves under amplified international scrutiny, robust KYC and due diligence are non-negotiable for sustainable growth. Pinkerton's SCOUT solutions, backed by global resources and local insights, empower companies to navigate these challenges effectively. Whether in banking, pharma, or retail, our tailored approaches help mitigate risks and foster secure partnerships. Ready to enhance your compliance strategy? Contact Pinkerton today to explore how we can support your needs.
